🔒Four towns, consumer counsel join Eversource appeal of rejected Aquarion sale

Four Connecticut towns and the state consumer advocate have intervened in Aquarion Water Authority and Eversource Energy’s appeal of regulators’ rejection of a $2.4 billion water utility sale, setting up another legal battle between regulators, utilities and opponents of the deal. Superior Court Judge Matthew Budzik granted intervention motions on Dec. 4 from Westport, New Canaan, Fairfield and Ridgefield, as well as from the state Office of Consumer Counsel. All five parties opposed the sale during regulatory proceedings before the Public Utilities Regulatory Authority. The proposed transaction would transfer Aquarion Water Co., a subsidiary of publicly traded Eversource, to the Aquarion Water Authority, a quasi-public entity that would share resources and leadership with the South Central Regional Water Authority in New Haven. The deal was authorized by legislation passed during the 2024 special session. PURA unanimously rejected the proposed acquisition on Nov. 19, finding the applicants failed to demonstrate adequate “managerial suitability and responsibility” required under state law. The decision followed the abrupt departure of PURA Chair Marissa Gillett, who resigned in October. The towns argued their participation in the appeal is necessary because “they represent the direct interests of water ratepayers” and offer “the unique perspective of municipalities whose residents will be impacted directly if PURA’s decision is reversed, and whose budgets will be adversely impacted if payments in lieu of taxes are substituted for property taxes.” If the sale were approved on appeal, ratepayers could face “significant increases in water rates” and municipalities would see decreased property tax revenue for municipalities, according to the towns’ intervention motions filed by attorneys David A. Ball and Wilson T. Carroll of Cohen and Wolf. In its motion to intervene, the Office of Consumer Counsel said PURA’s rejection means ratepayers “will be insulated from funding the acquisition premium and the annual rate increases of between approximately 6.5% and 8.5%” that would occur under the proposed water authority ownership. The office is represented by staff attorneys Andrew W. Minikowski and Alison K. McHorney. The appeal comes after PURA concluded in its Nov. 19 final decision that although the applicants demonstrated sufficient financial and technological capabilities, they could not show the proposed Aquarion Water Authority governance structure would provide adequate regulatory oversight and consumer protection. The companies filed their administrative appeal on Dec. 2. They also filed a proposed scheduling order last week seeking an expedited appeal process, with PURA consenting to the accelerated timeline, according to court documents. Under the proposed schedule, the companies would file their joint opening brief by Dec. 17, with PURA's response due Jan. 9, 2026. The sale agreement between Eversource and Aquarion Water Authority carries a Jan. 31 termination date, according to the motion for expedited treatment. The companies’ complaint challenges PURA's statutory authority and seeks “the extraordinary and unprecedented relief” of having the court reverse PURA’s determinations. Attorney Jennifer L. Morgan, of Harris Beach Murtha Cullina, is representing Aquarion Water Authority and South Central Regional Water Authority; Thomas J. Murphy and James J. Healy of Cowdery, Murphy & Healy, and Perry Z. Rowthorn of Rowthorn Law LLC, are representing Eversource. PURA is represented by staff attorneys Seth A. Hollander and Philip Miller. Following the sale's collapse, Eversource announced plans to seek up to $70 million in rate increases for Aquarion's more than 250,000 customers across Connecticut to cover infrastructure investments and operational costs. The case is being heard in the Judicial District of New Britain.