YOUR WATER RATES

Water-service rates are based on the real costs of treating and delivering water to customers, and in Maryland, are regulated by the Maryland Public Service Commission (PSC).

To determine rates, we work with PSC staffs to study costs of construction, maintenance, operation, administration and financing. Once the studies are complete, the company and PSC present any differing conclusions before an administrative law judge. Based on the judge’s opinion, the PSC sets the water rates.

Rates charged for service may vary based on a customer’s meter size. All customers pay the same rate for water usage. Customers are billed based on a regular meter reading, either monthly or quarterly for residential customers as well as for commercial and other public authority customers.

Before it reaches your home or business, water is treated through an intricate treating and testing process to help ensure it meets or surpasses rigorous drinking water quality standards.

You can learn more about the rate setting process in our white paper: Challenges In The Water Industry: The Rate Approval Process.

Maryland American Water Tariff (effective 8/1/25)

Press Release: August 1, 2025: Maryland American Water Files Rate Request Driven by $22 Million of Investment Over Last Seven Years

Maryland American Water filed a request today with the Maryland Public Service Commission (PSC) for new rates, reflecting $22 million of water system investments since the company’s last rate request. The request reinforces the company’s commitment to replacing aging infrastructure and continuing to provide high-quality water service in compliance with environmental regulations for the benefit of customers.

In today’s filing, Maryland American Water’s proposed rates include a two-tiered rate structure, with lower rates for the first 2,000 gallons to promote affordability for lower-usage customers. If the company’s proposed two-tiered rates are approved, the monthly water bill for residential customers in the Town of Bel Air using 2,000 gallons per month would increase by approximately $6, and customers using 4,000 gallons per month would see an increase of approximately $29. Monthly water bills for residential customers in the company’s Severn District would increase approximately $20 per month. The company’s last rate adjustment was in 2019.

Press Release: February 7, 2019: Maryland American Water Receives Rate Order that Supports Bel Air’s Water Supply

Proposed Maryland American Water Tariff (filed 8/1/25)