Stop the Sale: It’s Not Too Late to Protect Your Gas Bill!

09.04.2024

New Orleans City Council

Entergy New Orleans (ENO) has applied for permission from the New Orleans City Council to sell its gas distribution system to a brand-new utility called Delta States Utilities New Orleans (DSU).

This sale could have serious consequences for you and our community!

More on the Application

In December 2023, Entergy New Orleans (ENO) and a brand-new utility called Delta States Utilities New Orleans (DSU) – a subsidiary of private equity firm Bernhard Capital that has never served a single customer – filed a joint application with the New Orleans City Council (CNO) for the sale of ENO’s fossil gas (i.e. ‘natural’ gas) distribution system to DSU and for permission for DSU to begin acting as the retail gas utility for New Orleans.
Bernhard Capital is also seeking to acquire the fossil gas distribution systems of CenterPoint Energy in both Louisiana and Mississippi, and recently received a unanimous vote from the Louisiana Public Service Commission (LPSC) to purchase Entergy Louisiana’s (ELL) gas distribution system.

The deal is bad for ratepayers because:

DSU has never served a single customer.
Despite agreeing to a temporary rate freeze, DSU has admitted plans to expand gas infrastructure in the City, which will lead to inevitable rate increases.
Ratepayers will have yet another utility to contend with. This means another company to fight with over inaccurate bills.
As the Sewerage & Water Board – the current largest retail gas customer in the City, representing roughly 10% of ENO’s retail gas revenues – moves to electrify its operations, and more homes and businesses do the same under federal incentives, a shrinking pool of vulnerable ratepayers – renters and those who cannot afford to electrify their homes – will be left behind to shoulder the cost of DSU’s expansion plans.
It is unclear how much of DSU’s administrative costs will be borne by New Orleans ratepayers should its deals to purchase other gas systems fall through.
As a private equity firm that is not traded publicly, DSU will have even fewer federal regulatory reporting requirements, meaning less transparency and accountability.

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The deal is bad for the climate because:

It would create a new utility whose sole business is selling and burning fossil fuels, making the transition to clean energy more difficult. While ENO has ownership of both services, the Council is in a position to direct policy (like winding down fossil gas or managing the reduction in gas revenues and customers) that is in line with the City’s climate goals in a way that reduces the risk to all ratepayers.
It would hinder the Council’s own climate and clean energy goals under the City’s Renewable and Clean Portfolio Standard (R-21-182) and the Council’s target of powering 100% of municipal operations with renewable energy by 2025 (R-22-11), as well as the goals of both the Mayor’s and the State of Louisiana’s Climate Action Plans.

DSU promises “economic development” with new jobs and a new home office in New Orleans. Every new dime that goes toward these developments will come from the pockets of their captive gas customers.

We are not suggesting that New Orleans end the sale of gas tomorrow. However, the natural attrition of revenues to operate the fossil gas distribution system should be addressed today with decisions that prevent extreme energy costs for residents in the future. Before making a decision on whether or not this sale should take place, the Council must understand the bill impact of expected revenue loss to customers. They must demand this information from ENO.

The Council’s own rules under R-06-88 require a showing of both short and long-term benefits for ratepayers. ENO and DSU have demonstrated neither.

Call or email your Councilmembers to say NO to this deal! Demand they protect our wallets & our planet.

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Councilmembers Contact Information

Councilmembers contact information can be found below. If you’re unsure who your Councilmember is you can find out on their website here.

At-Large – Helena Moreno: helena.moreno@nola.gov, 504-658-1060
At-Large – Jean Paul “JP” Morrell: jp.morrell@nola.gov, 504-658-1070
District A – Joseph I. Giarrusso III: joseph.giarrusso@nola.gov, 504-658-1010
District B – Lesli Harris: lesli.harris@nola.gov, 504-658-1020
District C – Freddie King III: freddie.king@nola.gov, 504-658-1030
District D – Eugene J. Green: eugene.green@nola.gov, 504-658-1040
District E – Oliver Thomas: oliver.thomas@nola.gov, 504-658-1050

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