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PSC approves Maryland American Water to issue up to $12 million in long‑term debt; requires quarterly capital plan meetings with staff
Summary
Maryland American Water received PSC approval to issue up to $12 million in long‑term debt to fund distribution and production projects; the commission required quarterly meetings with staff to review capital project plans.
The Public Service Commission on Jan. 8 approved Maryland American Water Company’s application for authority to issue up to $12 million in long‑term debt, and directed the company to meet quarterly with PSC staff regarding its capital project plans.
Cameron Walton of PSC staff said the company filed on Oct. 16, 2024, seeking authority to issue debt through Dec. 31, 2026. The financing may be provided by the company’s affiliate American Water Capital Corp., and may include low‑interest loans from the Maryland Department of the Environment’s Drinking Water State Revolving Fund. The projects are intended to repay short‑term debt and support construction, extension or improvement of facilities listed in the company’s exhibit 4 capital plan.
"Staff recommends the commission approve Maryland American Water’s application to issue up to $12,000,000 in long‑term bonds," Walton said, but staff also recommended quarterly meetings so engineering staff could better understand and vet specific project justifications.
Maryland American Water said it does not oppose staff’s recommendation, and Anna Kazzasi, the company’s director of engineering, provided a brief description of projects in Bel Air and nearby systems. The company serves roughly 5,070 customers in Bel Air; acquisition of Southern Water Company will increase that count by about 1,700 customers, the filing said.
Commissioner action: The motion to approve the company’s application and require quarterly capital‑plan meetings passed unanimously among commissioners present.
The commission’s approval authorizes issuance of up to $12 million in long‑term debt through Dec. 31, 2026, and requires the company to meet with PSC staff quarterly to provide project‑level explanations and justifications as the company uses the debt for system improvements.
