Aquarion Water Co. is moving forward with plans to seek an $88 million rate increase, explicitly blaming state regulators for forcing the larger hike by blocking the company’s proposed sale to a nonprofit entity last year.
In a filing with the Public Utilities Regulatory Authority on Monday, the state’s largest water utility said the 42% average increase would have been far smaller had PURA approved its sale to Aquarion Water Authority (AWA), a nonprofit created through a special legislative act.
“Aquarion’s sale to AWA provided PURA with a rare and unique opportunity to shield customers from these increasing costs,” the company wrote. “A decision approving the transaction would have enabled AWA to own and operate Aquarion, thereby obviating the need for the immediate filing of this rate amendment with PURA.”
According to the filing, Aquarion needs about $72 million to address an operating revenue deficiency and $16 million for plant additions during the 2026 rate year.
Under the AWA model, a much lower rate increase of $18 million was anticipated, the filing states.
Aquarion initially filed a notice of intent to seek a rate increase with PURA on Dec. 15, 2025, about a month after PURA denied Aquarion’s proposed change in ownership.
The second notice of intent, filed Monday, extends the company’s deadline to file its full rate application to March 13. The proposed increase would affect about 688,000 customers, or 209,000 customer meters, across 57 Connecticut municipalities. The change would take effect Nov. 1, 2026.
PURA rejected the $2.4 billion sale of Aquarion in November 2025, citing concerns over the AWA’s governance structure. PURA commissioners pointed to conflicts from an overlapping 11-member board that would govern AWA and its sister company, the South Central Regional Water Authority, a New Haven-based quasi-public.
Eversource, which owns Aquarion, is appealing PURA’s denial.
In a lawsuit filed Dec. 2 in New Britain Superior Court, Eversource argues that PURA exceeded its authority by rejecting a governance structure created by the General Assembly. The complaint asks the court to reverse PURA’s ruling and order approval of the transaction.
Opposition to the sale was widespread. Attorney General William Tong argued the proposal would sharply raise water bills and remove regulatory oversight from PURA. Consumer Counsel Claire Coleman and more than a dozen Fairfield County towns also urged PURA to reject it.
Aquarion’s last rate case, in 2022, resulted in PURA ordering a rate decrease of nearly $2 million, or about 11%, despite the company’s request for a $35.3 million increase.
“Since that time, Aquarion has had serious concerns that PURA’s determination in the 2022 rate case would, ultimately, cause a negative impact for customers by pushing costs ‘down the road’ and, unfortunately, this is the case,” the company wrote.
Since 2022, Aquarion has invested more than $448 million in infrastructure improvements including mains, storage tanks, treatment plant upgrades, dam improvements and pump stations — investments not recovered in current rates, according to Monday’s filing.
The company cited rising costs for compliance with new per- and polyfluoroalkyl substances requirements and other health and environmental standards as factors contributing to its rising costs.
