By Nolan Mckendry | The Center Square
(The Center Square) — The Louisiana Public Service Commission rejected a judge’s recommendation that would have blocked a nearly $200 million Entergy Louisiana transmission project, clearing the way for the utility to move forward with a new high-voltage power line on the North Shore.
The project, known as the Adams Creek-Robert 230kV Project, calls for construction of a new 41-mile transmission line from the Adams Creek Substation north of Bogalusa to the Robert Substation, along with upgrades at several substations in Tangipahoa, St. Tammany and Washington parishes.
Transmission lines are the large, high-voltage lines that move electricity across long distances before it is delivered to homes and businesses. Entergy has argued the project is needed to strengthen the grid in southeast Louisiana, support future industrial growth and reduce the risk of major reliability problems.
But Administrative Law Judge Joy Guillot recommended that the commission deny the project, finding Entergy had not proven it was in the public interest or in the interest of affected ratepayers.
The commission declined to adopt that recommendation without objection, and instead approved Commissioner Eric Skrmetta’s motion, allowing the project to proceed.
Skrmetta asserted in his motion that “the benefits of the project exceed the cost”.
Skrmetta said the project would improve reliability, help prevent thermal overloads as large new power users are added to the system, and make the grid more resilient during extreme weather.
He also said the project would have prevented the May 2025 load-shed event had it already been in service.
The project is part of Entergy’s broader Amite South Transmission Project, a multi-phase effort to build and upgrade transmission facilities in a region that includes the New Orleans area, the North Shore and industrial corridors along the Mississippi River.
Entergy has said the project would help move more electricity into the Amite South region, improve reliability, provide more flexibility as older gas-fired power plants retire and make the system more resilient during extreme weather.
The company also pointed to a May 2025 load-shed event, when some customers lost power to prevent a wider grid emergency, as an example of the type of risk the project could help reduce. Entergy argued the new line would provide another path for electricity to flow into a constrained part of the grid.
The Louisiana Energy Users Group, which represents large industrial customers, opposed approval. The group argued Entergy had not shown that enough new industrial demand is certain to materialize to justify the cost.
It also argued that ratepayers should not be asked to fund a project of that size if cheaper or narrower fixes could address the immediate reliability concerns.
Guillot’s recommendation echoed some of those concerns. The judge wrote that the record did not show the project was necessary, the least-cost option or the reasonable and cost-effective solution to the problem being addressed.
The estimated project cost is $197.7 million, though Entergy’s estimate includes a range of uncertainty. The project’s estimated annual retail revenue requirement is about $20.9 million, meaning the cost could eventually flow through customer rates, subject to later review.