HLS 14RS-2462 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2014
HOUSE BILL NO. 1236
BY REPRESENTATIVE MONTOUCET
UTILITIES: Provides relative to nonprofit water utility cooperatives and corporations
wholly owned by water users
AN ACT1
To enact R.S. 45:1176.1, relative to nonprofit water utility cooperatives or corporations2
wholly owned by water user members; to require the Public Service Commission to3
develop a system by which nonprofit water systems can request rate increases; to4
provide a procedure for approval of rate changes; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 45:1176.1 is hereby enacted to read as follows: 7
ยง1176.1. Nonprofit water utility cooperative or corporation; process to request rate8
changes; directive to Public Service Commission9
A. The Public Service Commission shall develop a streamlined review10
process whereby a nonprofit water utility cooperative or corporation wholly owned11
by water user members may request and receive an increase in rates by submitting12
an application.13
B. The application to the Public Service Commission shall contain the14
following:15
(1) A list of the existing and proposed rates by customer class, including but16
not limited to residential, commercial, or industrial class.17
(2) An applicant fee by check or money order.18 HLS 14RS-2462 ORIGINAL
HB NO. 1236
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(3) Proof of publication in the official journal for the parish in which the1
nonprofit water utility cooperative or corporation wholly owned by water user2
members is located.3
(4) A rate study conducted by the Louisiana Rural Water Association4
justifying the need for an increase in rates.5
(5) Documentation providing evidence of board and member approval of the6
change in rates as outlined in this Paragraph;7
(a) The board of directors of any nonprofit water utility cooperative or8
corporation wholly owned by water user members shall conduct a meeting of the9
board to discuss evidence of a need for a rate change and shall provide all directors10
with an opportunity to participate. If, by a majority vote of the board of directors,11
the board agrees that a change in rates is needed, the board shall conduct an election12
of the water user members to request approval of the rate change.13
(b) Written notice by mail shall be given to all water user members sixty14
days prior to an election. The notice may be included in a billing notice, but shall15
be a separate and prominent document. The notice shall contain a brief explanation16
of the reasons for the rate change increase and inform the water user members of the17
availability of a complete, written explanation of the reasons for the rate change.18
Such written explanation shall be available for examination by any water user19
member or his representative at all cooperative or corporation offices during regular20
business hours at least sixty days prior to the election.21
(c)(I) Sixty days after notification to the water user members, an election to22
determine approval of a change in rates shall be conducted. The election may be by23
mail ballot sent to each water user member or may be conducted by written ballot24
during a public hearing in a meeting of the water user members. No rate change25
shall be allowed without the approval of a majority of the water user members.26
(ii) If a mail ballot is conducted, a written ballot may be included in a billing27
notice, but shall be a separate and prominent document. The ballot shall contain a28
brief explanation of the reasons for the rate change, the amount of the requested rate29 HLS 14RS-2462 ORIGINAL
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change, and any other information the board deems necessary, including a deadline1
for ballot return. Ballots shall be collected and counted at the cooperative or2
corporation office.3
(iii) If the election is conducted during a meeting of the water user members,4
written ballots shall be collected and counted at the meeting.5
(iv) Affirmative approval by a majority vote of the water user members shall6
be required to change the rates.7
(v) All costs of the election shall be paid by the cooperative or corporation.8
(6) An agreement that if the board of directors fails to implement the9
approved rate change within sixty days after the ballots are tabulated, the election is10
void and a new election shall be held prior to a change in rates.11
C. The Public Service Commission shall require commission staff to review12
each application received pursuant to the review process required by this Section13
and, following review, the application shall be submitted to the Public Service14
Commission for approval.15
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Montoucet HB No. 1236
Abstract: Directs the Public Service Commission to develop a streamlined review process
whereby a nonprofit water utility cooperative or corporation wholly owned by water
user members may request and receive an increase in rates by submitting an
application.
Present law (constitution) provides for the regulation of public utilities by the Public Service
Commission.
Proposed law directs the Public Service Commission to develop a streamlined review
process whereby a nonprofit water utility cooperative or corporation wholly owned by water
user members may request and receive an increase in rates by submitting an application.
Proposed law requires the application to the Public Service Commission to contain a list of
the existing and proposed rates by customer class, including but not limited to residential,
commercial, or industrial class, an applicant fee by check or money order, proof of
publication in the official journal for the parish in which the nonprofit water utility
cooperative or corporation wholly owned by water user members is located, a rate study
conducted by the Louisiana Rural Water Association justifying the need for an increase in HLS 14RS-2462 ORIGINAL
HB NO. 1236
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are additions.
rates, and documentation providing evidence of board and member approval of the change
in rates.
Proposed law provides for a process by which a nonprofit water utility cooperative or
corporation wholly owned by water user members shall conduct the approval of the change
in rates which is required to be documented in the application to the Public Service
Commission.
(Adds R.S. 45:1176.1)