Louisiana approves Entergy’s plan to combine two state energy utilities

27 August 2015 (Last Updated November 19th, 2018 14:35)

Louisiana Public Service Commission has approved the integration of the state-based power utilities Entergy Louisiana and Entergy Gulf States Louisiana, in the US.

Louisiana Public Service Commission has approved the integration of the state-based power utilities Entergy Louisiana and Entergy Gulf States Louisiana, in the US.

The firms will combine to form a single entity holding more than $16.5bn in assets and 66,194GWh in total sales.

"Combining the utilities improves our ability to help Louisiana’s communities prosper."

In addition to a better financial and operational structure, the combined entity is expected to result in increased economic development efforts and lower regulatory costs in the state.

Entergy Louisiana and Entergy Gulf States Louisiana president and CEO Phillip May said: "The change will be seamless for our customers, who will continue receiving reliable service at rates that are among the lowest in the nation.

"Combining the utilities improves our ability to help Louisiana’s communities prosper.

"A unified, financially strong company will be better able to attract the capital required to upgrade our grid and replace ageing power plants with highly efficient, clean units so we can provide the safe, reliable and affordable power needed to satisfy our current customers’ expectations and meet the demands of a growing economy,"

However, the new entity will not increase the existing base rates and riders for current and new retail customers, Entergy said.