NEW ORLEANS - Speaking at the Edison Electric Institute annual conference in New Orleans, Gov. Jeff Landry urged a rethink of how utilities are regulated to prevent ratepayers from bearing the costs of new infrastructure needed to meet rising power demands from private companies and major industries.
The Edison Electric Institute is an advocacy group for U.S. investor-owned electric utilities.
During a Q&A session with Entergy CEO Drew Marsh, Landry emphasized protecting residents from the costs of building new infrastructure specifically designed for industries, saying, “How do we meet the demand without laying it on the backs of the consumer?”
To supply the massive energy consumption of Meta's forthcoming AI data center, for example, Entergy Louisiana is seeking approval to build 3 natural gas power plants costing approximately $5 billion. This amount also includes constructing two Entergy-owned substations, six customer-owned substations, nearly 100 miles of 500kV transmission lines, and eight new 230kV transmission lines which Entergy says would enhance the regional power grid.
There is a growing national pushback against utility practices that burden ratepayers with expenses stemming from infrastructure projects that benefit large industrial users and tech companies like Meta.
In New Jersey, for example, a Bill was introduced that mandates electric utilities to create special electricity tariffs to be paid by large data centers consumers. The bill aims to prevent residential and small business customers from subsidizing the substantial energy demands of data centers and to encourage these facilities to adopt energy-efficient practices.
Other States Pushing Back
The exponential growth in data centers has fueled this debate, but utility companies are also increasing rates for other reasons as well. Utility infrastructure upgrades, increasing storm damage repairs, inflation, and supply chain disruptions have also contributed to rising utility bills for residential consumers.
In Texas, CenterPoint Energy passed $400 million of its storm recovery costs onto customers through a state-approved rate increase. Critics there have argued that, despite the company's over $1 billion in profits last year, customers are unjustly shouldering the burden instead of shareholders.
New York Governor Kathy Hochul criticized Con Edison, one of the largest investor-owned energy companies in the country, for proposing gas and electricity rate hikes which could increase bills by $1,848 per year compared to five years ago. She labeled the increases as "intolerable" and "shocking."
The proposed Con Edison rate hikes in New York are primarily intended to fund infrastructure upgrades and comply with state climate mandates, but lawmakers there are pushing for an overhaul of the Public Service Commission due to dissatisfaction with its performance in curbing these rate increases.
Maryland is also pushing the Public Service Commission to deny Baltimore Gas and Electric's $152 million reconciliation request to be funded by rate increases. Critics argue that it creates an incentive for wasteful spending because BGE failed to manage its spending appropriately and that funding these inefficiencies would unfairly place the financial burden on ratepayers.
The Nuclear Option
The U.S. nuclear energy sector is experiencing a resurgence in 2025. Tech giants like Meta and Microsoft have entered long-term agreements to purchase nuclear power, ensuring the continued operation of plants such as the Illinois' Clinton Clean Energy Center and the planned reopening of Three Mile Island.
In May, President Trump signed executive orders aimed at accelerating nuclear development by streamlining reactor licensing, promoting advanced technologies, and revitalizing domestic uranium production. Additionally, the Nuclear Regulatory Commission approved NuScale Power's updated small modular reactor design, reflecting growing interest in scalable, factory-built nuclear solutions.
In Louisiana, Gov. Landry says he is supporting the “all of the above” approach to energy which embraces traditional oil and gas industries while at the same time encouraging renewables, carbon capture, and nuclear power.
Specifically with regard to the nuclear option, Gov. Landry has voiced support for more nuclear facilities to keep Louisiana’s exports competitive. At the Edison Electric Institute’s conference, the Governor stated that he is a “big nuclear guy” and would welcome Entergy building “a couple more” nuclear facilities in the state.
While challenges persist for the nuclear option, including high capital costs, regulatory complexities, and public skepticism, technological safety innovations, sustainability and lower environmental impact position nuclear as a key component of the “all of the above” approach to energy.
