(The Center Square) − Entergy Louisiana is asking the Louisiana Public Service Commission to approve a $68.7 million project to boost output at its Waterford 3 nuclear plant in Killona by about 45 megawatts, a move the utility says will deliver significant economic benefits to customers with minimal new costs.

The proposed upgrades would increase Waterford 3’s net electrical output from roughly 1,150 megawatts to about 1,195 megawatts, enough to power tens of thousands of additional homes without additional fuel or operations costs.

The project would be financed through Entergy’s standard capital recovery process, with the company seeking to recover costs from ratepayers over time.

According to Entergy’s economic analysis, the upgrade is expected to generate a net present value benefit of $205 million for customers, driven by increased energy sales and federal tax credits. The company projects $11.2 million in energy savings and $13.1 million in production tax credits in the first full year of operation, assuming the project comes online as scheduled in late 2026.

“The primary benefit drivers for the project are the additional energy value and associated tax credits,” Entergy witness Daniel Boratko testified. “Any deferred or avoided capacity value will further improve the net benefit.”

Entergy is counting on production tax credits under Section 45Y of the Internal Revenue Code, recently preserved for nuclear uprate projects in the federal One Big Beautiful Bill Act signed in July. While eligibility is still subject to IRS guidance, Entergy said the credits alone could offset the full cost of the project to customers.

Most of the added capacity – about 40.3 megawatts – would be achieved during Waterford 3’s scheduled refueling outage in fall 2026, with the remainder coming in fall 2029.

Waterford 3, a pressurized water reactor that began commercial operation in 1985, operates around the clock and produces electricity without carbon emissions. Licensed by the Nuclear Regulatory Commission to operate through 2044, Entergy is considering a subsequent license renewal that would extend the plant’s life to 2064.

Vice President of Major Fleet Projects Jason Willis told regulators the upgrade would leverage new low-pressure turbine rotors already installed at the plant, along with other planned improvements, without requiring an amendment to the plant’s license.

Entergy officials say the added output will help meet the company’s long-term capacity needs while avoiding the expense of building new generation, such as a natural gas-fired combustion turbine.

If approved by the commission, the upgrades would position Waterford 3 to contribute more power to the regional grid, strengthen system reliability, and potentially reduce ratepayer costs over the coming decades.

Daniel Cohan, a Rice University environmental engineer, told CBS Austin in 2023 that one megawatt is enough to power 670 homes.