EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*hb1168*
HOUSE BILL 1168
L5 5lr1067
HB 409/18 – ENV
By: Montgomery County Delegation and Prince George’s County Delegation
Introduced and read first time: February 6, 2025
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Washington Suburban Sanitary Commission – Service Charges 2
MC/PG 112–25 3
FOR the purpose of authorizing the Washington Suburban Sanitary Commission to 4
establish certain customer classes for certain service rates or charges; requiring that 5
service rates for each customer class shall be chargeable against certain properties 6
and shall be uniform for a given class throughout the Washington Suburban 7
Sanitary District; authorizing the minimum or ready to serve charge to include a 8
certain component; altering the criteria on which the minimum or ready to serve 9
charge may be based; and generally relating to the service rates of the Washington 10
Suburban Sanitary Commission. 11
BY repealing and reenacting, with amendments, 12
Article – Public Utilities 13
Section 25–501 and 25–502(a) 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2024 Supplement) 16
Preamble 17
WHEREAS, Under current law, the Washington Suburban Sanitary Commission 18
must establish rates and charges that are uniform throughout the sanitary district; and 19
WHEREAS, Other Maryland water and sewer providers, such as the providers in 20
Baltimore City, Howard County, and the City of Rockville, have the authority to establish 21
rates and charges by customer classes; and 22
WHEREAS, The Commission has been reviewing and considering alternative rate 23
structures over the last several years; and 24
2 HOUSE BILL 1168
WHEREAS, During the review of other alternative rate structures, the Commission 1
has noted that the vast majority of public water and sewer providers across the country 2
similar in size and structure to the Commission have the authority to establish rates and 3
charges by customer classes; and 4
WHEREAS, Establishing rates and charges by class allows for a more equitable 5
recovery of costs from customers, based on the demands that they place on the water and 6
sewer systems; and 7
WHEREAS, The authority of the Commission to establish rates or charges by 8
customer classes includes establishing classes by meter size and also the ability to establish 9
a surcharge on residential customers in the summer to encourage water conservation; and 10
WHEREAS, The American W ater Works Association’s Manual of Practice M–1 11
“Principles of Water Rates, Fees and Charges, Seventh Edition” and the Water 12
Environment Federation’s Manual of Practice No. 27 “Financing and Charges for 13
Wastewater Systems”, the industry’s best practices manuals, include multiple examples of 14
class–based rates, fees, and charges; now, therefore, 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Public Utilities 18
25–501. 19
(a) IN THIS SECTION, “CLASS” INCLUDES A CLASS BAS ED ON THE SIZE OF 20
THE METER ON THE WAT ER CONNECTION LEADIN G TO A PROPERTY. 21
(B) The Commission shall set [a service rate] ONE OR MORE SERVICE RATES 22
that the Commission considers necessary to provide funds for: 23
(1) maintaining, repairing, and operating its water supply and sewer 24
systems, including the overhead expense and depreciation allowance; and 25
(2) making any payments to the District of Columbia, as specified in this 26
title. 27
[(b)] (C) [The] EACH service rate: 28
(1) shall be chargeable against all properties IN A CLASS for a connection 29
with any line owned by the Commission; 30
(2) shall be uniform FOR THE CLASS throughout the sanitary district; and 31
(3) may be changed as necessary. 32 HOUSE BILL 1168 3
(D) THE COMMISSION MAY ESTABLISH ONE OR MORE CUSTOMER CLA SSES 1
FOR ANY SERVICE RATE OR CHARGE ESTABLISHE D UNDER THIS TITLE . 2
25–502. 3
(a) (1) Except as provided in this subtitle, [the] EACH service rate for water 4
shall consist of: 5
(i) a minimum or a ready to serve charge, WHICH MAY INCLUDE 6
AN INFRASTRUCTURE IN VESTMENT COMPONENT ; and 7
(ii) a charge for water used. 8
(2) The minimum or ready to serve charge [shall] MAY be based on the size 9
of the meter on the water connection leading to [the] A property OR ON OTHE R CRITERIA 10
DETERMINED IN ACCORD ANCE WITH REGULATION S THE COMMISSION ADOPTS . 11
(3) The charge for water used shall be based on the amount of water 12
passing the meter during the period between the last two readings. 13
(4) The meter shall be placed on each water connection by and at the 14
expense of the Commission. 15
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 16
1, 2025. 17