NEW BRITAIN – Eversource Energy has appealed the state utility regulator’s rejection of a change in control application related to the utility’s $2.4 billion purchase of Aquarion Water.
In a lawsuit filed by Eversource Energy, Aquarion Water Authority, South Central Connecticut Regional Water Authority in New Britain Superior Court on Tuesday, Dec. 2, the plaintiffs argue that the Public Utilities Regulatory Authority’s Nov. 19 final decision “is wrong as a matter of law and must be reversed and remanded with instructions to approve the transaction.”
Lucy Teixeira, president of the Aquarion Water Co. and Rochelle Kowalski, senior vice president, CFO and head of corporate development for the South Central Connecticut Regional Water Authority, acting on behalf of Aquarion Water Authority, issued the following joint statement:
“Simply put, the not-for-profit model proposed in the sale of Aquarion Water Co. to the Aquarion Water Authority is an incredibly rare opportunity for water customers who are concerned about affordability and the predictability of their bills. The not-for-profit model puts money back into the water system for safety and reliability, instead of to stockholders who must earn a return on their investment. Lower financing costs by AWA will lead to lower bills for customers, a claim that not a single investor-owned utility can make.
“The final decision from PURA also provided clarity on several important points, which have been mischaracterized by critics, including that there will be no blending of rates between RWA and AWA, no immediate rate increases once the transaction is complete, and that the legislation enabling this transaction includes strong accountability measures.
“This appeal is an opportunity to address legal aspects in a regulatory decision that praised AWA and RWA for their operational expertise, financial management, and customer service. The proposed sale to AWA is a once-in-a-generation opportunity to shift ownership to a model that truly benefits all parties involved: residential customers, communities, and businesses for years to come and puts affordability and predictability at the forefront.”
Attorney General William Tong, who has publicly come out against the acquisition, assailed Eversource’s appeal because he believes it would have created a nonprofit that would have doubled household bills and gutted public oversight of water utility rates and consumer protections.
PURA found that “the proposed transaction meets financial and technological suitability and responsibility requirements, and AWA can reasonably be expected to continue the provision of safe, adequate, and reliable service to customers,” Tong said. But conversely, that transaction “does not meet managerial suitability and responsibility requirements.”
He showed his disdain for Eversource’s move to sell Aquarion by any means.
“Eversource is desperate to offload Aquarion after not getting the massive rate hike they wanted,” he said. “They need to take no for an answer. No one wants this deal. PURA was right to reject this costly loser, and we are prepared to vigorously defend this decision on appeal.”
State Republican leader Sen. Stephen Harding, who along with fellow GOP leaders have opposed the Aquarion sale, took the opportunity to criticize Gov. Ned Lamont, Tong and the Democrat-led legislature for allowing the deal to happen in the first place.
“Attorney General William Tong says, ‘no one wants this deal’ and that state utility regulators were right to reject this ‘costly loser,’” Harding said. “Ok, but wait a second:
- Gov. Ned Lamont put pen to paper (to approve the bill that created the nonprofit that would have taken over Aquarion Water Co.)
- Gov. Lamont signed the bill – this ‘costly loser’ – into law.
- Gov. Lamont raised no concerns as he signed it. Why?
- Gov. Lamont’s signature could have doubled Connecticut residents’ water rates.
Gov. Lamont’s signature could have rendered the public voiceless while negatively impacting the environment – watershed land and public drinking water – in towns throughout the northwest corner of Connecticut. “In signing the bill, Gov. Lamont did want that deal.”
Aquarion Company and its Connecticut subsidiaries, Aquarion Water Co. of Connecticut (AWC-CT) and Torrington Water Company (TWC), is currently by far the largest water company in the state, serving approximately 722,000 people in 62 municipalities across Connecticut.
As a corporate-owned public utility, Aquarion Water it is regulated by PURA, which has authority to set rates and scrutinize its service. In 2023, PURA rejected Aquarion’s bid to raise rates by nearly 30%. The company appealed and the Connecticut Supreme Court recently largely affirmed PURA’s decision.
