Louisiana is ranked #2 in the nation in the American Legislative Exchange Council (ALEC)’s latest Energy Affordability Report, 5th Edition, just released today, jumping up 16 spots in the rankings over last year.
Louisiana’s average retail price measured over the most recent data available (calendar year 2024) dropped to 8.8 cents per kilowatt-hour, down from 10.41 cents per kilowatt-hour the previous year, and significantly below the nation’s overall average of 13.69 cents per kilowatt-hour. The report notes the reasons for Louisiana’s making the greatest jump in energy affordability of any state include that Louisiana provides stable, in-state generation of power, mainly natural gas (76% of the energy produced here), saying this helps bring prices down while other states’ prices are rising.
“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. “This is only the beginning of brighter days for Louisiana ahead.”
“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,” said Senate President Cameron Henry, the author of a resolution creating the Task Force on Energy Infrastructure and Modernization currently reviewing Louisiana’s energy landscape. “Louisiana must support pro-growth policies that leverage our abundant natural resources to power the businesses of the future and continue to make electricity more affordable.”
The report notes that the Louisiana Legislature in 2025 adopted legislation that provides clear statutory guidance on affordable, reliable and clean energy, strengthening the state’s approach to energy policy while supporting long-term cost stability, reliability and economic competitiveness.
The ALEC Energy Affordability Report, https://alec.org/publication/energy-affordability-report-5th-edition/, examines key factors influencing electricity prices, including how energy is generated, delivered, and regulated. The report ranks the 50 states based on the weighted average price of electricity across the residential, commercial, industrial and transportation sectors. The average retail price as used in the report references the rate charged for electricity in cents per kilowatt-hour (kWh) and does not include additional charges commonly listed on a typical electric bill.
