Louisiana Electricity Rates
Louisiana’s average residential electricity rate is 12.5¢/kWh—31% below the national average. But that cheap rate is deceptive: the average monthly bill hits $209 thanks to crushing summer humidity, poor insulation in older homes, and compounding hurricane storm recovery surcharges. Louisiana is a regulated market dominated by Entergy Louisiana, and it is the undisputed LNG capital of the world—home to the planet’s largest liquefied natural gas export terminal at Sabine Pass.
LNG Capital of the World
No state in the country—and arguably no region on Earth—shapes global energy markets the way Louisiana does. The state hosts four major LNG export terminals along the Gulf Coast, giving the United States more liquefied natural gas export capacity than any other nation. In 2025, the U.S. overtook Qatar as the world’s largest LNG exporter at 111 million metric tons annually—roughly 20 million metric tons more than Qatar—and Louisiana’s terminals are the primary reason why.
The scale is staggering. Sabine Pass, operated by Cheniere Energy in Cameron Parish, alone ships 29.5 million metric tons per year—making it the single largest LNG export terminal on the planet. Plaquemines LNG, which began commercial operations in December 2024, delivered an extraordinary 16.4 million metric tons in its first year of operation, ramping up faster than any LNG facility in history. Total U.S. LNG capacity is projected to rise from 14 Bcf/d to more than 25 Bcf/d by 2030, and Louisiana will capture the lion’s share of that growth.
Sabine Pass LNG
Cameron LNG
Calcasieu Pass LNG
Plaquemines LNG
This creates a profound paradox for Louisiana electricity consumers. The state sits atop the Haynesville Shale—one of the most productive natural gas formations in the United States—and exports more LNG than any state in the country. Yet 63% of Louisiana’s own electricity generation comes from natural gas, and domestic electricity prices are set by market gas prices, not production costs. Louisiana produces it, exports it, burns it for power—and its residents still pay whatever the market dictates.
The petrochemical corridor along the Mississippi River from Baton Rouge to New Orleans—sometimes called “Cancer Alley”—is one of the most energy-intensive industrial regions in the world. Refineries, chemical plants, and fertilizer manufacturers consume enormous quantities of both natural gas as feedstock and electricity for operations, creating a massive industrial load on the grid alongside the residential and commercial demand.
Louisiana’s LNG Terminals at a Glance
Louisiana’s four major LNG export facilities have a combined nameplate capacity exceeding 68 million metric tons per year. That’s more than any single country’s total LNG export capacity except Qatar and Australia. All four terminals are located along Louisiana’s Gulf Coast, leveraging direct access to the Gulf of Mexico for tanker loading and proximity to the prolific Haynesville and Permian Basin gas supplies via an extensive pipeline network.
Entergy’s Louisiana Grid
Louisiana is a fully regulated electricity market overseen by the Louisiana Public Service Commission (LPSC). Your utility is assigned by your physical address, and you cannot shop for a competitive electricity supplier. Entergy Louisiana, a subsidiary of Entergy Corporation headquartered in New Orleans, dominates the state’s electric landscape, serving approximately 1.1 million customers from New Orleans to Baton Rouge and across most of southern and eastern Louisiana.
The dominant investor-owned utility in Louisiana, serving New Orleans, Baton Rouge, Lafayette (unincorporated areas), Lake Charles, and most of southern and eastern Louisiana. A subsidiary of Entergy Corp (NYSE: ETR), which also operates utilities in Texas, Mississippi, and Arkansas. Entergy Corp’s decision to relocate its headquarters from New Orleans to The Woodlands, Texas remains a sore point for many Louisianans.
A subsidiary of American Electric Power (AEP), SWEPCO serves northwest Louisiana centered on the Shreveport–Bossier City metropolitan area. SWEPCO’s storm cost recovery rider currently adds 10.6% to residential bills—a significant surcharge driven by the devastating damage from Hurricane Laura (2020) and subsequent storms in the region.
Cleco Power serves central Louisiana including Alexandria, Pineville, and surrounding parishes. Privately owned since 2016 when it was acquired by a consortium of infrastructure investors, Cleco operates a mix of natural gas and renewable generation assets and serves a largely rural territory across the state’s midsection.
One of the largest municipal electric utilities in the South, LUS serves the city of Lafayette and is known for competitive rates that often undercut Entergy. As a city-owned utility, LUS is not regulated by the LPSC and operates as a nonprofit, returning excess revenues to the city’s general fund. LUS also operates the LUS Fiber broadband network.
The largest rural electric cooperative in Louisiana, Beauregard Electric serves approximately 45,000 member-owners across DeRidder, Sulphur, and surrounding communities in southwest Louisiana. As a cooperative, it is member-owned and governed by an elected board. BEC was hit hard by Hurricane Laura in 2020 and completed a multi-year infrastructure rebuild.
Louisiana’s 15+ Rural Electric Co-ops
Beyond Beauregard Electric, Louisiana is served by more than 15 rural electric cooperatives including DEMCO (Denham Springs), SLECA (Houma), Claiborne Electric (Homer), Jeff Davis Electric (Jennings), and Pointe Coupee Electric. These member-owned co-ops serve the state’s rural parishes and are critical infrastructure for agricultural communities—powering rice irrigation, crawfish farms, sugar mills, and timber operations. Co-op rates are generally competitive with Entergy’s rates, and members elect their own boards.
Hurricanes, Storm Fees & Your Electric Bill
Louisiana is the most hurricane-impacted state in the country when it comes to electricity infrastructure. The state’s Gulf Coast exposure, low elevation, and aging grid make it uniquely vulnerable to catastrophic storm damage—and the financial aftermath of every hurricane season lands directly on your electric bill.
The mechanism is straightforward: when hurricanes destroy utility infrastructure, the LPSC allows utilities to recover restoration costs through surcharges on customer bills that can persist for years. This is not a one-time event. It is a permanent feature of Louisiana electricity. Every hurricane season adds the potential for new charges, and old charges don’t disappear when new ones arrive. They stack.
Entergy is currently seeking $182 million in storm cost recovery for Hurricane Francine (September 2024), estimated at approximately $1.10/month per customer. SWEPCO’s storm cost recovery rider currently adds 10.6% to residential bills—a direct consequence of the devastation Hurricane Laura inflicted on northwest Louisiana in 2020. Hurricane Ida in 2021 caused an estimated $2.6 billion in grid damage across Entergy’s Louisiana territory, the most expensive storm restoration in the company’s history.
The compounding effect is severe: Louisiana customers are still paying for storms from 5+ years ago while new surcharges from more recent hurricanes stack on top. Unlike Florida, where utilities like FPL have invested billions in storm hardening (concrete poles, underground lines) to reduce future restoration costs, Louisiana’s grid remains more vulnerable to storm damage, and the cycle of destroy–rebuild–surcharge continues.
Why Rates Are Low but Bills Are High
Louisiana’s residential rate of 12.5¢/kWh looks cheap—31% below the national average. But the average monthly bill of $209 tells a different story. Three factors drive the disconnect:
1. Extreme consumption: Louisiana’s hot, humid subtropical climate means air conditioning runs 7–8 months per year. AC accounts for 50%+ of summer electricity bills, pushing average monthly consumption well above the national average.
2. Storm fees: Multiple hurricane recovery surcharges compound on every bill, adding $5–$20/month depending on your utility and the severity of recent storm seasons.
3. Poor insulation: A significant share of Louisiana’s housing stock predates modern energy codes. Older homes with inadequate insulation, single-pane windows, and outdated HVAC systems waste enormous amounts of energy—particularly in the summer cooling season.
Louisiana’s Energy Mix & the Gas Paradox
Louisiana’s electricity generation is overwhelmingly powered by natural gas, which accounts for 63% of all generation—among the highest percentages in the United States. Nuclear energy provides a reliable 13% from two baseload plants, while net electricity imports from neighboring states cover approximately 12% of demand. Coal has declined to just 4%, and solar remains at a nascent 2%.
Louisiana’s two nuclear plants—River Bend Station (974 MW, West Feliciana Parish) and Waterford 3 (1,168 MW, St. Charles Parish near New Orleans)—provide reliable, carbon-free baseload generation. Together they produce enough electricity to power roughly 1.5 million homes and serve as critical anchors for grid stability, particularly during summer peak demand and hurricane recovery periods when gas infrastructure may be compromised.
Entergy is building 2.26 GW of new natural gas generation in Richland Parish, primarily to serve Meta’s planned hyperscale data center. This massive buildout will further increase Louisiana’s dependence on gas-fired generation at a time when other states are accelerating renewable energy deployment.
The Natural Gas Paradox
Louisiana sits on top of the Haynesville Shale—one of the most productive natural gas formations in the United States, spanning the northwest corner of the state into East Texas. Louisiana produces massive quantities of natural gas. Louisiana exports more LNG than any state in the country. Louisiana burns natural gas for 63% of its own electricity generation.
And yet, Louisiana electricity consumers pay whatever the market price of natural gas happens to be—not the production cost. When Henry Hub gas prices spike (as they did in 2022), Louisiana electricity bills rise right alongside them, even though the gas is being pulled from wells within the state’s own borders. The production wealth flows to gas companies and export terminal operators; the commodity cost flows to ratepayers.
Data Centers & Industrial Electricity
Louisiana’s combination of cheap natural gas, low industrial electricity rates, Gulf Coast access, and Mississippi River transportation infrastructure has made it one of the most energy-intensive industrial corridors in the world—and now, a target for hyperscale data center development.
Meta’s 2 GW data center in Richland Parish represents the single largest data center power commitment in Louisiana history. Entergy is building dedicated gas-fired generation to serve the facility, underscoring the scale of electricity demand that modern AI and cloud computing operations require. The project is expected to bring significant economic development to a rural area of northeast Louisiana.
The Mississippi River industrial corridor from Baton Rouge to New Orleans is home to some of the largest industrial electricity consumers in the nation. ExxonMobil’s Baton Rouge refinery—the largest refinery in the United States—along with BASF, Dow Chemical, and dozens of other petrochemical operations consume enormous quantities of electricity for processing, cracking, and refrigeration. Louisiana’s industrial electricity rate is among the lowest in the nation, which is precisely why these industries located here in the first place.
Cheap natural gas as both a fuel source and a petrochemical feedstock, combined with Gulf of Mexico access for tanker shipping and the Mississippi River for barge transportation, creates an unmatched trifecta for energy-intensive industry. The Port of South Louisiana—the largest tonnage port in the Western Hemisphere—handles over 300 million tons of cargo annually, much of it petroleum, chemical, and grain products that require massive electricity for processing and loading.
Louisiana Business Electricity Rates
Louisiana’s commercial electricity rate of 10.2¢/kWh is well below the national average, reflecting the state’s abundant and cheap natural gas supply. For businesses with significant energy needs, Louisiana’s rates are a compelling competitive advantage.
Petrochemical & Refining
ExxonMobil Baton Rouge (the largest refinery in the U.S.), BASF, Dow, and dozens of chemical plants along the Mississippi River corridor consume enormous electricity for processing, cracking, and refrigeration operations that run 24/7/365.
Shipping & Ports
The Port of South Louisiana is the largest tonnage port in the Western Hemisphere, handling 300+ million tons annually. Port operations, grain elevators, and cargo loading facilities require massive power for conveyors, cranes, and refrigeration.
Seafood & Agriculture
Louisiana’s shrimp, crawfish, oyster, and sugar cane industries depend on cold storage, processing facilities, and irrigation pumps. Commercial seafood operations run energy-intensive blast freezers and refrigerated warehouses year-round.
Healthcare
Ochsner Health System—the largest private employer in the New Orleans metro—along with LCMC Health, Our Lady of the Lake, and Willis-Knighton operate sprawling hospital campuses with 24/7 HVAC, surgical suites, data centers, and life-support systems.
How to Lower Your Louisiana Electricity Bill
You can’t switch electricity providers in Louisiana’s regulated market, but the state’s high consumption patterns mean there’s significant room to cut usage—and your bill—through targeted efficiency improvements:
Weatherize Your Home
Louisiana’s older housing stock is a major contributor to high bills. Adding attic insulation, sealing ductwork, and upgrading to double-pane windows can cut cooling costs by 20–30%. Many Louisiana homes were built before modern energy codes, and even modest weatherization delivers outsized returns in the state’s hot, humid climate.
Smart Thermostat
Air conditioning accounts for 50%+ of summer electricity bills in Louisiana. A programmable or smart thermostat that raises the temperature while you’re at work and cools down before you return can save $15–$25/month during peak summer. Setting your thermostat to 78°F instead of 72°F reduces cooling energy use by roughly 18%.
Go Solar
Louisiana averages 210+ sunny days per year, making rooftop solar viable across much of the state. The 30% federal Investment Tax Credit (ITC) applies, and net metering is available through Entergy Louisiana, allowing you to offset consumption with solar generation and receive credits for excess power fed back to the grid.
Storm Preparedness
Investing in a whole-home generator or battery backup system protects against extended hurricane-season outages that are a regular occurrence in Louisiana. Beyond comfort and safety, backup power prevents food spoilage ($300–$500 per event for a full freezer and refrigerator) and allows you to run critical medical equipment.
Want to Choose Your Electricity Provider?
Louisiana is a regulated market—you cannot switch providers. But several nearby states offer deregulated electricity markets where consumers can shop for competitive rates and potentially save 15–30% on their electricity bills. See electricity rates and provider options in:
Texas Electricity Rates · Ohio Electricity Rates · Pennsylvania Electricity Rates
Frequently Asked Questions About Louisiana Electricity
What is the average electricity rate in Louisiana?
Louisiana’s average residential electricity rate is 12.5¢/kWh as of April 2026—approximately 31% below the national average of 18.05¢/kWh. Commercial rates average 10.2¢/kWh. Louisiana benefits from abundant, low-cost natural gas that fuels 63% of its electricity generation.
Is Louisiana a deregulated electricity state?
No. Louisiana is a fully regulated electricity market overseen by the Louisiana Public Service Commission (LPSC). Your utility is determined by your address, and you cannot choose a competitive electricity supplier. Entergy Louisiana serves most of the state, with SWEPCO, Cleco, municipal utilities like LUS (Lafayette), and rural cooperatives covering the remainder. States like Texas, Ohio, and Pennsylvania offer deregulated markets where consumers can shop for competitive rates.
Why is my Louisiana electric bill so high if rates are low?
Louisiana’s per-kWh rate of 12.5¢ is among the lowest in the nation, but the average monthly bill of approximately $209 is higher than many states. Three factors drive this: extremely high consumption from heavy air conditioning in Louisiana’s hot, humid climate (AC is 50%+ of summer bills); hurricane storm recovery surcharges that compound from multiple storms; and poor insulation in the state’s older housing stock, which wastes energy at a much higher rate than modern construction.
What are storm recovery charges on my Entergy bill?
Storm recovery charges are LPSC-approved surcharges that allow utilities to recoup the cost of restoring power after hurricanes. Entergy is seeking $182 million for Hurricane Francine (Sep 2024), estimated at ~$1.10/month per customer. SWEPCO’s storm rider adds 10.6% to residential bills. These charges compound—customers are still paying for storms from 5+ years ago (Hurricanes Laura, Delta, Zeta in 2020; Hurricane Ida in 2021) while new surcharges from more recent storms stack on top. This is an ongoing, permanent feature of Louisiana electricity costs.
Who are the major electric utilities in Louisiana?
Entergy Louisiana is the dominant utility, serving ~1.1 million customers across most of the state including New Orleans and Baton Rouge. SWEPCO (AEP subsidiary) serves ~120,000 customers in northwest Louisiana (Shreveport area). Cleco Power serves ~300,000 customers in central Louisiana (Alexandria, Pineville). Lafayette Utilities System (LUS) is a major municipal utility serving ~70,000 customers with competitive rates. Beauregard Electric Cooperative is the largest co-op with ~45,000 members in southwest Louisiana. An additional 15+ rural electric cooperatives serve the state’s agricultural parishes.
What is Louisiana’s role in LNG exports?
Louisiana is the LNG capital of the world. The state hosts four major LNG export terminals: Sabine Pass (Cheniere Energy, 29.5 mmt/year—the world’s largest), Cameron LNG (Sempra, 13.5 mmt), Calcasieu Pass (Venture Global, 12.06 mmt), and Plaquemines LNG (Venture Global, 13 mmt Phase 1). The U.S. became the world’s largest LNG exporter in 2025 at 111 mmt annually—roughly 20 mmt more than Qatar—largely because of Louisiana’s terminals. Total U.S. LNG capacity is projected to exceed 25 Bcf/d by 2030.
What nuclear plants operate in Louisiana?
Louisiana has two operating nuclear power plants: River Bend Station (974 MW) in West Feliciana Parish, and Waterford 3 (1,168 MW) in St. Charles Parish near New Orleans. Together they provide approximately 13% of Louisiana’s electricity generation, delivering reliable, carbon-free baseload power. Both plants are critical for grid stability, particularly during hurricane recovery periods when gas infrastructure may be compromised.
What is the average monthly electric bill in Louisiana?
The average Louisiana household pays approximately $209/month for electricity. Despite having one of the lowest per-kWh rates in the nation at 12.5¢, Louisiana’s hot and humid subtropical climate drives extremely high consumption—particularly for air conditioning, which runs 7–8 months per year and accounts for 50%+ of summer bills. Storm recovery surcharges and inefficient older housing stock further increase total costs.
About this Data
Rate data is sourced from the U.S. Energy Information Administration (EIA), the Louisiana Public Service Commission (LPSC), Entergy Louisiana, Cleco Power, SWEPCO, and the ElectricChoice.com electric rate marketplace. Last data refresh: April 2026.
