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Consumer counsel: Aquarion sale raises municipal tax, capital access and oversight questions
Summary
Representatives from the Office of Consumer Counsel and others told the committee they will scrutinize the proposed sale of Aquarion/Conn. Water assets to a regional water authority for ratepayer protections, access to capital for PFAS work, and the future of municipal tax revenue.
The proposed transfer of Aquarion’s Connecticut operations to a public‑model authority prompted questions about ratepayer protections, municipal tax revenue and the authority’s ability to finance costly PFAS and other upgrades.
OCC stance and review plan: Claire Coleman, Connecticut’s consumer counsel, said the Office of Consumer Counsel will intervene in any PURA change‑of‑control proceeding to test managerial, technical and financial fitness. She said the OCC was concerned about whether customers would keep the same access to capital for large investments such as PFAS treatment and whether municipal tax revenues paid by private utilities would continue under a new ownership model.
Municipal tax and local impact: Several lawmakers and municipal representatives asked how the sale would affect payment‑in‑lieu arrangements and local tax receipts. The OCC said the treatment of municipal taxes under a change of ownership would be decided by the authority’s enabling structure but that the OCC will evaluate impacts as part of the PURA review.
Why it matters: A change in ownership or corporate form can alter access to capital (for regulatory compliance) and shift local tax receipts into a payment‑in‑lieu structure. OCC and PURA reviews are the mechanism for evaluating ratepayer and municipal impacts.
Next steps: The OCC said it will be a party to any PURA proceeding on the sale and will seek detailed information on the transaction and long‑term capital plans. Lawmakers urged early engagement with municipal leaders to answer local tax and service‑quality questions.
