{"id":25074,"date":"2026-07-23T14:53:29","date_gmt":"2026-07-23T18:53:29","guid":{"rendered":"https:\/\/blogs.edf.org\/energyexchange\/?p=25074"},"modified":"2026-07-23T14:53:30","modified_gmt":"2026-07-23T18:53:30","slug":"louisiana-has-a-chance-to-get-ahead-of-rising-electricity-demand","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2026\/07\/23\/louisiana-has-a-chance-to-get-ahead-of-rising-electricity-demand\/","title":{"rendered":"Louisiana has a chance to get ahead of rising electricity demand"},"content":{"rendered":"\n<ul class=\"wp-block-list\">\n<li>As electricity demand rises, Louisiana is exploring new ways to serve large energy users such as data centers.<\/li>\n\n\n\n<li>Well-designed private use electrical networks can attract investment and strengthen the grid, but only if clear rules protect existing customers from cost shifting and reliability risks.<\/li>\n<\/ul>\n\n\n\n<p>Louisiana is preparing for a new era of electricity demand. From data centers and advanced manufacturing to other large industrial facilities, companies are looking for reliable, affordable and more flexible ways to power new operations. That presents a significant opportunity for economic growth, but only if the state&#8217;s electricity system can keep pace without shifting costs onto existing customers or compromising reliability.<br><br>One proposal before the Louisiana Public Service Commission would allow qualifying large electricity users such as data centers to develop <a href=\"https:\/\/southernrenewable.org\/news-updates\/louisiana-psc-april-meeting\">private use electrical networks<\/a> (PUENs) to serve their facilities with privately developed generation while remaining connected to the electric grid.<\/p>\n\n\n\n<p>Done well, PUENs could attract investment, accelerate deployment of clean energy and strengthen grid resilience. Without appropriate safeguards, however, private networks could leave Louisiana families and businesses paying for underutilized utility infrastructure while introducing new reliability challenges. As the Commission evaluates multiple proposals to meet growing electricity demand, it should consider them together so Louisiana can meet future energy needs efficiently, reliably and fairly. That\u2019s why Environmental Defense Fund is urging the Commission to adopt a framework built around one simple principle: innovation should benefit Louisiana without harming existing utility customers.<\/p>\n\n\n\n<p>The timing of this discussion is especially important. The Commission is simultaneously considering proposals that would dramatically reshape Louisiana&#8217;s electric system. Entergy is <a href=\"https:\/\/www.all4energy.org\/watchdog\/meta-demands-more-energy\/\">seeking approval<\/a> for approximately 5,200 megawatts (MW) of new fossil fuel generation to serve a single customer, Meta, in addition to the 2,262 MW of new generation the Commission approved in 2025. Similarly, the Commission is also <a href=\"https:\/\/lpscpubvalence.lpsc.louisiana.gov\/portal\/PSC\/DocketDetails?docketId=32689\">considering<\/a> an Entergy proposal to construct two new 754-MW combined-cycle combustion turbine power plants.<\/p>\n\n\n\n<p>Evaluating PUEN proposals alongside these broader planning decisions can help avoid duplicative investments and help ensure new infrastructure is built only where it delivers the greatest value. In our <a href=\"https:\/\/library.edf.org\/AssetLink\/3fcxl03j07o482oqm7112a5mkp2q86j5.pdf\">responses to the Commission&#8217;s questions<\/a>, EDF recommends a framework that helps protect existing utility customers, assign costs fairly, encourage the deployment of clean energy and other low-emitting resources and ensure private networks strengthen, rather than undermine, the state\u2019s electric system.<\/p>\n\n\n\n<p><strong>Protect existing customers first<\/strong><\/p>\n\n\n\n<p>As electricity demand grows, utilities make long-term investments in power generation, transmission and distribution based on projected customer needs. If a participating customer later leaves the traditional utility system after those investments have already been made, the remaining costs do not disappear. Instead, they can be shifted onto everyone else.<\/p>\n\n\n\n<p>EDF recommends limiting PUENs, at least initially, to serving new electricity loads rather than allowing existing grid-connected customers to transition to private utility energy networks. Requiring utility commission review before utilities make major infrastructure investments helps ensure they remain necessary and cost-effective. That can reduce the risk of stranded assets and help protect households and small businesses from higher electricity bills.<\/p>\n\n\n\n<p>The Commission should additionally establish objective eligibility criteria based on a project&#8217;s impacts on reliability, planning and cost allocation rather than limiting participation to specific industries or load sizes. Projects that deliver comparable public benefits, such as community solar, should also qualify if they meet the same standards. Applicants should simultaneously demonstrate that proposed projects will not create unreasonable cost shifting or stranded investments before they receive approval.<\/p>\n\n\n\n<p><strong>Make private network customers pay the costs their actions create<\/strong><\/p>\n\n\n\n<p>Private networks should not receive a free ride. Even facilities that generate much of their own electricity rely on the electric grid for backup service, emergency power and reliability support. Utilities must maintain generation and transmission capacity to serve those customers when their own systems are unavailable.<\/p>\n\n\n\n<p>EDF recommends that participating customers pay the full cost of the infrastructure and grid services they require, including transmission, distribution, interconnection, standby and backup service. Those costs should be assigned to the customers creating them, not spread to other ratepayers. This follows a straightforward principle that regulators have long applied: customers should pay the costs they impose on the electric system.<\/p>\n\n\n\n<p><strong>Put private networks to work for Louisiana<\/strong><br><br>Strong safeguards should not come at the expense of innovation. Properly designed private networks can give customers greater flexibility in how they meet their electricity needs while creating opportunities to integrate solar, battery storage and efficient combined heat and power systems. When designed to complement rather than replace the broader electric system, these projects can improve resilience, reduce strain on the grid during periods of high demand and support Louisiana\u2019s growing economy.<\/p>\n\n\n\n<p>One way well-designed private networks can provide these benefits is by enabling greater demand flexibility, allowing participating customers to rely more heavily on on-site resources or shift demand during periods of peak use. These capabilities will become increasingly valuable as Louisiana prepares for substantial growth in electricity demand in the coming years.<\/p>\n\n\n\n<p><strong>Plan ahead instead of reacting later<\/strong><br><br>One of EDF&#8217;s most important recommendations is that private network proposals be evaluated early in utility planning. Rather than treating them as separate projects after utilities have already planned new infrastructure, the Commission should consider these proposals in the context of traditional utility solutions during resource planning and competitive procurement processes.<\/p>\n\n\n\n<p>Early consideration allows utilities, regulators, and developers to compare alternative approaches, avoid unnecessary infrastructure investments and identify the most cost-effective solution for customers. Planning ahead also gives utilities better visibility into future electricity demand, making it easier to maintain reliable service while accommodating new investment.<\/p>\n\n\n\n<p><strong>Learn from other states while building Louisiana&#8217;s own path<\/strong><br><br>Louisiana is not the first state to consider new approaches for serving large electricity users. Utah recently <a href=\"https:\/\/le.utah.gov\/~2025\/bills\/static\/SB0132.html?utm_source=chatgpt.com\">established a framework<\/a> for privately developed generation serving qualifying large loads while maintaining regulatory oversight and protections for existing customers. Texas offers another example through ERCOT&#8217;s <a href=\"https:\/\/www.ercot.com\/files\/docs\/2025\/11\/24\/ERCOT-Grid-Insights-About-ERCOT.pdf\">Private Use Networks<\/a>, which allow privately managed electric networks to manage their own generation and load while remaining interconnected with the grid. When generation exceeds on-site demand, excess electricity may be offered into the ERCOT market, while the network may draw power from the grid when on-site generation is unavailable or insufficient.<br><br>These examples demonstrate that privately managed electric networks can coexist with the traditional electric system when supported by clear eligibility criteria, strong oversight and protections against cost shifting. Louisiana has the opportunity to build on these lessons while designing a framework tailored to its own laws, customers and economic priorities.<br><br><strong>Getting the balance right<\/strong><br><br>Louisiana can attract new investment while protecting the customers who already depend on the electric grid every day. By establishing clear eligibility rules, assigning costs fairly, preserving reliability and evaluating projects early in the planning process, the Commission can encourage innovation without asking existing customers to bear the risks. That balanced approach can help Louisiana meet growing electricity demand while supporting long-term economic and innovative growth.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Architectural rendering for what would become Meta\u2019s \u2018largest data center yet\u2019 in Richland Parish (artist rendering from Meta) <\/p>\n","protected":false},"author":153258,"featured_media":25075,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"coauthors":[114250,114251],"class_list":["post-25074","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Louisiana has a chance to get ahead of rising electricity demand - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2026\/07\/23\/louisiana-has-a-chance-to-get-ahead-of-rising-electricity-demand\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Louisiana has a chance to get ahead of rising electricity demand - 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