EDF Press Release:
What’s new: EDF expert testimony finds Entergy has not demonstrated that its proposed $4.1 billion investment in two new gas plants is the lowest-cost, lowest-risk way to meet Louisiana’s growing energy needs.
Why it matters: Entergy’s recent decision to pause its proposed acquisition of Texas’ costly natural gas-fired Cottonwood plant underscores the importance of rigorously evaluating the need, cost, risks and alternatives before approving major generation investments, particularly amid uncertainty about future electricity demand.
What’s next: EDF urges the Louisiana Public Service Commission to require Entergy to compare all viable alternatives through a competitive, all-source evaluation before approving the proposal.
Prepared by energy planning expert Dr. Maria Roumpani, the testimony concludes that Entergy has not demonstrated the proposed Waterford 6 and Westlake gas plants are the lowest-cost, lowest-risk way to meet projected electricity demand. It recommends the Commission require Entergy to conduct a competitive all-source evaluation before approving the projects and identifies several concerns with the proposal, including:
- Demand forecasts that rely heavily on uncertain industrial growth projections.
- Limited evaluation of lower-cost alternatives, including energy efficiency, demand response, solar, battery storage, transmission improvements and industrial combined heat and power.
- Financial risks that could leave customers paying for generating capacity that ultimately isn’t needed.
The testimony also recommends strengthening demand forecasts, evaluating transmission solutions and grid-enhancing technologies and assessing the risks to customers if projected industrial growth does not materialize.
EDF’s Energy Exchange blog written by Liz Russell & Kahlida Lloy:
Louisiana families and businesses deserve an electric system that is reliable, affordable and prepared for a rapidly changing future. They also deserve confidence that when utilities ask customers to pay billions of dollars for new power plants, those investments truly represent the best available option.
That is the central issue before the Louisiana Public Service Commission as it considers Entergy Louisiana’s request to build two new gas-fired power plants, Waterford 6 and Westlake, at an estimated cost of $4.1 billion. If approved, the projects could add nearly $15 a month to the average residential customer’s electric bill, with those costs ultimately recovered through customer rates.
In testimony filed on behalf of Environmental Defense Fund with the Louisiana Public Service Commission, energy planning expert Dr. Maria Roumpani concludes that Entergy has not demonstrated these plants are the lowest-cost, lowest-risk option for customers and that regulators should require a more rigorous evaluation before committing ratepayers to decades of costs.