The South Central Connecticut Regional Water Authority (RWA) has moved one step closer to possibly purchasing Aquarion Water Company, which supplies water to many Fairfield County towns, including Easton. In fact, most of Easton is located on watershed land owned by Aquarion.
After several public meetings in August, the RWA’s Representative Policy Board on Sept. 5 approved its application to bid on Aquarion, stating the possible purchase “is consistent with the RWA’s mission, vision, and values.”
RWA’s interest in purchasing Aquarion has raised concerns among local officials. They include potential hikes in local water bills, a drop in tax revenue and the impact on Easton’s fire district, which services the hydrants in town.
The RWA is a self-regulated quasi-government agency, and is not subject to oversight by the Public Utility Regulatory Authority. With 2,400 acres, Aquarion is the largest tax property payer in Easton and, under state law, RWA is exempt from paying property taxes although it does contribute payment in lieu of taxes (PILOT).
“RWA would pay a PILOT, but it’s not clear that would necessarily make us whole,” said First Selectman David Bindelglass.
Aquarion currently pays Easton approximately $1.4 million in taxes each year. Easton’s annual budget is roughly $50 million. Asked about a possible bid, Aquarion recommended asking its parent, Eversource, which has indicated it wants to sell the company. A spokesperson there said it had no updates on a potential sale.
Aquarion has worked with the Aspetuck Land Trust and other prominent state and local groups for years to preserve thousands of acres around Easton and Fairfield County. David Brant, executive director of the trust, said he doesn’t know enough about the specifics of the bidding process to comment in depth, but stressed the importance of ensuring the health of the lands.
“These lands act as a giant sponge that directs runoff to reservoirs and ensures a clean and healthy water supply,” he said. “It’s an incredibly important public service.”
Easton Selectman Nick D’Addario is taking a wait-and-see approach at this point in the process. “We’re far away from RWA completing a purchase,” he said. “Some private parties, I assume, are interested. It remains to be seen whether they’ll have the winning bid.”
However, he added, “I’ve spoken with local community leaders and we’re concerned about local control, the PILOT payment versus tax revenue. RWA is always going be a New Haven-focused organization, and we’re talking the Fairfield, Easton, Bridgeport area. Aquarion has a strong working relationship with the town. There’s concern that we’ll lose the attention that has protected a town like Easton.”
Bindelglass also highlighted that there would be a complex decision-making process after the purchase, if completed, noting the RWA’s “very complicated governance structure.” He added, “On the one hand, every single town gets a representative. It’s like Congress. Forty people trying to make decisions. Their executive council is to be made up of five people from the current RWA territory and four from the much larger Aquarion territory,” Bindelglass said.
