Eversource Energy and two regional water authorities are asking a Superior Court judge to reverse state regulators’ decision to block the utility’s $2.4 billion sale of Aquarion Water Co. to a newly formed nonprofit entity.
In a complaint filed Dec. 2 in New Britain, Eversource, the South Central Connecticut Regional Water Authority and the Aquarion Water Authority argue the Public Utilities Regulatory Authority (PURA) exceeded its authority when it denied their change-of-control application last month, saying the agency has no power to overrule governance structures created by the General Assembly.
PURA voted unanimously Nov. 19 to reject the proposed sale, finding that while the deal met financial and technological standards, it failed on “managerial suitability.” The five-member panel cited unresolvable conflicts arising from an overlapping 11-member board that would govern both authorities, and said more than half the 59 municipalities in Aquarion’s territory would have “weighted votes of zero,” effectively eliminating them from rate-setting decisions.
The lawsuit calls PURA’s reasoning “an effort to rewrite state statute,” pointing to 2024 legislation that created the Aquarion Water Authority and prescribed its board structure, voting formula and consumer advocacy framework. Lawmakers approved those provisions in anticipation of a sale, the lawsuit claims.
The filing asks the court to reverse PURA’s ruling, order approval of the transaction and declare that the agency cannot reject legislatively mandated governance features. The plaintiffs also argue PURA missed statutory deadlines to issue its ruling, which they say should trigger automatic approval under state law.
Opposition to the sale has been widespread. At the November hearing, intervenors including the state Attorney General’s Office, Department of Public Health, regional planning agencies, several Fairfield County municipalities, the advocacy group Save the Sound and competitor Connecticut Water Co. urged PURA to reject the transaction.
Attorney General William Tong said at the time that the proposal would sharply raise household water bills and remove regulatory oversight from PURA. Application projections showed annual rate increases of 6.5% to 8.35% through 2035, and nonprofit authorities are not regulated through PURA rate cases.
In addition, interim PURA commissioners noted a gap between existing rates at the Regional Water Authority — which are 19% to 39% higher than Aquarion’s — and raised concerns over a part-time Office of Consumer Affairs that would replace the state Office of Consumer Counsel in representing customers.
Conversely, representatives from the South Central Connecticut Regional Water Authority and Aquarion Water Authority said AWA’s nonprofit structure would lower financing costs through tax-exempt bonding and stabilize long-term pricing.
Aquarion, based in Bridgeport, serves about 695,000 customers in 59 communities in Connecticut. Eversource acquired the company in 2017.
