Entergy abandons $1.8 billion Texas plant purchase after ratepayer backlash

Entergy Louisiana withdrew its proposal to purchase the Cottonwood Energy Project, a 1.26-gigawatt gas-fired plant in East Texas, after facing opposition over the projected $9 increase to average monthly residential bills. The $1.8 billion transaction was challenged by the Louisiana Public Service Commission and consumer advocates who argued the capacity need was largely tied to Meta’s expanding data-center load rather than general system growth.

Governor Jeff Landry directed regulators not to let utilities exploit the market at the expense of customers. Entergy’s spokesperson Brandon Scardigli said the company will explore a revised timeline that could lessen the initial cost impact. The utility is already pursuing multiple new gas plants to serve Meta’s Hyperion data center and other projects, seeking to add more than 14 gigawatts of capacity overall.

Critics, including the Alliance for Affordable Energy represented by Logan Burke, warn that even if Meta covers upfront costs, ratepayers could still shoulder hidden expenses. Entergy claims the Meta partnership will ultimately save customers $2.7 billion, though details have not been disclosed.