Louisiana families are seeing higher electricity bills, and the trend is accelerating. A new report from the Pelican Institute for Public Policy, “Shock to the System: Protecting Louisiana Consumers from Rising Electricity Costs,” examines what’s behind these increases and outlines policy solutions to improve affordability and reliability across the state.

Rising Costs Are Already Impacting Families

Louisiana has historically benefited from some of the lowest electricity rates in the country. But recent data shows that is changing.

A 2026 Pelican poll found that 66% of Louisiana voters experienced increases in their electricity or gas bills over the past year.

Additional data points highlighted in the report include:

  • Residential base rates from Louisiana’s largest utility increased more than 30% between 2019 and 2024
  • The average retail residential electricity price rose 14.1% from 2024 to 2025, more than double the national average increase of 6.5%
  • More than $8.5 billion in proposed utility capital projects could push base rates up another 40% by 2030 if approved

These trends suggest that, without changes, Louisiana could be on track toward a significant electricity affordability challenge.

As Pelican Institute CEO Daniel Erspamer noted, while the state has historically maintained low electricity rates, costs are now rising quickly and putting pressure on families.

Structural Issues Are Driving the Increase

The report finds that rising demand is not the primary factor behind higher electricity prices in Louisiana today.

Instead, the increases are largely tied to structural features of the state’s regulatory framework, including:

  • Heavy reliance on a single energy source, exposing customers to fuel price volatility
  • Large-scale infrastructure investments with limited cost discipline and guaranteed cost recovery
  • Limited competition in utility procurement
  • Policies that allow long-term costs and risks to be shifted onto ratepayers

According to the report, these factors reduce incentives for efficiency and contribute to higher overall costs for consumers.

Melissa Landry, Director of the Center for Energy at the Pelican Institute, noted that when utilities are able to recover costs automatically, the system tends to prioritize expansion over cost control.

Policy Solutions to Improve Affordability and Reliability

The report outlines a set of policy recommendations designed to work within Louisiana’s existing regulatory framework while introducing more cost discipline and flexibility into the system.

Key recommendations include:

  • Expanding consumer choice and direct market access for large energy users
  • Restoring competitive procurement processes to prioritize lower-cost investments
  • Streamlining permitting to accelerate infrastructure development
  • Strengthening regional transmission through participation in MISO’s long-range planning process
  • Supporting next-generation energy technologies, including advanced nuclear and geothermal

These reforms aim to improve affordability, maintain reliability, and position Louisiana for continued economic growth.

Looking Ahead

The report emphasizes that current trends are not inevitable, but they will continue without policy changes.

With the right adjustments, Louisiana has the opportunity to maintain affordable energy, support future demand, and strengthen its position as a leader in energy production.

👉 Read the full report, Shock to the System, here:
Shock to the System Electricity Report