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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1187*
HOUSE BILL 1187
N1, C5 6lr2979
CF SB 799
By: Delegate Hinebaugh
Introduced and read first time: February 11, 2026
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Water Companies and Sewage Disposal Companies – Eminent Domain 2
Proceedings and Service Rates 3
FOR the purpose of prohibiting the Public Service Commission from approving a rate 4
increase for a water company or a sewage disposal company if a county or 5
municipality has commenced or indicated an intent to commence a certain eminent 6
domain proceeding; requiring a fact finder to consider certain factors in an eminent 7
domain proceeding involving a water company or a sewage disposal company ; and 8
generally relating to water companies, sewage disposal companies, and eminent 9
domain proceedings. 10
BY repealing and reenacting, without amendments, 11
Article – Public Utilities 12
Section 1–101(a), (z), (gg), (uu), and (vv) 13
Annotated Code of Maryland 14
(2025 Replacement Volume and 2025 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Public Utilities 17
Section 4–203 18
Annotated Code of Maryland 19
(2025 Replacement Volume and 2025 Supplement) 20
BY adding to 21
Article – Real Property 22
Section 12–105.2 23
Annotated Code of Maryland 24
(2023 Replacement Volume and 2025 Supplement) 25
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27
2 HOUSE BILL 1187
Article – Public Utilities 1
1–101. 2
(a) In this division the following words have the meanings indicated. 3
(z) (1) “Public service company” means a common carrier company, electric 4
company, gas company, sewage disposal company, telegraph company, telephone company, 5
water company, or any combination of public service companies. 6
(2) “Public service company” does not include: 7
(i) a campground that provides water, electric, gas, sewage, or 8
telephone service to campers incident to the campground’ s primary business of operating 9
and maintaining the campground; or 10
(ii) a person that owns or operates equipment used for charging 11
electric vehicles, including a person that owns or operates: 12
1. an electric vehicle charging station; 13
2. electric vehicle supply equipment; or 14
3. an electric vehicle charging station service company or 15
provider. 16
(gg) “Sewage disposal company” means a privately owned public service company 17
that owns or maintains facilities for the disposal of sewage. 18
(uu) “Water company” means a public service company that owns a water plant 19
and sells or distributes water for gain. 20
(vv) “Water plant” means the material, equipment, and property owned by a water 21
company and used or to be used for or in connection with water service. 22
4–203. 23
(a) Unless otherwise ordered by the Commission, a public service company may 24
not establish a new rate or change in rate unless the public service company: 25
(1) provides to the Commission notice of the new rate or change in rate at 26
least 30 days before the new rate is established or current rate is changed; and 27
(2) publishes the new rate or change in rate in accordance with § 4 –202 of 28
this subtitle during the entire 30 day notice period in new schedules or plainly indicated 29
amendments to existing schedules. 30
HOUSE BILL 1187 3
(b) The public service company shall plainly set forth in the notice and 1
publication: 2
(1) the changes that it proposes to the rate schedules currently in force; 3
and 4
(2) the effective date of the changes. 5
(c) (1) The technical staff of the Commission may assist a water company or a 6
sewage disposal company in establishing a proposed just and reasonable rate. 7
(2) In assisting a water company or a sewage disposal company under this 8
subsection, the technical staff may seek information from the water company or the sewage 9
disposal company. 10
(3) The Commission shall restrict the availability of staff –assisted rate 11
cases authorized under this subsection to water companies or sewage disposal companies 12
whose gross annual re venues, for the most recent calendar year for which data are 13
available, are below an amount determined by the Commission, not to exceed $1,000,000. 14
(4) The Commission shall adopt regulations to establish formal rules for 15
staff–assisted rate cases authorized under this subsection. 16
(D) THE COMMISSION MAY NOT APPROVE A RATE INCREASE FOR A WATER 17
COMPANY OR A SEWAGE DISPOSAL COMPANY IF A COUNTY OR MUNICIPA LITY HAS 18
COMMENCED OR INDICAT ED AN INTENT TO COMM ENCE A CONDEMNATION 19
PROCEEDING IN ACCORDANCE WITH TITLE 12 OF THE REAL PROPERTY ARTICLE. 20
Article – Real Property 21
12–105.2. 22
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 23
INDICATED. 24
(2) “SEWAGE DISPOSAL COMPA NY” HAS THE MEANING STAT ED IN § 25
1–101 OF THE PUBLIC UTILITIES ARTICLE. 26
(3) “WATER COMPANY” HAS THE MEANING STATED IN § 1–101 OF THE 27
PUBLIC UTILITIES ARTICLE. 28
(B) A FACT FINDER IN A CONDEMNATION PROCEEDING INVOLVING A WATER 29
COMPANY OR A SEWAGE DISPOSAL COMPANY SHALL CONSIDER: 30
4 HOUSE BILL 1187
(1) ANY REASONABLE SYSTEM UPGRADES NECESSARY FOR THE 1
WATER COMPANY OR SEWAGE DISPOSAL COMPANY TO PROVIDE SAFE AND RELIABLE 2
SERVICE; AND 3
(2) THE VALUE TO CUSTOMER S FROM ANY POTENTIAL R EDUCTIONS 4
IN WATER OR SEWER BI LLS IF THE WATER COM PANY OR SEWAGE DISPO SAL 5
COMPANY IS ACQUIRED BY A COUNTY OR MUNICIPALITY THROUGH CONDEMNATION. 6
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 7
October 1, 2026. 8