For Immediate Release: March 11, 2026
BIRMINGHAM – Central Alabama Water (CAW) today provided notice via the Electronic Municipal Market Access (EMMA) system including historical financial and operating data. The report updates the utility’s disclosures and provides greater transparency for customers and investors.
The report provides the public with an overview of the operation of the Birmingham Water Works Board (BWWB) from 2001 through 2024, prior to the enactment of Act No. 2025-297 which changed the governance and management of the organization. It is being distributed to help the public understand the organization’s finances and operations.
“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. “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.”
Key Highlights of the Report
- Since 2001, the amount of treated water not billed to customers increased 129%. In 2024, more than 53% of treated water was not billed to customers.
- This demonstrates increasing leaks in the system and customers not being billed or being billed for less water than consumed.
- See Figure 1 on page 6 of the report.
- Since 2001, residential water rates have increased 354% while inflation increased 79%.
- This demonstrates that revenue increases were driven by rate increases and not by growth of customers or consumption.
- See Figure 2 on page 7 of the report.
- From 2019 to 2024, the utility’s operating margin decreased 27%.
- In 2024, the dollar impact of the reduction in operating margin from 2019 amounted to approximately $30 million.
- See Figure 4 on page 8 of the report.
Financial outlook
Current management is working to stabilize these long-term trends and lay the groundwork for improvement. The revised 2026 budget is scheduled to be presented to the Board of Directors March 20.
Link to report
Click here to download a PDF of CAW’s EMMA notice.
About Central Alabama Water
Central Alabama Water serves customers in Jefferson, Shelby, St. Clair, Blount and Walker counties. It operates four water treatment facilities, a certified testing laboratory and has more than 4,150 miles of water main in its distribution network. Visit caw-al.gov for more information.
