Central Alabama Water Infrastructure and Financial Management

under financial review and budget revision

Central Alabama Water (CAW), the state's largest water utility, is undergoing significant financial and operational changes in 2026. The utility is making measurable strides in expense control, including aggressive cost-cutting measures and workforce reductions, while facing a significant revenue shortfall and a dramatically scaled-back capital budget. The revised capital expenditure budget for 2026 is $35 million, a 70% reduction from the original budget, with maintenance spending on transmission and distribution infrastructure falling 66.3% year-over-year in the first quarter. The utility also faces unresolved work on the Lake Purdy Dam project and long-term infrastructure funding challenges.