Baton Rouge television station WBRZ had a NEWS STORY that caught my eye on Monday night, a story that shot my blood pressure up a good 30 points.
Residents of the parishes of East Baton Rouge, Livingston, and Ascension will have a small surcharge attached to their water bill this month. It’s being called an “August 2016 Flood Recovery Surcharge” and it’s only a few cents—six cents per 1,000 gallons of water. The average residential water customer uses about 6,000 gallons per month.
But that’s hardly the point.
The various water companies claim the surcharge is for them to recover money lost because of executive orders that prohibited disconnects and late fees of utilities following last August’s flood. They say the order last for eight months and during that time they lost revenue.
The Baton Rouge Water Company says its losses come to nearly $820,000 and the (East Baton Rouge) Parish Water Company has lost almost $230,000. Ascension Water Company is out about $174,000. All three, along with French Settlement Water Company and Louisiana Water Company were also approved by the Louisiana Public Service Commission in March—UNANIMOUSLY—to recoup lost money.
Excuse me while I shed a tear and blow my nose.
Many of the tens of thousands of homeowners who were displaced by the flood did not have flood insurance because their homes were not considered to be in a flood zone. But commercial entities like water companies might be expected to carry some sort of insurance as a vanguard against unforeseen losses like the flood. After all, thousands of their customers were in flood zones and they knew it. It’s called contingency planning.
So, while we homeowners are being scolded for not purchasing the expensive flood insurance (somewhere in the ballpark of $2,500 per year for most), where are the questions from the PSC regarding insurance coverage for loss of revenue to the water companies?
So Ascension Water Company is out $174,000? Well, guess what. I’m out $127,000. That’s how much I had to borrow to restore my home that was paid for in full prior to the flood. Some had to borrow more, some less. I’m 73, so I’ll be only 103 when I get that sucker paid off. And I’ve been displaced now for 10 months, not eight. Where’s my fund recovery?
The surcharge, WBRZ tells us, became effective this month and is expected to continue for about 18 months. But wait. That could be extended by the PSC.
Doesn’t that invoke a warm fuzzy feeling?
While FEMA took a hike after a flurry of look busy and helpful activity which resulted in exactly nothing for most folks impacted by the flood, it looks like the water companies will be getting theirs. While the Shelter at Home program produced basically shoddy repair work, the water companies are going to be made whole. And while millions of dollars were wasted—again—on those gawd-awful FEMA trailers, people went without needed permanent assistance. But not the water companies. While dishonest contractors were busy ripping homeowners off, the water companies are doing the same, but in a much subtler way.
And they’re doing with the aiding and abetting of the Louisiana Public Service Commission which was created to protect consumers from unnecessarily high utility rates (see cable TV rates while you’re at it) and price gouging.
Listed here are contributions from various water companies to PSC members since 2011.
- SCOTT ANGELLE: $2500;
- FOSTER CAMPBELL: $7500;
- ERIC SKRMETTA: $31,500;
- LAMBERT C. BOSSIERE, III: $6000.
TOTAL $47,500
Just $47,500? That’s more than a third (34.7 percent) of what my mortgage is now. And that’s just since 2011. I didn’t have the stomach to go further back but I’ll bet there’s more. It appears that only Damon Baldone and Mike Francis failed to collect any campaign checks from this particular special interest. I’m not sure who they made angry, but good on them.



Mr. Aswell,
With all due respect to you!
I must say if you go back and review the statements that I made immediately following the storm, I believe you will find that I was not far off if any from stating the fact that we are seeing today in regards how a lot of this is panning out in regards to recovery.
It’s not always FEMA’s fault the local municipalities knew the FEMA guidelines before the disaster.
I stand by my statement. FEMA is, and always has been, the most corrupt, wasteful, useless agency within the vast federal Bureaucracy. Go no further than the Michael Brown fiasco following Katrina for ample evidence of my assertion. He was just symptomatic of a much larger problem.
Take heart, Tom. I’m sure President Trump will straighten this out, just as he has, or will, all of our other problems. He will drain the swamp and there will be no more flooding, hence, no need for FEMA. 🙂
“It’s not always FEMA’s fault the local municipalities knew the FEMA guidelines before the disaster.”
Then ‘Broussard,’ does that mean FEMA is culpable regarding the mismanagement of FEMA Funds by the Municipalities & various Governmental Organizations/Entities – specifically if FEMA issues funds knowing those Entities aren’t ‘up to speed’ on the FEMA Laws/Rules…???
Mac, Great question!
If I was an elected official I would ask the US Attorney General and the State Attorney General for that opinion.
You would think that they would have insurance to cover their “so-called” losses. As for Baldone, he was just appointed to replace Angelle.
Clifford, your comment about insurance reminds me that the only commission I feel less represents our interests than the PSC is the Insurance Commission… Oh wait, and maybe the State Police Commission, but they don’t purport to represent us, anyhow, do they?
Stephen, I think we abolished the Insurance Rating Commission some time ago. I do not know if that was for the better or worse. I wonder if the old IRC would have allowed the property insurance carriers to put those named storm, wind, and hail deductibles in place? Btw, great letter on Sadow.
Clifford, I really meant the Insurance Commissioner and should have put it that way and, yes, part of my reason is just what you bring out. Thanks on the Sadow thing. He is the pits.
As a former PSC supervisor and analyst from 1991 to 2006, this is typical political garbage done by the PSC. Campaign contributions and Lord knows what else and the utility companies get what they want. Are these water companies collecting insurance on their losses? Are they applying for government aid such as FEMA money? Someone needs to check also did the PSC bother to audit and verify that the money the companies said they lost are accurate or inflated?