Rate Study

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Comprehensive Cost of Service Analysis and Rate Study

WSSC’s current rate structure was adopted 25 years ago and good management practice dictates 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. Background Information | Details


Public Hearing Information 

Your input is crucial as WSSC considers a new rate structure for the first time in 25 years.  View the complete Rate Structure Options presentation or the five proposed rate structures under consideration below.


Special Commission Meetings on Rate Structure
Media Coverage 
Timeline


Details

The rate study was conducted in two phases, with new rate structure expected to be selected June 2018.

The Bi-County Rate Structure Working Group will make a final rate structure recommendation after public input is received.


Background

WSSC’s current 16-tier rate structure has been in place since 1992.

In 2010, WSSC formed the Bi-County Infrastructure Funding Working Group, made up of representatives from Montgomery and Prince George’s county government, WSSC staff and external subject matter experts, to solicit input on the rate study.

Based on the 2012 recommendation of the Bi-County Infrastructure Funding Working Group, WSSC initiated a comprehensive rate structure analysis in 2016. Since that time, WSSC has been actively engaged in a transparent process involving input and recommendations from customers, stakeholders and county government representatives.