LPSC consultant outlines minimum‑capacity rule and fast‑track interconnection steps for large data loads

BATON ROUGE — Lane Sisson, a consultant to the Louisiana Public Service Commission, told the Senate task force on Nov. 20 that the commission’s planning and certification tools are the central mechanisms for managing the arrival of very large data‑center loads.

Sisson walked members through the LPSC’s integrated resource planning, the minimum‑capacity obligation adopted in the last two years (designed to require utilities to show contracted or planned generators five years ahead), and the commission’s certification authority for generation and transmission. He said the minimum‑capacity framework was created to avoid reliability shortfalls and to make sure utilities procure physically deliverable capacity rather than relying solely on regional financial markets.

"The Louisiana Public Service Commission really monitors 2 things, reliability and affordable rates," Sisson told the panel, summarizing the twin goals that drive the commission’s scrutiny. He described the Meta certification as an example: Entergy filed requests to certify three new generators and transmission upgrades; the commission reviewed the filings and negotiated protections (cost‑causation measures, parental guarantees and deferrals) intended to keep incremental cost responsibilities with the new load.

Sisson also described how the PSC engaged with MISO and FERC to create expedited interconnection study processes for certified projects, reducing queue delays that have taken three to four years in other regions. He recommended the state codify or streamline a "large‑load interconnection" track so future requests could be processed with clarity, speed and guardrails that protect existing customers.

Task force members queried the extent to which planned generation can be out‑of‑state and what happens if contracts fall through; Sisson said the rule seeks verifiable contracts or construction commitments and that penalties exist for noncompliance, but that some risk could still flow to ratepayers if planning is not performed correctly.

Sisson concluded that Louisiana’s regulated process provides more tools to protect ratepayers compared with unregulated markets and urged continued coordination between state regulators and regional grid operators as data‑center interest grows.