NEW ORLEANS - The Louisiana Energy Users Group (LEUG), a trade association of industrial electricity consumers, wants the Louisiana Public Service Commission to grant the option to source, build, or buy its own power without being forced to purchase it from Entergy.
LEUG’s 26 members include BASF, Dow Chemical, Chevron, ExxonMobil, Air Liquide Large Industries, Air Products, Georgia-Pacific, Honeywell, Phillips 66, CF Industries, and Nucor Steel. The group collectively employs approximately 35,000 people in Louisiana, with an annual payroll of about $2.5 billion.
LEUG argues that competition could lower costs and encourage investment in renewables.
Global demand for renewable energy is projected to account for over 90% of new electricity capacity additions through 2028 according to the International Energy Agency. By 2050, renewable energy could supply 80-90% of global electricity, with solar and wind making up nearly 70% of the total mix, according to BloombergNEF which specializes in analyzing global trends in energy, transportation, technology, finance, and sustainability.
LEUG accuses Entergy of stifling competition and limiting access to alternative energy in several ways. It argues that Entergy has failed to build enough long-distance, high-voltage transmission lines, making it harder for alternative energy producers to enter the market and forcing more reliance on Entergy’s gas-fired plants.
Entergy has expressed skepticism about relying heavily on renewable energy and cogeneration power, arguing that these sources face reliability and infrastructure challenges and may shift costs to residential customers, increasing their electricity bills.
But LEUG contends that Entergy is prioritizing new gas plants rather than exploring cost-effective renewable options because tradition gas powered energy aligns with Entergy’s existing business model.
LEUG is advocating to develop or purchase 1,500 megawatts of renewable energy, such as solar or wind, to reduce dependence on gas-fired power and utilize 2,000 megawatts of cogeneration power, which captures and reuses excess heat from industrial processes, making energy production more efficient than traditional gas plants.
LEUG predicts electricity rates could rise nearly 90% by 2030 under Entergy’s plan, while Entergy claims alternative proposals would shift costs to residents.
But Entergy maintains that natural gas-fired power remains the most practical and cost-effective solution for Louisiana’s current and future energy needs.
Entergy is pushing for approval for billions in investments in gas plants, particularly as large data centers like the $10 billion Meta Data Center in Richland Parish build in Louisiana. The Meta Data Center is expected to require 2.4 gigawatts (GW) of natural gas-fired power capacity. This massive energy demand is roughly equivalent to powering about 2 million homes annually.
Entergy argues they will replace aging infrastructure, ensure reliability, and keep industrial electricity rates low.
The Louisiana Public Service Commission is now facing pressure to decide whether to open the market to more competition or allow Entergy to continue controlling energy generation in Louisiana.
