With a 3-0 vote and two members abstaining, the Public Utilities Regulatory Authority (PURA) on March 25 approved the sale of Aquarion Water Company to the Aquarion Water Authority, a new nonprofit entity that will share governance and resources with the South Central Connecticut Regional Water Authority (RWA).
The approval came after a Superior Court judge in January ordered PURA to reconsider its 4-0 vote last year denying the proposed sale and remanded the case for further proceedings. Eversource, which owns Aquarion, announced the proposed $2.4 billion sale on Jan. 27, 2025. The deal required PURA approval. The agency rejected the proposal because it said the applicants did not meet the statutory requirements for approval of a change in control of a regulated water utility. Under Connecticut law, such transactions must be shown to be consistent with the public interest.
PURA said the deal was a close call but ultimately found that a publicly owned, tax-exempt structure could reduce financing costs over time enough to outweigh concerns about rates and oversight.
Officials in communities that depend on Aquarion for their water supply fear the sale could lead to higher water bills and reduced municipal tax revenue. Earlier in the proceedings, Fairfield and Easton officials sought intervenor status through the Connecticut Metropolitan Council of Governments, which represents Bridgeport, Easton, Fairfield, Monroe, Stratford and Trumbull.
Fairfield First Selectperson Christine Vitale said in a statement: “The decision made by PURA to approve the sale of Aquarion to RWA was not in the public interest. I am extremely disappointed that PURA reversed its previous decision. The sale of Aquarion to RWA will mean higher water rates for our residents and weakened consumer protections. As one of the first towns to intervene in this poorly structured deal, we will examine all legal options to challenge this improper decision.”
The March 25 vote drew swift opposition from lawmakers from both sides of the aisle.
“This is not the final outcome of our fight,” said State Rep. Anne Hughes, D-135th District. “We are determined to bring the legislation we voted out of the Energy and Technology Committee to the House and Senate floors. This legislation would address fair representation in the governance of the RWA, ensure our towns’ property tax revenue, and establish key provisions to maintain oversight of this acquisition in the public interest in lieu of PURA oversight.”
State Sen. Tony Hwang, R-28th District, raised concerns about how the sale would impact the watershed lands and natural resources in communities Aquarion currently serves.
“This deal raises serious concerns about long-term costs, governance, and accountability. Just as importantly, many of the communities impacted include significant watershed lands that require stewardship and protection. I am not convinced this structure safeguards those critical natural resources or prioritizes the interests of our towns,” Hwang said in a statement.
Rochelle Kowalski, RWA’s chief financial officer and senior vice president, said, “PURA’s final decision reflects a careful review of the record and an unwavering focus on what is in the best interest of Aquarion customers.
“This approval allows the Aquarion Water Authority to move forward with the acquisition and transition to a locally governed, not-for-profit model focused on reliable service, accountability, and sustained investment in the system. We look forward to working with communities across the region to ensure a smooth transition and deliver lasting value for customers.”
