Public Service Commissioner Assures Electricity Rates Will Not Rise Due to the Data Center

Shreveport residents continue to weigh the potential impact of a proposed data center, and Public Service Commissioner Foster Campbell is offering reassurances on some of the biggest concerns. From electric rates to grid reliability, Campbell told KEEL News on Friday that safeguards are already in place to protect local ratepayers as discussions move forward.

No Electric Rate Increases for Shreveport Customers Tied to Data Centers

One of the loudest concerns from residents centers on whether a large data center would drive up electric bills. Campbell was clear in his response. Any electric rate increase in Louisiana must go through the Public Service Commission, and he does not see that happening because of a data center.

Campbell emphasized that new power plants required to support a data center would not be paid for by local ratepayers. Instead, those costs would be handled directly by the data center operators. He also said the rest of the Commission shares that position, reinforcing that consumers would not be asked to shoulder the financial burden.

System Improvements and Vegetation Management

Campbell acknowledged that utilities like SWEPCO currently have system improvement plans under review by the Commission. These plans often involve vegetation management, including tree trimming along power lines, especially across north Louisiana. While those improvements cost money, Campbell stressed they are not driven by data center development.

Keeping lines clear helps prevent outages and service disruptions. Campbell noted that while no one enjoys tree cutting, it remains a necessary part of maintaining reliable power infrastructure statewide.

Power Grid Capacity and Reliability

Another concern raised involves whether a data center could overwhelm the power grid and lead to brownouts or outages. Campbell said those scenarios have been studied extensively. He expressed confidence that grid reliability would not be compromised.

READ MORE: LSU Makes Major Changes for Shreveport Health Campus

Looking to Rayville as an example, Campbell described a massive, active construction site with thousands of workers and new power plants being built ahead of demand. He said that same approach would apply in Shreveport, with power infrastructure constructed first, not after problems arise.

Economic Impact for Shreveport

Campbell pointed to Rayville’s economic boom as a preview of what could happen locally. Hotels, restaurants, and gas stations in that area are reportedly at capacity due to the influx of workers and equipment.

He believes a data center would bring similar benefits to Shreveport, including job creation, increased spending, and long-term economic growth, all without raising electric rates.

Shreveport Water Use and Long-Term Outlook

While data centers use significant water, Campbell said studies show the region has adequate supply. He acknowledged that every major project has downsides but believes the overall benefits outweigh the concerns.

Campbell concluded by saying turning away such an investment would be a missed opportunity for Shreveport’s future.