Harford County proposes 5-year rate increase for sewer, water customers

CBS News

03-03-2025

Harford County is considering a five-year rate increase for water and sewer customers.
In legislation introduced last week, county leaders proposed a 4.2% annual rate increase over five years. For the past five years, rates have increased by 4.5% for most residents.
Leaders said the proposed rates were decided through a cost-of-service analysis by global consulting firm Arcadis, which has expertise in analyzing water and sewer rates.
Harford County's water and sewer system operates as a "non-profit enterprise fund activity," leaders said. This means the services are paid for by users and not taxpayers. Therefore, the rates have to cover all system expenses.
According to leaders, rates for Harford County water customers are ranked the third lowest among 12 neighboring water systems.
Under the proposed rates, the cost of delivering water to customers is less than 1 cent per gallon, and the total cost of delivery and treatment of wastewater is about 2 cents per gallon, according to county officials.
The system's main costs include energy, chemicals, increased regulation and worker costs, which officials said have risen faster than inflation. The cost of maintaining old infrastructure also plays a role.
According to officials, the system's efficiency and the county's fiscal management have allowed for the reduced five-year rate increase.
The county council is expected to hold hearings on the legislation before voting to finalize the new rate increase schedule. If approved, the new schedule would take effect on July 1, 2025.
Rising utility costs
The rising costs of utilities have been a major concern for Baltimore-area residents in recent weeks.
In January, Baltimore City's spending board approved a three-year rate increase for water and sewer bills.
On February 1, 2025, city residents saw a 3% increase in their monthly water bill and a 15% increase in sewer rates. In Fiscal Years 2026 and 2027, the rates will increase by 9%.
Baltimore's Department of Public Works (DPW) said the increase was necessary to help maintain the city's financial stability and allow for updated infrastructure projects for the water and wastewater systems.
At the beginning of the year, many Marylanders also experienced an increase in their gas and electric bills, with some reporting a jump of $200.
In early February, BGE halted service disconnections and waived late payment fees to address the "unanticipated high bills."
Company officials attributed the high bills to distribution costs, the cost of natural gas and an increase in costs for the state's Empower Maryland program.
The skyrocketing energy prices prompted action from some Maryland lawmakers. Since the start of the 2025 legislative session, several bills have been introduced to address the rising costs.
The Ratepayer Protection Act would require gas companies to focus on lowering spending on pipelines instead of raising rates for customers.
Members of the Maryland Freedom Caucus called attention to the Climate Solutions Affordability Act, which would dictate that certain climate requirements only be met if it is economically practical.
The group of GOP lawmakers also called for the Empower Maryland Energy Efficiency Act to be repealed. The legislation was passed in 2008 to offer residents a way to save money on utilities.