- An analysis of data found that SB 490 could cause average residential customer rates to increase more than $16 per month.
- The legislation, while well-intentioned, could cause a cost-shift from large customers to residential customers.
BATON ROUGE, La. – April 14, 2026 – Consumer Energy Alliance (CEA), the leading energy and environmental advocate for families and businesses, conducted an analysis of the potential impact of SB 490 on residential customer rates. That analysis, which was performed using the state’s largest utility’s rates, concluded that the legislation could increase the average residential customer’s electricity rates by more than $16 per month (approximately $200 per year).
Enactment of SB 490 as currently drafted could lead to large industrial customers in certain rate classes to build private grids and leave the system, while still having the option to retain the benefits of being connected to the electric grid for emergencies. This could lead to residential customers picking up additional costs to maintain and run the grid.
“While well-intentioned, this bill is a solution in search of a problem,” said Marc Brown, CEA Executive Vice President of Public Policy and State Affairs.” The data shows this bill could have a negative impact on residential customers. At a time when families are focused on affordability, our analysis shows this proposal could increase rates for the average residential customer by more than $16 per month, an increase of more than 9%. Not only is this bill bad for consumers, but Louisiana has some of the lowest residential and industrial electricity rates in the country according to the latest national data. American industrial power customers are not fleeing from Louisiana, but are flocking to the state.”
SB 490 would establish a framework for “private use electrical networks,” allowing certain entities to generate and distribute their own power across “contiguous, adjacent, or commonly controlled” properties that are not regulated by the Louisiana Public Service Commission. This could create a patch-work of disconnected power that would add layers of complexity without offering price savings for consumers.
“Encouragingly, legislators are exploring ways to meet growing energy demand, but it’s critical that those solutions don’t unintentionally shift costs onto everyday consumers,” Brown continued. “CEA looks forward to continuing to work together with policymakers on solutions that lower costs, strengthen reliability, and ensure fairness for all Louisiana customers while also fostering economic development and growth.”
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About Consumer Energy Alliance
Consumer Energy Alliance (CEA) is the trusted voice advocating for affordable, reliable, and cleaner energy solutions that benefit all Americans. Representing families, farmers, small businesses, distributors, producers, and manufacturers, CEA champions sensible, balanced policies that support economic growth and environmental resiliency; and ensures families and businesses are a vocal part of the nation’s energy dialogue. Every day, we work to inspire practical, responsible solutions that meet America’s energy needs while protecting the environment for generations to come.
Contact:
Jeff Ostermayer
(561) 310-5920
jostermayer@consumerenergyalliance.org