Real World Assets Update: Sale of Aquarion Water Co. Approved by Connecticut Regulators

Connecticut Regulators Approve Aquarion Water Company Sale

On March 25, 2026, Connecticut’s Public Utilities Regulatory Authority (PURA) gave final approval for the sale of Aquarion Water Company. The state’s largest water service now moves to a new owner. Eversource, which owns Aquarion, can sell the utility to the South Central Connecticut Regional Water Authority (RWA). PURA voted 3-0, while two members chose not to vote.

Sale Details and Transition to Public Ownership

• The $2.4 billion sale will turn Aquarion into a public-style entity.
• Aquarion will run as an independent public authority. A board, chosen by the 59 municipalities in its area, will run it.
• As a nonprofit company, Aquarion will not pay local property taxes.
• The company plans to keep rates steady for six months. It will make payment agreements to help municipalities recover lost tax income.
• Experts expect annual rate rises between 6.5% and 8.35% from next year through 2040. ## Legislative Background and Opposition

The sale happened because the state passed a law during a 2024 special session. That law let the RWA bid on Aquarion. Some local leaders worry. They point to past high rates under RWA management and worry about financial risks.

Some opposing voices are:

• State Senate Minority Leader Stephen Harding. He called the deal hard on customers.
• Connecticut Attorney General William Tong. He labeled the sale as economically weak and harmful to ratepayers.
• Claire Coleman, head of the Office of Consumer Counsel. She said the deal could raise costs and add debt without a clear service boost.

Regulatory Rationale and Future Oversight

Regulators said the public gains from the sale are small when seen against its large cost. They still backed the deal for its tax perks and lower capital costs. PURA’s interim commissioners stressed that public ownership guards the utility against pressures from private investors and sudden market shifts.

PURA had first rejected the sale in November 2025. A later court decision stopped further challenges to the law that set up the sale.

State lawmakers now consider a bill, House Bill 5249, which would let PURA keep a close watch on Aquarion after the sale to protect customers.

Summary

The sale of Aquarion Water Company marks a change for a major service. The utility moves from private control to a public-style system run by local leaders. This change stirs debates over balancing cost with public benefits and shows how laws and regulators shape utility sales. The case also points to long-standing questions in managing and regulating essential services.

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