A new report released by Central Alabama Water describes the financial and operational catastrophe that the new board inherited from Birmingham Water Works (BWWB), further strengthening the case for the legislation that overhauled the utility.
The report provides an overview of the BWWB operations from 2001 to 2024, prior to the passage of Act No. 2025-297.
"The financial and operating trends help explain why the Alabama Legislature passed and Governor Ivey signed Act No. 2025-297," CEO Jeffrey F. Thompson said in a written statement. "These negative trends over more than 20 years will take time to correct. The report shows the challenges we face as we work to provide our customers a world-class utility."
The report begins with an outline of the legislation, detailing changes to the board's composition as well as requirements for good governance that refocus on responsible fiscal operations that prioritize customers.
There are four key points detailed in the 49-page report that align with the legislation's language.
Since 2001, the amount of treated water not billed to customers has increased 129%. In 2024, more than 53% of treated water was not billed to customers.
This demonstrates increasing leaks in the system, and customers either are not being billed or are being billed for less water than they consume.
