PURA denies change-of-control for Aquarion, flags managerial and local-control concerns

The Public Utilities Regulatory Authority on Wednesday adopted a decision denying a proposed change of control in docket 250403, in which Aquarian/Aquarion’s operations would have been acquired by the Aquarian Water Authority (AWA). Authority staff recommended denial after concluding the transaction met financial and technological suitability tests but failed the managerial-suitability and local-control requirements.

“Accordingly, the decision before you denies the application,” Authority staff attorney Josh Coker told the panel, summarizing the record and statutory standards that the authority applied in the contested proceeding. Coker identified the statutory evaluation factors as the applicants’ financial, technological and managerial suitability and the burden to show a transfer is in the public interest.

Chair Tom Wheel recused himself from the vote, explaining he had recently worked at the Office of Consumer Counsel and had authored portions of OCC filings in this docket. “I cannot now participate in this case as a commissioner and impartially determine whether my own arguments as filed in this record before me are more or less compelling than those advanced by other parties,” Wheel said, and he announced he would abstain from the vote.

Interim Commissioner Jan Beecher, who said she was committed to impartiality, told the panel she was unconvinced the applicants met their burden and would vote to deny. “I will vote to deny this application for various reasons raised in the order,” Beecher said. Interim Commissioner Holly Cheeseman also said she would support the decision, explaining that her prior legislative service did not, in her view, create a disqualifying conflict in this matter.

The record summarized by staff lists the applicants as Aquarian Water Authority (AWA), the South Central Connecticut Regional Water Authority, and Eversource Energy; interveners included the Office of Consumer Counsel, the Connecticut Office of the Attorney General, the Department of Public Health, regional councils of governments and several towns, as well as trade groups. Staff’s written summary states the transaction would transfer all issued and outstanding shares of Aquarion to AWA for approximately $1.6 billion in cash plus roughly $800 million in net debt (the filing also refers to a combined approximately $2.4 billion figure for the transaction).

After a roll call of participating commissioners — with Vice Chairman Arcante (yes), Commissioner Beecher (yes), Commissioner Karen (yes) and Commissioner Cheeseman (yes) recorded in the public roll call — the authority announced the decision had been adopted. The chair’s earlier recusal was recorded in the minutes; the panel’s vote adopted staff’s recommendation to deny the change-of-control application.

Votes at a glance: the panel adopted the denial in docket 250403 (decision adopted after roll call; chair abstained due to recusal). The authority also adopted two consent calendars: part B (final decisions and motion rulings on six dockets) and part C (appointments of presiding officers for six dockets); both consent calendars were moved, seconded and adopted by roll call.

The authority said the next regular meeting is scheduled for Dec. 3, 2025, at 9 a.m. by remote teleconference.