The South Central Connecticut Regional Water Authority is proposing a 3.4% increase in water rates that would raise revenues by roughly $4.99 million over 18 months, with a public hearing set for Thursday night at its New Haven headquarters.
It’s the third Connecticut water utility in recent months to seek higher rates as the industry grapples with PFAS remediation costs and years of deferred infrastructure investment.
For the typical residential customer, the increase would amount to about $1.70 per month, or 3.5%, pushing the monthly bill from $48.98 to $50.68 for a household using 500 cubic feet of water. Monthly service charges would also increase.
The proposed rate increase is tied to the authority’s planned issuance of Water System Revenue Bonds, which it expects to sell around July 2026. The actual size of the rate increase would fluctuate slightly depending on the interest rate the authority secures on those bonds — ranging from 3.3% if rates land at or below 3.25%, to as high as 3.51% if borrowing costs reach 5.75%.
RWA’s proposed increase is modest compared to those sought by the state’s two investor-owned water utilities. Aquarion Water Co., which serves roughly 230,000 customers in Connecticut, filed an $88 million rate increase request with PURA in January, representing an average increase of about 42%.
Aquarion cited, among other factors, rising costs related to PFAS treatment and more than $448 million spent on water infrastructure since the company’s last rate case.
Meanwhile, Connecticut Water has applied for a 19% rate increase, citing a need to recover $129 million in infrastructure investments made since its last rate case.
Connecticut Water, which provides water service to more than 107,000 customers across 60 communities, is planning to spend $190 million on system upgrades to meet federal PFAS standards, including 26 treatment projects.
Unlike Aquarion and Connecticut Water, RWA is not regulated by the Public Utilities Regulatory Authority. It operates as a quasi-public authority governed by the Representative Policy Board of the South Central Connecticut Regional Water District.
The Representative Policy Board’s public hearing begins at 7 p.m. Thursday at 90 Sargent Drive in New Haven. Residents may attend remotely.
