Hilferty has plans to help combat rising La. utility rates
Current legislator seeks seat on state PSC in May 16 GOP primary
Louisiana families are seeing higher electricity bills, and the trend is accelerating.
But one candidate for the Louisiana Public Service Commission has ideas on how to help slow this trend.
A new report from the Pelican Institute for Public Policy titled Shock to the System examines what’s behind these increases and outlines policy solutions to improve affordability and reliability across the state.
Stephanie Hilferty is running for the state PSC District 1.
“One of the things is that we are heavily reliant on natural gas as our power source,” she says. “The current administration is making a push for nuclear power. That is a longer process, but looking at diversified power sources is essential.
“We also need to be looking at ways we can find efficiencies within our existing grid instead of just looking at building new power generation.”
The Pelican Institute study finds that structural flaws in Louisiana’s regulatory framework – not data centers or rising demand – are the main drivers of higher electricity prices.
“I think we have to look at the rate-making process,” Hilferty says. “Affordability and reliability. Those are my North Stars when talking about these issues. It’s about making sure everything we’ll be doing as a commission is viewed through that lens.
As I said, we are largely reliant on natural gas. A lot of people felt that this last winter when they had to turn on the heat. So diversification is key. We have a lot of power users that are industrial, and they are large power users. We need to look at how we can wrangle those resources, maybe by allowing some of them to send power back onto the grid to support the greater grid. Because every time we build additional power generation, it goes back to the rate payers.”
The Pelican Institute study also found that 66% of Louisiana voters experienced increases in their electricity or gas bills over the past year. It also said residential base rates from Louisiana’s largest utility increased more than 30% between 2019 and 2024, and it says the average retail residential electricity price rose 14.1% from 2024 to 2025, more than double the national average increase of 6.5%.
The study says that more than $8.5 billion in proposed utility capital projects could push base rates up another 40% by 2030 if approved.
During her campaign, Hilferty has said no family should worry every month about unpredictable utility bills and that no one should fear losing power for weeks after a storm.
“It’s about making sure our large power lines are grid hardened,” Hilferty said regarding prep work for big storms. “Florida did some of that a few years ago, and I think we need to study and explore that.
“As far as affordability, it’s about finding efficiencies within our current grid. Sometimes the tendency is to build more power generation. But looking at ways to improve our current grid is going to be a more affordable option. We also need to look at alternate fuel sources.”
Hilferty, 40, has represented District 94 in the state Legislature since 2016. She has served on the committees for commerce, education and municipal, parochial and cultural affairs. She also is a senior advisor at SRSA Commercial Real Estate. Her legislative district includes portions of New Orleans and Metairie.
As a legislator, Hilferty led landmark reforms of the New Orleans Sewerage & Water Board, strengthened oversight and transparency, cracked down on unfair practices and saved ratepayers more than $20 million by correcting incorrect billing through legislation.
“Their billing had become an absolute unmitigated disaster,” Hilferty says. “We gave New Orleans City Council the ability to oversee that billing. And that brought millions in relief to the residents and businesses.
“We need to really make sure the ratepayers are kept first in those discussions. They need to be top of mind. Any changes that happen can’t come at the expense of ratepayers.”
Hilferty’s opponents in the May 16 Republican primary are Wallace “Wayne” Cooper, John Mason, Mark Wright and John Young. Connie Norris is running unopposed in the Democratic primary. Incumbent Eric Skrmetta (R-Metairie) is running for U.S. Senate.
Early voting is scheduled May 2-9.
Give an example of a past PSC decision you disagreed with and explain how you would have voted and why.
Hilferty says PSC needs to take a closer look at utility company purchases, too. She used Magnolia Water as an example.
Magnolia Water, a subsidiary of Central States Water Resources, has been acquiring, upgrading and consolidating water and wastewater systems across Louisiana. Since 2020, it has acquired more than 500 systems, focusing on privatizing infrastructure to meet EPA compliance standards, often resulting in increased rates for customers to fund these improvements.
“We need to look that formulation they’re using to buy distressed water systems around the state,” Hilferty says. “When they buy a system, the cost gets rolled into the rate base. It’s incumbent upon the PSC to put some guard rails on those purchases, really the purchase prices, because there needs to be a justification for that price.
“The justification has been the necessity of putting in new equipment and renovating current equipment. But the actual cost to acquire the system is part of the equation, too. It is absolutely incumbent on the PSC to look at how that cost is derived. Can that cost be supported? We need to do these evaluations and put guardrails on how those systems are valued.”
In December, the Louisiana PSC adopted the “Lightning Amendment” to create a fast-track process for utilities to build power infrastructure for large, new industrial customers, particularly AI data centers.
While she appreciates the speed the amendment brings to economic development, Hilferty says she is concerned that it bypasses the traditional competitive bidding process.
“The fact that the bidding process can be waived should be looked at,” she says. “Competitive bidding is crucial to keeping prices down. Competitive bidding is a crucial part of the process.”