The South-Central Connecticut Regional Water Authority (RWA) announced the formal closure of its deal to purchase Aquarion from Eversource in a transaction worth $2.4 billion. This move creates a new public entity, the Aquarion Water Authority, which will provide water service to 59 towns, primarily in western Connecticut.

Background and Opposition

The sale was met with significant opposition from elected officials, consumer advocates, and state Attorney General William Tong, who argued it would lead to higher water bills and reduced oversight from state regulators. Despite this, the RWA and Aquarion officials pledged not to seek a rate increase for at least six months following the sale.

After the initial period, the utilities projected that Aquarion would require annual rate increases of between 6.5% and 8.35% over the next decade to maintain its operations. The Public Utilities Regulatory Authority (PURA) originally voted to block the transaction in November, citing concerns with the Aquarion Water Authority’s governance structure.

Legal Proceedings and Outcome

Both Eversource and the RWA sued, and in January, a judge ordered PURA to reconsider its decision. In March, the authority issued a new decision allowing the transaction to proceed, despite its reservations. Neither Tong nor the towns opted to appeal this second decision, thus allowing the sale to close.

Aquarion customers are no longer represented by the Office of Consumer Counsel in proceedings before PURA. Instead, the RWA and Aquarion Water Authority have a consumer advocate appointed by the utility’s leadership. Critics argue that this prevents the advocate from acting independently.

Financial Implications and Future

The RWA agreed to pay Eversource $1.6 billion to purchase the water utility and all of its assets, in addition to paying off roughly $800 million in debt. Eversource Chief Financial Officer and Treasurer John Moreira stated that the sale would improve the company’s finances and credit profile.

State Rep. Jonathan Steinberg, who co-chairs the legislature’s Energy and Technology Committee, expressed concerns about the governance structure and regulatory oversight. He supported legislation earlier this year that would have amended portions of the 2024 law to address these concerns, but it did not move forward.

Original reporting: The Connecticut Mirror — read the source article.