CT Regulators Block Aquarion Sale After Easton Leaders Warn Of Risks

EASTON, CT — Connecticut utility regulators on Wednesday rejected a proposal to sell Aquarion Water Company to a quasi-public regional authority, ending months of debate over potential rate hikes and the future oversight of the state’s largest water utility.

The Public Utilities Regulatory Authority voted 4-0 to deny the $2.4 billion transaction between Eversource, Aquarion’s parent company, and the South Central Connecticut Regional Water Authority. The deal called for $1.6 billion in cash and $800 million in debt and would have created a new Aquarion Water Authority governed by representatives from communities served by the utility.

In its decision, PURA cited concerns about the structure of the proposed quasi-public entity and whether it could meet its “managerial responsibility” to roughly 250,000 customers. The ruling also reflected apprehension about shifting Aquarion from an investor-owned utility—subject to PURA rate oversight—to a publicly owned authority that would operate outside the regulator’s jurisdiction.

Filings before PURA projected Aquarion customers could face annual rate increases of 6.5 percent to 8.35 percent over the next 10 years under the new authority. Critics argued that the absence of PURA oversight, combined with the financial obligations associated with the sale, would result in escalating costs for consumers.

Local leaders in Easton, where Aquarion owns significant watershed land, welcomed the decision. In a joint statement, First Selectman Dan Lent and state Sen. Tony Hwang described the ruling as a “watershed moment” for communities reliant on strong oversight of natural resources and stable municipal revenue.

Newly-elected First Selectman Lent said he ran on a commitment to “protect the watershed” and has long raised concerns about both environmental and financial impacts tied to the proposed sale.

“The odds were against us, but we needed to fight to ensure the protection of our watershed areas and to protect the municipal revenues and property taxes that Easton relies on,” Lent said. “I am so happy to see the denial of this sale. It would have been a total disaster for Easton.”

Hwang said Aquarion’s land holdings play a crucial dual role for the town, safeguarding water quality while contributing millions of dollars in property taxes that support education and infrastructure.

“Losing this funding would place an undue burden on families and disrupt the stability of the town,” Hwang said. “We must protect both our environment and our financial resources for the long-term well-being of Easton.”

Both leaders applauded PURA for acknowledging concerns raised by Easton and other affected communities and said they plan to continue advocating for policies that prioritize sustainable water management and municipal stability.

Eversource announced the proposed sale in January.