SHOCK TO THE SYSTEM: Protecting Louisiana Consumers from Risking Electricity Costs

“As Louisiana looks to expand its energy capacity and deliver affordable, reliable power, policymakers should also consider forward-looking models like Consumer Regulated Electricity (CRE), microgrids, energy parks, and other market-driven innovations. CRE-style reforms allow large, sophisticated energy users, such as data centers, industrial facilities, and major manufacturers, to develop or contract for fully private power systems operating independently of the regulated monopoly grid. Under this framework, developers would be allowed to finance, build, own, and operate generation and related infrastructure entirely with private capital and at private risk, serving only voluntary customers under negotiated agreements. This approach preserves the existing regulated utility system while creating a parallel pathway for new large-load customers that poses no risk to the grid and no cost to ratepayers. Last year, New Hampshire passed a streamlined law, HB 672, which exempts off-grid electricity providers from traditional utility regulation. Meanwhile, at the federal level, Sen. Tom Cotton’s DATA Act would take the New Hampshire blueprint national, carving out the same exemption from federal utility rules for off-grid generators. These flexible, pro-growth solutions offer no-risk, high-reward pathways to protect ratepayers, modernize the grid, attract private investment, enhance competition, and empower consumers like never before.”

https://pelicanpolicy.org/wp-content/uploads/2026/03/Shock-to-the-System-Report-2026.pdf