Pelican Institute Urges Support for SB 490: Protecting Louisiana Families from Rising Energy Costs While Powering Economic Growth
As Louisiana lawmakers and utility regulators convene today to address growing electricity demand and rising utility bills, the Pelican Institute for Public Policy is expressing strong support for Senate Bill 490.
In a letter sent today to Senate President Cameron Henry, Senate Commerce Committee Chairwoman Beth Mizell, and committee members, Pelican urges lawmakers to advance SB 490, sponsored by Sen. Bob Hensgens. The bill creates a parallel, market-driven pathway for large-load energy users—such as data centers and advanced manufacturing facilities—to meet their own power needs. Importantly, it does so without distorting the existing regulatory framework or shifting costs and risks onto Louisiana families and small businesses.
SB 490 does not dismantle the current regulatory structure or impose broad deregulation. Instead, it offers a limited, well-defined option for private investment to efficiently meet new demand. The bill encourages innovation, accelerates project timelines, and ensures that those who benefit from large-scale energy projects bear the associated costs.
Most importantly, SB 490 protects Louisiana families.
As noted in Pelican’s recent report, Louisiana residents are already feeling the pain of higher electricity bills. Recent trendsshow base rates rising sharply, and proposed utility capital expenditures totaling over $8.5 billion threaten even steeper increases in the years ahead. By allowing private capital to serve new large-load demand, SB 490 reduces pressure on the public grid, limits cost-shifting, and shields everyday ratepayers from bearing unnecessary burdens.
The Pelican Institute thanks Senate President Henry, Chairwoman Mizell, and Senator Hensgens for their ongoing leadership on these important issues through their work on the Senate Task Force on Energy Infrastructure and Modernization. We strongly urge members of the Senate Commerce Committee to vote YES on SB 490. By embracing this targeted, market-driven reform, Louisiana can build a more flexible, resilient, and consumer-focused energy system—one that keeps power affordable for families while fueling long-term economic growth and opportunity.
Read the full letter here:
Final Letter_SB 490
Learn more about what’s driving Louisiana’s electricity rates:
https://pelicanpolicy.org/wp-content/uploads/2026/03/Shock-to-the-System-Report-2026-1.pdf
Learn more about Pelican’s Roadmap to Unlocking Louisiana’s Energy Abundance.
https://pelicanpolicy.org/wp-content/uploads/2026/01/Roadmap-to-Reform-Energy-Paper-2026.pdf
