A terrible deal for us, a fantastic one for Entergy

The Meta data center expansion is a terrible deal for Louisianans, and a fantastic one for Entergy. We can still make it better for us.

Entergy has seven massive new gas plants fast-tracked for approval by the Public Service Commission this December. They fall under the Lightning Amendment, which means Entergy does not have to seek out the cheapest form of new electricity. Entergy makes a guaranteed 9.7 percent on everything it builds, so they want to build the most expensive generation they can. And that is exactly what they are doing. Their own application puts the price at $12.9 billion, across 1,200 pages.

A new report came out this week showing solar remains cheaper than new gas power plants, even excluding tax breaks, and that gas construction quotes have roughly doubled in five years.

So why hasn't Entergy considered solar plus batteries?

Entergy has an obligation to its shareholders to maximize profits. And they are doing an incredible job of it. Their stock is up more than 117 percent in the last five years.

On top of that, Entergy stands to make roughly $640 million a year more in profit from the Meta expansion alone. That math is simple: $12.9 billion of new plants, times their guaranteed 9.7 percent return on the half they finance with shareholder money.

Meanwhile, our bills are up about 50 percent since 2020, and our power goes out 3 times as long as Florida's. Doubling down on gas makes that worse. Every new gas plant deepens our exposure to price spikes from LNG exports and foreign wars.

The Public Service Commission cannot control whether Meta's data centers come to Louisiana. But it can force Entergy to supply this power in a way that is actually better for us: cheaper, more reliable, and less exposed to fuel markets we do not control.

That vote is scheduled for December 16th, 43 days after the election. If elected, I will push to delay it until I take office in January, and I will force Entergy to seek lower cost alternatives that are better for Louisianans as a whole.

That is what an engineer on the Public Service Commission is for.

P.S. I read the 1,200-page filings so you do not have to. If someone you know is worried about being saddled with data center costs, send them this.