Eversource sells off Aquarion to new quasi-public company

A not-for-profit, quasi-public corporation and political subdivision of the State of Connecticut has purchased Aquarion Water Co. from Eversource Energy for about $2.4 billion, Eversource announced Monday, Jan. 27.

The new company will be called Aquarion Water Authority (AWA), which will stand alongside the South Central Connecticut Regional Water Authority (RWA). The value of the deal includes approximately $1.6 billion in cash and $800 million of net debt that will be extinguished at closing. The aggregate value represents 1.7 times the rate base at December 2024.

The proceeds from the sale will enable Eversource to pay down parent company debt while efficiently reinvesting capital into its core electric and natural gas businesses, enabling additional investments in reliability for customers and strengthening the Connecticut- and Massachusetts-based utility’s financial position.

As a result of the transaction, Eversource expects to record a loss on the planned sale of Aquarion of approximately $300 million in its results for the fourth quarter of 2024. This loss on sale includes approximately $140 million of estimated income tax expense.

“Since our acquisition of Aquarion in 2017, we have built on Aquarion’s longstanding track record of superior customer service, industry-leading reliability and operational success to help them become the largest investor-owned water utility in New England and seventh largest in the country,” said Eversource chairman, president and CEO Joe Nolan. “I would like to thank the Aquarion leadership team for its sound management and financial stewardship of the company and extend my sincere gratitude to all Aquarion employees for their tireless, customer-first focus on safety and exceptional service, consistent with our core values at Eversource. ”

Aquarion leader Sunder Lakshminarayanan touted the water utility’s next chapter.

“Through the AWA transaction, we are advancing our water utility’s regional supply strategy and are excited to put our organization’s 45-year track record of demonstrating the benefits of RWA’s stewardship, expertise, regulation and organizational stability to work for Aquarion customers, communities and employees as a not-for-profit, quasi-public utility,” said RWA & AWA Interim President and CEO Sunder Lakshminarayanan.

Aquarion, headquartered in Bridgeport, serves nearly 250,000 water and wastewater customers in 72 cities and towns across Connecticut, Massachusetts, and New Hampshire – with more than 360 employees that help provide safe and reliable service to more than 775,000 people.

Aquarion, which has been in the water business since 1857 when it was Bridgeport Hydraulic Co., has added approximately 30,000 customers through six acquisitions under Eversource.

The transaction is subject to regulatory approval by the state Public Utilities Regulatory Authority, the Massachusetts Department of Public Utilities, and the New Hampshire Public Utilities Commission, as well as other approvals pursuant to the federal Hart-Scott-Rodino Antitrust Improvements Act as well as other customary closing conditions. The transaction is expected to close in late 2025.