BATON ROUGE — The Louisiana Public Service Commission unanimously approved the sale of CenterPoint Energy’s two natural gas utility assets in Louisiana to Delta Utilities, a core-focused natural gas utility based in New Orleans. A joint application between the parties requesting approval of the sale was filed with the LPSC on April 23, 2024.
This approval authorizes CenterPoint Energy’s regulated natural gas utilities, which serve approximately 245,000 customers across north and south Louisiana, to be acquired by Delta Utilities. The transaction is expected to close in March 2025, after other conditions to close are met, at which time Delta Utilities will take ownership and operation of the systems. This approval does not change anything related to CenterPoint customers’ current service or billing, and no action is required of customers at this time.
“Delta Utilities is ecstatic to receive approval on the sale of CenterPoint Louisiana’s natural gas systems from the Louisiana Public Service Commission, and we are eager to begin serving natural gas customers across our state after the transaction closes. This approval ensures that a reliable and affordable energy source is available to residents and businesses across Louisiana for years to come,” said Tim Poché, CEO of Delta Utilities. “We appreciate the commissioners and their staff for completing a thorough and diligent regulatory review process, and we look forward to building on our partnership in the future—continuing to maintain fair rates for critical natural gas service in Louisiana.”
The sale includes transferring all of CenterPoint’s natural gas utilities and operations in the state, as well as guaranteeing job offers at Delta Utilities to all local employees who primarily work within the Louisiana gas division.
As detailed in the application to the LPSC, there will be no changes to rates for customers as a result of this approval. Delta Utilities has proposed to “step into the shoes” of CenterPoint and is committed to continuing under the existing rate stabilization plan, tariffs, schedules and riders. These commitments will ensure continued rate stability for customers for a significant amount of time.
Delta Utilities and CenterPoint Energy have also submitted a similar application to the Mississippi Public Service Commission to sell CenterPoint’s Mississippi natural gas utility to Delta Utilities.
This transaction is a key piece of Delta Utilities’ vision to create a leading, multi-state utility with a core focus on delivering safe, reliable and affordable natural gas service. Delta Utilities announced plans to acquire Entergy’s natural gas distribution operations in Louisiana in late 2023. The LPSC unanimously approved the sale of Entergy’s natural gas utility that serves Baton Rouge to Delta Utilities in August 2024, and an application for the sale of the New Orleans natural gas distribution system is pending before the New Orleans City Council.
When considering the CenterPoint and Entergy acquisitions in combination, the Delta Utilities umbrella of regulated operations is set to become a $1.7 billion business, serving nearly 600,000 customers across the Gulf South and among the top 40 natural gas providers in the U.S. The establishment of Delta Utilities’ headquarters in Louisiana and transition activities associated with all transactions represent millions in economic investment spread across its operating footprint and will result in 200 new jobs in Louisiana.
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