Louisiana regulators have approved another extension of Magnolia Water Utility Operating Co.’s rate-setting plan. However, the decision came with a new investigative audit into the company’s broader business practices. This move follows customer complaints about steep bills, poor service, and unclear communication.

Customer Concerns

Customers, particularly in St. Tammany Parish, have expressed concerns over sharply increased bills after Magnolia took over their systems. One customer reported a monthly bill rise from $25 to $137. Others have raised issues about brown water, delayed repairs, boil water advisories, and poor communication.

Magnolia has defended its rates, stating that many of the systems it buys are small, neglected, underfunded, or already out of compliance when the company takes them over. The company claims to have invested about $410 million in Louisiana over roughly seven years and brought more than 250 systems back into compliance.

Audit and Investigation

The audit could include outside consultants and an engineering review of the company’s systems, giving regulators a closer look at whether Magnolia’s claimed investments line up with the condition of its water and wastewater infrastructure. Commissioner Davante Lewis asked if the company would cooperate with the audit, and the response was affirmative.

Original reporting: KTBS 3 (Shreveport) — read the source article.