Two groups ask PSC to deny Entergy's request to build three gas power plants
Two groups, the Alliance for Affordable Energy and the Union of Concerned Scientists, are contesting Entergy's proposal to fuel a large artificial intelligence data center in northeast Louisiana. They are urging the Public Service Commission to reject Entergy's plea to construct three gas power plants for the establishment. The groups argue that Entergy bypassed PSC regulations by failing to demonstrate that the plants represent the most cost-effective choice.
Logan Burke, the executive director of the Alliance for Affordable Energy, emphasizes the importance of utilities examining the market to identify the most economical resource for meeting customer needs. Burke states, "We're urging the commission to mandate that Entergy adheres to the commission's guidelines to prevent customers from facing unnecessary higher costs."
Burke expresses concerns that if Entergy cannot prove that the gas plants are the most cost-effective solution, consumers may be burdened with increased expenses in the future. He warns, "Even if Meta covers the expenses for these three facilities for 15 years, customers of Entergy Louisiana may ultimately bear the costs."
According to Burke, powering a significant AI data center comes at a substantial cost. "Entergy estimates it at over $3 billion currently," says Burke. However, he highlights that this figure is unsubstantiated as Entergy did not seek market validation for the cost.
Entergy and Meta have refrained from responding to the challenges posed by the two groups.
