Connecticut Water Co. is seeking a $28.8 million annual revenue increase that would raise customer rates by 21.4%. The Clinton-based utility, a subsidiary of investor-owned H2O America in California, filed its application with the Public Utilities Regulatory Authority on Monday. It’s asking for the new rates to take effect Feb. 1, 2027. Connecticut Water, which […]
Connecticut Water Co. is seeking a $28.8 million annual revenue increase that would raise customer rates by 21.4%.
The Clinton-based utility, a subsidiary of investor-owned H2O America in California, filed its application with the Public Utilities Regulatory Authority on Monday. It’s asking for the new rates to take effect Feb. 1, 2027.
Connecticut Water, which serves about 108,000 customers in 60 communities, said the increase is needed to recover $145 million in infrastructure and technology investments not currently reflected in rates and to offset higher operating costs for labor, treatment chemicals and electricity.
Company officials said the spending includes new treatment systems for PFAS, or “forever chemicals,” as well as other emerging contaminants, replacement of aging water mains, cybersecurity upgrades and projects to improve system resilience amid climate change.
Recent work includes new solar arrays in Killingly and Naugatuck, a groundwater treatment facility in Southbury’s Heritage Village, and major transmission main replacements in Naugatuck.
Connecticut Water said it has faced sustained inflation and higher interest rates since its last rate case in 2023, and executives pointed to a credit rating downgrade tied to Connecticut’s regulatory climate. The company said those financial pressures increase borrowing costs and ultimately affect customers if not addressed.
If approved, the increase would add about $15.54 per month to the average residential bill, or roughly 52 cents a day, according to the company. Connecticut Water said its rates would still remain under 1% of median household income, below the U.S. Environmental Protection Agency’s 2.25% affordability threshold.
The company is also seeking a 10% return on equity, up from the 9.3% authorized in 2023. Any PURA‑approved rate changes would not take effect until early 2027.
