Towns press PURA on ‘pilot’ payments and potential loss of property tax revenue

Municipal officials from New Canaan, Ridgefield and other Aquarion communities flagged payments in lieu of taxes (pilots) as another significant component of the acquisition's fiscal impact on towns.

Lede: Witnesses said AWA’s planned pilot would initially match Aquarion’s current tax payments but expressed concern that the pilot could be changed by future legislation or re‑interpretation, and that the pilot’s rules exclude taxes on future expansions, potentially reducing long‑term municipal revenue.

Nut Graf: Town officials said the statutory pilot guaranteed in the enabling legislation is not equivalent to current property tax treatment for expansions or revaluations. They urged clarity on how the pilot will be calculated, how it will be applied if a property changes value, and whether municipalities have an enforceable contractual remedy if payments fall.

What witnesses said - New Canaan: First Selectman Diana Carlson said Aquarion’s recorded tax payments to New Canaan had ranged year to year and that the town cannot rely on a steady increase. She told the hearing towns “depend on Aquarion property tax payments to allow our towns to provide essential municipal services.” - Ridgefield: First Selectman Rudy Marconi said municipalities depend on predictable property tax revenue streams; he described past Connecticut experience where legislative changes reduced municipal reimbursement schemes over time and called that history a cautionary example for relying on a statutory pilot instead of the tax rolls.

How pilots are described in filings and testimony Applicants stated in filings and repeated at hearing that AWA would pay towns no less than current Aquarion tax receipts at closing and that the pilot is intended to preserve equivalent municipal receipts for existing property. Witnesses from the applicants noted statutory language excludes future increases tied to new buildings or revaluations from pilot protections in some instances (witnesses characterized future expansions and their tax consequences as outside the pilot formula).

Municipal requests and questions Towns asked: Is the pilot guaranteed in a way municipalities can enforce (legally binding agreement, bond covenant, or other instrument)? What happens to pilot payments if later legislation changes municipal receipts? Will towns receive payment adjustments after revaluation or for new property acquired after closing? Municipal witnesses said they wanted a written, enforceable commitment or a legislative amendment guaranteeing that pilot levels would not be eroded.

Status and next steps Applicants pointed to statutory language and said towns would receive at least the amounts Aquarion paid historically; municipal leaders asked for stronger enforceability. PURA will consider the record and late‑file exhibits and may request further documentation on pilot mechanics, the timing of payments, and whether contractual or enabling‑law protections are adequate to protect municipal revenue streams.

Ending: Municipal officials said they will continue to press for clarity and protections if the transaction proceeds; the hearing record shows further documentation and potential conditions will be required to resolve questions about long‑term municipal impact.