Central Alabama Water Settles With Former Executives
The utility company reached a $4 million agreement to resolve multiple lawsuits filed by former senior staff members.
Updated on Oct. 30, 2026 in Utilities
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Central Alabama Water has finalized a $4 million settlement with three former executives, including Mac Underwood, Barry Williams, and Michael Parker. The agreement resolves claims of breach of contract, wrongful termination, conspiracy, and fraudulent representation.
Why it matters
The settlement concludes legal battles involving high-ranking officials and follows previous expenditures on litigation-related consultant contracts. A judge in the Jefferson County Circuit Court has ordered that all records related to this agreement remain sealed.
The $4 million settlement covers the contracts of three executives, including Mac Underwood who held a $446,118 annual salary. Two other assistant managers involved in the cases earned average annual salaries of $334,000.
The players
Mac Underwood
He is a former executive at Central Alabama Water who held a five-year contract with an annual salary of $446,118.
Pat Ballard
He is a Jefferson County Circuit Court Judge who presided over the legal proceedings and sealed the settlement records.
Central Alabama Water
This is a utility provider serving customers across five counties in Alabama.
Barry Williams
He is a former assistant general manager at the utility who was part of the legal settlement.
Michael Parker
He is a former assistant general manager at the utility who was part of the legal settlement.
The details
The board authorized the settlement during a closed-door executive session after the plaintiffs alleged various professional grievances. Jefferson County Circuit Court Judge Pat Ballard subsequently approved a joint motion to seal all documents associated with the legal resolution.
Timeline
Mac Underwood's five-year contract was approved in March 2025.
Two other senior managers were sent home in November 2025.
A court hearing regarding the settlement took place on October 26, 2026.
The board settled the three cases on October 28, 2026.
Judge Pat Ballard approved the motion to seal records on October 28, 2026.
Market Landscape
This settlement follows a pattern of high-cost legal resolutions for the utility, similar to the $2.4 million consultant contract previously paid to Mark Parnell. These payouts highlight the ongoing financial impact of executive turnover and internal management disputes on the organization.
While these settlements resolve internal legal disputes, the costs are ultimately drawn from the organizational budget of a utility provider serving five counties. Customers should note that large legal payouts often influence the operational and financial health of the companies that provide their essential services.
The takeaway
Large-scale executive settlements often signal deeper organizational governance issues that can affect utility operations and service costs. Residents should monitor board transparency as the company continues to resolve these significant legal obligations.
Further reading
For more information on the local utility sector, visit the Utilities section.
Source note: This article includes information reported by Al.
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