Maryland American Water briefs Bel Air on proposed rate case, PFAS treatment plans and two-tier rate proposal

Maryland American Water representatives told the Bel Air Board of Town Commissioners on Sept. 9 that the company has filed a general rate case with the Maryland Public Service Commission seeking to recover capital investments made since the last rate decision and to propose two new surcharge mechanisms intended to speed recovery of certain infrastructure and regulatory-driven investments.

"The Maryland Public Service Commission is entirely historical," Laura Runkel, president of Maryland American Water, told the commissioners, explaining that utilities must spend first and then petition the commission to recover costs through rates. "We have to spend the money first, show them what we've spent, and then they will set new rates to allow us to recover those investments later," she said.

What the company told commissioners - Maryland American said it has invested roughly $22.6 million in capital improvements in the utility’s local system since the last rates went into effect in 2019; the company is requesting an annual revenue increase of about $3 million in total to recover investments and other costs, Runkel said. The company estimates the proposed overall increase in the filing is about 47.5 percent; the Public Service Commission will make a final determination. - Company witnesses described two proposed surcharge mechanisms that would operate outside of the standard general-rate case cycle if authorized by the commission: an Advanced Treatment and Compliance Rider (ATCR) to recover costs tied directly to new regulatory treatment requirements (for example,…