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MD SB556
MD SB556Water Companies, Sewage Disposal Companies, and Water and Sewage Disposal Companies - Rate Consolidation and Limited-Income Mechanisms
summary
Introduced
02/04/2026
02/04/2026
In Committee
02/04/2026
02/04/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Requiring the Public Service Commission to authorize certain rate consolidations involving two or more water systems or sewage disposal systems; requiring the Commission to allow water companies, sewage disposal companies, and water and sewage disposal companies to aggregate certain revenues and costs for certain purposes; authorizing the Commission to order gradual adjustments to certain rates charged to a system over a certain time period; etc.
AI Summary
This bill requires the Public Service Commission (PSC), which is the state agency that regulates utility companies, to authorize rate consolidation for water and sewage disposal systems, meaning that two or more separate systems can use the same or similar pricing structures for their customers, even if they aren't physically connected. The PSC must allow these companies to combine their revenues and costs when determining appropriate rates for customers and can permit gradual rate adjustments over a period of up to three years to reach full consolidation. Additionally, the bill expands the definition of "utility company" to include water and sewage disposal companies when considering "limited-income mechanisms," which are programs designed to help eligible customers with low incomes afford essential services like water and sewage. These mechanisms, which can include payment plans for overdue bills, must have their costs prudently incurred and allocated across different customer groups, with the PSC evaluating their effectiveness based on factors like affordability, cost allocation, and impact on customers and the company.
Committee Categories
Education
Sponsors (1)
Last Action
Senate Education, Energy, and the Environment Hearing (13:00:00 2/24/2026 ) (on 02/24/2026)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0556?ys=2026RS |
| BillText | https://mgaleg.maryland.gov/2026RS/bills/sb/sb0556f.pdf |
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