BATON ROUGE, La. — Louisiana ranks second in the nation for energy affordability in the American Legislative Exchange Council’s Energy Affordability Report, 5th Edition, rising 16 positions from the previous year.
The report found Louisiana’s average retail electricity price declined to 8.8 cents per kilowatt-hour in 2024, down from 10.41 cents per kilowatt-hour a year earlier. The state’s rate is well below the national average of 13.69 cents per kilowatt-hour.
According to the report, Louisiana recorded the largest improvement in energy affordability among all states. It attributes the gain in part to stable, in-state electricity generation, primarily from natural gas, which accounts for 76% of the state’s energy production.
“We are proud to see that our focus on incentivizing investment in an energy industry that will support a thriving economy going forward is paying off,” said House Speaker Phillip DeVillier.
State officials also pointed to expected growth in electricity demand tied to new technologies and planned data center developments. Senate President Cameron Henry said policymakers are evaluating the state’s energy infrastructure to ensure long-term reliability and affordability.
“We know that demand for electricity will only go up and recognize the uncertainty involved in new technology and data centers planning to locate here in Louisiana which are not yet fully operational,” Henry said.
The report also cites legislation adopted by the Louisiana Legislature in 2025 aimed at strengthening guidance on affordable, reliable and clean energy. The measures are intended to support cost stability, grid reliability and economic competitiveness.
The ALEC report evaluates electricity pricing across residential, commercial, industrial and transportation sectors, ranking all 50 states based on weighted average electricity costs.