Water Companies and Sewage Disposal Companies - Eminent Domain Proceedings and Service Rates

HB 1187 prohibits Maryland's Public Service Commission from approving rate increases for water or sewage disposal companies if a county or municipality has started or plans to start eminent domain proceedings against them. The bill also requires fact finders in such eminent domain cases to consider two specific factors: necessary system upgrades for safe service and potential bill reductions for customers if the company is acquired by a local government. This directly affects private water/sewage companies and local governments pursuing takeover efforts, while setting clear procedural rules for rate approvals and eminent domain cases. The law amends existing public utilities and real property codes to implement these changes, effective October 1, 2026.