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Louisiana (US-LA)

Market Type: Hybrid (Limited Retail Choice)
SSS Relevance: ⭐⭐⭐ High
Grid Carbon Intensity: See emissions section

SSS Factors: significant nuclear capacity, hydroelectric resources, no mandatory RPS, regulated market structure

1. Overview​

Louisiana's electricity market is characterized by a regulated monopoly structure where customers cannot choose providers based on geographic location. The market is dominated by a small group of investor-owned utilities (IOUs) controlled largely by the Louisiana Public Service Commission (LPSC), with the exception of Entergy New Orleans, which is regulated by the New Orleans City Council 1. Approximately 90% of the state's customers are served through the Midcontinent Independent System Operator (MISO), while the remaining 10% in the northwest are served by the Southwest Power Pool (SPP) 2.

The state relies heavily on fossil fuels, with natural gas supplying approximately 70% of electricity generation 3. As of early 2026, renewable energy accounts for only 2.2% to 4% of total generation, with biomass serving as the primary renewable source, followed by small contributions from hydroelectric, solar (less than 1%), and wind 4. Nuclear power provides a stable baseline, contributing 18% to the state's low-carbon electricity share 3.

Louisiana has the highest residential per capita electricity consumption in the U.S., driven by nearly 100% air conditioning saturation and high reliance on electric heating 5. Despite retail rates often being lower than the national average, monthly residential bills are among the highest in the country, ranging from $143 to $150 on average and reaching up to $209 due to high usage and recent cost increases 6. The industrial sector is the largest consumer of electricity, accounting for 41.8% to 44% of total sales 6.

The state's grid carbon intensity is approximately 927 lbs CO2/MWh (~420 gCO2/kWh), ranking it the 20th highest in the U.S. as of late 2025 3. Louisiana has established long-term decarbonization goals via the Louisiana Climate Action Plan, aiming for a 26–28% reduction in greenhouse gas emissions by 2025, 40–50% by 2030, and net-zero emissions by 2050 7. Notably, in 2025, Louisiana passed the "Affordable, Reliable and Clean Energy Security Act," which officially redefined natural gas as a "green" or "clean" energy source within the state 8.

2. Market Structure​

Louisiana maintains a regulated electricity market characterized by vertically integrated utilities, with no general retail choice for residential or small commercial customers 9. The market is divided into three primary ownership models: Investor-Owned Utilities (IOUs), Electric Cooperatives, and Municipally-Owned Utilities. The Louisiana Public Service Commission (LPSC) regulates IOUs and cooperatives, while municipal utilities are generally self-regulated by local city councils 10.

Ownership and Regulation​

  • Investor-Owned Utilities (IOUs): These for-profit entities serve the most densely populated areas. Major providers include Entergy Louisiana (the largest utility in the state), Entergy New Orleans (regulated by the New Orleans City Council), CLECO Power LLC, and AEP Southwestern Electric Power Company (SWEPCO) 1112.
  • Electric Cooperatives: There are 10 major distribution cooperatives in the state, primarily serving rural areas. These not-for-profit entities are represented by the Association of Louisiana Electric Cooperatives (ALEC). In 2019, the 1803 Electric Cooperative was formed as a generation and transmission (G&T) co-op to manage power supply for its members 1312.
  • Municipally-Owned Utilities: Louisiana has 8 municipally or publicly owned electric systems. Rates and policies for these entities are set by local municipal administrations or utility boards rather than the LPSC 1210.

Wholesale Market and System Operations​

The transmission system and wholesale energy market for much of Louisiana are managed by the Midcontinent Independent System Operator (MISO). MISO acts as the regional transmission organization (RTO), ensuring reliability and operating day-ahead and real-time energy markets across a 15-state region. Major utilities such as Cleco Power and Entergy Louisiana are members of MISO, though the LPSC retains jurisdiction over transmission projects located within the state 1414.

Deregulation Status and Developments​

While the state currently operates under a regulated monopoly model, market structure is a subject of active debate. In May 2025, the LPSC voted 4-1 to halt major electric market reform efforts that would have introduced broader competition 9. Proposals under discussion include full deregulation (allowing all customers to choose suppliers) and partial deregulation focused on large industrial customers seeking renewable energy access or bypassing the regulated system 88. This debate occurs amid rising residential electricity prices, which have increased approximately 35% since 2019 15.

3. Clean Energy Policy​

Statewide Mandates and Definitions Louisiana does not have a statewide Renewable Portfolio Standard (RPS), instead favoring voluntary utility programs and efficiency standards [1]. In 2025, the state enacted Act 462, which significantly redefined state energy policy by legally classifying natural gas and nuclear power as "green energy" and "clean energy" [2]. This legislation directs the Louisiana Public Service Commission (LPSC) to prioritize energy sources that are "affordable, reliable, and dispatchable," effectively creating an "anti-RPS" framework that blocks traditional renewable mandates [2][3]. The law also makes fossil fuels eligible for state and local funding originally intended for renewable initiatives [2].

State Climate Goals Despite the legislative pivot toward fossil fuels, Louisiana maintains a goal of achieving net-zero greenhouse gas emissions by 2050, with interim targets of a 26–28% reduction by 2025 and 40–50% by 2030 [4]. The state's 2022 Climate Action Plan originally identified renewable electricity as a central pillar and proposed a Renewable and Clean Energy Portfolio Standard targeting 100% clean power by 2035 [4]. However, recent developments suggest a conflict between these climate goals and the 2025 energy laws, which prioritize natural gas to support industrial growth, such as data centers [3][4].

Renewable Energy Development To support grid reliability and industrial demand, the state has established a new permitting framework for large-scale solar and wind projects (over 75 acres) via Act 279 [2]. This includes strict siting requirements, such as a 300-foot setback from residential property lines, though parishes may opt out to set their own rules [2]. Major utilities like Entergy Louisiana have announced commitments to add approximately 15 to 17 gigawatts of renewable resources by 2031, while the state explores offshore wind potential in the Gulf of Mexico [4].

New Orleans Exception The City of New Orleans has established a local Renewable and Clean Portfolio Standard (RCPS) administered by the New Orleans City Council [1]. This policy applies specifically to Entergy New Orleans and includes solar, wind, geothermal, hydroelectric, and nuclear as eligible resources [1]. The mandate includes a cost cap limiting the rate impact of the RCPS to no more than 1% of total utility retail sales revenues per year [1]. The city has set separate goals to reach a fully zero-carbon energy portfolio by 2050, with an interim goal of 90% renewable energy by 2040 [5].

4. Utility Landscape​

Louisiana's electricity sector is served by a mix of investor-owned utilities (IOUs), electric cooperatives, and municipal utilities. The majority of the state's residential and commercial customers are served by four primary IOUs, which are regulated by the Louisiana Public Service Commission (LPSC), with the exception of Entergy New Orleans.

Investor-Owned Utilities (IOUs)

  • Entergy Louisiana, LLC: The state's largest utility, serving over 1.1 million customers across 58 of the state's 64 parishes. It is a subsidiary of Entergy Corporation (ETR) 1614.
  • Entergy New Orleans, LLC: A subsidiary of Entergy Corporation serving approximately 208,000 customers specifically in Orleans Parish. Unlike other IOUs in the state, it is regulated by the New Orleans City Council rather than the LPSC 1614.
  • Cleco Power LLC: Based in Pineville, Cleco serves approximately 291,000 to 295,000 customers across 24 parishes in central and south Louisiana. It is a subsidiary of Cleco Corporate Holdings 1417.
  • Southwestern Electric Power Company (SWEPCO): A subsidiary of American Electric Power (AEP), SWEPCO operates primarily in Northwest Louisiana, serving the Shreveport area 1416.

Electric Cooperatives The state's distribution cooperatives are private, not-for-profit entities owned by their members. The Association of Louisiana Electric Cooperatives (ALEC) represents these organizations, which provide power to approximately 1 million citizens across 50 parishes 1819.

  • Major Co-ops: Include Dixie Electric Membership Corporation (DEMCO) in the Baton Rouge area, Southwest Louisiana Electric Membership Corporation (SLEMCO) in the Acadiana region, and Beauregard Electric Cooperative (BECi) 1720.
  • Wholesale Power: 1803 Electric Cooperative is a wholesale power supply and transmission cooperative formed by several distribution co-ops to manage energy portfolios 20.

Municipal Utilities Municipal utilities are publicly owned by local governments. The Louisiana Energy and Power Authority (LEPA) acts as a joint-action agency for 20 municipalities that own their electric distribution systems 1821.

  • Lafayette Utilities System (LUS): The largest municipal utility in the state, serving the city of Lafayette with over 67,000 customers 21.
  • Other Municipalities: Include the cities of Natchitoches, Ruston, Morgan City, Plaquemine, and Minden 1821.

5. SSS-Eligible Resources​

ResourceTypeCapacity (MW)SSS EligibleNotes
Large Hydroelectric (aggregate)Hydro225✅ Yes (pre-RPS)Legacy hydro facilities

6. EAC/REC Registry Infrastructure​

Louisiana does not operate a state-specific Renewable Energy Certificate (REC) registry. Instead, tracking is managed through regional electronic systems and utility-specific programs to prevent double-counting and verify environmental attributes 22.

Primary Tracking Systems​

  • North American Renewables Registry (NAR): Identified as a primary regional tracking system for Louisiana and the Southeast, assigning unique serial numbers to each megawatt-hour (MWh) of renewable energy generated 22.
  • M-RETS (Midwest Renewable Energy Tracking System): Commonly used for Louisiana projects, MRETS issues one electronic certificate per MWh and accepts generators from across North America, including the Southeast 23.
  • PJM-GATS & WREGIS: These systems are generally not used for Louisiana-based generation unless the energy is exported to specific compliance markets (e.g., the Western Interconnection for WREGIS or the PJM grid for PJM-GATS) 24.

Verification and Utility Programs​

  • Green-e Certification: Major utilities such as Entergy Louisiana use Green-e Energy certification to audit and verify REC integrity 2522.
  • Utility Portals: Programs like Entergy Louisiana's "Green Select" and Entergy New Orleans' "Green Power" allow customers to match usage with RECs, often utilizing the state's tracking infrastructure 25.

State Oversight and Facility Registration​

While the state does not run a REC market, the Louisiana Department of Conservation and Energy (C&E) oversees the permitting of renewable facilities.

  • Act No. 279: Effective August 1, 2025, this law grants the state permitting authority over large-scale solar (75 acres or more), wind, and renewable battery projects 26.
  • Registration Requirements: Owners and operators of qualifying facilities must register with the Department of C&E and complete annual renewals to maintain operating permits 26.

7. Grid Emissions​

Generation Mix​

Scope 2 Reporting​

  • SB 253 requires Scope 2 reporting for companies >$1B revenue

Source: EPA eGRID, EIA, state regulatory filings

References​

Sources & Last Updated​

Research Date: 2026-03-10
Data Sources: EIA, EPA eGRID, state regulatory filings, SerpAPI research aggregation

This page was generated using automated research and may contain inaccuracies. Verify critical data with primary sources.

Footnotes​

  1. The Advocate +4, WRKF ↩

  2. The Advocate ↩

  3. U.S. Energy Information Administration (.gov) ↩ ↩2 ↩3

  4. Facebook +1, Louisiana Illuminator ↩

  5. lla.state.la.us +2, lla.state.la.us ↩

  6. lla.state.la.us ↩ ↩2

  7. Louisiana Department of Conservation and Energy (.gov) ↩

  8. Louisiana Illuminator ↩ ↩2 ↩3

  9. Quick Electricity ↩ ↩2

  10. NARUC ↩ ↩2

  11. U.S. Energy Information Administration (EIA) (.gov) ↩

  12. Energy Star (.gov) ↩ ↩2 ↩3

  13. Association of Louisiana Electric Cooperatives ↩

  14. Wikipedia ↩ ↩2 ↩3 ↩4 ↩5 ↩6

  15. Forbes ↩

  16. Louisiana Economic Development (.gov) ↩ ↩2 ↩3

  17. Cause IQ ↩ ↩2

  18. Louisiana Energy and Power Authority (LEPA) ↩ ↩2 ↩3

  19. www.sleca.com ↩

  20. lpsc.louisiana.gov ↩ ↩2

  21. American Public Power Association ↩ ↩2 ↩3

  22. U.S. Environmental Protection Agency (.gov) ↩ ↩2 ↩3

  23. CleanCounts ↩

  24. Green-e ↩

  25. Entergy ↩ ↩2

  26. Liskow & Lewis, APLC ↩ ↩2