Jeffrey Thompson is appointed as the Central Alabama Water System's new director

November 19, 2025 - BIRMINGHAM - The Central Alabama Water System (CAW) announced the hiring of Jeffrey Thompson as its new CEO. The role, which carries a salary package of up to $750,000 annually, is one of the most significant leadership positions in Alabama's public utilities sector. The appointment comes at a pivotal time for CAW, which was created earlier in 2025 through state legislation to consolidate and modernize water services across Jefferson and surrounding counties.

The decision to hire Thompson followed a closed-door search process, which has drawn scrutiny from community members and local officials. While the Board emphasized Thompson's qualifications and industry experience, critics argue that the process lacked transparency and may have sidelined other potential candidates.

Background on Central Alabama Water System

The Central Alabama Water System was established in 2025 by Act 2025-297, which transferred management of the Birmingham Water Works to a newly formed regional board. The system now oversees water service for hundreds of thousands of residents across multiple counties, making it one of the largest utilities in the state. Its mission is to ensure safe, reliable, and affordable water service, while also addressing long-standing challenges such as aging infrastructure, governance disputes, and customer trust.

The Board of Directors, appointed under the new law, includes representatives with backgrounds in business, finance, and engineering. Their mandate is to provide professional oversight and move the utility away from political entanglements that previously plagued the Birmingham Water Works.

Who is Jeffrey Thompson?

Jeffrey Thompson is a seasoned utility executive with decades of experience in water management and infrastructure. His career includes leadership roles in regional water authorities and consulting work on large-scale utility projects. Supporters of his appointment highlight his technical expertise, financial acumen, and ability to navigate complex regulatory environments.

However, Thompson's selection has not been without controversy. Reports suggest that the Board considered only one candidate-Thompson himself-during the final vote, raising concerns about favoritism and whether the search process truly reflected the Board's commitment to transparency.

Challenges Facing Thompson

As the new CEO, Thompson inherits a utility at a crossroads. His leadership will be tested in several critical areas:

Infrastructure Modernization: Much of the system's pipes and treatment facilities are decades old. Thompson will need to prioritize upgrades to prevent leaks, service interruptions, and costly repairs.

Customer Trust: Rate increases and billing transparency have been recurring issues. Rebuilding public confidence will be essential.

Governance and Accountability: The Board has faced criticism for secrecy in its hiring process. Thompson must demonstrate openness and accountability to restore credibility.

Regional Growth and Sustainability: With Central Alabama's population expanding, Thompson will need to balance water conservation with increased demand.

Community Reaction

The announcement has sparked mixed reactions. Supporters argue that Thompson's experience and leadership skills make him uniquely qualified to guide the utility through its transition. They see his appointment as a pragmatic choice that ensures stability during a period of organizational change.

Critics, however, point to the closed nature of the search process and question whether the Board truly considered diverse candidates. Some community leaders have expressed concern that the decision undermines the Board's stated commitment to transparency and accountability. The now defunct Birmingham Waterworks Board had hired Mac Underwood as Director back in February before the legislature passed legislation replacing the governing body of the waterworks.

Birmingham Mayor Randall Woodfin criticized the hiring of Thompson.

“The same folks who took Birmingham's voice off the board are now trying to hand-pick Jeff Thompson, a former Birmingham Water Works executive who was part of the billing crisis that cost thousands of our families time, money, and trust," Woodfin said.

The Broader Significance

The hiring of Thompson is not just about one individual-it reflects the broader challenges of public utility governance in Alabama. Water systems are essential to public health, economic development, and environmental sustainability. Leadership decisions at CAW will directly impact hundreds of thousands of residents, making transparency and accountability vital.

Moreover, the high salary package attached to the role has raised eyebrows. At $750,000 annually, Thompson's compensation is among the highest for public utility executives in the region. Supporters argue that the pay reflects the scale of responsibility, while critics see it as excessive given ongoing concerns about affordability for customers.

Looking Ahead

Thompson's tenure will likely focus on:

Strengthening infrastructure resilience to meet future challenges.

Improving customer service with clearer billing practices and better communication.

Advancing sustainability initiatives, including conservation programs and innovative water management strategies.

Rebuilding trust between the Board and the public through greater transparency.

If successful, these efforts could position the Central Alabama Water System as a model for regional utilities across the Southeast.

Conclusion

The appointment of Jeffrey Thompson as CEO of the Central Alabama Water System is a watershed moment for the utility and the communities it serves. His leadership brings both promise and controversy, reflecting the complex balance between expertise, transparency, and public trust in utility governance. With a high-profile salary and immense responsibility, Thompson's performance will be closely watched. The stakes are clear: ensuring reliable water service for Central Alabama while navigating the challenges of modernization, sustainability, and accountability.

Ultimately, the success of Thompson's tenure will depend not only on his technical skills but also on his ability to rebuild trust and deliver results for the people of Alabama.

(Brandon Moseley contributed to this report.)