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Delta Utilities Acquires CenterPoint Energy’s Operations

Delta Utilities enhances its energy service infrastructure with the acquisition of CenterPoint Energy.

News Summary

Delta Utilities has made a significant move in the Southern U.S. by acquiring CenterPoint Energy’s natural gas distribution operations for $1.2 billion. This acquisition, approved by the Louisiana Public Service Commission, will enhance service for approximately 380,000 customers in Louisiana and Mississippi. Delta Utilities plans to add more distribution assets and maintain rate stability for its customers, ensuring a smooth transition for CenterPoint’s existing customer base. The company is also committed to community engagement and preserving jobs in the region.

Delta Utilities Makes Big Move in the South

In a significant development for energy consumers across the southern United States, Delta Utilities has successfully completed a massive $1.2 billion acquisition of CenterPoint Energy’s natural gas distribution operations in Louisiana and Mississippi. This move is not just about numbers; it represents a new chapter in energy services for nearly 380,000 customers in the region.

Regulatory Approval Paves the Way

The deal received the green light from the Louisiana Public Service Commission, which voted unanimously to approve the acquisition. This is a crucial step that reassures customers and stakeholders that everything is in line with regulatory standards. With this backing, Delta Utilities is poised to integrate these natural gas operations seamlessly.

Exciting Expansion Plans

As part of its ambitious plans, Delta is looking forward to adding Entergy’s gas distribution assets by this summer. If all goes well, this could significantly extend their service footprint into major areas across the state, including populous cities such as Shreveport, Bossier City, Lafayette, Baton Rouge, and New Orleans. Expansion like this means more customers served, and hopefully, a more robust infrastructure to meet natural gas demands.

Seamless Transition for Customers

For the existing customers of CenterPoint, fear not! The transition is set to be as smooth as possible. There will be no shake-up in how you pay your bills. Customers can expect to continue using the same payment methods, logging into the same website, and utilizing the same auto-pay systems for the next six to twelve months. You’re in good hands!

Welcoming New Employees

Additionally, as part of the acquisition, job offers have been extended to all 500 current employees of CenterPoint. This is a welcoming sign, showing that the company values its workforce as an essential asset. Delta Utilities is committed to not just maintaining jobs but also investing in their growth and potential. There are also plans to make similar offers to Entergy employees when their assets are integrated.

Positioning for Growth

With the strategic acquisition of these assets, Delta Utilities aims to become one of the top 40 natural gas providers in the U.S. Servicing approximately 600,000 customers and generating an impressive $1.7 billion in revenue highlights the importance of this acquisition for the company’s future. Delta Utilities is wholly owned by Bernhard Capital Partners (BCP), a private equity management firm based in Baton Rouge, who do not prioritize short-term profits but focus instead on long-term investments in the natural gas sector.

Stable Rates and Future Planning

While some customers may worry about fluctuating market prices due to increasing demands for energy, Delta Utilities has assured that it intends to maintain the existing rate stabilization plan, tariffs, schedules, and riders. This strategy should help keep energy costs stable for the foreseeable future. Although potential price hikes could arise due to factors like data center power needs and LNG exports, there is optimism for a steady rate environment.

Community Focus

In addition to its operational commitments, Delta Utilities aims to actively participate in local communities and ensure better service following this acquisition. They hope to engage with the local population and stakeholders to foster positive relationships and contribute to community development.

If you’re a customer in Louisiana or Mississippi, this acquisition could lead to exciting changes on the horizon, including enhanced services and stability in natural gas distribution. So stay tuned for further updates as Delta Utilities embarks on this promising journey!