The Central Alabama Water (CAW) board voted on Friday to raise water rates for its customers by 3.4% effective Jan. 1, 2027. For an average residential user who consumes about 4 CCF (approximately 748 gallons per CCF) each month, the increase translates to an additional $1.61 on the monthly bill, or about $19.32 annually, according to Birmingham Watch. The board framed the hike as a “pay‑now‑or‑pay‑later” decision, warning that postponing needed repairs would drive costs higher in the future.
Board Vice Chairman Phillip Wiedmeyer explained, “If we delay, the cost of doing those projects in the future are going to be more expensive than it would be to do them now.” The rate increase follows a proposed 6.5% hike presented in October, which was trimmed after extensive staff briefings on the utility’s aging infrastructure.
CAW’s chief reliability officer Ray Sloan highlighted the urgency, noting that 53% of the system’s water revenue is lost to unbilled or leaking water—about 58.3 million gallons per day from the 4,100 miles of water mains. “It is not indicative of a system that can make it a little bit longer… it is indicative that our system has reached the end of life in so many areas,” Sloan said.
The new rates will support a FY2027 Operations and Maintenance budget of $126.7 million, slightly below the revised FY2026 spending plan approved in March. However, the FY2027 capital budget has been reduced to $49.7 million after a 54% cut to the FY2026 capital budget, which fell from $75.8 million to $35 million. Notably, the revised capital plan allocates no funding to repair Lake Purdy Dam, a project that was previously canceled amid the budget reductions.
Ratepayers voiced frustration at the board’s meeting in Cleveland, Blount County, where speaking opportunities were limited. Rev. Julie Conrady, a minister from Birmingham, said her bill already exceeds $300 and she “doesn’t know anyone who pays the rates that they had on that screen.” Former Board of Education member Terri Michal criticized the location, stating, “It’s just them moving it out here… and doing it like they did really incensed me.” Residents from neighboring counties also attended to voice concerns on behalf of friends who could not travel.
Board member Jarvis Patton Jr. called the hike “unfair” for customers already struggling to afford water, while emphasizing the need to address decades‑old pipe failures.
What’s next: The 3.4% increase takes effect on Jan. 1, 2027. CAW will review the new rates again in May 2027, and the board has scheduled a public hearing on the FY2027 capital budget later this spring.
Sources: birminghamwatch.org
