New Data Center Pathway Approved At Residents’ Expense

12.17.2025
Utility Regulation
Louisiana Public Service Commission
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During their monthly meeting today, the Louisiana Public Service Commission (LPSC) passed a directive put forth by Commissioner Jean-Paul Coussan that establishes a new regulatory pathway for large loads like data centers to be brought onto the electricity grid faster.

It makes it easier for companies to get power by waiving the requirements that protect existing customers.

The directive came in support of Gov. Jeff Landry’s Louisiana Lighting Speed Initiative executive order that was issued September 16, 2025. That initiative directs state agencies, including the LPSC, to work together to create a streamlined and accelerated approach to economic development, including by aligning on policies, permitting, infrastructure, workforces, and regulatory process.

Commissioner Coussan’s directive suspends the Market-Based Mechanism requirement that utilities identify and source the most affordable electricity, allowing for exemptions if the company proposing the large load meets certain loose criteria. The criteria for exemption includes the company signing at least a 15-year electric service agreement for a new or expanded load that is to be online within 5 years, a demonstrated need for more electricity to meet the project’s demand, an agreement by the company to pay for at least half of the costs associated with the new requested capacity, and a letter of support from Louisiana Economic Development.

“Commissioner Coussan’s directive puts residents at further risk at a time we’re on the precipice of an affordability crisis by removing guardrails meant to ensure regular people don’t shoulder unnecessary costs put onto them by monopoly utility companies and multibillion dollar corporations,” said Logan Burke with Alliance for Affordable Energy.

Additionally, the directive aims to ensure large loads are considered and voted on by the Commission within 8 months of an application. An extremely expedited timeline such as this fails to give the Commission and existing customers enough time to ask questions and fully assess project impacts.

Another directive, put forth by Commissioner Davante Lewis, would have ordered the Commission staff to take a comprehensive approach to assessing data center impacts, including by defining large loads, understanding grid impacts, guaranteeing strong protections for existing customers, improving the stakeholder process, and requiring data centers companies to contribute to programs that benefit residents. Consideration of Commissioner Lewis’ directive was deferred to the January meeting. 

“Residents are already seeing negative impacts from the Meta data center development, including extended power outages, drinking water discoloration, and a severe increase in traffic incidents and public safety risks. With many data center project applications on the horizon, it’s important our regulators avoid loosening requirements meant to protect their constituents,” said Alaina DiLaura with Alliance for Affordable Energy.

Learn More About the Directives

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