Just days after the Louisiana Public Service Commission (LPSC) voted to shut down its only active review of reforms to the state’s monopoly-run utility system, the fragility of that system was laid bare. Over Memorial Day weekend, nearly 100,000 homes and businesses across southeast Louisiana lost power—blackouts triggered by extreme heat, aging infrastructure, and the failure of multiple monopoly-controlled power plants. This wasn’t a natural disaster. It was a predictable result of policy decisions and regulations that stifle innovation, competition, and private investment.

In May, the Commission voted to kill docket R-36227—known as the Customer Centered Options (CCOs) docket—ending a years-long study of market-based reforms and closing the only pathway for private-sector solutions to modernize Louisiana’s grid. Major energy users like refineries and manufacturers want the ability to procure or generate their own electricity when doing so helps the entire grid. That reduces the need for monopoly utilities to build expensive new infrastructure—costs that are passed on to captive ratepayers like you and me. After all, the cheapest power plant is the one that never shows up on your energy bill.

Reforms proposed through the CCO docket could have saved Louisianans millions in electricity costs and helped prevent future outages by easing the strain on aging infrastructure. Instead, the LPSC protected the status quo, handing monopoly utilities unchecked control while working families and small businesses pay the price.

Let’s be clear—weather alone didn’t cause the Memorial Day blackout. There were several unplanned power outages across South Louisiana in the days leading up to the Memorial Day blackout, and two monopoly-run power plants were offline during peak demand—one due to an unexpected failure. To prevent grid collapse, MISO, the regional operator, ordered emergency “load shedding.” This is what happens when a utility system lacks transmission upgrades, energy efficiency programs, and demand response tools—and when outdated rules make it nearly impossible for private investment to enter the market. The CCO docket was designed to explore these very solutions.

Defenders of the current system argue that letting large energy users to contract with competitive power developers could shift costs to smaller customers. Those concerns can and should be addressed, but shutting down the evaluation these potential solutions altogether is not the right approach.

The Commission should immediately reopen the CCO docket. Continuing this work is essential to creating conditions that attract private investment without burdening Louisiana families. States like Texas have proven it works. Through a competitive market, Texas has drawn billions in private investment for new gas plants, large-scale batteries, and renewables—resulting in lower prices and better reliability than what monopoly-dominated states like Louisiana can deliver.
Meanwhile, Louisiana’s monopoly utilities are planning to spend billions on new natural gas and renewable plants and grid upgrades—locking ratepayers into decades of rising bills. A recent BAI Group report warned that base electricity rates could increase by as much as 90% between 2018 and 2030. Louisiana is already a decade behind in grid modernization and generation diversity. We can’t afford to fall further behind.

The Memorial Day blackout should serve as a warning. We cannot continue to support a system that forces ratepayers to fund billions of dollars’ worth of monopoly-owned utility projects while sidelining customer-centered alternatives. What Louisiana needs now more than ever is reforms that would let private investors—not consumers—pay for much-needed energy infrastructure.