The Hidden Cost of Cheap Power in Louisiana: Who Really Pays?By Falcon Research | Energy Equity | July 2025

Louisiana is often celebrated for its low-cost electricity. But beneath that surface lies a sobering truth: Louisiana households are paying the price—not at the meter, but in their health, housing, and climate risk.

At Falcon Research, our analysis shows that low energy prices fuel a dangerous loop of overconsumption, industrial pollution, and public health burden. Here’s what the data tells us:

🔍 Hidden Costs Behind “Cheap” Electricity

• Oversized Housing = Higher Bills:65% of Louisiana residents live in large, detached homes that consume ~75% more electricity than apartments. That’s an average $1,200/year extra.

• High Appliance Use:Abundant air conditioning, outdated refrigerators, and multiple devices cost ~$800/year extra per household.

• Public Health Crisis:Pollution from fossil fuels—especially from industrial zones like Baton Rouge—drives up healthcare costs: ~$2,500 per person/year, or ~$11.5 billion statewide.

• Industrial Winners:Meanwhile, corporations like ExxonMobil benefit from ultra-low power costs. In 2023 alone, ExxonMobil’s Baton Rouge refinery posted $36 billion in global profits.

♻️ The Missed Opportunity: Clean Energy Alternatives

Despite strong solar potential and viable Gulf winds, Louisiana remains far behind in renewable energy adoption:

• Solar: No binding state-level target.

• Offshore Wind: High potential, no mandated development.

• Green Hydrogen: Still fossil-based, transition slow.

• Net Metering: Weak policies discourage rooftop solar.

• Energy Co-ops: Proven elsewhere, unsupported locally.

🧭 Falcon Research Recommendations

To break this harmful cycle, Louisiana must:

1. Set Clean Energy Targets: Mandate solar and offshore wind capacity.

2. Reform Home Energy Standards: Update building codes to discourage oversized, inefficient housing.

3. Introduce Carbon Pricing: Internalize the environmental cost of cheap fossil energy.

4. Support Energy Co-ops: Empower communities to manage and benefit from their own clean energy.

⚠️ Conclusion: Cheap Power Isn’t Free

Behind Louisiana’s “cheap” electricity lies a social and ecological debt—paid by working families, polluted communities, and an overburdened healthcare system.

If Louisiana is to build a resilient, equitable future, energy justice—not just low prices—must lead the way.

— Falcon Research | www.falconresearch.org