BEL AIR, Md.--(BUSINESS WIRE)--The Maryland Public Service Commission (PSC) today approved a settlement that allows Maryland American Water to increase water rates. The new rates approved under the PSC settlement maintain the cost of water service at about one penny per gallon for Maryland American Water’s customers.
The typical monthly residential water bill for Maryland American Water customers will increase by less than $5 per month, from $37.53 to $42.39. The new rates take effect June 19, 2015.
“We believe this is a fair and reasonable settlement that balances our customers’ interests with the company’s need to recover costs associated with the investments we have made for system improvements,” said Maryland American Water President William R. Walsh. “We commend the Office of The People’s Counsel and the PSC staff, who worked with us to resolve the case.”
Walsh cited the company’s approximately $3.6 million in system improvements since its last rate case in 2009 as the primary driver of the rate increase. These capital investments include replacing aging water infrastructure and rehabilitation and repainting of the Main Street water storage tank, which are needed to maintain and improve service reliability, water quality and fire protection for the company’s more than 4,700 customers in Bel Air and surrounding areas.
The settlement approved by the PSC grants an increase of approximately $490,000 in annual revenue. The company had filed the rate request with the PSC on December 19, 2014, seeking an annual revenue increase of approximately $813,000.
Maryland American Water, a subsidiary of American Water (NYSE: AWK), provides high-quality and reliable water services to more than 20,000 people. Founded in 1886, American Water (NYSE: AWK) is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs 6,400 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 47 states and Ontario, Canada. More information can be found at www.amwater.com.