Overview
- The Public Utilities Regulatory Authority voted 4–0 to block Eversource’s sale of Aquarion to a new subsidiary of the South Central Connecticut Regional Water Authority for $2.4 billion, including $1.6 billion in cash and $800 million in debt.
- Regulators found the nonprofit buyer would be exempt from PURA control and flagged governance issues, including potential conflicts with the existing RWA board and a weighted system that would leave 30 of 59 member towns without a vote.
- Filings projected annual water-rate hikes of roughly 6.5% to 8.35% from 2027 through 2035, and PURA pointed to the acquisition premium and expected increases as concerns warranting further scrutiny.
- The transaction relied on a 2024 legislative exemption allowing a regional authority to acquire an investor‑owned utility, a change that drew sustained political and municipal opposition.
- PURA noted the buyer’s pledge to pay at least the property taxes Aquarion currently pays, while Attorney General William Tong praised the rejection and Eversource can seek another buyer.