CONNECTICUT — The $2.4 billion sale of Aquarion Water Company has been completed, transferring the company from Eversource Energy to the newly created Aquarion Water Authority.
The transaction closed on June 30, 2026, after receiving final approval from the Connecticut Public Utilities Regulatory Authority on March 25.
Aquarion now operates under a local nonprofit authority model. Customers were not required to change their accounts or payment methods following the transition.
However, the financial structure of the purchase and its possible effect on future water bills generated strong opposition from Connecticut Attorney General William Tong.
What did the Attorney General say?
In written exceptions filed with PURA on March 11, 2026, Tong urged regulators to reject the transaction.
The document states that Aquarion customers would be required to pay approximately $5.895 billion in acquisition costs financed over 40 years.
The filing also cites PURA's proposed decision as acknowledging that Aquarion customers would pay the principal and interest connected to the acquisition premium through their monthly water bills.
This does not mean customers will see a separate charge labeled "interest" on their bills. It means that revenue collected through future water rates could be used to repay the acquisition costs and related interest.
Tong argued that the transaction was not in the public interest because of its financial effect on customers.
"Aquarion customers would be required to pay approximately $5.895 billion in acquisition costs financed over 40 years."
Possible future rate increases
Financial information presented during the approval process projected annual Aquarion rate increases beginning in 2027.
The projections included increases ranging from approximately 6.5 percent to 8.35 percent annually through 2035.
These figures are projections. They do not mean every increase has already received final approval or that every customer's bill will increase by exactly the same amount.
Aquarion and Regional Water Authority officials disputed the claim that the purchase itself would be responsible for future rate increases. They maintained that future increases would primarily support operations and necessary infrastructure investments.
Concerns about consumer oversight
Tong's March 11 filing also raised concerns about the Office of Consumer Affairs that would represent customers under the new authority.
The Attorney General argued that the consumer advocate would not have sufficient independence or resources to protect Aquarion customers.
Before the sale, Aquarion was a privately owned utility regulated by PURA. Under the new structure, it is operated by the Aquarion Water Authority, a nonprofit and quasi-public entity.
The Aquarion Water Authority operates separately from the South Central Connecticut Regional Water Authority, although the two authorities share certain leadership and administrative resources.
What customers should understand
The sale has been completed, but its full financial effect will develop over many years.
Customers are not currently receiving a separate interest charge on their bills. The concern identified in the Attorney General's filing is that future water rates will provide the money needed to repay the acquisition costs, including principal and interest.
Future bills will depend on rates approved under the new authority, individual water consumption and future operating and infrastructure costs.
The New England Voice will continue reviewing official records and future rate decisions to determine how the change in ownership affects Connecticut water customers.