New Orleans, LA – Entergy is preparing another major electricity infrastructure project in south Louisiana, aiming to bolster reliability for residents and support incoming industrial developments. The utility’s latest proposal, filed with the Louisiana Public Service Commission (PSC), could cost over $1 billion, with 82% of the expense expected to be passed on to ratepayers.
If approved, Entergy estimates that residential electric bills could increase by $3.47, though that figure is preliminary and subject to revision. The project includes the construction of a 145-mile, 500-kilovolt transmission line, which Entergy says will enhance service resilience and reliability, with completion targeted for August 2029.
Supporting Business Growth in Louisiana
In addition to improving general reliability, Entergy’s plan focuses on industrial customers moving to Louisiana, including a $10 billion data center in West Feliciana Parish, projected to require around 345 megawatts of electricity. The costs to build transmission for this facility are still under review, though Entergy has stated that the business may cover part of the expense, similar to prior arrangements with Meta for its northeast Louisiana data center.
Other industrial investments Entergy is supporting include a $6 billion Hyundai steel mill, a billion-dollar ammonia facility, an electric vehicle battery manufacturer, and an aviation fuel factory. According to Entergy, these projects collectively represent over 2,600 megawatts of load along the industrial corridor between Baton Rouge and New Orleans.
Balancing Ratepayer Costs With Economic Benefits
Entergy emphasizes that new industrial developments bring tax revenue, job creation, and economic growth to Louisiana. In nearly all filings with the PSC last year, Entergy requested that projects be deemed in the public interest, which would allow cost recovery through ratepayers—a ruling that has been upheld by the Louisiana Supreme Court.
“To fully realize the economic opportunity that these projects represent for Louisiana, Entergy must move forward with construction of the transmission facilities required to provide reliable service,” said Michelle P. Bourg, Entergy’s vice president of business and economic development.
The PSC has generally supported such measures. In December 2025, regulators approved an order exempting certain utilities from select ratepayer protections to accelerate construction for major industrial projects under Gov. Jeff Landry’s “Lightning Speed” initiative. The order allows for an expedited timeline for approval, but may increase ratepayer exposure to project costs.
Concerns From Watchdog Groups
The expedited approval process has drawn scrutiny from watchdog groups like the Pelican Institute for Public Policy. While supportive of Louisiana’s economic growth goals, the group cautioned that suppressed competition and accelerated frameworks can:
- Increase costs
- Slow innovation
- Weaken accountability
“While the stated goal – attracting major employers while protecting consumers – is broadly shared, the policy mechanics under consideration raise serious questions,” the institute said.
Regulators Review Cost-Sharing and Consumer Protections
Minutes after approving the expedited order, the PSC deferred a separate proposal by Commissioner Davante Lewis. This framework would examine cost-sharing, reliability, and consumer protections for large-load customers, highlighting ongoing concerns about balancing economic development with the interests of residential ratepayers.
As Entergy continues to push for infrastructure expansion in 2026, regulators will face the challenge of supporting industrial growth while ensuring that Louisiana residents are not disproportionately burdened by rising electricity costs.
Do you think Louisiana ratepayers should help fund transmission projects for large industrial customers? How can the state balance economic growth with protecting residents from rising electricity bills? Share your thoughts in the comments below.
