- Entergy (ETR, Financial) completes sale of its natural gas distribution business to Delta Utilities.
- The transaction includes 3,700 miles of pipelines and 2,200 miles of service lines, serving approximately 204,000 customers.
- The sale supports Entergy's strategic shift towards electric utility operations.
Entergy Corporation (ETR) has successfully completed the sale of its natural gas distribution business to Delta Utilities, a move aligning with its strategic focus on expanding electric utility operations. The divestiture covers about 3,700 miles of natural gas pipelines and 2,200 miles of service lines, impacting approximately 204,000 customers in the Baton Rouge and New Orleans areas.
The transaction received all necessary approvals from regulatory bodies, including the Louisiana Public Service Commission and the New Orleans City Council, ensuring a smooth transition. Entergy's decision to sell the gas assets aligns with broader trends in the utility sector towards electrification and cleaner energy sources.
For Entergy, this divestment removes approximately 5,900 miles of gas infrastructure from its responsibilities, allowing the company to streamline its operations and focus on enhancing its electric utility service. This strategic pivot is expected to improve capital allocation and operational efficiency as Entergy invests in modernizing the electric grid and adopting renewable energy solutions.
Entergy's shift towards a more electric-centric utility model is in line with its goal to deliver a resilient energy future, and this handover to Delta Utilities is part of that long-term vision. By concentrating resources and investment on its growing electric operations, Entergy aims to better serve communities with enhanced reliability and sustainability.
