Bill
SB 490
Creates a framework allowing private use electrical networks for large-load customers, not public utilities, with streamlined regulatory procedures.
Date: 2026 Regular Session
Jurisdiction: Louisiana
Author/Sponsor: Senator Hensgens (Co-sponsor: Bob Hensgens)
Status: Introduced; amended and reported with amendments. Effective upon governor’s signature or gubernatorial action lapse.
Purpose
- Create a new framework for “private use electrical networks” that generate, store, and distribute electricity primarily for one or more identified large-load customers (e.g., industrial facilities, data centers, digital infrastructure campuses).
- Establish that such networks are not public utilities and are not subject to Louisiana Public Service Commission (LPSC) regulation as public utilities solely by virtue of owning, operating, interconnecting, or participating in market programs.
Key Definitions
- Private use electrical network: A set of generation, energy storage, and related electrical facilities on contiguous/adjacent/commonly controlled property that serves electricity needs of one or more identified load customers and delivers power through privately owned infrastructure.
- Identified load customer: An industrial facility, manufacturing operation, data center, digital infrastructure campus, or similar large-load customer.
Regulatory and Legal Implications
- Not a public utility: A private use electrical network is not deemed a public utility or subject to LPSC regulation as a public utility solely because it:
- Serves identified load customers.
- Is owned/operated by the load customer, an affiliate, or a contracting third party.
- Maintains an interconnection with an electric utility for backup, reliability, emergency service, maintenance, or export of surplus electricity.
- Participates in wholesale markets or reliability programs administered by MISO or successor regional transmission organizations.
- Backup/Export Considerations: Maintaining backup or export capabilities does not change the network’s non-utility status.
- Exported electricity: Exporting electricity from the network does not cause it to become a public utility, so long as the network remains primarily dedicated to identified load customers.
- LPSC’s authority: The act does not impair LPSC’s authority to regulate rates, terms, and conditions for backup, standby, or export service provided by traditional electric utilities.
Rules and Implementation
- LPSC must adopt implementing rules within 180 days after the effective date.
- Required rulemakings include:
- An expedited process for issuing a declaration of nonjurisdiction for private use electrical networks.
- A determination by LPSC within 30 days of receipt of a complete application; if LPSC fails to act within 30 days, the application is deemed approved.
- Nondiscriminatory tariffs and interconnection procedures for backup, standby, maintenance, and export service for private use networks.
Effective Date
- Effective upon the governor’s signature or, if not signed, upon lapse of time for gubernatorial action as provided by the Louisiana Constitution.
- If vetoed and subsequently approved by the legislature, becomes effective the day after such approval.
Impact and Practical Considerations
- Enables large-load customers (e.g., data centers, industrial facilities) to develop on-site or privately interconnected generation and storage without triggering public utility status under certain conditions.
- Facilitates private networks’ ability to back up, maintain, and export electricity while seeking streamlined regulatory treatment and non-discriminatory access terms.
- Leaves traditional utility rate regulation and public utility obligations intact for electric utilities and for backup/export services provided by those utilities.
Notes
- The bill adds a new statutory framework (R.S. 45:1231.1) governing private use electrical networks and directs the LPSC to implement the related rules and procedures.
Compiled from official sources — confirm details with the bill’s official record.
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