KALB

Louisiana Electricity Bills Surge as Natural Gas Prices climb, Grid Infrastructure Lags

BATON ROUGE, LA – August 7, 2025 – Louisiana residents are facing significantly higher electricity bills this summer, driven by a sharp increase in natural gas prices coinciding with peak heat. Natural gas costs, a primary fuel source for power generation in the state, rose nearly double in the first quarter of 2025 compared to the same period last year. This price hike is impacting consumers even as the cost of foreign coal has decreased – falling 39% year-over-year, according to data from the U.S. Energy Data Governance.

While global coal prices have dropped (with Colombian coal averaging $117 per short ton imported in Q1, while U.S. coal exported at $110 per short ton), the benefit isn’t fully translating to lower bills for Louisianians. Spot prices for domestic coal were around $79 per short ton in July. The primary driver remains the volatility and increase in natural gas costs.

However, fuel costs aren’t the sole contributor to rising electricity rates. Experts point to a critical lack of investment in Louisiana’s aging electrical grid as a meaningful factor. State Representative Jeremy Dismukes argues that utility companies bear duty for failing to modernize infrastructure that could deliver power more efficiently and reduce costs for customers.

“For them to sit there and say, ‘we don’t have any control over that,’ just isn’t true,” Dismukes stated, emphasizing that Louisiana is “behind the curve” in addressing grid modernization. Much of the state’s transmission and distribution network consists of aging lines that waste significant amounts of power.

Looking Ahead: Modernization & Choice Energy as Long-Term Solutions

The situation highlights the need for a multi-faceted approach to energy affordability and reliability in louisiana. Several potential solutions are gaining traction, including the expansion of renewable energy sources and targeted grid improvements.

Recent analysis from financial firm Lazard indicates that utility-scale solar and onshore wind are now cheaper than natural gas, even without government subsidies. This presents an opportunity to diversify Louisiana’s energy portfolio and stabilize costs.

A study by GridLab found that “reconductoring” – replacing existing transmission lines with advanced, more efficient conductors – could reduce electricity prices for consumers by up to 4%. however, utility companies have largely opted for conventional conductor line replacements, a process that is both more expensive and time-consuming. Building entirely new transmission lines is typically two to three times longer to complete than reconductoring, and those costs are ultimately passed on to ratepayers.furthermore, consumer advocates note a potential conflict of interest: increased efficiency in power delivery often translates to lower electricity sales, impacting utility company profits. This creates a disincentive for proactive grid modernization.

The long-term affordability and reliability of Louisiana’s electricity supply will depend on addressing these infrastructure deficiencies and embracing cost-effective, sustainable energy solutions.

Sources:

U.S. Energy information Administration: https://www.eia.gov/coal/production/quarterly/pdf/t6p01p1.pdf
Lazard: https://www.lazard.com/media/uounhon4/lazards-lcoeplus-june-2025.pdf
GridLab: https://lailluminator.com/2024/04/24/few-of-entergys-1-9-billion-in-grid-hardening-projects-include-underground-power-lines/