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Towing rate increases coming up at commission meeting, what to know
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BATON ROUGE - During a busy Game Day weekend like this one, towing companies around LSU are busy. Some of them have contracts with businesses in the area that allow them to enter private property and tow at the owner's expense.
On Thursday, 2 On Your Side highlighted the practices of Riverside Towing, but towing companies have been battling with the Louisiana Public Service Commission to increase their non-consensual towing fees since 2016. The PSC sets its rates. The battle could be coming to a head later this month.
Non-consensual towing rates just went up by 15%. The changes affect hundreds of towing companies in the state of Louisiana. The last time rates increased was in 2016. Commissioner Davante Lewis was the only one who opposed the recent increase.
"I think we really have to reexamine what we're doing here, they are calculating what they think they should make and they are asking government to ensure they make that," said Lewis.
At the November 20th PSC meeting, towing companies are asking for more. It's something that's been open and on the table with the commission since 2016. The changes could include storage rate increases that would triple after five days. The storage rates for non-consensual tows could go from $31.50 per day to $94.50 per day, larger vehicles could pay $171 per day.
"I don't like it, I think that their fees are already high enough," said Lewis.
Student Olivia Gebhart was towed from the Northgate parking garage by Riverside Towing before an LSU football game. Her bill by Sunday morning was $382. It's a cost she was unable to afford and a family member had to help her out. Lewis says it's not only the tow companies that are responsible for this aggressive work ethic.
"It's really businesses who are allowing them and I think that what we need to put some pressure on, businesses and apartment complexes who are allowing Riverside and these other tow companies to do whatever they want," said Lewis.
Jared Varnado is President of Towing and Recovery Professionals of Louisiana or TRPL. It's made up of about 130 members who fight for the towing industry. Varnado grew up in the world of tow trucks at Varnado and Sons Towing, LLC, and has watched the family business grow, expand, and adapt.
He says that while his company's practices are less aggressive than others, his team is called to locations all over the state for non-consensual tows. While prices everywhere are going up, their storage fees have not.
"We're just asking for help from the Public Service Commission," said Varnado.
While the 15% increase has helped businesses, it won't solve their problems. Varnado says the cost of trucks and insurance has gone up drastically.
"From 2020 to today, our insurance has gone up over $150,000 with the same amount of trucks and zero losses," he said.
Varnado says one of the things towing companies are struggling to regulate is electric vehicle storage because of a lack of data. Federal regulations say a compromised electric vehicle needs to be stored a certain way which can be very costly. The TRPL is working with the PSC to come up with a solution.
Another change on the table could come in the form of credit cards. Right now, towing companies are not required to accept credit cards and many only take cash. That's something Lewis is trying to change, but the TRPL doesn't think tow companies should be forced to make the change.
"The dispute is usually in their favor so we just lose out again," said Varnado.
The PSC meets on November 20 at 9 a.m. at the Galvez Building downtown Baton Rouge.
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