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

Plans for a potential relocation of Central Alabama Water’s headquarters to Shelby County are moving forward under a cloud of secrecy. Multiple sources have indicated that the utility is eyeing an office building near U.S. 280 for its new home, yet leadership continues to rebuff inquiries regarding the transition.

A Growing Controversy

The prospect of the move has sparked significant pushback. Jefferson County Commissioner Sheila Tyson, who serves on the utility’s board, slammed the initiative as an insult to the City of Birmingham and Jefferson County—the region where 92% of the agency's customer base resides.

Attorney Calvin Grigsby, involved in a federal lawsuit against the utility, characterized the move as part of a larger, systemic stripping of Birmingham's assets. “It’s sort of like butchering a hog,” Grigsby said. “You hang them up on their hind legs after cutting all the hair off, then you start taking piece by piece. Finally, you cut up all the feet, and you’ve basically taken the whole hog.”

The federal lawsuit, filed by former board members William Muhammad and Brenda Lewis, alleges that state leadership defied federal law by seizing control of the board. The suit seeks federal oversight of the utility, which holds assets valued at approximately $2 billion.

Economic and Legal Impacts

A departure from Birmingham carries tangible consequences beyond symbolism. The city stands to lose its 1-cent occupational tax on the gross annual wages of water board employees. Furthermore, legal experts warn that shifting the utility's base to Shelby County could influence future litigation outcomes.

Attorney Richard Rice, co-counsel on the federal lawsuit, noted that moving the utility’s jurisdiction would shift disputes into a different political and legal environment. With Birmingham and Jefferson County featuring a majority-Democratic judiciary compared to the solidly Republican makeup of Shelby County, the change could significantly alter the trajectory of important legal challenges.

Demands for Answers

Despite the high stakes, Central Alabama Water has avoided public discussion on the matter. CEO Jeffrey Thompson has reportedly ignored requests for clarification from board members, and 205focus.com has confirmed that requests for comment from Birmingham Mayor Randall Woodfin were also declined.

Legal pressure is mounting as attorney John Somerville, who represents clients including former board chair Tereshia Huffman and retiree Johnathan Harris, has issued a formal demand for transparency. Somerville has explicitly warned that if he does not receive answers by Monday, June 22, he will pursue additional charges in his active lawsuit, which also seeks the appointment of an independent receiver.

As of now, the demand for information hangs over the agency as it prepares for its next board meeting. That session is scheduled for July 10, 2026, at 9 a.m. at the Moody Civic Center in St. Clair County—roughly 20 miles away from the current headquarters.