Connecticut Officials Celebrate Rejection of $2.4B Aquarion Sale

Elected officials in Connecticut have expressed strong approval following the Public Utilities Regulatory Authority’s (PURA) decision to reject a proposed sale of Aquarion Water Co. for $2.4 billion. The sale, which would have transferred ownership from Eversource to a newly established quasi-public agency, faced significant opposition from Attorney General William Tong and a bipartisan group of state and local leaders.

In a statement released on October 25, 2023, Tong described the deal as a “costly loser” for the state. He commended PURA for its decision, emphasizing that the proposed transaction aimed to allow Eversource to offload Aquarion while potentially increasing water rates for consumers. “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 remarked. He added that any future attempts by Eversource to bypass public regulatory oversight over water bills would not be accepted by state officials.

The company had argued that the sale would enable it to reduce debt and concentrate on its electricity and natural gas operations. In response to the decision, Eversource spokesperson Tricia Modifica indicated the challenges faced by PURA in moving away from the investor-owned model that the special act, passed in June 2024, sought to support. She noted that the act aimed for an expanded non-profit model but proved difficult to implement effectively.

Legislative Background and Bipartisan Praise

The special act, known as Senate Bill 501, was an omnibus bill that included provisions allowing the South Central Connecticut Regional Water Authority to bid on Aquarion. The decision to reject the sale has been lauded by several state senators.

Senate Republicans, including Stephen Harding, Ryan Fazio, Heather Somers, Tony Hwang, Jason Perillo, and Eric Berthel, issued a joint statement commending PURA for halting what they described as an “atrocious deal.” They argued that the sale would have resulted in “a tsunami of unending water rate spikes” for residents across Connecticut.

The legislators expressed relief that PURA intervened at the last moment, asserting that the decision benefits the already burdened citizens of Connecticut. They called for an open bidding process should Eversource decide to pursue a sale in the future, highlighting the necessity of transparency and fairness in such significant transactions.

Aquarion Water Co. is the largest water utility in Connecticut, serving over 700,000 residents in 62 municipalities. The company’s future ownership remains uncertain as Eversource continues to explore options for its water division.