By Meghan Muldoon.

NEW BRITAIN–Connecticut utility regulators on Wednesday unanimously rejected the proposed sale of Aquarion Water Company, siding with opponents of the sale who argued the deal risked higher bills and weaker oversight for nearly a quarter of a million customers.

Aquarion, the state’s largest water utility, is currently owned by Eversource. As a corporate-owned public utility, it is regulated by the Public Utilities Regulatory Authority (PURA), which has authority to set rates and scrutinize its service. In 2023, PURA rejected Aquarion’s bid to raise rates by nearly 30 percent.

Eversource announced its plans to sell the water company to South Central Connecticut Regional Water Authority (RWA) in January as part of a deal worth $2.4 billion. The sale would have created a new quasi-public entity, the Aquarion Water Authority, with rates controlled by a board made up of members from each of the towns served by the water utility.

But in a 4-0 vote, regulators concluded that this new governance structure failed to meet state standards for “managerial suitability,” even as the financial and technical components of the transaction were deemed sufficient.

PURA emphasized that concern over governance was decisive. The ruling highlighted that “every intervenor” representing a municipality served by Aquarion – including the towns of Westport, Fairfield, New Canaan, Ridgefield and Wilton – opposed the sale. The Office of the Attorney General, Department of Public Health, Save the Sound and the National Association of Water Companies also weighed in against the proposal.

For Westport officials, the decision was welcome news. 

State Sen. Ceci Maher (D-Wilton) said the broad opposition reflected deep concerns about the deal. “After loud bipartisan opposition to this sale from state and local officials, I’m glad to see PURA’s unanimous opposition to the sale,” she said. “This sale had serious pitfalls that would have harmed households and municipalities alike.”

State Rep. Jonathan Steinberg (D-Westport) echoed those concerns, calling the proposed governance framework “inadequate and clumsy.” He added that the parties may try to revise and resubmit the proposal but that creating a workable governance structure would be difficult. “I’m not sure I know what that looks like but Aquarion customers must be well served,” he said.

Marc Lemcke of Smart Water Westport, a nonpartisan group formed in 2017 after Aquarion proposed new water storage tanks in town, said the group has long supported the concept of public ownership but could not back this specific deal. 

“RWA is, by any measure, the better company — more transparent, more innovative, and operating with a superior governance and service model,” Lemcke said. “However, we opposed this particular transaction because the price was inflated, the governance model was flawed, and the deal offered inadequate protection for ratepayers.”

While Lemcke warned that “the trouble may only just be starting,” he added that PURA’s decision ensures the issue now has the scrutiny it deserves: “This is an opportunity for Westport.”

Meghan Muldoon

^{_{Meghan Muldoon is a freelance journalist based in Darien, Connecticut. As a television and print journalist, Muldoon has covered state government and politics in Virginia and Connecticut.}}