Maryland American Water Granted New Rates by Maryland Public Service Commission

Increase Supports $22 Million in Completed Infrastructure Investments; First Rate Adjustment Since 2019

Published on Mar. 2, 2026

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The Maryland Public Service Commission (PSC) has approved a settlement for new water rates for Maryland American Water, representing a total annualized revenue increase of approximately $2 million. The rate request supports approximately $22 million in completed capital and infrastructure investments in treatment system and distribution improvements since the company's last approved rate request in 2019.

Why it matters

The new rates will help Maryland American Water continue to make necessary investments to maintain high-quality water service and ensure compliance with state and federal regulations. This is the first rate adjustment for the company since 2019, and the increase will impact residential customers in the Town of Bel Air and the Severn District.

The details

Effective February 26, 2026, residential customers in the Town of Bel Air using 4,000 gallons per month will see their average bill increase by approximately $10 per month. On January 1, 2027, their bill will increase by another $10 per month. In the Severn District, residential customers previously billed a quarterly flat fee will transition to a monthly flat fee, which will increase by approximately $1.50 per month effective February 26, 2026.

  • The rate request was filed on August 1, 2025.
  • The new rates will be implemented over two years, with the first increase effective on February 26, 2026 and the second increase on January 1, 2027.
  • This is the first rate adjustment since 2019.

The players

Maryland Public Service Commission

The state regulatory agency that approved the new water rates for Maryland American Water.

Maryland American Water

A subsidiary of American Water, the largest regulated water and wastewater utility company in the United States, providing water services to approximately 24,000 people in Maryland.

Laura Runkle

President of Maryland American Water.

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What they’re saying

“We are committed to making the necessary investments to continue the high-quality service our customers expect and deserve and ensure compliance with state and federal regulations.”

— Laura Runkle, President, Maryland American Water (PRNewswire)

The takeaway

The new water rates approved by the Maryland Public Service Commission will help Maryland American Water continue to invest in its infrastructure and maintain high-quality water service for its customers, while also providing various customer assistance programs to help with affordability.