RS 1163.1 - Common carrier or public utility rate increases under protective bond or security; definitions, procedure for filing bonds; refunds
A. As used in this Section:
(1) "Effective filing date" means the date on which a common carrier or public utility first requests an increase by filing either an application, petition, or proposed rate schedule and its direct testimony by either affidavit or orally in support thereof with the Louisiana Public Service Commission. For purposes of this Section, subsequent substantial alteration of the application, petition, or proposed rate schedule shall constitute an interruption of the time period provided for herein.
(2) "Full decision" means the signing of an order by the Louisiana Public Service Commission on the merits of the proposed rate increase contained in any application, petition, or proposed rate schedule filed by a common carrier or public utility which order grants or denies, in whole or in part, the proposed rate increase.
(3) "Full refund" means the difference, if any, between the gross additional revenue collected during a period of temporary imposition of a rate increase pending final determination of validity of such increase and the gross additional revenue finally determined to be reasonable by the commission or, if appealed, by a court, together with legal interest thereon.
(4) "Proposed schedule" means any request by a common carrier or public utility contained in either an application, petition, or rate schedule which would result in an increase in rates of services that are deemed noncompetitive by the Public Service Commission, which may be filed with the commission after the effective date of this Section.
(5) "Protective bond" means any bond by the common carrier or public utility with a surety company authorized to do and doing business in the state of Louisiana in the amount of the additional revenue due to the temporary rate increase that the common carrier or public utility certifies to the commission it will receive within the twelve month period following the effective filing date of the protective bond.
(6) "Security" means any arrangement approved by the Louisiana Public Service Commission to assure full refund.
B. Whenever a common carrier or public utility files with the Louisiana Public Service Commission a proposed schedule and a full decision is not rendered within twelve months after the effective filing date, the proposed rate increase may be implemented by the common carrier or public utility, in whole or in part, by filing with the commission protective bond or security to assure full refund. The commission may challenge the bond in the district court of the domicile of the commission. If the judgment of the court holds the bond insufficient or invalid, the procedures and time limitations set forth in Code of Civil Procedure Articles 5124-5126 shall apply.
C. The rates which become effective on filing of the prescribed protective bond or security may be continued in effect by the common carrier or public utility under the terms of the protective bond or security until final determination of the validity of the proposed rate increase by the commission, or if appealed, by the court. If the increase is not allowed and a refund is ordered, the full refund shall be paid as soon as possible but in no event to exceed ninety days after the full decision by the commission, or if appealed, after final action by a court of last resort. Upon payment of the full refund or a final determination upholding the full amount of the rate increase, the protective bond or security shall be released and all obligations thereunder shall terminate.
D. The commission may permit a common carrier or public utility to put a rate increase into effect, in whole or in part, after the effective filing date and pending its full decision, by approving protective bond or security to assure full refund.
Added by Acts 1976, No. 151, §1; Acts 2003, No. 738, §1.