(The Center Square) − Over the past three years, Magnolia Water Utility Operating Company, LLC has quietly taken control of a vast portion of Louisiana’s sewage and water systems — acquiring hundreds of utility networks and now serving more than 270,000 customers across the state.
Magnolia entered the market in 2020 with the purchase of four systems in St. Tammany Parish. Since then, the company has grown exponentially. By 2025, Magnolia was operating 501 systems and providing wastewater services to more than 50,000 connections and water services to over 20,000.
A major turning point came in December 2022, when Magnolia finalized a consent decree with the U.S. Department of Justice and the Environmental Protection Agency, allowing it to acquire 209 wastewater systems from Total Environmental Solutions, Inc. — a move that doubled its wastewater customer base.
In 2023, Magnolia increased residential rates for Tier 2 customers, who make up the bulk of Magnolia’s customer base, rose 8.99%. Magnolia’s latest filings hope to raise rates again — this time by 5.13%
Magnolia defends its rate hikes as necessary investments to fix aging infrastructure and bring long-neglected systems into regulatory compliance.
“Thus far, most of the systems Magnolia has acquired have experienced some degree of operational neglect,” the company said in filings with the public service commission. “Significant capital improvements have been completed and most are operating in full compliance with the rules and regulations of all applicable regulatory authorities.”
According to the company, 239 formerly non-compliant systems have been brought into compliance by 2025.
But the improvements have come at a steep cost for residents.
In Lafayette Parish, where Magnolia took over more than 140 neighborhood and commercial sewer systems in 2022, rates have surged as much as 200%, according to The Lafayette Current. In some areas, residents say the increases have exceeded 300%.
A Facebook group dedicated to frustrated customers has grown to include dozens of members venting about service issues and soaring bills.
“I want to call out Magnolia Water UOC for being shady, crooked and just downright poorly operated,” wrote Louisiana resident Jackie Eves in a Facebook post. “They claimed we owed $1,700 for using TWO HUNDRED THOUSAND GALLONS of water. We couldn’t use that much water in a month if we TRIED!”
“Rates have gone up over 300% since CSWR took over our utility, with no end in sight,” added another user, Anne Doula. “We have boil water advisories frequently and often the tap water looks like it came straight from the bayou.”
Magnolia shows no signs of slowing down.
The company is currently seeking regulatory approval or finalizing deals to acquire more than a dozen additional systems across the state.
Magnolia Water Utility Operating Company is actively working to acquire systems that would add thousands of new customers to its network across Louisiana.
These pending acquisitions include more than 5,500 connections from Oak Harbor, which serves the Lakeshore Estates and Lakeshore Villages subdivisions in St. Tammany Parish.
Magnolia is also hoping to serve 543 customers from Clear Stream Utilities, again in St. Tammany; roughly 420 customers across 12 subdivisions in Pointe Coupee and Calcasieu Parishes served by Louisiana Wastewater Utility, LLC; 207 residential customers in the Grays Landing subdivision in Lafayette Parish; approximately 100 connections in the River Pines Plantation subdivision in Livingston Parish; and about 35 customers in the Lake Shreve Estates subdivision in Caddo Parish.
