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WSSC base case would raise rates 12.2% for FY26; county and WSSC weigh lower scenarios
Summary
WSSC presented three rate scenarios to the committee: a base-case FY26 maximum rate increase of 12.2% (driven largely by higher PAYGO), and two alternatives (10.2% and 9.5%). The utility translated scenarios into household impacts and stressed the importance of preserving credit metrics to avoid higher borrowing costs.
County staff and WSSC finance staff walked the committee through the spending-control limits process, a joint guidance framework for rate-setting that is not legally binding but is used to steer WSSC's operating and capital plans. "The base case, we came in at 12.2%," WSSC finance staff told the committee, outlining that PAYGO increases and operational pressures are the principal drivers.
WSSC offered two lower alternatives: a 10.2% scenario and a 9.5% scenario. The utility translated those percentages into household impacts: a 9.5% increase would equal about $25.60 per quarter (roughly $8.53 per month); 10.2% would be about $27.48 per quarter (roughly $9.16 per month); the 12.2% base case would be about $32.87 per quarter (roughly $10.96 per month). Staff emphasized the need to preserve key bond-rating metrics (debt-service coverage, leverage ratio, days cash on hand) to retain low borrowing costs; losing a high rating could raise debt-service costs and crowd out operations. The committee did not set a final limit and directed staff to coordinate with Prince George's County for a combined recommendation by Oct. 29, with the administrative guideline deadline of Nov. 1 still in view.
