Louisiana PSC consultant questions Entergy's $1.8B gas plant acquisition tied to Meta data center power needs

Entergy Louisiana's proposal to acquire a gas-fired power plant for $1.8 billion is facing scrutiny from a consultant for the state's Public Service Commission (PSC), Lane Sisung, who warns the plant is unreliable and mainly needed to meet the demands of Meta's massive data center in Richland Parish. The acquisition, if approved, could cost Entergy Louisiana's average residential customer approximately $8 a month.

The Louisiana PSC is set to hear arguments on the matter over the coming months, with a decision expected in the fall. While Governor Jeff Landry's administration has previously offered incentives for Meta's data center and fast-tracked Entergy's power plans, two PSC members, Republican Eric Skrmetta and Democrat Davante Lewis, have raised concerns about the deal's high costs and the consultant's finding that it's largely driven by Meta's power needs.

Entergy maintains the plant, named Cottonwood and located in southeast Texas near the Louisiana border, is necessary to meet urgent power demands regardless of Meta's presence, projecting long-term customer savings if the acquisition proceeds. Meta spokesperson Francis Brennan refuted claims of violating a White House pledge to pay for their own power, stating the consultant's report is inaccurate and that Meta is investing billions to cover its power needs, ensuring Louisianans are not burdened.

Sisung's testimony suggests the plant is 22 years old, has reliability issues, and was acquired by Atlas Holdings for significantly less than Entergy's proposed purchase price. He recommended the PSC reject Entergy's request to recover costs from customers, advocating that Meta should pay for the plant if it's deemed essential for its data center's capacity needs. The PSC will ultimately decide whether to approve the acquisition and how the costs will be allocated.