NEW ORLEANS — The Louisiana Public Service Commission (LPSC) has approved a new suite of demand response programs for Entergy Louisiana customers, marking a shift in how the state manages electricity demand as grid pressures and energy costs continue to rise.
The programs will not apply within the city of New Orleans, where Entergy New Orleans operates under the authority of the City Council rather than the LPSC.
The five programs, which include new offerings for residential, agricultural and commercial customers, are designed to reduce electricity use during peak demand periods by offering financial incentives for voluntary participation.
Regulators and advocates say the approach can lower costs for customers while improving grid reliability without Entergy Louisiana having to invest in new infrastructure to meet increased demand. Under the plan, Entergy expects to reduce peak electricity use by 155 megawatts by 2030, roughly equivalent to the output of a small natural gas power plant.
“Demand response allows us to invest in people, not expensive new infrastructure, while still improving reliability and lowering costs,” said Alaina DiLaura, policy coordinator for the Alliance for Affordable Energy.
3 New Residential Programs - Entergy Louisiana
The PSC approval includes three new programs aimed at residential customers: a smart thermostat program, an electric vehicle charging program and a battery storage program. Customers who meet eligibility requirements may participate in multiple programs simultaneously.
Smart Thermostat Program – People who enroll in the smart thermostat program will receive incentives in exchange for allowing Entergy to make adjustments to their home cooling systems during periods of high demand such as extreme summer heat.
EV Charging Program - The EV charging program is designed to encourage owners of electric vehicles to shift charging to off-peak hours.
Battery Storage Program - The battery storage program compensates participants for allowing Entergy to use electricity stored in homeowner-owned lithium-ion batteries — often paired with rooftop solar — to support the grid during periods of high demand.
Customers Adjust Usage as Utilities Gain Control
While participation is voluntary, the programs require customers to change how and when they use electricity, shifting part of the responsibility for managing peak demand onto customers while giving the utility limited control over participating devices and energy use.
For residential participants, that can mean shifting everyday activities, such as running appliances or charging electric vehicles, to off-peak hours. In the case of the smart thermostat program, customers also agree to allow Entergy to adjust their cooling systems during periods of extreme demand, with temperatures raised slightly or systems cycled on and off for short intervals.
This approach also raises questions about equitable access, as lower-income households may be less able to participate in programs that require smart devices or upfront investments.
Commercial, Industrial, and Agricultural Programs
In addition to residential programs, the PSC approved a demand response program for agricultural customers that incentivizes irrigation load control, as well as a commercial and industrial program that compensates businesses for temporarily reducing energy usage during peak demand events when the grid is under stress.
Entergy will manage the programs by monitoring grid conditions in real time and triggering “demand response events” during periods of high electricity usage. During these events, participating customers either automatically or voluntarily reduce consumption in exchange for incentives.
Large commercial and industrial users are expected to play a significant role in achieving overall demand reduction targets because of the amount of energy they consume.
Avoiding Costly Infrastructure
The approval reflects a broader shift toward demand-side energy management as utilities and regulators look for ways to address rising electricity demand driven by extreme weather and industrial expansion.
“As the program grows, we’d love to see a focus on signing up customers in load pockets,” DiLaura said. “By targeting these programs where they are needed most, demand response can become an even more powerful tool to prevent mass power outages.”
Load pockets are areas where electricity demand is high but delivery capacity is limited. In these areas, utilities ask customers to adjust usage during peak periods as an alternative to costly infrastructure upgrades.
Rollout Timeline and Coverage Area
Entergy Louisiana is expected to roll out the programs in phases, starting with initial enrollment and pilot efforts before scaling through the end of the decade. Details on incentives, timelines and technology requirements have not yet been released.
Entergy Louisiana serves roughly 1.1 million customers across 58 parishes. The programs will apply to customers across much of the greater New Orleans region outside Orleans Parish, including Jefferson Parish — such as Metairie and Kenner — as well as St. Tammany, St. Bernard, St. Charles, St. John the Baptist and Tangipahoa parishes, and other areas across southeast Louisiana.
