Regional municipal leaders and a bipartisan group of state legislators this week have called on the state legislature to pass a bill that would require regulatory oversight and change the governance of the Aquarion Water Authority following its $2.4 billion purchase of Aquarion Water Co. from Eversource Energy last year.
During a hearing of the state legislative Energy and Technology Committee on Tuesday municipal leaders and legislators testified in support of a bill that would amend last year’s legislation that created the Aquarion Water Authority for the purpose of the water company sale. The South Central Connecticut Regional Water Authority’s (RWA) acquisition of the financially strapped Aquarion Water Co. needs approval by the state Public Utilities Regulatory Authority (PURA) in order to proceed.
However, elected officials from 26 municipalities as well as regional councils have voiced their opposition to the sale and RWA’s change in control application with PURA.
Both Western Connecticut Council of Governments and Metro Connecticut Council of Governments urged lawmakers to act to ensure that Aquarion Water customers consumer protections, transparency, and local representation are not diminished.
Under the current framework, Aquarion operates under PURA oversight, which provides independent review of rates, service quality, infrastructure investments, and consumer complaints. If the sale proceeds, PURA would no longer retain jurisdiction over the new water authority.
“Once this deal is approved, PURA will have no oversight over the new authority,” said Ridgefield First Selectman Rudy Marconi, chair of WestCOG. “Consumers would lose independent regulatory protection against excessive rate increases and lose access to PURA’s Customer Affairs Resolution Center.
“That is a fundamental change in accountability, and the Legislature should ensure that Connecticut ratepayers are not left without meaningful safeguards. I encourage the Energy and Technology Committee to approve this bill and pass it via emergency certification. I cannot think of a greater emergency for Connecticut consumers.”
The bill proposed by Rep. Joseph Gresko, D-Stratford, would amend the charter of the RWA to address the potential acquisition. The bill would:
- Grant the RWA board the authority to act on behalf of the Aquarion Water Authority until its own board members are appointed
- Outline the composition of the Aquarion Water Authority board, which would consist of 11 members once PURA approves the acquisition. PURA’s approval is a critical condition, and appointments to the boards would not occur until this approval is granted.
- Detail the powers of the Aquarion Water Authority, including its ability to acquire water companies, operate water systems, and enter into agreements with other entities, all while remaining subject to certain regulations and local zoning laws, with specific exceptions for its facilities.
State Sen. Tony Hwang, R-Fairfield, in testimony emphasized that the bill is about reaffirming the legislature’s intent that utility transactions of this magnitude must remain subject to robust PURA review and must clearly satisfy the statutory requirement that outcomes serve the public interest, including ratepayer protections, due process, and enforceable accountability.
“Water is not an ordinary commodity, it is essential to life, public health, environmental protection, and economic stability,” Hwang said. “That’s why rate affordability, transparency, and accountability must be non-negotiable. HB 5249 is a common sense step to reinforce legislative intent and ensure PURA’s regulatory oversight is respected and strengthened — so families and seniors aren’t forced to absorb unchecked rate increases or see costs shifted onto local taxpayers.”
State Sen. Ryan Fazio, R-Greenwich, also voiced support for the legislation on Wednesday.
“This bill is about standing up for ratepayers,” said Sen. Fazio. “When you are talking about multi-billion-dollar utility transactions that could dramatically raise water bills, there must be transparency, accountability, and meaningful regulatory oversight.”
Last year, Fazio was a leading voice opposing the proposed Aquarion Water Company acquisition. He warned that the purchase price would ultimately fall on the backs of consumers and cited concerns about long-term rate increases and structural issues.The legislation comes after renewed public attention surrounding the transaction.
In October 2025, PURA denied the application, citing concerns related to governance, rate impacts, and regulatory oversight. In January 2026, a Superior Court judge remanded the matter to PURA for further review. PURA is expected to act following a March 25 filing deadline.
Municipal leaders and legislators have had conversations with legislative leadership about including the bill in the emergency certification legislation to be considered by the General Assembly later this week. This timeframe would allow regulators to have the benefit of this legislation prior to their March 25 deadline.
Legislative testimony
Among many people who either testified at the Capitol Tuesday in favor of the bill or wrote letters in support were municipal leaders from Fairfield, Greenwich, Trumbull, Easton, New Canaan, Ridgefield, Westport and Monroe.
State Consumer Counsel Claire Coleman answered questions from Energy and Technology Committee members about the bill. One such dialogue was between Coleman and state Rep. Dave Yaccarino, R-New Haven.
When asked why Coleman was opposed to RWA’s change in control application, Coleman cited governance issues and the possible financial impact on customers.
“While the governance structure was a concern, particularly a concern to towns, it was the biggest driver that led us not to support the application as written,” Coleman said. “We actually suggested the application be denied without prejudice. Because of the complex structure of the financial proceedings, we really were concerned with the risk premium, the amount of the purchase price and how that translates into debt service over many years for customers.”
Yaccarino rebutted by calling such information false.
“I think there’s false information about RWA,” he said. “I think it’s that I would rather have someone in Connecticut overseeing all of our water. The rates are going to be the same anyway. Water is fairly inexpensive,which is a good thing.”
All 26 municipalities that formally intervened in the PURA proceeding opposed the transaction. Recent briefs filed by intervening municipalities and the Office of Consumer Counsel reiterate that the proposal is not in the public interest, citing guaranteed rate increases, the reported inclusion of a $500 million acquisition premium in the rate base, and structural governance concerns.
“Don’t be misled by the name ‘Aquarion Water Authority,’” said Trumbull First Selectwoman Vicki Tesoro, Chair of MetroCOG. “Under this proposal, Aquarion communities become the minority voice in decisions about their drinking water and rates. That is not a substitute for independent regulatory oversight, nor does it reflect equitable governance.”
Shelton Mayor Mark Lauretti reiterated Tesoro’s concerns.
“Shelton residents depend on reliable, affordable water service, and they deserve the same strong, independent regulatory oversight they have today,” he said. “This proposed transaction raises serious concerns about long-term rate impacts, governance, and accountability. I urge the General Assembly to act swiftly to preserve transparency, consumer safeguards, and a fair voice for Aquarion communities.”
Rep. Chris Rosario, D-Bridgeport, underscored the impact on communities of color and working-class cities served by Aquarion. “With this proposal, the communities I represent stand to pay more while losing both oversight and a voice,” he said. “I am deeply concerned that this deal would increase financial burdens on working-class families, eliminate PURA’s independent oversight and consumer protections, and permanently place Aquarion customers in the minority on a new governing board.
