Committee urges PSC study of distributed energy, including virtual power plants
May 11, 2026 | 2026 Legislature LA, Louisiana
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The House Commerce Committee voted to send House Resolution 197 to the legislature after adopting technical amendments asking the Louisiana Public Service Commission to study the feasibility and value of distributed energy resources and storage for residential and small commercial customers.
Representative Orgeron, sponsor of the resolution, said the study would focus on smaller, distributed generation rather than large industrial projects and would aim to quantify capacity, private investment, resiliency and reliability benefits. "This is basically urgent requesting the Louisiana Public Service Commission to continue some work... to look at the smaller, more distributed format of residential and commercial energy generation," Orgeron said.
Industry witnesses described real-world examples and potential benefits. Jeff Canton, CEO of Solar Alternatives, described projects where rooftop solar and battery systems reduced bills and fed power back into the grid. "Distributed power such as batteries and solar contribute significantly to bringing household and business costs down," Canton said. LSU Center for Energy Studies director Greg Upton explained valuation approaches focused on locational marginal price and capacity benefits: "You look at what is the value of the energy on the market at the time it is produced... and whether the grid can forego future investments."
PSC Executive Secretary Brandon Fry and Commissioner Davonte Lewis said the PSC has studied related matters and emphasized assessing whether distributed resources produce net benefits for customers. "The question always from our perspective... is what is the price?" Fry said. Commissioner Lewis said the topic is growing in importance as battery and commercial-solar proposals reach the commission.
The committee adopted amendments urging PSC coordination with the LSU Energy Institute and asked for a written report prior to the 2027 regular session. The resolution was reported favorable.
Representative Orgeron, sponsor of the resolution, said the study would focus on smaller, distributed generation rather than large industrial projects and would aim to quantify capacity, private investment, resiliency and reliability benefits. "This is basically urgent requesting the Louisiana Public Service Commission to continue some work... to look at the smaller, more distributed format of residential and commercial energy generation," Orgeron said.
Industry witnesses described real-world examples and potential benefits. Jeff Canton, CEO of Solar Alternatives, described projects where rooftop solar and battery systems reduced bills and fed power back into the grid. "Distributed power such as batteries and solar contribute significantly to bringing household and business costs down," Canton said. LSU Center for Energy Studies director Greg Upton explained valuation approaches focused on locational marginal price and capacity benefits: "You look at what is the value of the energy on the market at the time it is produced... and whether the grid can forego future investments."
PSC Executive Secretary Brandon Fry and Commissioner Davonte Lewis said the PSC has studied related matters and emphasized assessing whether distributed resources produce net benefits for customers. "The question always from our perspective... is what is the price?" Fry said. Commissioner Lewis said the topic is growing in importance as battery and commercial-solar proposals reach the commission.
The committee adopted amendments urging PSC coordination with the LSU Energy Institute and asked for a written report prior to the 2027 regular session. The resolution was reported favorable.
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