SB 556 Maryland Senate · 2026 Regular Session

Water Companies, Sewage Disposal Companies, and Water and Sewage Disposal Companies - Limited-Income Mechanisms

SB 556 allows water and sewage disposal companies in Maryland to combine rates and costs across multiple systems they own, making billing simpler for customers. It requires the Public Service Commission to approve these rate consolidations and permits gradual rate adjustments over up to three years to avoid sudden changes. The bill also extends existing low-income assistance programs - like payment plans for customers with limited income - to these water and sewage companies. This directly affects regulated water/sewage providers and their residential customers, particularly those qualifying for income-based support. The law updates Maryland’s utility regulations to streamline operations while maintaining protections for low-income households.
Bill status signed all 5 stages cleared
Introduction
Feb 2026
Committee Review
Apr 2026
Senate Passage
Apr 2026
House of Delegates Passage
Apr 2026
Signed into Law
May 2026
Introduced Feb 4, 2026 Signed May 12, 2026
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What changed between versions

First - Water Companies, Sewage Disposal Companies, and Water and Sewage Disposal Companies - Rate Consolidation and Limited-Income Mechanisms Third - Water Companies, Sewage Disposal Companies, and Water and Sewage Disposal Companies - Limited-Income Mechanisms · 5 edits
MODERATE
The bill was renamed to remove the 'Rate Consolidation' focus, shifting its primary purpose to establishing limited-income mechanisms for water and sewage companies. The scope was narrowed by removing the repeal of specific sections regarding rate consolidation and the authorization for the Commission to order gradual rate adjustments. The bill now focuses exclusively on requiring companies to adopt limited-income mechanisms and studying their feasibility, rather than managing rate structures.
Scope change
The bill's scope changed from regulating rate consolidation and gradual rate adjustments for water and sewage companies to focusing solely on limited-income mechanisms. The repeal of sections 1-101 and 4-307 regarding rate consolidation was removed.
SCOPE

Removed the authority for the Commission to order gradual adjustments to rates over a 3-year period.

Removed the repeal of Article 1-101 and Section 4-307, which previously governed rate consolidation rules.

REQUIREMENT

Added a requirement for the Public Service Commission to require water and sewage companies to adopt limited-income mechanisms.

Added a mandate for the Commission to study the feasibility of requiring companies to adopt limited-income mechanisms.

TITLE

Changed the bill title from 'Rate Consolidation and Limited-Income Mechanisms' to 'Limited-Income Mechanisms'.

Floor votes · Senate Mar 21, 2026 · House of Delegates Apr 2, 2026

How they voted

420
Passed · 7 other
Total votes 49
Mar 21, 2026
D Democratic36
29 Yea 7
80% Yea
R Republican13
13 Yea
100% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
15
Key actions
10
Committee
7
May 12, 2026
Signed into law
Approved by the Governor - Chapter 525
executive
Apr 13, 2026
Upper · Passed
Returned Passed
upper
Apr 13, 2026
Lower · Passed
Third Reading Passed
lower
Apr 11, 2026
Lower · Passed
Favorable Adopted Second Reading Passed
lower
Apr 10, 2026
Lower · Passed
Favorable Report by Environment and Transportation
lower
Apr 10, 2026
Committee
Rereferred to Environment and Transportation
lower
Apr 9, 2026
Committee
Referred Rules and Executive Nominations
lower
Apr 9, 2026
Upper · Passed
Third Reading Passed
upper
Apr 8, 2026
Upper · Passed
Favorable with Amendments {
upper
Apr 8, 2026
Upper · Passed
Favorable with Amendments Report by Education, Energy, and the Environment
upper
Apr 2, 2026
House Of Delegates · Passed
House of Delegates Vote: pass (126-9-7)
house of delegates
Mar 21, 2026
Senate · Passed
Senate Vote: pass (42-0-7)
senate
Feb 4, 2026
Committee
First Reading Education, Energy, and the Environment
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Jason Gallion
Jason Gallion
RRepublican
MD
35