During the September meeting of Louisiana’s Public Service Commission, two items dominated: attorney Jamie Watts’s compelling recounting of the Louisiana Utilities Restoration Corporation’s origin and evolution, and concerns sparked by coverage of the new Task Force on Energy Infrastructure and Modernization.

The discussion on LURC outlined how storm-cost securitization has funded post-Katrina recovery, its current and future surcharges, and the projected impact of large-load customers like Meta on future bills. Commissioners also pressed for a structured briefing from the Task Force, suggesting a written overview of two decades of storm-preparedness in Louisiana, the governing rules, and how the latest energy-structure changes (including ERAS and related entities) differ from past practice.

During discussion around a set of agenda items related to storm cost recovery through the LURC, Commission Davante Lewis asked “bigger picture kind of question” before the agenda could be quickly approved and moved on by the Commission, noting that the Commission gets calls from constituents about storm riders. Could someone please explain the long term trajectory and intent of the funds?

LURC attorney Jamie Watts knew the assignment, and she didn’t need any notes to tell this story.

“On occasion, when there are storms that cause significant damage, utilities will come to the Commission and ask for authority to recover those costs from ratepayers and they will ask for the methodology of recovery to be the securitization through the Louisiana Utilities Restoration Corporation,” she began, explaining that LURC doesn’t apply to every storm and it isn’t an automatic yes.

LURC was created in 2007 after hurricane Katrina and Rita battered the Louisiana coastline as a way for utilities like Entergy Louisiana to securitize storm recovery costs, she said - meaning, recover the costs of storm damage from the customer, but at a better interest rate and for a short period of time on their bill.

Katrina and Rita were LURC’s first transactions, Watts said. Those bonds matured in 2018, and the surcharges on customer bills stopped at that point. Gustav and Ike followed; those bonds matured in August 2024, and those surcharges have stopped. The bonds for Isaac will mature in the fall 2026 and those surcharges will stop.

Which will leave Energy Louisiana customers with surcharges related to the securitization of hurricanes Laura, Delta, Zeta, Uri and the balance of Ida - which are slated to be on customer bills for 15-17 years because the amount securitized to cover the damage from these storms was so significant, Watts said.

All totaled, Entergy claimed $3.9 billion worth of damage from Katrina, Rita, Gustav, Ika, Isaac, Laura, Delta, Zeta, Uri and Ida, resulting in $5.2 billion in securitized bonds at an average rate of 4.01% through LURC. Entergy’s Vice President of Regulatory and Public Affairs Larry Hand was quick to point out that financing thru LURC instead going through traditional means saved Entergy Louisiana customers $1.9 billion.

Watts also noted that because the LURC process includes storm cost offset riders, Katrina, Rita, Gustav and Ike credits are still flowing back to customers and will continue to do so through 2030.

According to Hand, one of the benefits of Louisiana and Entergy recruiting large load customers like Meta to the state is that they will contribute to the storm charges - past and future - when they come online. When Meta comes online, residential customers can expect to see a 7-10 percent drop on their storm charge, not an “immaterial benefit,” he said, noting quickly that customers shouldn’t expect to see that relief until April 2027.

Before the meeting ended, Commissioners asked for a report from the Task Force on Energy Infrastructure and Modernization’s first meeting. PSC Executive Secretary Brandon Frey said it was “a little concerning that a lot of the discussion we seem to have were squarely within the Commission's jurisdiction and maybe rearguing things the Commission has already addressed. And I'll just leave it high level like that,” Frey said.

Commissioner JP Coussan suggested raising a structural topic at the next meeting and creating a written document for the task force. The document would outline Louisiana’s decade-long efforts to prepare for electric demand, the current rules governing those issues, and future plans. It would also cover related entities and processes (like MISO, FERC, and the new ERAS process) and explain how the current system differs from past reviews and usages.

At first glance, there wasn’t anything in this meeting directly tied to clean energy in Louisiana. So why are we writing about it?

Because the work of our state public service commissions sets the stage for everything that follows - including clean energy. The decisions they make about storm recovery, infrastructure financing, and regulatory processes shape the environment in which renewable projects succeed or stall. By paying attention to the full picture -not just when wind, solar, or storage are on the agenda - we build context, strengthen our understanding, and better prepare for the moments when clean energy is front and center. And maybe by paying extra attention and telling the whole story, we create some empathy for our dedicated public servants: they’ve got a lot on their plates. We see that and want to ensure they know we appreciate how much time and effort they spend every single day.

SREA will continue to provide these write-ups across all of our states so that our members and allies have the tools they need when the opportunity arises.