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SB 364

UTILITIES: Provides relative to utilities. (8/1/26)

2026 Regular Session Introduced by Regina Barrow

The bill strengthens the Louisiana Public Service Commission’s authority to review, fix, and audit public utility rates, including biennial audits of electric fuel adjustments.

Introduced in the Senate; read by title. Rules suspended. Read second time and referred to the Committee on Commerce, Consumer Protection and International Affairs.
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Bill Summary · SB 364

Legislative Bill Summary – SB 364 (2026, Louisiana)

Basic Information

  • Bill: SB 364
  • Session: 2026 Regular Session
  • Jurisdiction: Louisiana
  • Sponsor: Sen. Regina Barrow (co-sponsor)
  • Title: Utilities; Provides relative to utilities
  • Effective Date: August 1, 2026
  • Subject: Public utility regulation and rate review

1) Purpose and Intent

  • The bill aims to enhance and clarify the Louisiana Public Service Commission’s (LPSC) authority over public utilities, particularly in the area of rate regulation.
  • It retains existing regulatory authority over public utility rates and service and adds explicit language authorizing the Commission to review, evaluate, and fix fair and equitable rates charged by public utilities.

2) Key Provisions and Changes

A. Authority and Scope

  • Existing Authority Maintained: LPSC continues to supervise, govern, regulate, and control the transportation or sale of natural gas moving by pipeline to local distributing systems for resale, including fixing and regulating rates and service for such utilities.
  • New/Expanded Authority: The bill explicitly authorizes the Commission to:
    • Review and evaluate public utility rates.
    • Fix and regulate fair and equitable rates charged by public utilities.

B. Rate Review and Audits

  • Audit Requirement (Electric Utilities): To ensure that costs passed to consumers are just and reasonable, the Commission must:
    • Audit the adjustment clause filings submitted by a public electric utility in Louisiana no less frequently than every two years.
    • Exercise its review and determination authority over these filings.
    • Use its rate-fixing authority to modify fuel adjustment charges assessed by electric utilities via the fuel adjustment clause.

3) Who/What Would Be Affected

  • Public utilities in Louisiana, including:
    • Natural gas pipelines and local distributing systems.
    • Electric utilities (specifically their fuel adjustment charges and related clause filings).
  • Ratepayers/consumers who pay utility bills, as the bill seeks to ensure rates are fair and equitable.

4) Procedural and Timeline Aspects

  • Effective Date: August 1, 2026.
  • Implementation: Changes apply to the methods by which the LPSC exercises rate oversight, including the mandatory biennial audits of electric fuel adjustment clause filings and potential adjustments to fuel charges based on those audits.
  • Legal Authority: Amends and reenacts specific sections of Louisiana Revised Statutes:
    • RS 45:302(A) – Powers of the Commission; scope (natural gas transportation/sales regulation)
    • RS 45:1163(A)(1) and (C) – Power to regulate rates and service; exceptions, including the new rate review and adjustment provisions

5) Practical Implications

  • The bill strengthens regulatory oversight, potentially leading to more frequent or thorough scrutiny of how utilities set and adjust rates.
  • By requiring biennial audits of fuel adjustment clauses for electric utilities, the Commission may identify and correct excessive or unjust charges passed through to consumers.
  • Utilities may see an increased regulatory review cycle, which could influence how they structure rate adjustments and fuel cost pass-through mechanisms.

If you’d like, I can provide a concise one-page briefing with bullet-point takeaways for policymakers or a comparison with current statute to highlight exact changes.

Compiled from official sources — confirm details with the bill’s official record.

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