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WSSC briefed Council: Potomac Interceptor repairs now estimated at $59M; Montgomery's share could be about $20M
Summary
WSSC told the Council DC Water's updated estimate for Potomac Interceptor emergency and planned repairs is roughly $59 million; under the current intermunicipal allocation WSSC would pay about 30.9% (roughly $20 million), increasing pressure for FY27 rate and charge adjustments.
WSSC officials updated the Montgomery County Council on May 4 that repairs to the Potomac Interceptor and associated urgent work have been re-estimated by DC Water at about $59 million, up from earlier figures.
WSSC general manager Jasmine Powell told the body that, based on shared cost formulas in the intermunicipal agreements, WSSC's share of those costs could be 30.9 percent, roughly $20 million. Council members and staff noted that the Potomac Interceptor expense, together with other capital pressures, informed WSSC's request for a 5 percent volumetric rate increase, a 2.4 percent increase in the system development charge, and other adjustments included in the FY27 request.
Powell said the $59 million estimate combines emergency work and advanced planning for one planned project that DC Water accelerated after the failure. She also described additional urgent repairs in the Maryland section that will proceed and explained WSSC is coordinating procurement and internal projects to mitigate near-term failures.
WSSC's chief financial officer reported the system experienced about 1,908 breaks during the winter season (November through March), a high number that officials said underscores the need for capital investment and maintenance funding.
Council members asked whether pending litigation or state actions against DC Water could change cost allocations; WSSC said the legal case filed by the state is separate and does not, as filed, relieve WSSC of its FY27 cost share, though counsel will continue to evaluate impacts.
What comes next: WSSC and the two counties (Montgomery and Prince George's) will meet bi-county on May 14 for votes on operating budget, CIP and system development charges; council members said they will track potential litigation outcomes but plan to assume FY27 costs in near-term budget planning.
Quotations from the meeting: "It is important for our customers to understand that this piece of infrastructure is shared," the WSSC general manager said, describing regional cost-allocation dynamics.
