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Water Authority's Controversial Bid Raises Rate Concerns

September 12, 2024 | Northwest Hills County, Connecticut


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Water Authority's Controversial Bid Raises Rate Concerns
In a recent government meeting, discussions centered around the potential acquisition of Aquarion Water Company by the Southwest Regional Water Authority (RWA), a move that has raised concerns among local officials and residents. The RWA, which serves approximately 220,000 people across southern Connecticut, is seeking to expand its operations despite having higher rates than Aquarion, which has been struggling to secure approval for rate increases from the Public Utilities Regulatory Authority (PURA).

Legislation passed earlier this year allows the RWA to acquire debt without legislative approval, a significant shift that could impact the financial landscape of water services in the region. Several selectmen voiced their apprehensions during public hearings held on August 23 and 27, highlighting the implications of the RWA's potential purchase.

Local leaders from towns such as Torrington, New Hartford, and Kent received letters from RWA CEO Larry Bingaman urging them to provide input on the acquisition. However, there are no guarantees that the RWA will be the successful bidder for Aquarion, which serves a substantial customer base.

A key point of contention is the RWA's exemption from PURA oversight, which has historically acted as a safeguard for consumers regarding rate increases. This exemption raises questions about future rate stability and transparency if the acquisition proceeds. Additionally, while the RWA claims to make payments in lieu of taxes (PILOT), it is unclear whether these payments are mandatory, further complicating the financial implications for the towns involved.

As the situation develops, local officials are encouraged to engage in the discussion, emphasizing the importance of consumer protection and equitable water rates for the communities they serve.

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Scribe from Workplace AI
Scribe from Workplace AI