NEW BRITAIN – The state Public Utilities Regulatory Authority (PURA) gave final approval to Aquarion Water Authority, South Central Regional Water Authority (RWA) and Eversource Energy for its change of control application.
The authority’s commissioners voted 3-0 Wednesday (including a recusal by Interim Chair Thomas Wiehl and an abstention by Interim Commissioner Everett Smith) to grant the application that allows the new entity Aquarion Water Authority to serve 26 communities in the state, including many in Fairfield County. Eversource was seeking the change in control following its $2.4 billion purchase of Aquarion Water in a deal that came about after the state legislature approved the creation of the nonprofit Aquarion Water Authority last year.
After PURA originally denied the application before it was remanded back to the authority following a Superior Court decision, PURA said it would issue a new final decision on March 25.
PURA staff member Peter Kramer read out the authority’s decision prior to the vote:
“In today’s decision, the authority approves the application for change of control for Aquarion, subject to the conditions contained herein. The long-term perpetual benefits of Aquarion Water Authority as a public authority model weigh in favor of the public interest.”
The applicants voiced their pleasure with PURA’s decision soon after the decision was made.
“PURA’s final decision reflects a careful review of the record and an unwavering focus on what is in the best interest of Aquarion customers,” according to a joint statement released by Aquarion Water Co. parent Eversource Energy, Aquarion Water Authority and RWA. “This approval allows the Aquarion Water Authority to move forward with the acquisition and transition to a locally governed, not-for-profit model focused on reliable service, accountability, and sustained investment in the system.
“We look forward to working with communities across the region to ensure a smooth transition and deliver lasting value for customers. We will take the necessary steps to ensure that Aquarion customers see the benefits of this agreement as soon as possible.”
Consumer Counsel Claire Coleman, who opposed the application, issued the following statement regarding the PURA decision:
“The Authority’s approval of the transaction despite finding that the exorbitant purchase price ‘places the proposed transaction on the knife’s edge of a public interest finding’ is truly disappointing for Aquarion customers. Ratepayers should never be asked to subsidize a restructuring of this magnitude unless it lowers costs and presents a credible, detailed plan to improve services and protect customers. This deal does none of those things.
“To the contrary, the evidence showed that Aquarion customers will see immediate and sustained bill increases from the transaction, in addition to being saddled with paying off the debt service for decades to come. PURA had the tools to prevent this outcome and chose not to use them. OCC is evaluating all available options to protect the Aquarion customers that will have to live through the results of this decision.”
State Sen. Ryan Fazio (R-Greenwich) said that he will continue to fight for consumers now that the Aquarion deal has been finalized.
“For nearly two years, since this issue arose out of nowhere, I have said that this deal stinks for utility customers across Connecticut. From the beginning, it was clear this was a bad deal for ratepayers and transparency.
“Permission for this deal was rushed through the legislative process without a public hearing, without proper vetting, and without giving the public a meaningful voice. The deal will take away consumer protections, lead to increased costs for consumers, and it will also put RWA customers at risk of greater operational liabilities of a quasi-governmental body that is now tripling in size.”
