KEY TAKEAWAYS: Landry signed an executive order directing new incentive rules aimed at protecting utility customers from data center-related power costs. Louisiana Economic Development has 90 days to develop new requirements for data centers seeking state tax incentives. The order follows conc erns that Meta’s Hyperion data center could contribute to higher Entergy customer bills. Consumer advocates welcomed the focus on ratepayer protection, while critics argued the order lacks meaningful safeguards.   Gov. Jeff Landry says an executive order he signed Thursday will protect Louisiana’s household utility customers from covering the costs of power-hungry data centers, but he also made the case for the state continuing to lay out the red carpet for the massive developments. The order describes data centers as providing a “once-in-a-generation opportunity” to spur economic growth in rural communities. It also describes a need for policies that ensure their rapid development doesn’t harm residents and communities. The order directs Louisiana Economic Development Secretary Susan Bourgeois to come up with new requirements within 90 days for any data center facility to claim a state incentive, the Data Center Sales and Use Tax Exemption. The requirements must follow a general framework that balances the interests of investors with those of Louisiana residents, specifically with regards to the cost of electricity. Landry issued the executive order on the heels of recent news about the skyrocketing costs of power plants driven primarily by data centers. A recent analysis from consultant Lane Sisung for the Louisiana Public Service Commission predicts Entergy Louisiana‘s 1.1 million ratepayers will see significant increases in their monthly bills if the company moves forward with buying an aging power plant in Southeast Texas. The $1.8 billion purchase price would be more than three times than when it last changed hands in 2024, and Sisung wrote that the increase is “predominantly attributable” to the power needs for Meta’s Hyperion data center being built in Northeast Louisiana. In a social media post last week, Landry suggested Entergy’s proposal would violate promises the utility and Meta made to not push any electricity costs onto ratepayers. Both companies have said they disagree with Sisung’s assessment, and Entergy Louisiana CEO Phillip May was at the governor’s side when he signed the executive order, accepting a copy from Landry afterward. Asked Thursday if he’s changed his mind about Entergy’s proposal to buy the Cottonwood power plant in Newton County, Texas, the governor said he had not. Republicans on the Public Service Commission, who hold a 3-2 majority, have said they are inclined to follow Sisung’s advice against approving the purchase. Landry’s executive order would not affect Entergy’s power generation plans, which the Public Service Commission regulates. A provision in the order states it does nothing to limit or impair the commission’s constitutional or statutory authority, though the governor described the regulatory body as “somewhat dormant” over the past 50 years. PSC member Davante Lewis, D-Baton Rouge, held an online news conference immediately after the governor’s event, which he called a “PR stunt” and criticized Landry’s closed-door deals to bring data centers to the state. The Alliance for Affordable Energy, a utility consumer advocacy group, supports the order’s goal of protecting ratepayers. In a phone interview, policy director Jackson Voss said Landry pressed the Public Service Commission last year to truncate its usual vetting process to quickly approve Entergy’s power agreement with Meta. It was part of the governor’s “Lightning Speed Initiative” executive order to speed up permitting for Big Tech projects and artificial intelligence investments in the state. “We would not be facing these questions in this same way if it weren’t for his lightning initiative,” Voss said. In a statement, the Sierra Club described the governor’s executive order as “hollow” and with too few guardrails to protect utility customers. “Gov. Landry wants to have his cake and eat it too, but it’s totally out of touch to welcome this massive data center boom and expect concerned Louisianans to go along with it,” said Angelle Bradford Rosenberg, Sierra Club Delta chapter chair. ...read more read less