WSSC’s current rate structure was adopted 25 years ago and good management practice dictates a periodic review of rate structure alternatives. A new rate structure is intended to better align costs to produce and deliver safe, clean water with rates, to reflect customer and Commission rate setting policy goals and objectives, and to provide a more predictable revenue stream to pay for infrastructure improvements. Additionally, the Maryland Public Service Commission (PSC) recently ordered WSSC to develop a new rate structure. WSSC’s current rate structure was deemed unreasonable by the PSC because they found it to be preferential to low-usage customers.
In May 2016, WSSC initiated a comprehensive water and wastewater cost of service analysis and rate study. The study’s goal: to help WSSC establish water and wastewater rate structures that achieve the multiple objectives of revenue stability, equitable cost recovery, and ratepayer affordability.
The rate study was conducted in two phases, with the new rate structure expected to be selected in July 2018.