WSSC Water proposes $1.94bn budget and awards $140m pipe contract amidst bioenergy facility startup pains

WSSC Water proposes $1.94bn budget and awards $140m pipe contract amidst bioenergy facility startup painsThe Maryland utility has outlined a capital-heavy budget supported by a 6% revenue, while Commissioners approved a massive slate of construction contracts and addressed compliance issues at the newly commissioned Piscataway plant.

Commissioners approved transmittal of a $1.938 billion preliminary proposed budget for FY2027, supported by a 5% average rate increase.

A $140 million IDIQ contract for water and sewer main replacement was awarded to a pool of nine contractors.

The Piscataway Bioenergy Facility is facing startup challenges, including boiler failures and a Notice of Violation from the Maryland Department of the Environment regarding gas flaring.

Despite operational issues, two new contracts totaling $21.9 million were awarded to Norair Engineering for further upgrades at the Piscataway facility.

An EPA and MDE compliance inspection identified high-priority maintenance concerns regarding corrosion and paint failures in finished water storage tanks.

WSSC Water Commissioners have voted to transmit a preliminary proposed operating and capital budget of $1.938 billion for Fiscal Year 2027, as the utility ramps up spending on linear infrastructure and plant modernization. The budget proposal, which includes $1.196 billion for operating expenses and $741.6 million for capital improvements, is predicated on a 6% overall revenue enhancement, comprised of a 5% average water and sewer rate increase and a 1% increase from other revenue sources. The budgetary planning comes alongside a significant push to deploy capital into the system immediately. During the December 17 meeting, Commissioners approved contract awards, change orders, and option terms totaling more than $240 million. Chief Procurement Officer Capricia Poole Williams noted that the utility has awarded over $500 million in contracts since the start of FY2026. The largest single approval was a $140 million Indefinite Delivery, Indefinite Quantity (IDIQ) contract for water and sewer main replacement and emergency repairs. The two-year base term contract was awarded to a pool of nine contractors, including Anchor Construction Corporation, Fort Myer Construction Corporation, and Rivers Construction Group, to address aging pipes in Prince George’s and Montgomery counties. Additionally, a $14 million change order was approved for Fort Myer Construction Corporation to continue street repair services following infrastructure work. These awards proceed despite Fort Myer facing legal scrutiny in neighboring Washington, D.C., where the Attorney General filed a lawsuit in 2024 alleging the firm contaminated stormwater with petroleum pollutants and conducted illegal discharges into the Anacostia River watershed. While the utility accelerates its capital program, it is navigating significant "growing pains" at its recently commissioned Piscataway Bioenergy Facility. General Manager and CEO Keisha Powell, whose contract was renewed for three years during the meeting, reported that the facility received a Notice of Violation (NOV) from the Maryland Department of the Environment (MDE) on November 25, 2025. The violation stems from excessive gas flaring, caused by the facility generating more gas than it could process during commissioning phases. Powell explained that the facility is grappling with the integration of complex systems, specifically three high-pressure boilers used for the thermal hydrolysis process. "The serial numbers on these boilers are like 1, 2, and 3," said Ben Thompson, Director of Production, highlighting the unique nature of the equipment. Challenges with the boiler controls and a detected leak in one of the digesters have hindered full operations. The utility is currently renting a temporary boiler and plans to install a permanent auxiliary unit to ensure reliability. Powell emphasized that the facility is expected to return to compliance regarding emissions within four months as operations stabilize. Despite these startup issues, the Commission doubled down on modernizing the Piscataway site, awarding two new contracts to Norair Engineering Corporation. A $13.2 million contract will replace aging centrifugal blowers with high-speed turbo blowers, and an $8.7 million contract will install energy-efficient submersible mixers. Both projects replace equipment that is decades old and has exceeded its useful life. Asset management concerns were further highlighted by the results of a recent compliance evaluation by the EPA and MDE. While no immediate threats to public health were identified, regulators flagged "high priority" deficiencies regarding finished water storage tanks, citing paint failures and corrosion. Chief Engineer Alan Wong confirmed that rehabilitation projects for the affected tanks are already included in the capital improvement program, though some have faced delays due to community engagement, labor protests, and telecommunication equipment removal issues. On the technology front, the utility reported progress on its Advanced Metering Infrastructure (AMI) pilot program, which has expanded to approximately 3,400 participants. The pilot recorded its first success story when a smart meter detected continuous water usage at a residential property—belonging to the Deputy Chief of Staff—alerting the homeowner to a toilet leak that had gone unnoticed.