New owner, new regulation, higher rates?

By Joe Kelly

Norfolk’s public water supply is officially under new ownership, is subject to new regulation and may well undergo significant rate increases in the coming years.

The Aquarion Water Company—which provides Norfolk with water via Wangum Lake—is no longer owned by Eversource Energy. Instead, as of July 1, in a $2.4 billion deal that has been unfolding for over a year, Aquarion is now a quasi-public utility, the Aquarion Water Authority (AWA).

The purchase of Aquarion and the transfer of control to the new AWA were all orchestrated by the South-Central Connecticut Regional Water Authority (RWA), which serves the New Haven area. Under the sale, the newly established AWA is a standalone entity but will operate alongside the RWA to deliver economies of scale, including sharing an executive team.

Customers do not need to take any action in light of the sale and can continue using their existing accounts and payment methods, according to Aquarion.

Because it is no longer part of a private company, Aquarion is no longer subject to oversight by the state Public Utilities Regulatory Authority (PURA).

Instead, the cost of water in Norfolk and other communities will now be set by a board known as the Representative Policy Board (RPB), consisting of representatives from the 59 municipalities (like Norfolk) that are Aquarion customers. Each community will have one representative on the RPB, but votes will be weighted using a formula based on the number of customers and the amount of property the water authority owns in the community.

AWA is currently reaching out to towns to encourage them to appoint their representatives to the RPB, according to a spokesperson. Norfolk First Selectman Henry Tirrell said no action has been taken on who will represent Norfolk.

Officials at Aquarion have pledged not to seek a rate increase for at least six months following the sale. However, in documents submitted during the state review of the purchase, the utility projected that Aquarion would require annual rate increases of as much as 8.35 percent per year over the next decade. Norfolk has relied on Wangum Lake for water since the late 19th century and today consumes some 85,000 gallons daily. In 1962, the lake and the associated pipes and pumping system were purchased by the Bridgeport Hydraulic Company, which was rebranded as Aquarion in 1991. Eversource Energy purchased Aquarion in 2017 but put it on the market after clashes with regulators