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WSSC tells Montgomery County council Potomac interceptor repairs could total $59M; county share may increase rates
Summary
WSSC Water officials told the Montgomery County Council that updated estimates for repairs to the Potomac interceptor pipe are about $59 million, with WSSC potentially responsible for roughly 30.9% (about $20 million). The systemwide cost pressures contributed to WSSC’s request for a 5% rate increase and an increase in system development charges for FY27.
WSSC Water officials briefed the Montgomery County Council on May 4 about repair costs and budget demands tied to the Potomac interceptor pipe failure and other aging infrastructure. The utility has proposed a 5% volumetric and fixed‑fee rate increase for FY27 and a 2.4% increase to the system development charge to address capital needs.
“After the failure, we received an updated plan cost for those projects which had increased,” WSSC’s general manager told the council. The updated estimate the utility shared from DC Water puts combined emergency and some planned project work at about $59,000,000, and WSSC’s current allocation under the intermunicipal arrangement would amount to roughly 30.9% of that cost.
WSSC emphasized that some of the costs will be reflected in the FY27 budget and in the rate request. “It is an impact to the rate increase,” the general manager said, noting planned projects are typically phased over multiple years but that emergency work will be accounted for in FY27 costs.
WSSC’s CFO reported that the system also experienced approximately 1,908 breaks over the winter season (November through March), placing additional strain on operating budgets and long‑term capital planning.
Council members asked whether pending litigation — the state has filed suit related to the interceptor failure — would affect WSSC’s immediate FY27 charges. WSSC said the lawsuit pertains to state damages and does not change the utility’s expectation that it will carry its share of FY27 costs; if litigation later reduces WSSC’s share, adjustments could be considered then.
The Environment and Transportation Committee unanimously supported WSSC’s FY27 requests and the councils of Montgomery and Prince George’s counties will hold a bi‑county meeting on May 14 to vote on operating, CIP and SDC items related to WSSC.
Next steps: the bi‑county vote May 14 will consider rate and CIP matters; WSSC will continue to refine cost shares and monitor litigation developments.
