Connecticut utility regulators voted Wednesday against the sale of Aquarion, one of the state’s largest water utilities, during a public meeting.
Aquarion is owned by Eversource and provides water to residents in 60 towns in Connecticut.
Eversource was planning on selling the utility to the South Central Connecticut Regional Water Authority, based in New Haven, for $2.4 billion.
But in a 4-0 vote, PURA regulators blocked that transaction, saying the sale might not be in the public’s interest.
Janice Beecher, a PURA commissioner who voted against the sale, said any change in control over the water authority should “be demonstrably beneficial in meeting the public interest standard supported by economic, financial and legal analysis.”
“Moving forward, I urge all stakeholders to engage constructively and creatively about the stewardship of these vital assets on behalf of the consumers that they serve,” she said.
Commissioners Holly Cheeseman, Michael Caron and vice chairman David Arconti also voted against the sale. Interim chairman Thomas Wiehl, who previously worked for the state Office of Consumer Counsel, abstained.
With deal busted, reaction flows in
Since Aquarion is owned by Eversource, its utility prices are subject to regulation by the Public Utilities Regulatory Authority. Connecticut officials and local leaders worried a sale to the Regional Water Authority would cost rate hikes for Aquarion customers.
But David Borowy, board chair of Aquarion Water Authority, said in a Nov. 9 letter to Mayor Carbone of Torrington that rates for Aquarion would continue to be “based on Aquarion’s actual cost of service” in accordance with legislation that protects customers.
Following PURA’s decision Wednesday, a spokesperson for the Regional Water Authority declined an interview, but said in a statement it was “reviewing PURA’s decision.”
Eversource said in a statement that lawmakers appeared open to the sale after the passage of legislation in 2024 that paved the way for a possible sale of Aquarion.
“The special act approved by legislators in 2024 indicated that the state was interested in an expanded non-profit model,” spokesperson Jamie Ratliff said. “However, once tested, that same special act proved difficult to overcome for PURA to move away from an investor-owned model.”
Connecticut Consumer Counsel Clare Coleman issued a statement Wednesday saying the deal wouldn’t have been in the interest of ratepayers.
“If this merger were approved under the terms requested in the application, Aquarion customers across the state would have faced increases in their bills and carried extensive debt from the purchase price of the transaction over the next decade,” Coleman said in a statement.
Democratic Attorney General William Tong also praised the sale’s denial.
“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 said in a statement.
“Eversource is free to find a new buyer, but should understand that any new attempt to end public regulatory oversight over water bills for hundreds of thousands of Connecticut families is going to be a non-starter here,” he said.
Connecticut Public’s Matt Dwyer contributed to this report. Áine Pennello is a Report for America corps member, covering the environment and climate change for Connecticut Public.
