In a pivotal move for the city's energy landscape, the New Orleans City Council will soon decide on whether to greenlight the sale of Entergy New Orleans' (ENO) gas distribution system to Delta States Utilities New Orleans (DSU), a decision that weighs heavy on the pockets of residents. As per the council's Utility Committee meeting set today, New Orleanians may see a yearly uptick of at least $31 on their average residential gas bills, a cost hike stemming from the sale itself - a reality not lost on the community.
Jesse George, the New Orleans Director for AAE, highlighted financial concerns for citizens, pointing out that despite "a temporary rate freeze," DSU has not shied away from its intentions to enhance gas infrastructure in the city, which will subsequently lead to anticipated future rate increases, as detailed in a report by Biz New Orleans. DSU’s proposed acquisition is not merely a stand-alone event but part of a larger narrative, where Bernhard’s affiliates are set to control a significant share of Louisiana’s gas delivery system, Delta States itself has boasted a new corporate headquarters in New Orleans, and with it, promises of job creation.
In contrast, as reported by NOLA.com, DSU has succeeded in securing the Council's preliminary nod, even as it faced scrutiny and the eye of regulators - the East Baton Rouge Metro Council notwithstanding, given its lack of a regulatory role akin to that of the New Orleans City Council's when it comes to utilities. The narrative from the corporate side paints a different picture - one where the future is fortified by means of a heftier and more resilient electric grid, bankrolled by the proceeds of this controversial transaction.
"We would not have entertained this sale if we didn’t believe it would create the best possible outcomes for our customers, for the community we serve, and for our employees," said Entergy New Orleans CEO Deana Rodriguez in a statement that graced the coverage of WWLTV. Despite facing public backlash, the proposal from Entergy saw its advancement by the committee, taking it one step closer to full City Council consideration; the resonance of the community's trepidations now hinging on the outcome of this forthcoming vote that promises, or portends, to reshape the governance of their gas utilities.
