Eversource-owned Aquarion Water Co. has asked Connecticut regulators to approve more than $213 million in new borrowing to fund drinking water improvements across the state, as the company’s sale to a quasi-public water authority moves toward closing.
The financing application, filed April 17 with the Public Utilities Regulatory Authority, seeks approval for up to $200 million in privately placed long-term notes and $13.7 million in low-interest state loans. The money would go toward removing toxic PFAS — known as “forever chemicals” — from five contaminated wellfields, replacing lead service lines and covering other capital needs.
The state would forgive nearly $4.9 million of the $13.7 million in revolving fund loans outright, with the rest lent at roughly half the market rate.
The $200 million in private notes, if approved, would be issued in two chunks: $50 million expected in June and up to $150 million in 2027. The company said proceeds would also be used to pay down short-term debt and cover general capital spending.
Aquarion has identified 31 of its 106 wells as needing treatment and estimates its total PFAS-related spending approaching $150 million, largely because it draws most of its supply from groundwater, where contamination is most common.
PURA has not yet scheduled hearings on the financing application.
The filing came less than a month after PURA approved the $2.4 billion sale of Aquarion — Connecticut’s largest water utility, serving about 226,000 customers — to the newly created Aquarion Water Authority (AWA), a nonprofit quasi-public entity affiliated with the South Central Connecticut Regional Water Authority in New Haven.
An Eversource spokeswoman said the new debt will not change the $2.4 billion acquisition price.
The Aquarion-AWA deal drew significant opposition from state officials and municipalities, largely over concerns that the structure would shift long-term costs to ratepayers.
