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."
If all 44 projects are approved, about $300 million would remain in the fund set up as a down payment to help the Gulf.
Last week, the Saints gave up 429 yards to Seattle, second most in a game this season.
Here's your daily look at late-breaking national and international news, upcoming events and the stories that will be talked about Friday, December 06, 2013
Since Anthony Jennings and Brooks Haack were not expected to contribute until next year at the earliest, it seemed like a sneak peek at hidden Christmas gifts.
Louisiana National Guard personnel seeking benefits for same-sex spouses will have an easier time filing the requests, despite a state refusal to let its workers process the paperwork.
Panthers coach Ron Rivera sees one potential flaw with his team's stellar defensive play so far this season. "Apparently we like to bite on the double moves," Rivera said.
Computer hackers may have gained access to the personal information of thousands of Louisiana residents who use debit cards issued by JPMorgan Chase for three state agencies, authorities said Wednesday.
Jim Purcell, who has been in the job since February 2011, notified the Board of Regents about his decision at its monthly meeting.
Hushed plans for a commercial development along the Louisiana Avenue portion of the Holy Rosary campus put the future of longtime tenant EarthShare Gardens in jeopardy.
If a recent advertisement in The Daily Advertiser is any indication, speculation the local daily will be implementing the “Butterfly Project” could be more of a reality than the Gannett-owned paper’s top execs are willing to admit.
Mettenberger injured his left knee while unloading a 32-yard completion in the fourth quarter of No. 14 LSU's 31-27 victory over Arkansas last Friday, and LSU coach Les Miles confirmed the severity of the injury on Wednesday.
An ordinance to phase out a 2 percent rebate to Lafayette merchants for collecting and remitting on time sales taxes cleared the City-Parish Council by a 6-3 vote.
Louisianans are the fourth most likely to use profanity yet also the fourth most likely to be courteous. So, please, just kiss my a** ... if it’s not too much trouble.
The state Coastal Protection and Restoration Authority voted Tuesday to authorize two lawsuits against the U.S. Army Corps of Engineers.
A long night on the field in Seattle got even worse off of it, and now the Saints are operating on a compressed time-frame as they brace for surging Carolina with first place in the NFC South at stake.
Public school letter grades, teacher evaluations and student promotion won't be affected by Louisiana's shift to more rigorous educational standards for two years, the state's top school board decided Tuesday.
Vitter told The Associated Press that he is sending an email to supporters Wednesday and is in discussions with his family about the possibility.
The Ragin' Cajuns go for New Orleans Bowl three-peat, this time against the Tulane Green Wave, which is making its first postseason appearance since the Hawaii Bowl in 2002.
Louisiana has joined four other states in filing a so-called “friend of the court” brief in support of Mississippi’s lawsuit against the federal government over new flood insurance rates set to go into effect.
Kerry Wayne Bertrand was charged Monday for the alleged killing of his stepdaughter, Skylar Lee Credeur, a UL Lafayette chemistry major found dead in the bathtub of her family home in August.
Louisiana's state school board is considering a two-year delay for some consequences tied to the phase-in of more rigorous educational standards, called Common Core, at public schools.
The most anticipated game in the NFC this season was a laugher.
The attorneys for Busted in Acadiana administrator Chris Hebert got an extra 2.5 months Monday to prepare for their client’s felony trial, marking the third time the case has been delayed this year.
In an effort to ease tensions, Lafayette Parish Superintendent of Schools Dr. Pat Cooper is calling for board approval of two day-long workshops: one to address lingering questions caused by Act 1 of the 2012 Legislature, and a session focused on mending the tattered relationship between the board and administration.
Lafayette has so much going for it, and so much yet to do.