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Commission approves 15% interim increase for towing and recovery rates after contentious public testimony
Summary
The commission granted a 15% interim increase for non‑consensual towing and recovery rates (Docket R‑35595), after industry testimony about rising insurance and storage costs, staff recommended 15%, and concerns were raised over the limited data provided. Vote: 4–1.
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The Public Service Commission voted 4–1 to authorize a 15% interim increase to non‑consensual towing and recovery rates, citing staff’s analysis and the urgency of financial distress among some operators.
The Towing and Recovery Professionals of Louisiana sought a 30% interim increase, arguing rising insurance and equipment costs and citing widespread industry losses. An industry board member said some operators had closed in recent weeks and urged immediate relief: “these people are losing money every day,” an industry speaker told commissioners. Staff, after conducting limited data collection and technical conferences, recommended a 15% interim rise while continuing the docketed process for a permanent rate review.
Several commissioners objected to approving an interim increase without broader data and more robust participation from the industry; one commissioner noted staff received only three substantive data responses and said, “I can’t evaluate that when… three,” and voiced concern about process and consumer protection. Other commissioners emphasized the operational hardships operators reported, including long unpaid storage periods and chronic non‑payment rates, and supported the 15% relief as an interim measure while the full docket proceeds.
Public commenters and multiple operators provided on‑the‑record cost examples for vehicles and equipment, and at least one industry member presented Producer Price Index (PPI) data showing steep cost growth in recent years. The Commission adopted the interim increase and directed staff to continue work on a permanent rate recommendation and data collection.
Roll call on the final motion recorded four votes in favor and one opposed.
