Many states allow individual check metering. However, in Louisiana, PHAs are not permitted to institute surcharges based upon check metering. Federal regulations that govern public housing state that individual check metering shall not be used if it is against local law or the policies of the public service commission. The Louisiana Supreme Court ruled in LaNasa v. New Orleans Public Service Commission, Inc. that the resale of electricity through check meters, even in the absence of profit, violated the contract between the customer and the utility company and was against New Orleans Public Service Commission policy prohibiting the resale of electricity.1
From time to time, Louisiana PHAs try to impose charges for utility usage on tenants in master-metered complexes through the use of individual check metering. PHAs may try to set surcharges for excess utility usage or try to use check metering due to pressure from HUD and rising costs. Each PHA must submit an annual budget showing projected income and expenses for the rental of their complexes. Once HUD approves the budget, HUD pays the difference between expenses and income to the PHA. If there is less rent collected or if expenses are higher than anticipated due to high PHA-paid utility costs, for example, the amount of the operating subsidy is insufficient to cover the costs of running the development. Should a Louisiana PHA seek to impose excess utility charges or individual check metering, an advocate should be able to mount a successful legal challenge.
- 166 So. 2d 332 (La. 1953).