Since LUS announced its intentions to deliver phone, cable and Internet service to Lafayette residents nearly 16 months ago, the public utility has been engulfed in extensive legal battles with BellSouth and Cox Communications over the project. LUS has spent approximately $1.4 million on consultants, lawyers and marketing expenses related to the initiative, which was approved by a 24 percent margin in a public referendum July 16.
But Huval sees light at the end of the tunnel. LUS hits another milestone Sept. 1 when the Public Service Commission meets to adopt financing rules for the new venture. The PSC could be LUS' final hurdle before issuing bonds for the project. Opponents to the plan have until mid-October to contest the July 16 referendum, LUS' bond ordinance or the PSC ruling. Huval hopes that deadline will pass without further challenges to the LUS initiative, and the fiber build-out could begin in earnest in early 2006.
"This is a complicated process," Huval says. "There's a lot of work in the background that took place for this to happen."
The PSC staff has been working since last September on developing the accounting rules for LUS' new telecommunications division. The rules are based on state law and designed to create a level playing field for a public entity to compete with private telecom providers. LUS and the incumbent private providers, Cox Communications and BellSouth, have gone back and forth with the PSC and its staff to negotiate the rules. The staff's final recommendations, released last Wednesday, Aug. 24, appear to be a compromise that meets LUS approval.
"I think we have everything in the recommendation that LUS can live with," says Public Service Commissioner Jimmy Field, whose district covers Lafayette and Baton Rouge. "I'm not saying it's ideal," he adds. "But [LUS] understands that our responsibility was to set rules to make the competition fair given that this is the first time a government entity will be engaged in competition with private entities."
BellSouth and Cox Communications representatives did not return calls for comment on the PSC recommendations by press time. Cox has requested the chance to make oral arguments before the commission prior to the final ruling. (An amendment to the proposed rules requires the approval of three commissioners.)
Field has been a key ally for LUS and helped set up meetings between LUS representatives and public service commissioners.
"Jimmy has been on the commission for quite some time," Huval says. "And he knows the process better than we do. We know what it's like to deal with our [city-parish] council. Our biggest concern was not being as familiar with the PSC."
LUS also employed lobbyist Randy Haynie and several attorneys for the PSC negotiations, which recently turned in LUS' favor. The PSC staff's initial draft of rules in June followed an interpretation of the law advocated by BellSouth and would have prohibited LUS from using any utility revenues in paying off up to $125 million in bonds for the project. The staff's final recommendations for the rules ' released last Wednesday ' reversed that opinion and allow LUS' utilities division to cover the communications division should the bonds go into default. Without that change, it would have been very difficult to obtain a favorable interest rate on its loan.
"It was just a mistake for our recommendation to come out and say that you couldn't pledge the assets," says Field. The new rules also side with LUS' plea to allow money from its utility division to be loaned to its communications division at fair market rates. LUS has agreed with BellSouth and the commission's request to make an in-lieu of tax payment ' equal to what private providers pay ' during each year of operation.
Commissioner Dale Sittig, who represents several Acadiana parishes surrounding Lafayette, including St. Landry and Acadia, says he feels the final rules are fair to both sides.
"The rules are not set in favor of anybody or against anybody," he says. "The commission has no dog in this fight. We're doing exactly what the law says. Hopefully, everybody can get on board."
While only three votes are needed to approve the rules, Field says he is hoping for a unanimous decision. "I think to some degree they will give me some deference because it's in my area, and I know the situation very well, but in the end [the commissioners] will vote their own conscience."
Last week, Commissioner Foster Campbell reserved any comment on the staff's final rule recommendations because he had not yet had a chance to fully review them. Commissioners Jay Blossman and Lambert Bossiere did not return calls for comment.
Field says that LUS' plan has been selling itself.
"I've always felt like as a public service commission that we should be an instrument of economic development," he says. "We should help the state of Louisiana attract industry. We ought to open the door and allow them to try to do this and take the heat, so to speak, from the private entities, because we're losing a lot of industry in Louisiana. This might be a way we can attract high-tech jobs, and for that reason, because of the economic development angle, I believe the other commissioners realize that. We need to take that risk and go ahead and let LUS start this whenever they feel comfortable."
The U.S. rep billed LSU for work allegedly performed on the same days Congress voted on major legislation and held important committee hearings on energy and the ACA.
Abysmally low participation by the public has prompted the council to scuttle the 2014 survey with plans to simplify it and try again next year.
The village now says the ordinance will likely be overturned and authorities will more vigorously enforce existing leash laws.
Bill Cassidy cast an early ballot Tuesday, seeking to draw renewed attention to a race that has fallen off newspaper front pages and away from people's minds as they plan holiday meals and shopping schedules.
Battered all night by Baltimore's relentless pass rush, Drew Brees could feel his protection collapsing and Terrell Suggs getting ahold of him as he urgently unloaded a pass to the right flat toward tight end Jimmy Graham.
After a convincing defeat at the polls on Nov. 4, Earl “Nickey” Picard has decided to let bygones be bygones with his former right-hand man Brian Pope, announcing his support for his former employee’s runoff bid to become Lafayette’s next city marshal.
Odell Beckham on the catch; chaos in Ferguson; snowstorm set to snarl travel and more national and international news for Tuesday, November 25, 2014.
Tuesday's Blogs from the Bog!
Saturday the athletic department did everything possible to ensure the 2014 Ragin’ Cajun seniors remembered fondly their last home game. Rain and lightning never arrived but turbulence did in the form of the Appalachian State Mountaineers.
Even stranger than the Republican Party’s decision to hold a “unity rally” earlier this month for Congressman Bill Cassidy in a Baton Rouge bar, Huey’s Bar, was the fact that the establishment was named after Louisiana’s most famous Democrat.
Bar Code is not a gay bar.
After failing to pass a medical marijuana bill last year, state Sen. Fred Mills, R-Parks, is telling supporters he will return in 2015 with legislation that focuses on different applications like oils and pills.
Voters, obviously, are not yet tuned into the 2015 ballot, despite the intriguing races it will host.
By now, the story of how longtime LSU coach Dale Brown discovered Shaquille O'Neal has been told many times: Brown happened upon a massive 13-year-old at an army base in Germany, stayed in touch with him and eventually became like a second father.
Fate simply wasn't ready to give the New Orleans Saints a break from longtime nemesis Steve Smith.
Lafayette Police have had a busy day.
Gov. Bobby Jindal's administration will use $130 million in patchwork financing from a tax amnesty program, insurance settlement, uninsured motorist penalties and other excess funds to close most of the state's midyear budget deficit.
Democratic U.S. Sen. Mary Landrieu said she disagrees with President Barack Obama's actions on immigration, hoping the latest controversy doesn't worsen her campaign difficulties.
Gay-rights advocates challenging Louisiana's same-sex marriage ban announced Thursday that they have asked the U.S. Supreme Court to review their case before it is heard by a federal appeals court.
Thinking himself the “son of God,” the man charged with the 2013 killing of an officer of the Chitimacha Tribal Police will not stand trial following a ruling Thursday on his mental competency.
Either Saints coach Sean Payton doesn't want to tip Baltimore off as to who'll start in New Orleans' secondary on Monday night, or he really doesn't know yet.
The Ethics Board gives the lame duck Youngsville mayor permission to offer a sweet parting gift to the community he’s presided over for three terms.
The money came through a general obligation bond sale Thursday.
A legend in the Acadiana Oil Patch, Comeaux died Monday, Nov. 17.
With a growing number of alleged sexual assault victims coming out against Bill Cosby in recent weeks, upcoming projects have been canned by NBC and Netflix, but that won’t affect the once-loved comedian and actor’s scheduled performance in Lafayette.