Verite News : Private equity wants to buy Entergy’s gas assets. Should regulators let it happen?

An article by Verite News published last month discussed the proposed sale of Entergy Corporation’s gas utilities in Louisiana to Baton Rouge-based private equity firm Bernhard Capital. The deal is worth $484 million and would transfer the gas distribution business to a new company created by Bernhard Capital. The sale needs approval from the Louisiana Public Service Commission and the New Orleans City Council.

Verite News June 25, 2024: Private equity wants to buy Entergy’s gas assets. Should regulators let it happen?

Critics of the deal argue that it may lead to increased rates for consumers and could conflict with the city’s climate goals. Also covered are concerns about private equity’s history of restructuring and selling companies for profit, as well as Bernhard Capital’s ambitions in the utility sector. The sale has sparked opposition from groups concerned about the impact on ratepayers and the city’s climate commitments.

“If you have a private equity firm that is simply focused on building a monopoly, extracting every bit of profit out of the utility as possible, that just raises a lot of red flags,” PESP climate director Alissa Jean Schafer told Verites. “The further you get away from the community, like a direct relationship to the community, the higher the risk is that the focus is just going to be on profit.”

Find out more about the energy portfolios of multiple private equity firms at the Private Equity Climate Risks website.