Entergy New Orleans Inc. completed an internal restructuring to strengthen the separation between its regulated utility business and parent company Entergy Corp.'s merchant generation business.
Under the transaction completed Nov. 30, Energy New Orleans Inc., or ENOI, which owns approximately 500 MW of generating capacity and 143 circuit miles of transmission lines, redeemed its outstanding preferred stock and converted to a Texas corporation from a Louisiana entity.
All of ENOI's assets and liabilities were transferred to newly created subsidiary Entergy New Orleans Power LLC. The previous entity, Entergy New Orleans Inc., remained in existence, and on Dec. 1, ENOI was renamed Entergy Utility Group Inc. Entergy New Orleans Power was renamed Entergy New Orleans LLC.
Entergy New Orleans Power will maintain the operations of the public utility business operated by ENOI without change, while the officers and directors will retain their current roles.
The transaction received approval from the New Orleans City Council in May and from the Federal Energy Regulatory Commission in June.
In 2015, the former businesses of Entergy Louisiana LLC and Entergy Gulf States Louisiana LLC were combined into a single utility that assumed the Entergy Louisiana LLC name. After that transaction, Entergy Louisiana's limited liability company membership interests were contributed to EUH, which is the same majority-owned Entergy subsidiary that will be a parent of Entergy New Orleans Power if FERC approves the proposed restructuring.
