MARYLAND AMERICAN WATER OFFERS PARTNERSHIP, ANALYSIS

Representatives from Maryland American Water presented to the Pocomoke City mayor and council on Nov. 3, 2025, describing the company’s experience operating water and wastewater systems, its community investments and how a transaction or partnership might work. Rachel Lancaster, director of business development for Maryland American Water, said the company treats and distributes roughly 1 billion gallons of water a day nationally and serves about 14 million customers across the United States.

Lancaster said Maryland American Water operates with local district teams and a corporate charitable fund that supports community projects. ‘‘We want to live, work and play in your communities,’’ Lancaster said, describing grants and local projects the company supports.

JR Fiddler, a company representative, said American Water’s operations focus on maintaining infrastructure, investing in capital improvements and supporting a bench of licensed operators and engineers who can be deployed when needed. He described an internal metric of replacing about 1% of distribution main per year and said the company’s national procurement contracts reduce equipment and material costs.

WHAT THE COMPANY SAID IT WOULD OFFER

Maryland American Water said it would prepare at minimum a five-year capital investment plan, collaborate with city planning and paving schedules, and prioritize projects based on an engineering assessment and local input. The presenters said they typically seek to hire existing local operators and staff, offering ‘‘better benefits, better opportunities’’ while adding technical and financial resources.

On the financial side, Lancaster said the company would seek to purchase water and wastewater assets and that an initial purchase price could be ‘‘multiple millions of dollars’’ based on publicly available preliminary financials, though procurement rules limit what can be disclosed publicly during early discussions.

QUESTIONS FROM COUNCIL

Council members asked for local examples and operational details. When asked about Cape Charles, Lancaster and Fiddler said that system serves roughly 1,400 water and 1,400 wastewater connections (about 2,800 combined). They said American Water had invested more than $2 million in the first year after acquisition and had a longer-term pledge of capital for system improvements.

On affordability, the presenters noted Maryland American Water is regulated by the Maryland Public Service Commission and that any rate changes would require PSC approval and a formal rate study. They said the company offers affordability programs and could consider rate designs to smooth increases.

LIMITS, NEXT STEPS

City officials emphasized they were not committing to a sale at the work session. A city official said the municipality was ‘‘more interested in really getting you guys to go in and do the analysis for us of our wastewater treatment system’’ so the city can identify required upgrades before considering transactions.

Maryland American Water asked only to continue the conversation, offered plant tours and said companies bid on transactions through an RFP and asset purchase agreement process. The council did not approve any sale or contract at the meeting; American Water was invited to return for further discussion and site visits.

ENDING

The presentation closed with no formal action taken on a sale. Council members requested follow-up information and local references, and the city will determine next steps for any system analyses or procurement process.