Phillip May
Lake Charles’ anticipated electricity demand, thanks to an unprecedented industrial boom in the region, has prompted Entergy to invest almost $190 million in a transmission project in southwest Louisiana
Lake Charles Transmission Project is the largest single transmission projects in Entergy’s history. It includes construction of two new substations, expansion of a third, and addition of about 25 total miles of high-voltage transmission lines — including both 500 kV and 230 kV lines — to move power more reliably and efficiently into a region projected to have the fastest job growth rate in the state.
“Projects like this, as well as the proposed Union Power Station acquisition announced last year and the Ninemile 6 power plant unit which just came online early and under budget, help ensure we have highly reliable and affordable electricity for our existing customers as well as new customers moving to our region," Phillip May, president and CEO of Entergy Gulf States Louisiana and Entergy Louisiana, said in an early January announcement. "Nearly 500 megawatts of new load have already signed up for facilities in the Lake Charles area, and the potential exists for another 500 megawatts that are in various stages of exploration by new or existing customers in that part of the state.”
Entergy says low electricity prices are one reason more than 85 projects, representing in excess of $65 billion of investment, have been announced, signed or are under development in its four-state service area (some estimates peg that amount for the Lake Charles region alone). The industrial expansion is projected to create tens of thousands of new jobs and the potential addition of approximately 1,700 megawatts of new industrial load across the four states.
“All customers benefit when Louisiana attracts new industry. New industrial load leads to additional power sales, which support capital investments like the Lake Charles Transmission Project that enhance service and reliability for all customers. Industrial growth also means more jobs in Louisiana and a larger tax base so our communities can invest in improving their schools, roads and parks,” May said.
The Lake Charles region alone is expected to add 12,000 new jobs over the next two years, a 12 percent increase “making it by far the fastest growing” area in the state, according to projections in Louisiana Economic Outlook: 2015 and 2016, authored by Louisiana economists Loren Scott and James Richardson.
Entergy estimates it will invest $2 billion in its four states over the next three years in transmission capital projects related to reliability and economic development, representing a nearly 60 percent increase in transmission capital spending over the previous three years.
Entergy Gulf States Louisiana will seek Louisiana Public Service Commission approval of the project, which was authorized by Entergy’s board of directors in December. Current plans have major construction activities beginning in 2016, with a proposed in-service date in 2018.
Entergy’s Louisiana utility companies provide electric service to more than 1 million customers and natural gas service to nearly 93,000 customers in the greater Baton Rouge area.