Rising rates bring calls for more oversight of this fastgrowing private utility
Jul 21, 2026
Residents in Louisiana are fighting rising water and sewer bills after private utility company Magnolia Water expanded across the state and increased rates for many customers, The Current reports.
Magnolia now serves tens of thousands of water and sewer customers in Louisiana and has raised rates ne
arly every year since expanding in 2019. Its sewer rates have become among the highest in the state, with some communities seeing increases of up to 200%.
The company argues the increases are necessary to repair aging systems it acquired from struggling local governments that lacked the money to maintain them.
The debate highlights a larger issue facing small communities with failing water infrastructure. Many local systems lack the funding needed for repairs, forcing towns to consider selling to private companies like Magnolia. In some cases, residents have experienced poor water quality and failing systems before private ownership took over.
Supporters of Magnolia argue that private investment allows the company to repair neglected infrastructure, purchase equipment and manage multiple systems more efficiently. Critics argue that because Magnolia is backed by private investors, it must also generate profits, which can lead to higher customer rates.
The LPSC typically focuses on ensuring utilities remain financially stable and able to meet regulatory requirements, but critics say the commission lacks strong consumer protections and expertise in water regulation. Louisiana is also among the few states without a state-funded advocate dedicated to representing utility customers in rate cases.
Northshore customers Cindy Case-Brown and Connie Norris recently challenged the company’s rate increases before the Louisiana Public Service Commission in Baton Rouge.
Although Case-Brown and Norris were unsuccessful in stopping Magnolia’s latest rate plan, their challenge led to increased public attention and an order requiring an audit of Magnolia’s finances before future rate increases. The issue has also become a focus in local political campaigns, with candidates calling for greater oversight of the company.
The Current has the full story.
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