July 25, 2025

Major Shift in Natural Gas Ownership in Louisiana and Mississippi

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.

Louisiana – CenterPoint Energy has completed a significant transaction, finalizing the sale of its natural gas distribution systems in Louisiana and Mississippi to Delta Utilities for $1.2 billion. This announcement, made on Tuesday, is a pivotal event in the energy sector, affecting roughly 380,000 metered customers across the region and involving approximately 12,000 miles of main pipeline.

The sale involves the transfer of operations to Delta Utilities, which is supported by Bernhard Capital Partners. Delta Utilities aims to develop modern, multi-state natural gas utilities, with a focus on strengthening community connections and providing reliable energy services.

The acquisition process has been streamlined, as Delta Utilities has received all necessary federal and state regulatory approvals. These include clearance under the Hart-Scott-Rodino antitrust law and formal approvals from both the Louisiana and Mississippi Public Service Commissions, allowing for a smooth transition of service to Delta Utilities.

With immediate effect, Delta Utilities will take over the service for the customers who were previously served by CenterPoint Energy in the two southern states. This change marks a new chapter for those customers, as Delta Utilities begins to implement its operational strategies.

CenterPoint Energy’s President and CEO has expressed appreciation for the employees who supported the ongoing operations of the Louisiana and Mississippi utilities during this transition period. This sale transaction not only impacts customer service but also aligns with CenterPoint’s long-term growth strategy. The funds generated by the sale are intended to support the company’s ongoing plans to enhance its capital investments, with an emphasis on safety and reliability for all its customers.

CenterPoint Energy provides services across multiple states, including Indiana, Minnesota, Ohio, and Texas, catering to approximately 7 million customers. In Texas, the company has proposed a substantial $5.75 billion system resiliency plan. This initiative includes projects such as installing automation devices, undergrounding electric systems, reinforcing power poles, and managing vegetation to improve overall service resilience and reliability.

In addition to the acquired gas distribution systems in Louisiana and Mississippi, Delta Utilities is on the verge of completing another acquisition. The company is finalizing the purchase of Entergy’s two regulated gas distribution networks in Louisiana, which serve around 95,000 homes in Baton Rouge and 109,000 homes in New Orleans. This strategic move is part of Delta Utilities’ broader plan to expand its presence and capabilities in the energy market.

Delta’s CEO has indicated that the acquisition of CenterPoint’s gas distribution systems is not merely a short-term investment. Instead, he has emphasized the importance of natural gas as a transitional fuel, suggesting a long-term vision for sustainable energy solutions in the region.

The divestiture of the gas distribution systems allows CenterPoint to shift its focus toward future capital investments within its regulated electric and gas utility sectors. This repositioning aims to align with their growth strategies and ensure enhanced service delivery to all customer bases.

As the landscape of natural gas distribution and energy-related investments evolves, these developments are crucial for both CenterPoint Energy and Delta Utilities, showcasing a significant shift in the management of energy resources in Louisiana and Mississippi.

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