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PSC adopts permanent towing-and-recovery rates, orders industry-wide data collection
Summary
After extended testimony about unpaid non-consensual tows, title delays and rising insurance and equipment costs, the commission adopted staff's recommendation (an earlier 15% interim increase) as permanent, added an annual PPI adjustment, and directed staff to issue discovery to all regulated tow firms for non-consensual-tow volumes, storage durations and disposition data.
The Louisiana Public Service Commission moved to put permanent structure under its recent interim towing-and-recovery rate changes and to require industry data collection after a lengthy public hearing in which tow operators described rising equipment and insurance costs and frequent unpaid non-consensual tows.
Commissioners debated a compromise motion that would accept staff's recommendation (the 15% increase previously adopted as an interim measure) as permanent, include an automatic annual producer-price-index adjustment beginning January 2025, refine standby/transit-rate language, and direct staff to request detailed discovery from regulated tow companies on: numbers of non-consensual tows, days held in storage, numbers of vehicles ultimately sold for reuse or salvage, and related disposition data. The motion also directs staff to continue collaborative work with the industry to explore tariff tiers, abandoned-vehicle procedures and potential legislative fixes for DMV processes.
Industry witnesses said they are often not paid for large non-consent recoveries, that titles and DMV delays leave vehicles in storage for weeks, and that insurance and heavy-equipment costs have risen sharply. Representatives said the lack of standardized data has hampered staff's ability to design rates that reflect real non-consent cost burdens; the commission's motion requires staff to issue discovery to all regulated tow companies and to continue working with the industry on data collection and possible legislative solutions.
The motion passed unanimously; commissioners also approved staff's other changes noted in the record, including the PPI mechanism and rate definitions that replace a prior standby-rate approach.
Why it matters: The decision makes the August interim increase permanent, signals the commission's intent to monitor the sector with mandatory data requests, and sets the stage for future targeted adjustments if the evidence supports them. Industry leaders urged faster DMV and legislative fixes to reduce storage burdens and unpaid claims.
The motion and vote were taken after many hours of testimony and detailed questioning; the commission set a path for further staff/industry work and data collection to support future rate or rule changes.
