PURA Rejects Aquarion Water Company Sale; AG Tong, Fairfield Leaders Praise Decision

FAIRFIELD, CT — Connecticut Attorney General William Tong this week welcomed a decision by the state Public Utilities Regulatory Authority to reject a proposal that would have transferred ownership of Aquarion Company to a newly created nonprofit entity.

PURA denied the $2.4 billion sale by Eversource to the South Central Connecticut Regional Water Authority, after regulators concluded it would significantly increase water bills and reduce public oversight of rates and consumer protections.

Tong, Fairfield First Selectwoman Christine Vitale and others had urged regulators to block the deal, calling it harmful to ratepayers.

"This deal was a costly loser for Connecticut families and PURA was right to reject it," said Attorney General Tong in a statement. "Eversource desperately wanted to offload Aquarion, and they concocted this maneuver to extract as much cash as possible by guaranteeing the new entity free reign to jack up rates. Eversource is free to find a new buyer, but should understand that any new attempt to end public regulatory oversight over water bills for hundreds of thousands of Connecticut families is going to be a non-starter here."

Added Vitale, "This decision is a victory for Fairfield residents and for communities across the region. We thank MetroCOG for their leadership and for amplifying the concerns of municipalities serviced by Aquarion. 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, recognizing the potential impact on water rates, decline in tax revenue, and loss of local control."

State Sen. Tony Hwang (R-Fairfield), who also opposed the deal, was pleased by PURA's decision.

"Today’s decision is a meaningful step toward preserving the public’s trust," Hwang said in a statement. "Now, as legislators, we have a duty as well to remain vigilant of enabling legislation that could have unintended consequences down the road so we do not make the same mistakes."

From the outset, Sen. Hwang argued that the process lacked basic transparency and public engagement.

"Connecticut families should never be asked to shoulder risks they were never fully told about," Hwang said. "Residents and local officials were given little clarity on how the sale would affect water rates, municipal revenue, or environmental protections."

According to filings, Aquarion anticipated annual rate increases between 6.5 percent and 8.35 percent through 2035, with additional increases expected every five years. State officials said those projections could have resulted in water bills doubling over the next decade.

Aquarion and its Connecticut subsidiaries serve about 722,000 people across 62 municipalities, making it the state’s largest water supplier. As a corporate-owned utility, it is regulated by PURA, which sets rates and reviews company operations. In 2023, the agency rejected Aquarion’s proposed rate increase of nearly 30 percent, according to Tong. The company appealed, and the Connecticut Supreme Court largely upheld PURA’s decision.

Vitale also expressed deep appreciation for Attorney David Ball of Cohen and Wolf, P.C., whose expertise and legal guidance helped Fairfield and other communities navigate the complex PURA review process.

"Attorney Ball’s steady legal leadership was instrumental in achieving this outcome, as well as helping the Town with other utility-based issues," Vitale said. "We are grateful for his partnership."

Under the proposal reviewed by PURA, Aquarion would have been converted into a nonprofit called the Aquarion Water Authority and operated jointly with the South Central Regional Water Authority. The two organizations would have shared leadership and a governing board. Nonprofit water authorities in Connecticut are not regulated by PURA; instead, their boards vote on rate requests in full, without the ability to make incremental adjustments.

Assistant Attorneys General Caroline McCormack and John Wright and Deputy Associate Attorney General Michael Wertheimer of the Consumer Protection Section assisted in the case, Tong’s office said.