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Public Utilities Regulatory Authority adopts $19.4 million DWSRF loan for Connecticut Water Company
Summary
The Public Utilities Regulatory Authority on April 30 approved Connecticut Water Company’s request to issue $19,400,000 in Drinking Water State Revolving Fund (DWSRF) loans to fund three projects in Madison and Plainfield and a lead service line identification program.
The Public Utilities Regulatory Authority on April 30 adopted staff’s recommendation approving Connecticut Water Company’s application to issue $19,400,000 in Drinking Water State Revolving Fund loans to finance three projects and a lead service line identification program.
Authority staff Guy Novella told the panel that the company applied for the loans on March 6, 2025, and proposed to use proceeds to fund (1) the interconnection of the Green Springs water system in Madison, (2) centralized treatment of raw water from specified wells in the Gallup system in Plainfield, and (3) a lead service line identification program. Novella said the loans carry a 20-year term and a 2% interest rate and that the projects were eligible for subsidies that “will likely entail loan and principal forgiveness.”
Novella said the company has access to legal resources and that its managers have “combined 60 years of experience managing loan programs.” He told commissioners the company’s current capital investment plans average about $117,000,000 annually and that the authority’s review found no unreasonable terms; the proposed coupon rate of 2% is below recent market rates. “The loans are not expected to have any detrimental impact on the company's financial flexibility,” Novella said, and he reported the company’s overall weighted average cost of capital would decline to 6.86% from 6.96% after the transaction. Based on that review, staff recommended adoption to the panel.
Novella noted the application was filed under Connecticut General Statutes §16-43b and identified additional statutory requirements cited in the docket (transcript references: §16-1(a); §22a-478(m); §22-475). He also said concurrent approval by the Department of Public Health of final project plans and specifications was required and that the Department had provided that approval in this docket.
A motion to adopt the staff recommendation was moved and seconded (mover not specified in the transcript; Commissioner Karen seconded). The Authority adopted the decision by roll call; the transcript records affirmative votes from Commissioner Karen, Commissioner Arconti and Chairman Marissa Gillette.
The decision authorizes Connecticut Water Company to proceed under the terms described in its application and the DPH approvals; the transcript does not specify additional implementation dates or reporting requirements.
The Authority closed consideration of this docket after the vote; the record does not include further public comment during the item.
