The state Public Utilities Regulatory Authority (PURA) voted 4-0 on Wednesday to deny the proposed sale of Aquarion Water Company to the South Central Connecticut Regional Water Authority, a decision local officials are calling a victory for affected communities.
“PURA listened carefully to the issues raised by thousands of residents and municipal leaders and ultimately determined that this transaction was not in the public interest,” Fairfield First Selectman Christine Vitale said. “They recognized the potential impact on water rates, a decline in tax revenue, and the loss of local control.”
Eversource, which owns Aquarion Water Company, announced the proposed $2.4 billion sale on Jan. 27, 2025. The deal required PURA approval. The agency rejected the proposal because it said the applicants did not meet the statutory requirements for approval of a change in control of a regulated water utility. Under Connecticut law, such transactions must be shown to be consistent with the public interest and beneficial to ratepayers.
Officials in communities that depend on Aquarion for their water supply had warned the sale could lead to higher water bills and reduced municipal tax revenue. Earlier this year, Fairfield and Easton officials sought intervenor status in the proceedings through the Connecticut Metropolitan Council of Governments, which represents Bridgeport, Easton, Fairfield, Monroe, Stratford and Trumbull.
Newly elected Easton First Selectman Daniel Lent did not respond to a request for comment but issued a joint statement with Sen. Tony Hwang calling PURA’s decision a “watershed moment” for residents and municipalities that rely on strong oversight of public water resources.
Aquarion serves approximately 722,000 people in 62 Connecticut communities. Twenty-six mayors and first selectmen across the state formally opposed the sale. Vitale previously warned that the sale could increase water rates by 65 percent over the next decade. “By contrast, in the last 10 years, with PURA’s regulatory oversight, water rates in the Aquarion region have increased only 8.5 percent,” she said.
Local officials also raised concerns about the proposed sales potential impact on Fairfield’s and Easton’s tax revenue. Aquarion generates about $1.8 million in annual taxes in Fairfield and is Easton’s top tax payer. According to the town’s 2021 grand list, Aquarion held approximately $47.16 million in combined real-estate and personal-property assessment, and local officials have estimated the company pays about $1.4 million in annual property taxes in Easton.
Rochelle Kowalski, chief financial officer of the Regional Water Authority, said in a statement that the organization is reviewing PURA’s decision. “We believe the conversion of Aquarion to a not-for-profit, public authority would have been in the best interest of customers, communities, and employees, providing local control and significant long-term benefits,” she said.
