News Summary
CenterPoint Energy has sold its natural gas distribution systems in Louisiana and Mississippi to Delta Utilities for $1.2 billion. The deal covers about 12,000 miles of pipelines serving 380,000 customers. Delta, backed by Bernhard Capital Partners, aims to create more modern natural gas utilities. The acquisition received necessary regulatory approvals, ensuring a smooth transition. CenterPoint plans to invest proceeds into enhancing safety and reliability in other states, while Delta is expanding its operations further in the region. This transition highlights the evolving energy landscape and its impact on consumers.
CenterPoint Energy Sells Natural Gas Distribution in Louisiana and Mississippi
Louisiana and Mississippi are witnessing a significant shift in the natural gas landscape as CenterPoint Energy has finalized the sale of its distribution systems to Delta Utilities for $1.2 billion. This deal, announced this week, involves approximately 12,000 miles of main pipeline that serves around 380,000 metered customers across both states.
Impact on Customers
For residents and businesses in Louisiana and Mississippi, the sale means that Delta Utilities, a company supported by private equity firm Bernhard Capital Partners, will take over the natural gas services previously provided by CenterPoint. This transition aims to modernize and enhance the efficiency of multi-state natural gas utilities. Customers can expect a seamless switch, with Delta stepping in immediately to manage services.
Approval Process Completed
The acquisition was successfully completed after gaining all necessary federal and state regulatory approvals, ensuring it met the standards set by the Hart-Scott-Rodino antitrust law and receiving endorsements from the public service commissions of both Louisiana and Mississippi. This comprehensive approval process has facilitated a smooth transition for the customers affected by the sale.
Future Plans for CenterPoint Energy
Looking ahead, CenterPoint Energy plans to utilize the proceeds from this $1.2 billion sale to support its long-term growth strategies. The funds will be reinvested into initiatives aimed at improving safety and reliability for customers in other states including Texas, Indiana, Minnesota, and Ohio. CenterPoint currently provides energy to approximately 7 million customers across these regions.
Resiliency Investments in Texas
In Texas, CenterPoint is proposing a major $5.75 billion resiliency plan designed to strengthen its electrical systems in the state. This plan includes enhancements such as installing automation devices, burying electric systems underground, reinforcing power poles, and managing vegetation around power lines. These investments are aimed at ensuring reliability and safety for the energy consumers in Texas.
Delta Utilities Expanding Its Reach
Meanwhile, Delta Utilities is not letting the grass grow under its feet. The company is in the process of acquiring Entergy’s two regulated gas distribution companies in Louisiana, which provide service to approximately 95,000 households in Baton Rouge and about 109,000 in New Orleans. This strategy underscores Delta’s ambition to become a significant player in the natural gas sector, reinforcing its belief in the importance of natural gas as a transitional energy resource.
Commitment to Employees and Customers
CenterPoint Energy has expressed appreciation for the employees who contributed to the Louisiana and Mississippi utilities during this transition. The dedication to serving and supporting customers is a priority for both CenterPoint and Delta, with the overarching goal of providing positive outcomes for community members and workers amid this significant shift.
As these developments unfold, the energy sector in Louisiana and Mississippi is on the brink of exciting transitions. Both CenterPoint Energy and Delta Utilities are taking meaningful steps to enhance their commitments to safety, reliability, and customer service. Observers will be keen to see how this major restructuring impacts the energy dynamics in the coming months and years.
Deeper Dive: News & Info About This Topic
- Utility Dive: CenterPoint Energy Completes Sale of Louisiana and Mississippi Gas
- Wikipedia: Natural Gas Industry
- Business Wire: CenterPoint Energy Completes Sale of Utility Businesses
- Google Search: CenterPoint Energy News
- Reuters: CenterPoint Energy Increases Capital Plan
- Encyclopedia Britannica: Natural Gas
- Houston Chronicle: CenterPoint Energy History
- Google News: Natural Gas Distribution Sale
Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
