Louisiana Regulators Face Scrutiny Over Gas Plant Approval

Baton Rouge, Louisiana – Louisiana utility regulators are set to vote on August 20th regarding a controversial gas plant project proposed by Entergy Louisiana. The project, which would cost at least $3.7 billion, aims to power a large data center planned in Richland Parish by a subsidiary of Meta, the parent company of Facebook and Instagram.

Entergy Louisiana is seeking approval from the Louisiana Public Service Commission (LPSC) to move forward with this project. However, the proposal currently offers no guarantees or protections against potential cost overruns, raising concerns for ratepayers who may ultimately bear the financial burden.

Critics are urging Entergy Louisiana customers to reach out to their commissioners to advocate for better terms on the project. A public meeting is also scheduled for tonight, allowing customers to gather more information.

Utility bills in Louisiana are already experiencing a significant increase. Reports indicate that the state’s electricity costs have risen to the highest levels since 2022, largely driven by an increase in gas prices. Gas-fired energy constitutes over 70% of Louisiana’s electricity generation, making consumers vulnerable to fluctuations in gas prices.

The Union of Concerned Scientists (UCS) and the Alliance for Affordable Energy (AAE) are opposing the project, with legal representation from Earthjustice. The groups recently filed an intervention as the vote approaches.

Originally, this vote was slated for the Commission’s October meeting, but Entergy Louisiana expedited the timeline to push for an earlier decision. Advocates are concerned about the rush, as significant projects require thorough public participation and scrutiny.

Commissioners have faced critiques in the past for limiting public engagement. In April, they provided only 48 hours’ notice for discussions about a third-party energy efficiency program that would have protected consumers.

The latest proposed vote followed a similar pattern, being scheduled with just over a week’s notice, before a formal recommendation from the presiding judge had even been made. Critics worry this hasty approach places large corporations ahead of the best interests of ratepayers.

In addition, there is uncertainty about whether the jobs created by the Meta data center will be local to Richland Parish. Proponents of the project have not claimed significant tax revenue benefits either.

A lawyer who previously worked with the Commission raised a pressing question: Will regulators protect ratepayers or cater to large corporations?

If approved, Louisiana ratepayers will face increased costs for power generated by the new gas plants, which are solely dedicated to the data center’s operations. Entergy is authorized to pass along fuel cost increases to its customers, keeping these expected hikes confidential.

Projected increases in gas prices are expected to persist, with federal forecasts predicting an average rise to $5.40 per million British thermal units (MMBtu) by the end of 2026. Advocates argue that Louisiana should be moving away from gas dependency, rather than expanding it at customer expense.

As the vote approaches, stakeholders are calling for a delay until all risks to ratepayers are clearly understood. They emphasize that Entergy Louisiana customers should demand protections that prioritize their interests over corporate profit.