By T. Scott Boatright
Lincoln Parish natural gas users will notice a change in the bills they receive this month.
That comes after CenterPoint Energy, Inc. (NYSE: CNP) announced on April 1 that it has successfully completed the previously announced sale of its natural gas distribution utilities in Louisiana and Mississippi to affiliates of Bernhard Capital Partners.
The assets include approximately 12,000 miles of main pipeline in Louisiana and Mississippi serving approximately 380,000 metered customers, including those in Lincoln Parish.
A name change comes along with the sale as the company that will serve those customers going forward will be known as Delta Utilities based out of New Orleans.
The transaction received all federal and state regulatory approvals necessary to complete the sale, including Hart-Scott-Rodino antitrust clearance and from the Louisiana Public Service Commission and the Mississippi Public Service Commission. Delta Utilities will immediately assume responsibility for serving CenterPoint Energy’s former customers in Louisiana and Mississippi.
“I would like to thank our Louisiana and Mississippi employees and those that support these businesses for their dedication to customer service and quality,” said CenterPoint President and CEO Jason Wells in a statement. “We will continue to support Delta Utilities towards a smooth transition for the benefit of the customers served in those jurisdictions.
“The sales proceeds from this transaction support the efficient funding of what we believe is one of the most tangible long-term growth plans in the industry. We will continue to optimize the funding of our capital investments to support safety, reliability and resiliency for the benefit of our customers and communities.”
Customers previously served by CenterPoint Energy in Louisiana and Mississippi will retain the same billing cycles, payment preferences, and online portal access in the immediate future and there is no action required to maintain their natural gas service.
All accounts have been automatically transferred to Delta Utilities with no interruption in service.
“This agreement models Bernhard Capital’s commitment to building more resilient communities through investment in critical infrastructure assets,” said Jeff Jenkins, Founder and Partner at Bernhard Capital Partners. “This transaction will bring together deep expertise and leadership with many years of experience in utility operations and the invaluable institutional knowledge of those who have operated these systems for decades to benefit customers.
“It builds upon our recent announcement to acquire Entergy’s New Orleans and Baton Rouge natural gas distribution businesses, establishing stronger, more resilient communities across the Gulf South. Once both transactions are complete, Delta Utilities will be a leading natural gas utility in Louisiana and Mississippi and among the top 40 providers in the United States.”
Bernhard Capital Partners is a services and infrastructure-focused private equity management firm established in 2015 by Jim Bernhard, son-in-law of former Louisiana Tech University Dan Reneau.
During last week’s Grambling City Council meeting, Mayor Alvin Bradley talked to that city’s leadership about the change.
“They’ll have new uniforms with the Delta Utilities logo, and their trucks will be repainted to indicate the new branding and leadership of the company,” Bradley said. “But I’ve been told this shouldn’t affect costs or anything like that. It will basically just be the same service under a new name.”
