Entergy Louisiana receives LPSC approval for major infrastructure investments to support Meta's data center and improve reliability

Rhea-AI Summary

Entergy Louisiana (NYSE:ETR) has received approval from the Louisiana Public Service Commission (LPSC) for major infrastructure investments to support Meta's data center in Richland Parish. The landmark agreement includes the construction of three new combined cycle combustion turbine generation facilities, with two in Richland Parish (operational by late 2028) and one at the Waterford site (operational by end of 2029).

The company will also develop new transmission facilities and has been authorized to procure up to 1,500 megawatts of solar resources through an expedited certification process. Meta will pay its share of infrastructure costs, ensuring other customers are protected from these expenses. The project, announced in 2024, represents one of Louisiana's largest economic development initiatives.

Positive

• Authorization to procure 1,500 megawatts of solar resources through expedited certification
• Meta will bear its share of infrastructure costs, protecting other customers from expenses
• Strategic expansion with three new modern generation facilities strengthening grid reliability
• Major economic development opportunity through Meta's data center project

Negative

• Significant capital investment required for infrastructure development
• Extended timeline for facility completion (2028-2029)

Insights

Utility Infrastructure Analyst

LPSC approval grants Entergy Louisiana green light for significant generation and transmission projects, securing long-term revenue streams while strengthening grid reliability.

The Louisiana Public Service Commission's approval of Entergy Louisiana's infrastructure investment package represents a significant positive development for the utility. The regulatory green light for three new combined cycle combustion turbine facilities and associated transmission infrastructure delivers multiple strategic benefits that will materialize over the coming years.

The approved projects serve dual purposes - meeting Meta's substantial power requirements while simultaneously strengthening system-wide reliability. Most importantly, the regulatory structure ensures that Meta will bear its proportional share of infrastructure costs, protecting existing ratepayers from cross-subsidization while allowing Entergy to secure a major new customer.

The addition of three modern combined cycle plants (two in Richland Parish operational by 2028, one at Waterford by 2029) represents a substantial capacity expansion using efficient generation technology. These assets will provide reliable baseload generation while the authorization to procure up to 1,500 megawatts of solar resources helps balance the portfolio with renewables - critical for attracting sustainability-focused corporate customers.

This package demonstrates Entergy's evolving strategy of positioning itself as a partner in economic development while maintaining regulatory alignment. The commission's expedited certification process for renewable procurement shows regulatory support for Entergy's balanced approach to grid modernization.

For investors, this approval reduces regulatory uncertainty and provides visibility into a substantial capital deployment opportunity that will expand Entergy's rate base and drive long-term earnings growth. The Meta partnership anchors this expansion with a creditworthy counterparty, reducing risk while providing a foundation for further economic development in Entergy's service territory.

New generation and transmission projects to provide benefits for all customers in Louisiana

BATON ROUGE, La., Aug. 20, 2025 /PRNewswire/ -- The Louisiana Public Service Commission, or LPSC, has approved a landmark agreement that paves the way for Entergy Louisiana to move forward with major infrastructure investments tied to Meta's new data center in Richland Parish. The approval clears the path for significant enhancements to the state's electric grid that will benefit all Entergy Louisiana customers and prepare the system for future energy needs.

The agreement allows Entergy Louisiana to construct three new modern and efficient combined cycle combustion turbine generation facilities. Two of the facilities will be located in Richland Parish and are expected to come online in late 2028. The third facility will be built at Entergy Louisiana's existing Waterford site in St. Charles Parish, with an expected operational date by the end of 2029.

In addition, Entergy Louisiana will build several new transmission facilities to serve Meta's data center and strengthen system reliability across its service area.

"Today's decision by the Commission is a critical step toward ensuring the long-term reliability and affordability of electric service for all of our customers," said Phillip May, Entergy Louisiana president and CEO. "These investments will help power one of the most advanced data centers in the world and will also reinforce our grid, create economic opportunity and support a more sustainable energy future across Louisiana. Importantly, Meta is paying its share of the costs for the infrastructure needed to support its operations, ensuring that other customers are protected from those expenses.

"I also want to recognize our elected officials, community leaders and others who had the foresight and vision to see this opportunity through for our state."

As part of the approval, the Commission also authorized Entergy Louisiana to procure up to 1,500 megawatts of solar resources through an expedited certification process. Through these resources Entergy takes a key step forward in helping large-scale customers meet their renewable energy and sustainability commitments while advancing the state's economic development goals.

The Richland Parish data center project, first announced in 2024, is one of the largest economic development initiatives in Louisiana's history. Entergy Louisiana has already broken ground on a key substation to support the facility and will continue to invest in grid infrastructure that supports growth across the region.

These infrastructure projects represent a milestone in Entergy Louisiana's ongoing mission to build a smarter, stronger energy future for all customers - from residents and small businesses to major industrial and technology companies.

About Entergy Louisiana

Entergy Louisiana provides electricity to more than 1.1 million customers in 58 parishes. Entergy Louisiana is a subsidiary of Entergy Corporation (NYSE: ETR). Entergy produces, transmits and distributes electricity to power life for 3 million customers through our operating companies in Arkansas, Louisiana, Mississippi and Texas. We're investing for growth and improved reliability and resilience of our energy system while working to keep energy rates affordable for our customers. We're also investing in cleaner energy generation like modern natural gas, nuclear and renewable energy. A nationally recognized leader in sustainability and corporate citizenship, we deliver more than $100 million in economic benefits each year to the communities we serve through philanthropy, volunteerism and advocacy. Entergy is a Fortune 500 company headquartered in New Orleans, Louisiana, and has approximately 12,000 employees. Learn more at entergylouisiana.com and connect with @EntergyLA on social media.

About the Louisiana 100 Plan

The Louisiana 100 Plan is Entergy Louisiana's bold, decade-long commitment to power progress across the state in honor of a century of service. Entergy has outlined six strategic goals focused on affordability, grid resilience, economic growth, job creation, community investment and volunteerism. Through this plan, Entergy aims to help keep residential electric rates low, strengthen infrastructure to withstand extreme weather, attract new industry and jobs and invest $100 million in Louisiana communities. The Louisiana 100 Plan is a clear roadmap for building a stronger, more resilient Louisiana learn more at entergylouisiana.com/100-plan.

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SOURCE Entergy Corporation

FAQ

What infrastructure investments did Entergy Louisiana (ETR) receive approval for?

Entergy Louisiana received LPSC approval to build three new combined cycle combustion turbine generation facilities and several transmission facilities to support Meta's data center, along with authorization to procure 1,500 megawatts of solar resources.

When will Entergy Louisiana's new generation facilities be operational?

Two facilities in Richland Parish will be operational by late 2028, and the third facility at the Waterford site will be operational by the end of 2029.

How will Meta's data center costs affect Entergy Louisiana's customers?

Meta will pay its share of the infrastructure costs needed to support its operations, ensuring other customers are protected from these expenses.

What renewable energy commitments did Entergy Louisiana make for the Meta project?

Entergy Louisiana received authorization to procure up to 1,500 megawatts of solar resources through an expedited certification process to help meet large-scale customers' renewable energy and sustainability commitments.

Where will Entergy Louisiana build the new generation facilities?

Two facilities will be built in Richland Parish, and one facility will be constructed at the existing Waterford site in St. Charles Parish.