NEW BRITAIN – State Republican and Democrat officials agree with the state public utility regulator’s unanimous rejection this morning of the $2.4 billion sale of Aquarion Co. by Eversource Energy.
Attorney General William Tong, a Democrat, praised a decision by the Public Utilities Regulatory Authority (PURA) to deny the sale to a new non-profit that he said would have doubled household bills and gut public oversight of water utility rates and consumer protections.
“This deal was a costly loser for Connecticut families and PURA was right to reject it,” Tong said. “Eversource desperately wanted to offload Aquarion, and they concocted this maneuver to extract as much cash as possible by guaranteeing the new entity free reign to jack up rates.”
Eversource cited the state legislation that allowed for the creation of the non-profit to run Aquarion when it responded to PURA’s decision.
“The special act approved by legislators in 2024 indicated that the state was interested in an expanded non-profit model,” said Tricia Taskey Modifica, Eversource spokesperson. “However, once tested, that same special act proved difficult to overcome for PURA to move away from an investor-owned model.”
Eversource is free to find a new buyer, but should understand that any new attempt to end public regulatory oversight over water bills for hundreds of thousands of Connecticut families is going to be a non-starter here, Tong added.
State Republican leadership concurred with Tong about PURA’s decision.
“We thank PURA for voting down this atrocious deal which would have caused a tsunami of unending water rate spikes in cities and towns across Connecticut,” said Sens. Stephen Harding, Sen. Ryan Fazio, Sen. Heather Somers, Sen. Tony Hwang, Sen. Jason Perillo and Sen. Eric Berthel.
“This deal should have never been signed into law by Gov. Ned Lamont. Thankfully, PURA denied it at the last moment, and that is very good news for already overburdened Connecticut residents.”
They added that there should be an open bidding process should Eversource continue to want to sell Aquarion.
First Selectman Christine Vitale issued a statement today applauding the PURA decision to deny the proposed sale of Aquarion Water Company to the South-Central Connecticut Regional Water Authority (RWA). Fairfield is one a handful of intervenors in the Aquarion change in control application process.
“This decision is a victory for Fairfield residents and for communities across the region,” the first selectman said. “We thank MetroCOG for their leadership and for amplifying the concerns of municipalities serviced by Aquarion. PURA listened carefully to the issues raised by thousands of residents and municipal leaders and ultimately determined that this transaction was not in the public interest, recognizing the potential impact on water rates, decline in tax revenue, and loss of local control.”
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.
Aquarion is currently owned by Eversource. As a corporate-owned public utility, 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.
Eversource sought to offload Aquarion and to reap funds from the sale and shed its obligations while saddling Connecticut families and businesses with the long-term costs and consequences, Tong added. The move would have converted Aquarion into a nonprofit entity called the Aquarion Water Authority (AWA), which would have shared resources with the South Central Regional Water Authority (RWA), including a CEO, CFO, board, and board committees.
“Nonprofit utilities, such as the RWA and proposed AWA, are governed not by PURA but by their own board, comprised of representatives from the towns they serve,” Tong said. “The board, making decisions for both the RWA and AWA in this proposed transaction, must either accept or reject a rate request in its entirety, with no ability for line-item adjustments as before PURA. Not once has RWA’s board ever rejected a rate hike request.”
Aquarion did not hide its intentions to raise rates, according to Tong. The application projected annual rate increases between 6.5% and 8.35% annually through 2035, with even more rate hikes expected every five years after, he said. Those plans could have much as much as doubled water bills for Connecticut families over the next decade.
