Eversource’s sale of Aquarion Water Company to a new state-affiliated water authority and the South Central Connecticut Regional Water Authority (RWA) is raising concerns about regulatory oversight and financial consequences among officials in communities that depend on Aquarion for their water supply.
Eversource announced the $2.4 billion sale on Jan. 27. Subject to approval by the Connecticut Public Utilities Regulatory, the sale is expected to close in late 2025. The proceeds will enable the company to pay down parent company debt while efficiently reinvesting capital into its core electric and natural gas businesses, according to Eversource officials.
Aquarion Water Company supplies water to many Fairfield County towns, including Fairfield, Easton and Bridgeport. In fact, most of Easton is located on watershed land owned by Aquarion. Easton First Selectman David Bindelglass expressed concerns that the sale could lead to increases in local water bills for residents and a reduction in tax revenue to the town.
The RWA is a self-regulated, quasi-government agency and not subject to oversight by the Public Utility Regulatory Authority. With 2,400 acres, Aquarion is the largest property taxpayer in Easton. Under state law, RWA is exempt from paying property taxes although it does contribute payment in lieu of taxes (PILOT).
“We receive about $1.4 million per year in taxes (from Aquarion),” said Bindelglass. “Taxes are calculated from assessed value multiplied by the mill rate. While the payment in lieu of taxes (PILOT) reassessment cycles, and assessments are reset to reflect changes in property values overall. In Easton we believe our land has been undervalued for many years, so there is also a ‘catch up factor’ to the revaluations which is significant for our town’s overall revenue. We have no businesses, so our taxpayers provide all of the town’s revenue. While I have been assured that this can be addressed, I remain concerned.”
Fairfield First Selectman Bill Gerber has little confidence that Fairfield will receive PILOT payments on par with the taxes it currently receives from Aquarion on the value of its real property the water company owns in Fairfield. He noted Aquarion is one of Fairfield’s largest taxpayers, paying about $1.8 million annually.
“The assessed value of property in the Town of Fairfield owned by Aquarion is about $64 million, and this value will likely increase this year with our 2025 revaluation currently underway,” said Gerber.
Gerber also cited concerns about potential rate hikes for customers. “RWA has represented it will not raise water rates for a time but has not committed to how long,” said Gerber.
He added that it does not appear credible that RWA’s water rates will not increase since the bill for this acquisition ultimately must be paid.
State Rep. Tony Scott, R-112th, who represents Monroe and parts of Trumbull and Easton, said the General Assembly met in Special Session last summer to vote on an omnibus bill that included a provision allowing the South Central Connecticut Regional Water Authority to bid on the Aquarion Water Company sale.
“Residents in all three towns in my district are served by Aquarion, so I hope this sale brings more certainty to our communities about having continuity in service and inspections for water quality,” said Scott. “The transaction is subject to regulatory approval by PURA, but unfortunately the (Regional) Water Authority will not be subject to PURA oversight. We, as the legislature, should keep an eye on how this plays out to ensure our constituents get the best service and rates possible.”
State Senator Tony Hwang, R-28th, who represents Easton, Fairfield, Newtown and Bethel, noted his concerns with the sale. “Protecting water quality and safety must be the top priority,” he said. “This transition demands strong public utility oversight and full transparency on water rates to ensure fairness for consumers.
“Additionally, potential tax revenue losses for municipalities must be carefully evaluated to prevent financial gaps that could impact essential local services. Finally, environmental sustainability and watershed protection must also be at the forefront. Our water resources are vital, and any change in ownership must come with firm commitments to conservation and responsible stewardship.
“I remain steadfast in advocating for transparency, accountability, and long-term solutions that prioritize consumers, municipalities and environmental protection,” Hwang said.
Bindelglass said Easton has had a close relationship with water company officials over the years but worries the change in governing structure could disrupt things. “The new governing structure with 59 town representatives and an executive board where the New Haven area has a six-to-five majority leads us to wonder whether decisions will be made which actually take Easton’s best interests into account,” Bindelglass said.
From FCN partner Easton Courier.
