Louisiana Commercial Electricity: Regulated market served primarily by Entergy Louisiana. Average commercial rate: 8.5-10.5¢/kWh (2026)—among the lowest in the US. Rates are heavily tied to natural gas commodity pricing due to 60%+ gas-fired generation.

Louisiana Natural Gas: No retail gas choice, but Louisiana's position as the epicenter of the US LNG export boom creates unique pricing dynamics. Gulf Coast Henry Hub basis is the national benchmark—Louisiana petrochemical facilities operate at the hub itself.

MISO SouthLNG export epicenter

Louisiana Commercial Energy

The epicenter of US LNG exports and petrochemical manufacturing. Low electricity rates driven by proximity to massive Gulf Coast gas supply.

Regulated
Electric Market
Low
US Rate Ranking
LNG
Export Capital
60%+
Gas Generation

LNG Export Impact on Local Rates

Louisiana hosts Sabine Pass LNG (Cheniere), Cameron LNG, and the new Plaquemines LNG terminal. These facilities consume 10+ Bcf/d of feedgas, tightening the local supply that also fuels Entergy's power plants. Commercial customers should expect gas-to-power cost correlation to intensify.

View Gulf Coast LNG Analysis

Louisiana Utility Territories

Understanding Louisiana Pricing

Gas-to-Power Correlation

Louisiana generates over 60% of its electricity from natural gas. Because Entergy passes through fuel costs monthly, commercial bills move in near-lockstep with Henry Hub spot prices. This makes Louisiana one of the most commodity-sensitive electricity markets in the US.

Industrial Cogeneration

Louisiana's petrochemical corridor (Baton Rouge to Lake Charles) hosts massive cogeneration facilities that produce both industrial steam and surplus electricity. These plants help suppress wholesale power prices but are themselves tied to natural gas feedstock costs.

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Louisiana Market Guide

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Petrochemical Hub

Louisiana's industrial corridor is one of the densest petrochemical manufacturing zones globally. These facilities represent some of the largest single-site electricity consumers in the US.

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LNG Export Hub

Louisiana is the #1 US state for LNG exports. Sabine Pass, Cameron, and Plaquemines LNG terminals are reshaping both local and national gas markets.

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Storm Exposure

Hurricane risk creates unique energy procurement challenges. Entergy's storm cost recovery adds to commercial rates and underscores the importance of backup generation planning.

Optimize Your Louisiana Energy Costs

In a gas-driven market, understanding commodity correlations is the key to managing your commercial electricity budget effectively.

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