Gov. Landry signs executive order to shield ratepayers from data center costs
Louisiana Governor Jeff Landry signed an executive order to protect electric ratepayers from data center costs by requiring that data center project benefits be weighed against their electricity demands. This order addresses concerns over Entergy's plan to purchase a Texas power plant to serve Meta's north Louisiana data center. The Governor emphasized that power-intensive companies must fully fund their own infrastructure, with the Louisiana Public Service Commission having final authority over such purchases.
Louisiana Governor Jeff Landry has signed an executive order aimed at safeguarding electric ratepayers from the financial impact of data center operations, mandating that the benefits of such projects be balanced against their substantial electricity requirements. The order, signed on Thursday, June 25, emphasizes that power-intensive companies must fully fund the necessary generation, transmission, and infrastructure to serve them, thereby preventing cost shifting onto Louisiana families and businesses.
This executive action comes in response to ongoing discussions surrounding Entergy's proposal to acquire a nearly $2 billion power plant in Texas, which is reportedly intended to meet the energy demands of Meta's data center located in north Louisiana. Governor Landry articulated that upfront contributions and long-term service agreements from these companies should strengthen, rather than weaken, the state's power grid.
The ultimate authority over whether to approve Entergy's controversial power plant purchase rests with the Louisiana Public Service Commission. While prioritizing ratepayer protection, Governor Landry also acknowledged the strategic importance of data centers for Louisiana's future economic landscape.