Louisiana utility regulator denies request for probe of Meta data center deal, law group says

Feb 25 (Reuters) - Louisiana utility regulators denied an environmental law group's request to investigate a $27 billion Meta Platforms META.O data center deal, the law group Earthjustice said on Wednesday.

Earthjustice filed a motion last month with the Louisiana Public Service Commission asking it to probe project financing, which the group said could ultimately shift project costs unfairly onto utility customers.

The motion centered on Meta's proposed data center project in Richland Parish, Louisiana, for which three new gas-fired power plants would be built.

Earthjustice's motion said that at around the time the commission approved the gas plants, Meta signed off on a new financial arrangement for the data center. That new arrangement would give Meta the right to abandon the project in four years rather than 15 and free it from financially guaranteeing the project, the motion said.

In four years, the local utility will likely have not recouped the costs of constructing the power plants and they would then be borne by other utility customers like homes and businesses in the form of higher rates, Earthjustice said.

“By dismissing this motion, the PSC is giving the green light to more tech companies to use this kind of financial maneuvering to maximize profits while evading public accountability,” said Susan Stevens Miller, senior attorney at Earthjustice.

The utility regulator was not immediately available for comment.