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.

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

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

Press Release: March 02, 2026: Maryland American Water Granted New Rates by Maryland Public Service Commission.

The Maryland Public Service Commission (PSC) has approved a settlement for new water rates for Maryland American Water. The approved rates represent a total annualized revenue increase of approximately $2 million.

The company’s rate request was filed on August 1, 2025, and supports more than $22 million in ongoing infrastructure investment in treatment system and distribution improvements since its last approved rate request in 2019.

Maryland American Water 2026 Rate Order FAQS

When did Maryland American Water request the rate change?

The company’s rate request was filed on August 1, 2025.

What were the primary reasons for Maryland American Water’s rate request?

The rate request was primarily driven by more than $22 million in infrastructure investment in treatment system and distribution upgrades since its last rate filing in 2018.

When will new rates become effective?

Customers in the Town of Bel Air

The new rates will be implemented over two years.

Effective February 26, 2026, residential customers in the Town of Bel Air using 4,000 gallons per month will see their average bill increase by approximately $10 per month.
On January 1, 2027, their bill will increase by another $10 per month.

Customers in Severn

In the Severn District, residential customers previously billed a quarterly flat fee will transition to a monthly flat fee, which will increase by approximately $1.50 per month effective February 26, 2026.

Customers will receive information about the new rates in their next Maryland American Water bill.

Are Maryland American Water’s rates regulated?

Yes. Maryland American Water is regulated by the Maryland Public Service Commission (PSC). As part of the rate filing, we submitted extensive financial and operational data documenting the cost of doing business. The PSC reviewed this information, along with the information provided by customers and the public at input hearings. This open and thorough process provides the PSC with the necessary information to make an informed decision.

I’m on a fixed income. Do you have any programs that assist low-income customers?

Yes. We want to help keep life flowing to our customers. One way we do this is through our customer assistance programs. If you’re experiencing financial hardship, please reach out to us. We may be able to assist.

Since 2018, Maryland American Water has assisted customers in paying their water bill through the H2O Help to Others Program^™. The program offers grants of up to $500 per year for customers who qualify. Grants are funded through a corporate donation as well as customer and employee contributions. To qualify, customers must have annual household incomes at or below 150 percent of the federal poverty guidelines (see chart) and applicants must have made a sincere effort to pay their bill. A grant from this program may not cover the recipient’s entire water bill.

To be eligible for the program, grant recipients must have received a utility shutoff notice or have already had service disconnected. Recipients must also have made a sincere effort to pay the bill (at least $50 on the outstanding water bill in the past 90 days), applied for all open and available state and federal programs, and have a household income at or below 150 percent of the federal poverty income guidelines. A grant from this program may not cover the recipient’s entire water bill.

Scan the QR code to apply online or visit dollarenergy.org/myappvisit.

Other programs Maryland American Water offers include:

Budget Billing helps make managing your cash flow easier by providing predictable monthly payments and avoiding unplanned seasonal spikes.
Installment Plans help to extend the time you have to pay a past due balance.
Preferred Due Date enables eligible customers to adjust their due date.

To see if you are eligible or to enroll in the above programs, visit MyWater at amwater.com/mywater. In the Payment Assistance box, click See All Options.

You can also contact our Customer Service Center.

For more information

If you have additional questions, please contact our customer service center at 1-866-641-2131, Monday to Friday, 7 a.m. to 7 p.m.