CUMBERLAND — County officials at a recent work session discussed eminent domain as a possible remedy for local residents who pay high water rates.
Some Maryland Water Service customers in the Bel Air, Pinto, Glen Oaks and Highland Estates areas say they pay up to $400 to $900 per month for water and sewer services with amounts that often exceed mortgage payments and surpass their other combined utility costs.
The residents fear their bills will increase after the sale of Maryland Water to American Water, which has received recent approval from states including West Virginia and Kentucky for rate increases.
County officials said they urged the Maryland Public Service Commission to not approve the sale and asked for a public hearing to allow input from local residents.
“They declined to do so,” county attorney T. Lee Beeman said, adding that the PSC recently approved transfer of the water system to American Water. “The PSC has given their stamp of approval.”
Costs of the transaction cannot be passed to local water customers, he said.
County staff and Commissioners Bill Atkinson and Dave Caporale were at the work session. Commissioner Creade Brodie was absent from the event as well as Thursday’s public county meeting that followed.
Beeman said he met with the Maryland Office of Peoples’ Counsel, an organization that aims to protect residential utility customers from unfair practices and unreasonable rates, to discuss the county’s options.
He learned the county could ask the PSC to reconsider its decision, but that result is unlikely.
“That’s really the only remedy that’s available at this point,” Beeman said.
Caporale said the county should investigate takeover of the local water system.
“I think we’d recommend you to start looking at the steps necessary for eminent domain,” Caporale said.
Atkinson said the county should first ask the PSC for reconsideration of the water company transfer approval, meanwhile learn more about eminent domain.
“Maybe we need to check with some other counsel,” he said. “It’s not an easy process, it’s not something we’ve done before.”
Beeman agreed.
“I anticipate asking that we bring outside counsel in,” he said.
County Administrator Jason Bennett said American Water informally told him the county’s cost to buy the water system would be $20 million, however Beeman said that figure represents the net value of all the water company’s assets in Maryland.
“They’re setting the price for the entire (Maryland Water) system,” Beeman said.
Allegany County Department of Economic and Community Development Director Jeff Barclay asked if the county could sue the PSC for its approval of the water system transfer.
Beeman said that might be possible, but probably unsuccessful.
He said he’ll research the questions asked at the meeting.
“I’ll plan to … come back to you in a couple weeks with some answers,” Beeman said.
“I’ll report back.”