Delta Utilities complaints spike as natural gas price increases
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Some New Orleans households are seeing jumps in their gas bills this winter after Entergy carved out its natural gas business and sold it to Delta Utilities last year.
Why it matters: It's creating a mix of confusion and frustration amid an already increased cost of living.
The latest: A recent town hall meeting in Baton Rouge brought out residents frustrated over their recent Delta gas bills, WBRZ reported.
- "First bill, about 15 bucks, and up until November, between 15 and 30 dollars. December, magically, I turn my heater on, and I get a bill for almost $430," Jerremy Wilson told the TV station.
- In social media posts seen by Axios, some New Orleans customers shared similarly eye-popping jumps in their own bills. One customer shared a screenshot of their bill totals jumping from $33.01 in August to $243.50 in January.
- As of late last week, the Alliance for Affordable Energy had received two customer complaints about their Delta bills.
Between the lines: Councilman JP Morrell, who chairs New Orleans City Council's utilities subcommittee, said some confusion is likely stemming from customers not realizing just how much of their previous Entergy bill actually came from gas, especially during the colder months.
- "Sometimes, people don't even know they have gas," he tells Axios New Orleans. "Then, they get a Delta bill and think, 'Oh, these people are trying to enroll me in gas, and I don't need it.'"
- Another issue at play is that natural gas prices have been on the rise.
- "If there are high fluctuations in gas nationally, that'll affect your bill," Morrell says.
What they're saying: "Delta Utilities has maintained the existing base rate structure and billing methods that were in place prior to our acquisition," according to a statement from a Delta Utilities spokeswoman.
- But, between September and December, "natural gas consumption surged by 145% ... as customers relied more heavily on their gas furnaces for heating," she said.
- "Delta Utilities passes the cost of gas directly to customers without any markup or profit," the statement continues.
- Customers can enroll in levelized billing to smooth out seasonal price fluctuations, speak with the company's customer service about different payment arrangements or seek government assistance, the spokeswoman noted.
What we're watching: Gas prices are likely to increase again this week as an Arctic blast drops temps across the U.S.