Plan to move Birmingham water utility to the suburbs creeps forward, clouded in secrecy

A cloud of secrecy surrounds reports that Central Alabama Water is eyeing a move from its current Birmingham home to a new headquarters in Shelby County. While leadership at the utility remains tight-lipped, sources have indicated that the agency is scouting an office building near U.S. 280.

A Growing Conflict

Despite multiple inquiries from 205focus.com and other outlets, the utility has declined to address the potential relocation. The prospect has drawn sharp criticism from Jefferson County Commissioner Sheila Tyson, a board member who characterizes the move as an insult to the city and the county, which collectively house 92% of the utility’s customer base.

Attorney Calvin Grigsby, who is currently involved in a federal lawsuit against the agency, views the potential move as another piece in a larger strategy to strip Birmingham of its assets. Describing the utility’s transformation as “butchering a hog,” Grigsby argues that leadership is systematically distancing the utility from the city. Grigsby’s legal challenge, brought by former board members William Muhammad and Brenda Lewis, alleges that state officials violated federal law during the takeover and currently seeks federal oversight of the organization.

Economic and Legal Consequences

The departure of the utility from Birmingham would carry significant weight beyond mere symbolism. The city stands to lose revenue from the 1-cent occupational tax paid by water board employees. Furthermore, attorney Richard Rice warns that shifting the headquarters to Shelby County could fundamentally alter the legal landscape for future disputes.

“If there are disputes involving the utility then the jurisdiction can be moved from Birmingham to Shelby County, and the jury and makeup is completely different obviously,” Rice noted, pointing to the stark contrast between the Democratic-majority judiciary in Birmingham and the Republican-leaning landscape of Shelby County.

Pressure Mounts

Since its 2025 reconfiguration, the board of Central Alabama Water has actively pivoted away from the previous Birmingham-centric branding. CEO Jeffrey Thompson has reportedly ignored requests from Tyson for an explanation regarding the move.

Legal pressure is also mounting from attorney John Somerville, who represents plaintiffs including former Water Works Board Chair Tereshia Huffman and retiree Johnathan Harris in a separate case demanding independent receivership. Somerville has issued a formal demand for answers by Monday, June 22, warning that failure to respond will result in additional charges being added to his ongoing litigation.

The next meeting for the Central Alabama Water board is scheduled for July 10, 2026, at 9 a.m., taking place at the Moody Civic Center in St. Clair County.