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MD SB556

MD SB556
Water Companies, Sewage Disposal Companies, and Water and Sewage Disposal Companies - Rate Consolidation and Limited-Income Mechanisms


summary

Introduced
02/04/2026
In Committee
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)

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