Connecticut Officials Celebrate Rejection of $2.4 Billion Water Deal

Connecticut’s Public Utilities Regulatory Authority (PURA) has officially rejected a proposed $2.4 billion sale of Aquarion Water Company from Eversource to a newly established quasi-public agency. The decision, made on Wednesday, has garnered support from a coalition of state and local officials, including Attorney General William Tong, who argued that the deal would have detrimental financial implications for residents across the state.

In his statement, Tong described the transaction as a “costly loser for the state,” emphasizing that PURA made the right choice in turning down the sale. He pointed out that Eversource’s intentions were driven by a desire to divest from Aquarion, stating, “Eversource desperately wanted to offload Aquarion, and they concocted this maneuver to extract as much cash as possible by guaranteeing the new entity free reign to jack up rates.” Tong underscored that any future attempts by Eversource to remove public regulatory oversight over water bills would be met with resistance.

Political Backing Against the Sale

Eversource had presented the sale as a means to alleviate its debt and redirect investment towards its electricity and natural gas sectors. In a brief response, company spokesperson Tricia Modifica noted that the special act approved by legislators in 2024 indicated state interest in a non-profit model. However, she expressed that the act proved challenging for PURA to transition away from an investor-owned framework.

The special act, known as Senate Bill 501, was an omnibus bill that allowed the South Central CT Regional Water Authority to submit a bid for Aquarion. This bill was passed in a special session of the legislature in June 2024. Support for the rejection also came from Senate Republicans, who expressed their gratitude to PURA for denying what they termed an “atrocious deal.” Senators Stephen Harding, Ryan Fazio, Heather Somers, Tony Hwang, Jason Perillo, and Eric Berthel collectively stated that the deal would have led to significant water rate increases across Connecticut.

Impact on Residents and Future Considerations

The rejection of the sale is seen as a victory for Connecticut residents, particularly as Aquarion serves over 700,000 people in 62 municipalities. The senators stated, “Thankfully, PURA denied it at the last moment, and that is very good news for already overburdened Connecticut residents.” They have called for an open bidding process should Eversource choose to pursue a sale in the future.

The outcome reflects ongoing concerns regarding public utility management and the financial impact on consumers. As the largest water provider in the state, Aquarion’s future remains a critical topic for officials and residents alike.