Customers of Magnolia Water, a private equity-funded, for-profit utility that has taken over districts across the state in recent years, will see another increase in rates, coming into effect Sept. 1.
The move by the Louisiana Public Service Commission to approve the rate increase came as a surprise to protesting customers, who thought they had until September to further plead their case against it.
Magnolia Water most recently increased rates in 2024, resulting in Acadiana customers paying the highest sewage rates in the state.
This time, the increase will be 7% in water rates and 5% in sewer rates, which will result in a roughly $3.2 million increase in revenues for Magnolia Water.
Magnolia Water has taken over aging sewer systems serving neighborhoods all over the parish. It now charges the highest flat rate in the state for sewer service.
Commissioner Jean-Paul Coussan, who represents the Lafayette area, was one of two commissioners who voted against the increase. “My constituents have seen too many rate increases … this is too much, too fast and too soon,” Coussan says.
Many Acadiana residents will now see sewer bills over $76 a month, a state high.
While the commission acknowledges the burden on rate payers, staff recommendations follow the predetermined formula rate base plan that allows Magnolia to file for increases based on its expenses. Magnolia has filed to extend this plan until 2028, likely leading to further increases.
Read more at thecurrentla.com.