State regulators voted against a proposed deal to sell Aquarion to the New Haven-based Regional Water Authority for $2.4 billion. The move would have made Aquarion a quasi-public entity and removed the water company from state oversight. Roughly 800,000 people in 59 towns across Connecticut rely on water from Aquarion.
Lawmakers and state officials of both parties argued lack of public oversight would mean a spike in water rates for residents.
Last week, Connecticut Attorney General William Tong described the deal as “atrocious” and stated that the change could lead to rate hikes and price gouging. On Wednesday, he praised PURA’s decision to vote against the deal.
“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,” Tong said.
Aquarion is regulated by PURA, which has the authority to set rates. Both state and local leaders said they worried about the way the deal was drafted. Leaders of 26 municipalities across the state said the sale could hurt the environment, public health and restrict local control of water access.
In a press conference on Tuesday, legislators urged state regulators to either stop the vote entirely or vote against the deal. They said if regulators voted in favor of the deal, they would have asked the Tong to file an injunction to stop the sale. State Senator Tony Hwang said the deal concerns him.
“Governance, property taxes, and rate increases affecting consumers and ultimately the accountability for environmental sustainability and preservation,” said State Senator Tony Hwang of Fairfield. “These are issues that are critical.”
Tong said Aquarion intended to raise rates with a projected annual rate increase between 6.5 percent and 8.35 percent annually through 2035. He said rate hikes could have had the potential to double water bills for Connecticut families over the next decade.
“Eversource desperately wanted to offload Aquarion, and they concocted this maneuver to extract as much cash as possible by guaranteeing the new entity free rein to jack up rates,” he said.
