For many families in Louisiana, monthly water bills are an increasing financial burden.
Two Magnolia Water customers traveled to Baton Rouge to challenge a rate-setting system they said rewarded a private utility company while leaving residents dealing with rising water and sewer costs.
What's happening?
According to The Current, Magnolia customers Cindy Case-Brown and Connie Norris of the Northshore have repeatedly challenged the company's rate-hike requests before the Louisiana Public Service Commission.
Magnolia has expanded rapidly across Louisiana since 2019 by purchasing struggling local water and sewer systems. LPSC records cited by The Current show Magnolia serves more than 82,000 sewer customers and about 79,000 water connections. This growth has been followed by almost yearly rate increases, leaving Magnolia with the highest sewer rates in the state.
In Lafayette's Quail Hollow neighborhood, some residents saw sewer bills jump by up to 200%. Many Magnolia customers now pay more than $73 per month for sewer service, plus a starting water rate of $44. In stark contrast, state averages are about $56 for sewer and $19 for starting water service.
"I had very little knowledge of what was going on and how the system worked," Norris said.
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Why does it matter?
Water and sewer service are basic necessities, so sharp rate increases can put serious strain on monthly budgets. That pressure can be even more acute in communities where residents have little control over who operates their utility.
Magnolia has said it needs higher rates to repair aging systems it acquires, but its latest approved rate plan provides for a 9% to 10% financial return. The same report said Magnolia's 2025 rate application listed more than $37.5 million owed to its parent company.
For customers trying to challenge those decisions, the imbalance can be steep. The source report said Magnolia sought to require nondisclosure agreements for access to financial data and requested personal financial and medical records from customer intervenors. The Current also noted that Louisiana lacks a state-funded utility consumer advocate.
Jackson Voss, senior government affairs advisor at the Alliance for Affordable Energy, did not mince words.
"It's a pretty bad time, in my view, to be a customer in Louisiana who's hoping that the LPSC is going to protect them from what these companies want to do to them," he said.
What's being done?
Case-Brown and Norris ultimately lost their immediate challenge when the LPSC approved Magnolia's rate plan for the next three years in June.
One concrete outcome, The Current reported, is a required audit of Magnolia's operating company finances before it can seek another rate increase.
The issue is also beginning to play a role in politics. Norris is now running for the commission seat representing their area, and Magnolia has become a major issue in that race. Her opponent, state Rep. Stephanie Hilferty, has urged the commission to halt any new Magnolia rate hikes or acquisitions.
"We stood up to a bully and I'm proud of that," Case-Brown told The Current. "More people need to do the same."
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