FERC approves merger of two Entergy subsidiaries in Louisiana

The Federal Energy Regulatory Commission on April 3 approved the merger of Entergy Gulf States Louisiana LLC and Entergy Louisiana LLC, both of which are subsidiaries of Entergy Corp. (NYSE: ETR).

In December 2014 Entergy Gulf States Louisiana (Entergy Gulf States LA) and Entergy Louisiana (Entergy Louisiana) filed an application requesting authorization for a transaction in which Entergy Gulf States LA and Entergy Louisiana will combine their respective assets and liabilities into a single successor public utility operating company, Entergy Louisiana Power LLC.

  • Entergy Gulf States LA provides electric generation, transmission, distribution, and electric power service to retail and wholesale customers in Louisiana, and also engages in the local distribution of natural gas. Entergy Gulf States LA owns generating and transmission facilities and makes wholesale sales of electric capacity, energy, and ancillary services under tariffs and rate schedules on file with the commission, and supplies capacity, energy, and ancillary services to one unaffiliated wholesale customer under a long-term partial requirements power sales contract. Entergy Gulf States LA owns or controls approximately 3,900 MW of generating capacity.
  • Entergy Louisiana provides electric generation, transmission, distribution, and electric power service to retail and wholesale customers in Louisiana. Entergy Louisiana owns generating and transmission facilities and makes wholesale sales of electric capacity, energy, and ancillary services under tariffs and rate schedules on file with the commission. Entergy Louisiana currently does not have any wholesale requirements customers. Entergy Louisiana owns or controls approximately 6,500 MW of generating capacity.

The new Entergy Louisiana Power will be a public utility that will own the assets and liabilities formerly owned by Entergy Gulf States LA and Entergy Louisiana, with the exception of the Algiers Assets, which will be transferred to Entergy New Orleans upon receipt of required regulatory approvals. The Algiers Assets are comprised primarily of distribution and transmission assets located in the Algiers section of New Orleans and do not include generating facilities.

Applicants asserted that all the utility facilities that will experience a change in direct ownership will remain under the ultimate indirect ownership of Entergy Corp. Entergy Louisiana Power will continue to operate its generating facilities in the same manner as Entergy Gulf States LA and Entergy Louisiana operate them currently.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.