County officials weigh options after American Water quote and new state bills on rates and eminent‑domain valuation

A commissioner (S2) asked whether the county should pursue support or amendments to several state bills affecting water and sewer utility rates after receiving an informal buyout estimate. The commissioner said American Water provided an informal figure near $20,000,000 when the county inquired about purchasing a local system, and warned a straight purchase could be unaffordable and might increase rates.

Agency official (S5) outlined two legislative paths discussed in Annapolis: House Bill 1164 (cross‑filed with Senate bill 556) would allow rate blending across a public utility’s Maryland systems, which proponents say could reduce rates in higher‑cost service areas; House Bill 1187 (Del. Heimbaugh) would prohibit the Public Service Commission from approving a rate increase for a water or sewer company when there is a pending eminent‑domain action and would permit certain system upgrade costs to be credited against fair‑market valuation in a taking.

Commissioners debated tradeoffs: one commissioner said blending could lower local rates, while others noted blending shifts costs across rate bases and could have winners and losers. Staff explained that HB1187 aims to reduce the purchase price by subtracting necessary upgrade costs from valuation in eminent‑domain proceedings, but commissioners said major upgrades (transite pipe replacement, for example) could still make acquisition costly.

Why it matters: the bills and a possible purchase affect local ratepayers and the county’s options to respond to perceived rate gouging by private water companies.

What’s next: staff recommended tracking hearings next week and preparing information for legislators; commissioners discussed exploring letters of support or testimony but expressed caution about unanticipated fiscal consequences.