Latest news with #LouisianaPublicServiceCommission
Yahoo
a day ago
- Business
- Yahoo
Gulf policymakers detail efforts to brace for 2025 hurricanes
Gulf Coast policymakers on Monday laid out efforts to brace for what's expected to be an active hurricane season during a Hill event titled 'Securing the Grid – Powering the Gulf South Region.' Eric Skrmetta, vice chair of the Louisiana Public Service Commission, said the durability of the power grid needs to improve, including calling for infrastructure that can help manage the flow of power. 'We're looking at the durability of [the] transmission grid, more than anything,' Skrmetta said when asked about hurricane season. 'We need supplies and we need mechanisms. We're going to need to build transformer manufacturing facilities,' he added. Skrmetta said the state has 'been in discussions with the Pentagon about the need for building one, possibly in Louisiana, Oklahoma, [or] Texas.' The 'Securing the Grid' event, which was sponsored by electric company Entergy, comes one day after the official start of hurricane season. U.S. weather agencies have predicted an 'above average' season, which could see between three and five major hurricanes. 'You're seeing our energy suppliers here in Texas put in more steel poles instead of wooden poles. There's a move to get as much of that infrastructure, if you will, below ground,' said Rep. Randy Weber (R-Texas). It's not just hurricanes though that have taken a toll on Texas's electric grid. During 2021's Winter Storm Uri, the state faced massive blackouts that killed hundreds of people. The state has implemented significant reforms since that time, but Weber still said it's in bad shape — and criticized the Biden administration over electric vehicles in the process. 'It's really bad,' Weber said when asked to grade the state of the grid. 'They wanted to put 500,000 electric vehicle charging stations. They did put it in that bill and we don't have the grid to support that. So we're wanting to make sure that everybody understands that we ought to have nuclear,' he added, referring to the Bipartisan Infrastructure Law funds for a nationwide electric vehicle charging network. Meanwhile, Rep. Troy Carter (D-La.) said he'd give his state a 'B-plus' as far as infrastructure and storm response. 'Louisiana has been a very good student. It has done the preparation, and I think understanding of investing in our shorelines in our floodplains and our levees,' Carter said, but added 'we still have work to do.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
a day ago
- Business
- The Hill
Gulf policymakers detail efforts to brace for 2025 hurricanes
Gulf Coast policymakers on Monday laid out efforts to brace for what's expected to be an active hurricane season during a Hill event titled 'Securing the Grid – Powering the Gulf South Region.' Eric Skrmetta, vice chair of the Louisiana Public Service Commission, said the durability of the power grid needs to improve, including calling for infrastructure that can help manage the flow of power. 'We're looking at the durability of [the] transmission grid, more than anything,' Skrmetta said when asked about hurricane season. 'We need supplies and we need mechanisms. We're going to need to build transformer manufacturing facilities,' he added. Skrmetta said the state has 'been in discussions with the Pentagon about the need for building one, possibly in Louisiana, Oklahoma, [or] Texas.' The 'Securing the Grid' event, which was sponsored by electric company Entergy, comes one day after the official start of hurricane season. U.S. weather agencies have predicted an 'above average' season, which could see between three and five major hurricanes. 'You're seeing our energy suppliers here in Texas put in more steel poles instead of wooden poles. There's a move to get as much of that infrastructure, if you will, below ground,' said Rep. Randy Weber (R-Texas). It's not just hurricanes though that have taken a toll on Texas's electric grid. During 2021's Winter Storm Uri, the state faced massive blackouts that killed hundreds of people. The state has implemented significant reforms since that time, but Weber still said it's in bad shape — and criticized the Biden administration over electric vehicles in the process. 'It's really bad,' Weber said when asked to grade the state of the grid. 'They wanted to put 500,000 electric vehicle charging stations. They did put it in that bill and we don't have the grid to support that. So we're wanting to make sure that everybody understands that we ought to have nuclear,' he added, referring to the Bipartisan Infrastructure Law funds for a nationwide electric vehicle charging network. Meanwhile, Rep. Troy Carter (D-La.) said he'd give his state a 'B-plus' as far as infrastructure and storm response. 'Louisiana has been a very good student. It has done the preparation, and I think understanding of investing in our shorelines in our floodplains and our levees,' Carter said, but added 'we still have work to do.'
Yahoo
20-05-2025
- Business
- Yahoo
Electric bills are rising while pathways for aid are threatened at state, federal level
A utility crew restores power at a New Orleans intersection after Hurricane Francine in September 2024. (John Gray/Verite News) NEW ORLEANS – The recent end to a state-led energy efficiency program combined with massive layoffs last month at the federal agency that provides electric bill assistance to low-income households have residents of greater New Orleans worried about how they are going to cool their homes during the hottest months of the year. The Louisiana Public Service Commission, which regulates electric utilities for most of the state, eliminated an energy efficiency program that it had been working on for over a decade in mid-April. In early April, the Trump administration fired all of the Low Income Energy Assistance Program's staff, leaving the future of the program in jeopardy. Without state-level plans to increase energy assistance, spending on electricity will probably rise, experts said. And with LIHEAP in the lurch, people might not be able to access assistance they need to pay those high bills. Logan Burke, the executive director of the Alliance for Affordable Energy called the LIHEAP cuts 'outrageous,' especially because there are already few avenues for energy bill assistance. Burke said that Louisiana spent 7% of its LIHEAP funds on weatherizing homes last year, and that if LIHEAP doesn't continue, then there will be no low-income weatherization or efficiency programs in the state. 'The problem here is that those are the minimal backstops that people have depended on for decades — the LIHEAP dollars — both for bill assistance and weatherization of housing, and without them, we simply lose billions of dollars of bill assistance and efficiency upgrades in low income housing,' Burke said. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX Local LIHEAP administrators are silent on how the layoffs will affect residents or the future funding. The Louisiana Housing Corporation — which is in charge of distributing funds to parish organizations that then go through applications and work with residents to provide aid — did not respond to phone calls. Neither did JeffCAP, Jefferson Parish's LIHEAP distributor, or Total Community Action in New Orleans. Even though the average unit cost of electricity is lower in Louisiana than much of the rest of the country, Louisianians use the highest amounts, leading to high bills, said Logan Burke, executive director of the Alliance for Affordable Energy, and average rates have only been increasing in recent years. Between 2018 and 2024, the base rate for energy bills in Louisiana increased 40%, and is expected to increase 30% in the next 15 years, according to analysis from the financial consulting firm BAI Group. Extreme weather, old housing infrastructure and Louisiana's reliance on natural gas, a volatile market, are all partly responsible for the high prices, experts said. 'A lot of our housing stock is old and simply isn't good at retaining heated and cooled air,' Burke said. 'So a lot of our energy is just wasted around leaks and cracks around our windows and doors.' For the past 14 years, the Louisiana Public Service Commission had been working on an energy efficiency program that would have helped residents identify ways to consume less energy by making every unit of power go further — through renovations such as increased insulation in homes or upgraded thermostats, Burke said. But the commission abruptly voted to dissolve the program less than a month before contractors were slated to report to the commission about how the program would work. Republican commissioners said the administrative costs of the program would be too high. The decision frustrated residents of the greater New Orleans area who struggle to pay their energy bills and were looking for state support to lower costs. 'Because if you go around sealing up all these cracks and holes in these old houses, don't you think now they're going to use less to heat and cool their homes?' said Dorginia Lucas, a Metairie resident. 'That's why I would drop it too if I was them. 'Why would I help you lower your bill?' That's how I look at it.' Lucas said she has been working since 14 years old, but still struggles to pay her utility bills, which range between $249 to $440. She said dealing with Entergy's billing system is frustrating and overwhelming. A recent report by the Louisiana Association of United Ways, a coalition of nonprofits that connect residents with health and financial aid resources, found that wages haven't been increasing at the same rate as basic necessities in recent years, making household costs difficult to cover, even in families with steady incomes. And utility assistance has been one of the most sought-after aid requests over the past decade in Orleans Parish (with an exception in 2021 after Hurricane Ida), according to caller data from counseling service center Vialink. Entergy distributes funds to nonprofits for its utility assistance program, 'The Power to Care,' that aids seniors and people with disabilities. The New Orleans Council on Aging distributes those funds to residents in Orleans Parish. Howard Rodgers, the executive director of the New Orleans Council on Aging, said there is a 'tremendous need' for assistance paying utility bills in the city. Rodgers said seniors particularly need assistance because they might rely on benefits and need to pay for medication, which might lead them to deprioritize utility payments to the detriment of their health. The New Orleans Council on Aging helps around 10,000 to 15,000 people every year through 'The Power to Care' program, Rodgers said, and most funds come from charitable donations that Entergy matches. But the program has also changed in recent years. Due to high demand, the Council on Aging no longer accepts walk-ins for utility bill assistance. Additionally, those seeking help have a $500 cap on assistance every year. Rodgers said this allows the council to provide assistance to more people. That might not go too far for many residents. A 2023 Verite News analysis found that the average Entergy bill in New Orleans was $179 in 2022. And consumer advocates worry that the situation could get worse. Last year, the New Orleans City Council voted to approve the sale of Entergy New Orleans's gas business utility to a company backed by private equity. Energy advocates and community members spoke out against the sale, saying that it might increase rates for energy users. Louisiana's investments in exporting liquified natural gas abroad could also lead to higher energy costs at home, according to a Department of Energy report from last September. Jannie Yarbrough, a retired New Orleans resident, said she lives alone and pays around $185 to $200 per month, a squeeze on fixed retirement income. Yarbrough said the city and state could be doing more to lower energy costs. Yarbough said she could ask her daughter to help out, but doesn't want to depend on her. 'I'm blessed that I have a daughter that could pay, but I'm not trying to depend on my child,' Yarbrough said. Despite the rising costs of gas, public assistance pathways for utility payments are also dwindling at the local level. Last July, the city's Office of Community Development shuttered its emergency rental and utility assistance program after four years. The office didn't respond to requests for comment. Entergy has its own energy efficiency program, but it still gets paid for funds it may lose from lower energy energy consumption — a program called 'Quick Start,' according to the Alliance for Affordable Energy. Quick Start will expire at the end of the year, and on May 19 the Louisiana Public Service Commission voted to initiate a three month process to look at and make changes to the program and another that helps public entities with energy efficiency. Under an independent, state-run energy efficiency program, Entergy wouldn't be able to earn back potential profits it lost from energy efficiency upgrades. Rodgers said the Council on Aging is anticipating a higher demand for utility assistance since the LIHEAP layoffs. He said he has already spoken to Entergy employees about the possibility of the end of LIHEAP. An Entergy New Orleans spokesperson did not respond to questions about if and how assistance pathways might change if LIHEAP ended, but said the company's rates are consistently below the national average and that customers can contact the utility for bill management resources. 'We won't know what to do until it happens,' Rodgers said. 'We can think about it, plan for it, but then we are just going to have to be reactionary when that happens.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX This article first appeared on Verite News New Orleans and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Business Insider
25-04-2025
- Business
- Business Insider
Meta's data center could be 'transformative' for Louisiana, utility says—as long as customers pay the $5 billion power bill
In Louisiana, a battle is heating up over who will pay for the new power plants needed to serve the $10 billion data center Meta is building in the state's northeastern corner. Meta announced in December the 2,000-acre Richland Parish data center campus, which is expected to be completed in 2030. The company plans to use the data center to train AI models. Consumer advocates and climate groups filed new testimony with the Louisiana Public Service Commission on April 11, pushing the state regulator to reject a request by Meta's electricity provider to shift $5 billion in construction costs for the plants on its entire customer base. Entergy Louisiana has proposed building three new natural gas power plants to serve Meta's data centers in the state. As an investor-owned utility, Entergy can seek regulatory approval to bill its customers for the costs of building the new plants as long as it successfully shows that the plants are in the public interest. Entergy has argued that Meta's data center could be "transformative" for Lousiana once built, saying the facility could provide 300 to 500 jobs with an average salary of $82,000. The testimony from advocates and climate groups argued that the utility's 1.1 million electric customers shouldn't have to foot the bill for Meta's power appetite. Entergy did not respond to a request for comment from Business Insider. Meta declined to comment. Beyond the $5 billion in cost recovery for the plants, the utility's plan would "put other ratepayers at risk of having to absorb hundreds of millions, if not billions of dollars, of additional costs" associated with Meta's data center, said Cathy Kunkel, an energy consultant testifying on behalf of the Union of Concerned Scientists and Alliance for Affordable Energy. That's because Meta's power needs have grown since the Big Tech giant first announced its plans to build an AI data center in Louisiana, adding to Entergy's costs of service. Earlier this year, Meta was planning for more than two gigawatts of capacity in Louisiana, according to a Threads post by Meta CEO Mark Zuckerberg in January. That amount of electricity is double what is being planned at the Crusoe data center in Abilene, Texas, widely thought to be the first site for Stargate, a $500 billion joint venture between Oracle, OpenAI, and SoftBank to build AI data centers in the US. Since then, Meta has asked Entergy for even more electricity, according to the utility's filings with the LPSC. The exact amount requested is unknown, as the information is redacted from the filings. Saddling customers with Meta's costs is especially risky given the uncertainties surrounding AI's electricity demand, Kunkel said. AI models could become more energy efficient in the future, or companies could focus more on energy efficiency as a means to enhance profit, she said. That could result in Meta "choosing to scale back or exit" the project early. Recent reports that Amazon and Microsoft are pulling out of data center leases have helped stoke concern that the AI development boom is slowing down. Entergy's request for cost recovery has attracted a wide range of "intervenors," or parties that want to weigh in with an opinion before the LPSC. Even Walmart in Louisiana has testified, seeking assurances that Meta's escalating power demand won't affect it and other Entergy customers in the state.
Yahoo
18-04-2025
- Politics
- Yahoo
Louisiana kills energy-efficiency program in eleventh hour
This story was originally published by Floodlight. In a move energy advocates say will increase electric bills for Louisiana residents and allow the state's utilities to keep earning money for electricity they don't provide, Louisiana's energy regulators voted 3–2 Wednesday to scrap plans for an independently operated energy-efficiency program more than 14 years in the making. The matter was added two days before the Louisiana Public Service Commission's meeting, held at a remote golf club on the Texas border, 2 ½ hours from where the PSC regularly meets. The vote, along party lines, reversed decisions made last year establishing program standards and hiring an independent administrator. 'We today gave a punch to the face to all Louisianians who are struggling to pay their bills because we said we are not interested, as a commission, in ensuring that we can reduce your energy usage so you can afford your bills,' PSC member Davante Lewis, who opposed Wednesday's motion along with fellow Democrat Foster Campbell, told Floodlight after the meeting. 'I am not aware of any other commission where a decision of this significance could have been made in this way,' said Forest Bradley-Wright, who as the state and utility policy director for the American Council for an Energy-Efficient Economy has appeared in front of utility commissions throughout the country. 'Next to no notice. In a remote part of the state. Unwinding years of rulemaking work without any meaningful process.'Louisiana residents consume more electricity in their homes than in any other state. The program would have helped reduce that use, lowering bills for individual customers and reducing the overall demand for power in the state. 'We waste so much energy in the state, and the idea behind this program was to stop throwing money away,' said Logan Atkinson Burke, executive director for the consumer watchdog group The Alliance for Affordable Energy. Last year's adoption of the program occurred in a Baton Rouge meeting room packed with advocates of the measure chanting 'Vote, vote, vote!' as Commissioner Eric Skrmetta spoke for more than two hours against the program. Commissioner Craig Greene, the swing vote on the commission during that 2024 vote, has since left the commission. He was replaced by Jean-Paul Coussan, who voted Wednesday with Skrmetta and Chairman Mike Francis. Francis had requested the commission reconsider the energy-efficiency program because he argued it was confusing and cost too much. Just seven months ago, the commission awarded a $24.5 million contract to engineering firm TetraTech and Baton Rouge–based Aptim to administer it. The companies were just days away from a May 1 deadline to present specifics of how the program would work. 'A lot of work has gone' into that program, Lewis said. 'And what my colleagues did today, they said they didn't even want to see whether that proposal was good.' Mark Kleehammer, Cleco's chief regulatory officer, told the commission the utility found that around the country, the cost for third-party administrators for energy-efficiency programs is 'significantly higher' than utility-run programs. Currently those programs are set to expire at the end of this year. Both Kleehammer and Larry Hand, vice president of regulatory and public affairs at Entergy Louisiana, said the utility-run energy-efficiency programs should remain in place. Under the status quo, if utilities sell less energy because of efficiency measures, they still get paid that lost revenue, which amounts to about $6 million a year, Burke said. Under the rules adopted for a third-party administrator, the utilities wouldn't get paid that lost revenue. 'We were going to save millions with just that,' she said. With the third-party program gone, there is still a pot of energy-efficiency money individual commissioners can give to schools and hospitals. But neither that program, nor the utility program, reached all who needed it, Lewis said. He added that the third-party program would have helped all energy customers in the state, not just customers chosen by the utilities. States with independent efficiency programs, including Hawaii, Oregon, Wisconsin, and Vermont, 'have delivered enormous amounts of savings to their customers. Louisiana was taking a significant step forward in moving to this model,' Bradley-Wright said. In Wisconsin, for example, the state-run and utility-funded Focus on Energy program provides rebates and incentives for homeowners and businesses to install energy-efficient appliances, add renewable energy such as solar and wind, and optimize building energy efficiency. Aptim, which holds the now-canceled Louisiana contract, administers Wisconsin's program, which says it has provided $1 billion in net economic benefit to customers since its inception in 2011. While the commission voted to terminate the contracts, it postponed further decisions on what, if any, energy-efficiency programs would remain in Louisiana. Said Burke after the meeting: 'I'm just infuriated to see people who are elected to do a public service to watch over public goods are making messy decisions that harm directly the people they are elected to serve." Louisiana Illuminator reporter Wesley Muller contributed to this report. Floodlight is a nonprofit newsroom that investigates the powers stalling climate action.
