Regulators weighing new rules for data centers, major power users

Louisiana regulators are exploring new rules to address the surge in electricity demand from large industrial users, including data centers, without burdening current customers. The Louisiana Public Service Commission held a technical conference where regulators, utilities, and staff discussed the need for clearer guidelines for these power-intensive projects. Commissioner Davante Lewis confirmed a "committed goal" to establish "large-load tariffs," which are formal rate structures designed to make major users pay for their power, transmission upgrades, and other infrastructure costs. The initiative, still in its early stages, is part of the commission's "Lightning Initiative" to expedite major infrastructure projects and aligns with Gov. Jeff Landry's economic development efforts. The proposed tariffs aim to protect existing customers from subsidizing new, high-demand projects, although critics worry overly rigid rules could deter potential investors. Entergy declined to comment on the discussions. Regulators also considered requiring large-load customers to directly fund their necessary infrastructure. The Federal Energy Regulatory Commission is also addressing the national issue of interconnecting significant new electrical loads by June 2026, raising questions about jurisdiction between federal and state authorities. Louisiana's current non-binding guidelines suggest utilities assign network and interconnection costs to new loads, with regulators questioning the extent to which data centers should bear responsibility for their own power infrastructure.