NEW CANAAN – The state senator representing constituents in Greenwich, New Canaan and Stamford is unhappy with the recently announced divestiture of Aquarion Water Co. by Eversource. And he has now taken some action.
State Sen. Ryan Fazio (R-Greenwich), and state Rep.Tracy Marra (R-Darien) have introduced a Senate bill that seeks to repeal amendments that were made to the charter of the South Central Connecticut Regional Water Authority during a special session last summer that cleared the way for the Jan. 27 sale, according to CT Insider.
“This transaction stinks and can have a harmful effect on my constituents and all Aquarion customers,” said Sen. Ryan Fazio (R-Greenwich). “Now, Aquarion will not be regulated by the Public Utilities Regulatory Authority, or PURA, which means rate increases for customers in Western CT will go unchecked without regulatory approval.”
The senator, who held a press conference Monday, Feb. 3, with legislative and municipal leaders said he is concerned about Eversource’s agreement to sell Aquarion to the Regional Water Authority (RWA). The concern is raised over the lack of regulatory oversite this sale will bring, potentially allowing water rates to increase for state residents by as much as 50%, he said.
“Additionally, Aquarion will now be part of a quasi-governmental utility, therefore will not be required to pay full property taxes on their resident towns and cities,” he added. “With this comes a strong possibility that taxes will increase on the rest of us to make up for the monetary loss.”
The RWA’s bid on Aquarion was approved by the legislature last summer without public debates or hearings, according to Fazio.
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.
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.
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.
