By Joe Kelly

Connecticut regulators have reversed course and approved a plan in which the Aquarion Water Company will be sold by the energy utility Eversource and converted into a quasi-public, not-for-profit water authority. The state Public Utilities Regulatory Authority (PURA) had previously rejected the plan, but a Connecticut Superior Court judge overturned that decision, declaring that PURA had overstepped its authority. At its regular meeting on March 25, PURA acknowledged the judge’s decision and gave its approval to the plan, albeit grudgingly.

Aquarion is Connecticut’s largest water company, serving 59 municipalities across the state, including Norfolk. Eversource bought Aquarion for $1.67 billion in 2017 but then put it on the market in 2024 after battles with PURA over rate increases. Last year, Eversource accepted a $2.4 billion offer from the South Central Connecticut Regional Water Authority, which serves New Haven and nearby communities. The deal will turn Aquarion into the independent Aquarion Water Authority with both organizations sharing an executive team and separate but identical 11-member boards.

The proposed sale has drawn vociferous opposition from critics across the political spectrum who say it will lead to less oversight and higher water rates. Under current state law, by becoming a quasi-public entity, Aquarion would no longer come under the purview of PURA. Instead, its rates would be overseen by a board of locally-appointed officials within the utility’s service territory. In a draft decision released before the formal vote, PURA acknowledged the concerns over rate increases and regulatory oversight but said it lacked the authority to block the sale. Members of the state legislature opposed to the deal have vowed to pass legislation that would keep Aquarion under PURA oversight. Should that happen, it would likely draw a legal challenge from one or more of the utilities.