From Entergy to Delta: How a New Utility Could Affect Your Gas Bill

06.20.2024
Utility Regulation
Entergy New Orleans
Bills & Economics

In December of last year, Entergy New Orleans (ENO) and a newly-formed utility called Delta States Utilities (DSU) – a subsidiary of private equity firm Bernhard Capital – filed a joint application with the New Orleans City Council for the sale of ENO’s fossil gas distribution system to DSU.

​The proposed sale would mean that Louisianans could soon be receiving a bill from yet another utility, the sole business of which is to sell climate-warming fossil gas. While DSU has proposed a temporary rate freeze, its aggressive plans to expand fossil gas investments in the city will mean that ratepayers will ultimately be faced with increased rates.​

Furthermore, as the Sewerage & Water Board continues to reduce its dependence on fossil gas for electricity generation, and as more homes and businesses electrify for efficiency and air quality reasons, those residents and businesses left using fossil gas will bear more and more of the costs of building out and maintaining the distribution infrastructure. While DSU has proposed to create jobs in New Orleans by basing its headquarters in the city, the amount of administrative costs to New Orleanians depends largely on DSU’s acquisition of other gas distribution systems around the state and in Mississippi, including that of Entergy Louisiana and CenterPoint Energy.

The Alliance has deep concerns about the proposed plan, and has filed testimony with the Council proposing alternatives that would require the gradual retirement of the fossil gas distribution system over time as the city transitions to truly clean renewable energy. Approving this sale would be disastrous for ratepayers and for both the Council’s and the Mayor’s stated climate and clean energy goals.

Stop The Sale!

It’s Not Too Late to Protect Your Gas Bill. This sale could have serious consequences for you and our community!

Take Action
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