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Lawsuit challenges Louisiana PSC fast-track rule for AI data centers

39 minutes 37 seconds ago Tuesday, November 10 2026 Nov 10, 2026 November 10, 2026 4:47 PM November 10, 2026 in News
Source: WBRZ

BATON ROUGE — A lawsuit filed Monday challenges a Louisiana Public Service Commission rule known as the “Lightning Directive,” which aims to fast-track approval for energy-intensive artificial intelligence data centers across the state.

The complaint alleges the commission’s initial bulletin failed to clearly outline the proposed changes or give residents adequate time to respond before commissioners approved the rule in a 4-1 vote on Dec. 17.

The lawsuit was filed by New Orleans attorney William Most on behalf of three advocacy groups: the Louisiana Landowners Coalition, the Louisiana Citizen Advocacy Group and Save My Louisiana Inc.

The legal challenge comes as Louisiana prepares to host four major AI data center developments, raising public concern over energy demand and utility costs.

"Why should I pay for the data center power as a consumer, as a resident?" Asti Davis Robins with the Power Coalition for Equity and Justice said. “It doesn't benefit me."

Most said the directive circumvents standard regulatory oversight to accelerate large-scale industrial projects without sufficient public disclosure.

"Fundamentally, public officials are supposed to work for us, the taxpayers and citizens, not the other way around, but we've seen a pattern of a lack of transparency in the state government,” Most said. “It seems designed to keep voters out of the knowledge of what's going on."

Attorneys for the PSC disputed the allegations, arguing that the rulemaking process provided proper public notice and opportunities for feedback while establishing a streamlined path to handle urgent economic development.

“The utility still bears the burden of proof throughout the proceeding that the generation is in the public interest and is at the lowest reasonable costs,” Executive Counsel Kathryn Bowman wrote in a response letter.

Commissioner Davante Lewis, the lone commissioner to vote against the measure, echoed the plaintiffs' concerns over public transparency.

"I warned from the beginning that this directive raised serious concerns and could face legal challenges,” Lewis wrote in a statement. “I opposed it then, and I oppose it now.”

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