‘Nuclear tariff’ on power bills would pay for utilities to explore small reactors  

The utility companies would use the money to pay for feasibility studies, potential site assessments, economic modeling and other early-stage work to determine if small modular nuclear reactors and microreactors are cost-effective in Louisiana.

Smaller-scale modular reactors, or SMRs, have up to 300 megawatts capacity, or about one-third of the output of a classic reactor. On average, one megawatt can power roughly 1,000 homes, according to the U.S. Department of Energy.

Microreactors can generate up to 20 megawatts of electricity. They are generally portable and used in remote locations or for facilities such as data centers. Most can operate independently of the public electric grid. 

Commissioner Eric Skrmetta, R-Metairie, who came up with the idea for the tariff, placed it on the commission’s agenda just days before Wednesday’s meeting, though it stems from a March proposal in which he directed PSC staff to look into ways utilities could embrace more nuclear power generation.

Meta can keep its data center details private, PSC decides

Nuclear power is on average the most expensive form of electricity in the U.S. even after factoring in federal tax subsidies, according to a 2026 analysis by the investment firm Lazard. That analysis is based on conventional nuclear power plants, not the much smaller, portable reactors into which investors are pouring research dollars. 

President Donald Trump has called on state leaders to promote nuclear energy, and Louisiana was one of a handful recently tapped to join a federal initiative to encourage industry investment. Skrmetta has co-chaired Trump’s campaign in Louisiana for the past three elections, and the president recently appointed him to a position with the U.S. Department of Energy.

The commissioners addressed Skrmetta’s proposal at the end of Wednesday’s meeting that saw contentious debate and a party-line vote to allow social media giant Meta maintain its veil of secrecy over its Hyperion data center project and the large number of new power plants Entergy Louisiana wants to build to power it. 

Commissioner Davante Lewis, D-Baton Rouge, asked to postpone the nuclear tariff proposal, saying he’s not opposed to studying it but feels utility companies should pay for their own research rather than sticking Louisiana ratepayers with the bill. 

Commissioner Jean-Paul Coussan, R-Lafayette, backed Lewis’ concern, saying he needed more time to look into the matter.

“There may be other funding sources that make this negligible and do not impact the ratepayer at the extent this does,” Coussan said.  

Commissioner Mike Francis, R-Crowley, then prodded Coussan about whether he will support the tariff if he can’t find other funding sources.

“I’m a strong ‘maybe,’” Coussan said, drawing laughter from the large crowd in attendance.

The commission plans to vote on the tariff proposal at its next regular meeting Sept. 16.

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