Fairfield and Easton have filed for intervenor status in the proposed acquisition of the Aquarion Water Company by the South-Central Connecticut Regional Water Authority (RWA).
Eversource announced the $2.4 billion sale on Jan. 27. The transaction requires approval from the Connecticut Public Utilities Regulatory Authority (PURA) and the sale is expected to close by late 2025. The proceeds will enable the company to pay down parent company debt while efficiently reinvesting capital into its core electric and natural gas businesses, according to Eversource officials.
The sale to a new state-affiliated water authority is raising concerns about regulatory oversight and financial consequences among officials in communities that depend on Aquarion for their water supply. Those consequences 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.
Since there are no county governments in the state, the towns have filed for intervenor status through the Connecticut Metropolitan Council of Governments (MetroCOG), a multi-discipline, regional planning organization with six member communities — Bridgeport, Easton, Fairfield, Monroe, Stratford and Trumbull.
First Selectman David Bindelglass said an intervenor status gives Easton and the other communities more influence in RWA’s purchase of the Aquarion Water Company .
“It’s a bad deal as it stands,” he said of the planned buy. “In order to make a meaningful impact, you have to apply for this status.
“An individual, group of individuals, or an organization with an interest in the outcome of a hearing may participate in that hearing as an intervening party or as an intervenor. The status gives parties the right to participate in the proceeding by receiving information filed by parties, cross-examining witnesses, filing briefs, and presenting oral arguments,” said Bindelglass.Â
In his May 8 newsletter to constituents, Fairfield First Selectman Bill Gerber said that PURA “has played a crucial role in regulating water rates for the protection of residents but would be replaced with a self-regulating structure that could have devastating rate consequences.
“There is potential for a substantial decrease in tax revenue,” Gerber said. “The town would receive Payment in Lieu of Taxes [PILOT] rather than the current assessment process, which includes periodic property revaluations. Aquarion is one of the town’s largest taxpayers, and any material reduction in tax revenue would have a negative impact on town services.”
