Eversource discusses Aquarion transaction and water supply reliability at public hearing

On July 24, 2025, the Public Utilities Regulatory Authority (PURA) in Connecticut convened an evidentiary hearing regarding Docket No. 25-04-03, focusing on the proposed change of control involving Aquarion Water Company and the Regional Water Authority (RWA). This meeting was significant as it addressed the implications of the merger for water service reliability and infrastructure improvements.

A central theme of the discussions revolved around the assertion that the merger would enhance the provision of safe, adequate, and reliable water service. Representatives from Aquarion emphasized that both organizations are already diligent providers of water, suggesting that their combined expertise would better address emerging challenges, such as compliance with new regulations concerning contaminants like PFAS and lead service lines. However, some participants questioned whether the anticipated benefits were merely a continuation of existing services rather than a direct result of the merger.

The conversation also touched on capital expenditure plans for infrastructure improvements. It was noted that Aquarion has ongoing projects related to maintenance and upgrades of critical facilities, including dams and water filtration plants. However, a key point of contention arose regarding the financial implications of these improvements. Under the proposed transaction, certain capital improvements would not be subject to local property taxes, which could lead to a lower revenue requirement for ratepayers but potentially higher taxes in other areas.

The hearing highlighted the complexities of regulatory compliance and financial management in the water sector. As the discussions progressed, it became clear that while the merger could streamline operations and enhance service delivery, it also raised questions about the long-term financial impacts on both the company and its customers.

In conclusion, the evidentiary hearing underscored the importance of careful scrutiny in the approval process of the Aquarion and RWA merger. As the regulatory body weighs the potential benefits against the concerns raised, the outcome will significantly influence water service provision in Connecticut. The next steps will involve further evaluations and deliberations by PURA, as stakeholders await a decision that could reshape the landscape of water management in the region.