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Commissioners raise concerns about proposed sale of town water company; regulatory and tax impacts cited
Summary
Commissioners discussed a proposed sale of the town water company, noting that a new private owner might not be subject to PURA rate regulation, could avoid town property taxes, and is reported to charge substantially higher rates. Commissioners urged clearer public communications and possible town engagement ahead of regulatory review.
Commission members used the April 10 meeting to flag the proposed sale of the town water company and to urge clearer public outreach and follow-up with town leadership. A commissioner reported the sale would place consumers under an owner that would not be regulated by PURA and said the buyer's rates appeared to be roughly 40% higher than current town rates.
Why it matters: commissioners said the change could affect residents who receive town water through higher bills and loss of rate review by the state regulator. They also noted potential impacts on town property tax treatment and municipal revenues if the buyer pays different taxes or exemptions.
Participants said the transaction advanced through a recent legislative change that permitted the sale (speaker did not provide the statutory citation). The commission noted that the town's first selectman has expressed opposition and that at least one member of a reviewing commission had recused themselves because of a financial relationship with the prospective buyer's bank.
The commission discussed public communications steps including asking town leadership to brief residents and urged that staff and communications coordinate on a clear summary of what the sale would mean for customers on town water and for those on private wells. Danica and Greg Riley (town communications) were identified as contact points to develop and distribute factual background and to consider a public forum or posts directing residents to regulatory filings.
No formal vote or regulatory action was taken by the Utilities Commission on the sale during the meeting; the item was discussed as a commissioner report and for follow up with town officials and communications staff.
