Direct link to petition: https://change.org/magnoliawatercustomers

We, the undersigned customers and concerned residents of Louisiana, respectfully submit the following petition to Central States Water Resources (CSWR)/Magnolia Water, the Louisiana Public Service Commission (LPSC), and the Louisiana State Legislature. Our goal is to ensure affordable, safe, and reliable utility services from a monopoly water and sewer provider operating in 33 parishes across the state.

TO: CSWR/MAGNOLIA WATER UTILITY OPERATING COMPANY, LLC

We request the following actions to address widespread customer concerns:

1. Withdraw the 2025 Rate Adjustment Request

That CSWR/Magnolia Water withdraw its request submitted to the LPSC on May 1, 2025, seeking adjustments to water and sewer rates set for implementation in 2025. Docket U-37570.

2. Reinstate Tiered Sewer Billing for Low-Use Customers

That the prorated sewer billing tier for customers using less than 2,000 gallons per month be reinstated. The current flat minimum bill of $117/month for Tier 2 customers—many of whom saw increases exceeding 300% after CSWR's acquisition—places an undue burden on seniors, disabled individuals, and low-income households. The minimum flat rate of $69 for sewer, with another proposed increase, represents a significant part of customers' monthly billing.  

3. Enhance Customer Service Notification Systems

That CSWR/Magnolia Water improve its communications related to service outages, boil water advisories, and water safety alerts by implementing or improving:

• Text message and email notifications;
• Door-hanger advisories (opt-in for those without electronic access);
• Signage in affected areas.

4. Publicize Notification Enrollment Options

That instructions for enrolling in these notifications be:

• Clearly posted on the CSWR and Magnolia Water websites;
• Included in every mailed billing statement;
• Timely (within one hour of service disruption.)

5. Establish a Refund System for Service Failures

That CSWR/Magnolia Water implement an automatic, pro-rated customer refund system to compensate for:

• Service outages;
• Boil water advisories;
• Failure to provide clean, safe drinking water

Refunds should be calculated based on the duration and extent of the service disruption.

6. Pause New System Acquisitions

That the utility company suspend all future acquisitions of failing systems until it completes the repairs and upgrades for which existing customers have already been and continue to be charged. Continuing acquisitions without fulfilling current obligations threatens system quality and financial transparency.

7. Greater transparency with water quality reports following every service disruption, including but not limited to boil water advisories and system outages.

That in addition to the annual water quality report, Magnolia Water/CSWR provides transparent and accurate water quality reports following every service disruption, without the use of chemicals to alter or mask test results.

ADDENDUM ADDED 5/31/25 - Item 8

8. Withdraw CSWR/Magnolia Water's request to extend the original Formula Rate Plan (FRP) from the initial three-year agreement an additional three years, per Docket U-37584.

Given the widespread, continued service disruptions, substandard water quality and excessive billing increases under the initial FRP agreement, CSWR/Magnolia Water should not be allowed to extend that agreement after acquiring additional failing systems to offset profits. The existing customer base should not be forced to subsidize additional acquisitions by way of rate increases in 2026, 2027 and 2028.

 

TO: LOUISIANA PUBLIC SERVICE COMMISSION (LPSC)

As the elected body responsible for regulating utility monopolies in Louisiana, we ask the LPSC to:

1. Deny CSWR’s 2025 Rate Adjustment Request

Deny Magnolia Water’s May 1, 2025 request for rate increases and "any other related relief" affecting the 33 parishes it currently serves, as submitted per Docket U-37570.

2. Suspend Approval of Future Acquisitions

Deny any pending or future requests from CSWR/Magnolia Water for additional system acquisitions until the utility has completed necessary repairs and infrastructure upgrades for its current service areas. Ongoing acquisitions without prior improvements compromise both service quality and financial integrity.

3. Mandate a Customer Notification Policy

Enforce a standardized, multi-channel notification policy for all regulated utilities to inform customers promptly of:

• Water safety advisories;
• Service outages;
• Other public health-related service issues.

This should mirror the communication system described in Section 3 of our request to CSWR/Magnolia Water.

4. Require Refunds for Service Failures

Mandate that CSWR/Magnolia Water adopt a pro-rated customer refund system based on service disruptions, as described above, to ensure accountability for failure to deliver the essential services customers are billed for.

ADDENDUM ADDED 5/31/25 - Item 5

5. Deny CSWR/Magnolia Water's request to extend the original Formula Rate Plan (FRP) from the initial three-year agreement an additional three years, per Docket U-37584.

Though customers were originally advised that rates would be reduced after the three-year FRP, the monopoloy water utility company is now requesting that the LPSC extend CSWR/Magnolia Water's FRP an additional three years, which would allow for rate increases in 2026, 2027 and 2028. It is the LPSC's obligation to protect the citizens it serves, not to approve CSWR/Magnolia Water's continued pillaging of customers.

 
TO: LOUISIANA STATE LEGISLATORS

We respectfully request that the Louisiana Legislature enact reforms to ensure the independence of the Louisiana Public Service Commission and protect it from undue influence by regulated entities.

1. Ban Political Contributions from Regulated Utilities

Pass legislation prohibiting LPSC commissioners from accepting campaign contributions from:

• Utility providers;
• Their parent companies and subsidiaries;
• Executives, officers, employees, lobbyists, shareholders, and family members of the above.

This measure is based on national research documenting the risk of regulatory capture when elected regulators receive financial support from the very entities they oversee.

 
CONCLUSION

Louisiana residents rely on monopoly utility providers for essential services. When those providers fail to deliver, and when costs soar without proportional improvements, the public deserves both protection and recourse. We ask CSWR/Magnolia Water, the LPSC, and the Louisiana Legislature to act in the public interest and adopt the requests outlined in this petition.

 

MAGNOLIA WATER CUSTOMER INFORMATION

For additional information and specific rate increase requests, see Docket U-37570 on the LSPC website.

https://lpscpubvalence.lpsc.louisiana.gov/portal/PSC/ViewFile?fileId=hp2I9JwJB6s%3D

Per the Docket, the date by which a party who desires to participate in the proceeding must file a notice of protest is June 3, 2025. We would like to collect as many customer signatures to this position as possible by June 1, 2025 for inclusion in that protest, but will continue to collect votes even after that date has passed, as every signature will make a difference before the LPSC votes on this  matter, and toward legislators for much-needed regulation of campaign donations to Public Service Commissioners by the monopolies they are tasked with regulating.