(The Center Square) — Entergy Louisiana is planning at least an $8 rate hike over the next five years for residential customers, as the utility seeks to cover the cost of infrastructure upgrades to handle a projected increase in electricity demand, according to filings with the Louisiana Public Service Commission.
For homes using more than 1,000 kilowatt-hours per month, the hikes will be higher if the commission approves the increase.
Entergy is pursuing several projects to accommodate new demand, including Hyundai’s steel plant in Ascension Parish and Meta’s data center in Richland Parish. As previously reported, ratepayers will be responsible for $470 million in upgrades to serve the Meta facility.
Entergy confirmed that each project listed in their filing with the LPSC has a rate impact, but “are not necessarily cumulative and do not reflect anticipated bill reductions from additional expected customer growth.”
But the proposed rate increase does not account for several other major projects, meaning total rate hikes could ultimately exceed that figure. In 2025, Entergy submitted 14 projects to the Midcontinent Independent System Operator at an estimated cost of $3.1 billion.
The projects associated with the $8 hike do not include a new $1 billion transmission line tied to Meta’s electricity demand. James Dauphinais, representing the Louisiana Energy Users Group, testified that Meta should cover the full cost of the new line. But Entergy regulatory affairs manager Daniel Kline said the line would benefit the broader customer base, not just Meta.
Other projects not included in the hike amount to another $200 million for transmission lines, substations and related upgrades, according to MISO documents.
As part of its filings, Entergy has proposed a suite of “demand response” programs designed to reduce electricity use during peak periods by offering incentives to customers who lower or shift their consumption.
“Demand response programs provide opportunities for qualifying customers … by reducing or shifting their electricity usage during peak periods and/or times of emergency or stress on the electric grid,” Entergy spokesperson Laura Beauchamp said. “Such programs can help improve reliability and lower the cost of electricity in wholesale markets, which in turn leads to customer savings and in lower retail electric rates and ultimately bills.”
For residential users, the programs include smart thermostats, battery storage systems and behavioral-based electric vehicle charging, all managed by third-party provider EnergyHub.
For agricultural customers, the utility is proposing a program to cycle irrigation equipment during periods of high demand, to be administered by Connected Energy. Commercial and industrial customers would be eligible for an aggregated capacity program overseen by Enel X, which would coordinate large-scale electricity reductions when the grid is under stress.
Entergy expects the demand-side programs to reduce consumption by about 95 megawatts in the second year and up to 155 megawatts by year five.
