An executive order signed by Gov. Jeff Landry last week hopes to protect Louisiana ratepayers from the costs of data centers and other power-intensive developments. The order, called the Louisiana Ratepayer and Community Protection Initiative, directs state agencies to work with the Louisiana Public Service Commission to evaluate qualifying projects under a uniform set of “clear, uncompromising” criteria.
Under the order, companies must fully fund the infrastructure needed to serve their projects, including power generation and transmission. They must also pledge to use natural resources responsibly and produce “meaningful” benefits for local governments and workers.
“Growth must enhance, not diminish, the long-term well-being of our people and communities. … This balance is not only prudent policy; it is our duty as stewards of this great state,” Landry said in a Thursday afternoon press conference.
What companies must commit to, per Louisiana Economic Development:
- Protecting Louisiana ratepayers
- Investing in grid resiliency and long-term reliability
- Supporting Louisiana communities and workforce development
- Contributing meaningfully to local tax bases
- Operating responsibly with Louisiana’s natural resources
- Advancing community investment
- Strengthening Louisiana’s innovation economy
- Maintaining transparency and accountability
Companies must submit “detailed attestations” to LED outlining how they will meet those expectations, the agency says.
The executive order comes as Entergy Louisiana pursues a sweeping expansion of its generating system to serve Meta’s massive Hyperion data center campus in Richland Parish.
Of particular controversy as of late is the utility’s proposed purchase of the Cottonwood natural gas plant in east Texas.
A consultant’s analysis reportedly concluded the acquisition could add roughly $8 to $13 a month to the average Entergy Louisiana customer’s bill and suggested the plant was needed largely because of Meta’s load.
“Power-intensive companies must fully fund the generation transmission and infrastructure needed to serve them, ensuring that there are no costs that are shifted onto our families and businesses,” Landry said.
Landry said the PSC will ultimately decide whether to approve the Cottonwood acquisition.
Entergy Louisiana CEO Phillip May has disputed the notion that the acquisition is needed only because of Meta’s data center campus, saying Louisiana was already projected to face capacity shortfalls before Meta announced its project.
