Committee debates 'fair and equitable' utility‑rate language, adopts technical amendment and defers SB 364

Senator Barrow brought SB 364 to the Commerce Committee seeking to add a "fair and equitable" standard to the law governing rates charged by public utilities, saying constituents faced unexpectedly high gas bills after service changes in Baton Rouge. The bill prompted extended questioning about whether the new phrase would replace or confuse the established constitutional and jurisprudential standard of "just and reasonable."

Brandon Fry, executive secretary for the Louisiana Public Service Commission, told senators the commission regularly audits utilities (on a two‑year cycle for many utilities) and agreed the commission could pursue practices to address disparate impacts on vulnerable customers, but he warned the phrase "fair and equitable" could create legal uncertainty because the long‑standing term in precedent is "just and reasonable." Fry said the commission will speed up an audit cycle for Delta Utilities tied to a recent acquisition and noted past NARUC guidance and the commission’s consumer‑protection work.

Committee members pressed for clarification about audits and whether the language could spur litigation between classes of customers. After senators and the sponsor discussed technical changes (amendment set 2156) and stakeholder follow‑up, the sponsor agreed to voluntarily defer the bill and to meet with industry, consumer advocates and commissioners before next week’s deadline. The committee recorded the voluntary deferral.