Delta Utilities on announced last week that it has completed its acquisition of Entergy’s New Orleans and Baton Rouge natural gas distribution networks.
Entergy’s natural gas business serves about 108,000 homes and businesses in New Orleans and some 96,000 homes and businesses in the Baton Rouge area. The acquired assets include about 3,700 miles of natural gas pipelines and 2,200 miles of service lines.
Delta, a natural gas utility headquartered in New Orleans, is a portfolio company of Bernhard Capital Partners, a Baton Rouge private equity firm that’s investing heavily in the realm of infrastructure.
The transaction has created 100 new corporate jobs to support safe and reliable operations, Delta says. The company also offered some 200 Entergy employees the opportunity to continue in their roles serving natural gas customers under its umbrella, and 100% of those employees accepted.
In a statement, Entergy Chair and CEO Drew Marsh says the deal allows Entergy to sharpen its focus on its growing electric operations and invest in a “stronger, more resilient future” for the communities it serves.
First proposed in October 2023, the transaction received final approval in late February when the Metro Council signed off on it and approved the transfer of Entergy’s natural gas franchise rights within Baton Rouge. The sale had already been approved by the Louisiana Public Service Commission and the New Orleans City Council.
Customers who previously received natural gas service from Entergy in New Orleans and Baton Rouge have been automatically transferred to their new provider. Delta says there will be no interruption to service or changes to current rate structures. Financial terms of the transaction were not disclosed.
This isn’t the first acquisition Delta has made this year. In April, it acquired CenterPoint’s natural gas assets in Louisiana and Mississippi.
