CUMBERLAND — Condemnation of a private water system was discussed at a county work session Thursday.
County officials say the move could be a last resort to help Maryland Water Service customers in Bel Air, Pinto, Glen Oaks and Highland Estates who say their monthly water and sanitation bills are unusually high with some that have reached $400 to $900.
The residents fear their bills will increase after the sale of Maryland Water Service to American Water, which recently received approval from states including West Virginia and Kentucky for rate increases.
Allegany County attorney T. Lee Beeman is preparing a request for the Maryland Public Service Commission to reconsider its recent approval of American Water to buy Maryland Water, however, he anticipates the ask will be rejected.
“On the condemnation side of things, I’ve had some preliminary discussions with a number of other attorneys who have more experience with eminent domain, condemnation action, he said.
Eminent domain is the power government has to take private property for public use, while condemnation is the act of taking.
Beeman said he plans to provide the commissioners additional information on the issue at the next county work session in two weeks.
Larry Smith, at a public meeting that followed the work session, said “communities thrive when water systems serve people, not shareholders.”
Smith for more than a year has led a fight for lower water rates for the local Maryland Water customers.
Smith suggested county officials now ask agencies such as the Appalachian Regional Commission for help to fund the condemnation pursuit.
“We know it’s going to be an endeavor that takes some time, but I also know that our failure to (gain control of the water system) will mean that these communities will wither away.”
Bel Air resident Grant van Wyngaarden spoke of “substantial publicly available financial data” to set a price for the water system.
“The estimated valuation represents a fair market value of approximately $10 million,” he said, and spoke of various methods to determine the system’s worth.
“Allegany County already has demonstrated and carries out utility debt to cover such transactions.”
The privately-owned water system supports shareholders and corporate overhead indefinitely, van Wyngaarden said.
“Public ownership typically brings operating efficiencies,” he said. “There are no shareholders, no incentive to maximize returns.”