Maryland American Water Secures $2M Annual Revenue Increase for $22M Investments
Maryland PSC approved new water rates granting Maryland American Water an annualized $2 million revenue increase and backing $22 million in infrastructure investments since the last rate change in 2019. Residential bills in Bel Air will rise by $10 monthly starting February 26, 2026 and another $10 in January 2027, with Severn fees up $1.50 monthly.
1. PSC Approval and Financial Impact
The Maryland Public Service Commission has approved a settlement granting Maryland American Water an annualized revenue boost of approximately $2 million, marking the first rate adjustment since 2019. This change reflects the company’s successful rate request filed in August 2025 and sets the stage for phased implementation over two years.
2. Infrastructure Investments Funded
The rate increase supports roughly $22 million in completed capital and infrastructure investments, including treatment system upgrades and distribution improvements. These investments aim to enhance water service reliability and ensure compliance with state and federal regulations for the 24,000 customers served.
3. Rate Changes for Residential Customers
Effective February 26, 2026, residential customers in the Town of Bel Air using 4,000 gallons per month will see their average bill rise by $10 monthly, with an additional $10 increase on January 1, 2027. In the Severn District, the billing structure shifts from a quarterly flat fee to a monthly flat fee, increasing by $1.50 per month starting in February 2026.
4. Customer Assistance Programs
Maryland American Water continues to offer bill payment assistance, payment arrangements and budget billing options via the MyWater portal. Income-eligible customers may also apply for support through the H2O Help to Others program administered by Dollar Energy Fund.