Public water utility Aquarion has received a preliminary green light to recover $9.5 million in costs incurred from drought conditions that ramped up in 2016.
The cost recovery would reduce an approximately $30 million, three-year rate reduction the Public Utilities Regulatory Authority (PURA) ordered Aquarion to undertake several years ago — the result of IRS regulatory changes that benefited the company.
There is approximately $10 million of that refund remaining as of Jan. 1, according to public filings.
The existing and anticipated spending for the Bridgeport-based company, which serves customers in more than 50 Connecticut cities and towns, is for pumps, piping and other infrastructure allowing it to transfer water between systems and to tap an emergency supply at Converse Lake on the Greenwich-New York border.
Aquarion requested the cost recovery in November. PURA issued a preliminary decision last week, with a final decision expected next week.
As of Jan. 31, nearly 39 percent of Connecticut remained under extreme drought conditions, down from 42 percent on Jan. 1, according to U.S. Drought Monitor.
