Eversource Energy’s proposed sale of Aquarion Water Co. to a newly created quasi-public authority faces mounting opposition from local officials and consumer advocates who warn of significant rate increases, as a hearing before the Public Utilities Regulatory Authority began Thursday. The $2.4 billion transaction would transfer Connecticut’s largest investor-owned water utility from Eversource to the […]
Eversource Energy's proposed sale of Aquarion Water Co. to a newly created quasi-public authority faces mounting opposition from local officials and consumer advocates who warn of significant rate increases, as a hearing before the Public Utilities Regulatory Authority began Thursday.
The $2.4 billion transaction would transfer Connecticut's largest investor-owned water utility from Eversource to the Aquarion Water Authority (AWA), a nonprofit entity created specifically for the acquisition.
Save the Sound, an environmental action group, raised concerns during testimony Thursday about whether the new quasi-public structure will maintain the same environmental safeguards that currently exist under PURA oversight.
The proposed sale would give AWA control over all of Aquarion’s assets, removing them from PURA’s purview.
“This is an opportunity to safeguard precious open space from future development and secure commitments towards the continuation of water company land conservation,” said Chase Lindemann, Save the Sound’s Peter B. Cooper Legal Fellow.
Save the Sound helped draft groundbreaking laws in the early 2000s requiring water companies to give conservation buyers the first opportunity to purchase land before developers could place bids.
As a condition of the sale, Save the Sound has asked PURA to order AWA to place conservation easements on all Class III land currently owned by Aquarion and its subsidiary, Torrington Water Co., that is greater than 10 acres or “provides other conservation value.”
The evidentiary hearing, which began Thursday, is expected to continue Monday.
Eversource announced on Jan. 27 that it had reached a definitive agreement for the sale, following legislation passed during a special session in June 2024 that enabled the South Central Connecticut Regional Water Authority (RWA) to bid on Aquarion.
Under the proposal, RWA would operate as a standalone entity alongside AWA. The two water authorities would share resources, including executive leadership and a board of directors. The purchase would be financed through the issuance of tax-exempt bonds.
The sale comes as Eversource
refocuses on its core electric and natural gas operations after losing about $200 million on offshore wind investments.
Supporters say that, as a quasi-public utility, AWA will achieve $350 million in savings over the first 10 years through
access to tax-exempt debt financing and operational efficiencies from combining the two water systems.
However, critics argue the deal would increase costs for consumers. RWA customers currently
pay average monthly bills of $64.66 compared to $44.71 for Aquarion customers, according to the state Office of Consumer Counsel.
PURA operates under a 270-day timeline for reviewing water utility change of control applications.
A three-member commission, led by PURA Chair Marissa Gillett, must determine whether the transaction serves the public interest based on factors including customer rate impacts, service quality, and the acquiring entity's financial and operational capabilities.
A decision is expected in October 2025.
