Louisiana residents are facing high electric bills due to an unreliable power grid that recently left nearly 100,000 people in the dark. Now, the state’s largest utility company, Entergy Louisiana, is seeking approval to spend over $3.7 billion on three new power plants to power a massive data center planned for development in North Louisiana by Meta, the parent company of Facebook, WhatsApp, and Instagram.
The proposed gas plants would total nearly 2,300 megawatts to power the massive data center, which would draw more than twice the maximum power consumption of the City of New Orleans. The costs of this proposal are likely underestimated, and the risks of power outages and environmental harm are downplayed.
Entergy has signed a contract with Meta to supply electricity to the data center for 15 years, with Meta potentially paying a substantial portion of the gas plant costs. However, if Meta doesn’t re-sign for another 15-year contract through 2056, Louisiana ratepayers would be left to foot the bill for the unneeded gas plants.
Expert testimony on behalf of the Alliance for Affordable Energy and the Union of Concerned Scientists highlights the risks and costs associated with the gas plant proposal. The lack of transparency and the redaction of critical information raise concerns about the true impact on ratepayers.
The proposed gas project could lead to major power outages in North Louisiana, as data centers like the one planned for Meta can exhibit high fluctuations in power demand, potentially causing instability on the power grid. Operating the gas plants as “must-run” to avoid grid instability problems could result in unnecessary costs passed on to ratepayers.
Entergy’s environmental benefits through a corporate sustainability rider are questioned, as ratepayers may be exposed to additional financial risks if Meta terminates its contracts for solar and storage projects. The proposal also includes a plan for carbon capture and storage technology at an existing gas plant, with risks and uncertainties that could impact ratepayers.
The Louisiana Public Service Commission must act to protect residents from pollution, power outages, and rate increases. Transparency and accountability are essential in evaluating the true impact of Entergy’s proposal on the state’s residents. Residents can reach out to their Public Service Commissioner to demand better protections and transparency in this significant project.
