By Elizabeth Barhydt
The proposed $2.4 billion sale of Aquarion Water Company by Eversource Energy to the newly created Aquarion Water Authority — a quasi-public entity operating alongside the South Central Connecticut Regional Water Authority (RWA) — is one of the most consequential utility changes in decades for Connecticut. For New Canaan, where Aquarion is the primary water provider (The First Taxing District in Norwalk supplies water to a small section of town), the transaction could reshape rate oversight, local tax revenue, and even the stewardship of watershed lands that surround the town’s reservoirs.
From PURA Oversight to Internal Governance
Aquarion’s rates and service standards are currently regulated by the Public Utilities Regulatory Authority (PURA), which provides an external check on price increases and ensures consumer protections. If the sale proceeds, rate-setting would move under the control of the RWA’s Policy Review Board, eliminating PURA’s direct oversight for most decisions.
Critics say this shift would leave customers more vulnerable to price hikes. “Connecticut residents already pay far too high utility rates across the board,” said State Senator Ryan Fazio, who represents New Canaan, Stamford, and Greenwich. “This sale could add insult to injury, especially when the acquiring authority’s rates are already about 50 percent higher than Aquarion’s.”
The concern is rooted in clear disparities: a typical New Canaan household currently pays about $540 per year for water service through Aquarion, while households in RWA’s New Haven-area service district pay roughly $810 annually. The Office of Consumer Counsel has warned that these higher RWA costs could migrate to Aquarion customers if the sale closes without safeguards.
Impact on Local Budgets
Beyond household bills, the shift in ownership could create a significant shortfall for municipal budgets. Aquarion, as a private utility, pays property taxes — approximately $375,000 annually to New Canaan. A quasi-public entity like RWA is exempt from property taxes and instead offers Payments in Lieu of Taxes (PILOT). These payments are voluntary and typically remain flat over time, raising fears about revenue gaps for schools, emergency services, and other town needs.
“This is a major concern for us,” said New Canaan First Selectman Dionna Carlson. “Property taxes from Aquarion support essential services here. PILOT payments are not a reliable replacement — they don’t adjust for inflation or infrastructure improvements.”
Carlson also questioned whether the new authority would match Aquarion’s record on customer service. “Aquarion was a great partner for our community,” she said. “We need to make sure that our customers continue to get the kind of service they are entitled to.”
Representation and Governance Concerns
Another contentious point is representation. The proposed governing board would allocate six seats to RWA’s existing New Haven-area district and five to the newly acquired Aquarion district, even though Aquarion serves more customers statewide. Local leaders warn that this imbalance could marginalize Fairfield County towns when decisions are made about rates, infrastructure, and land management.
Wilton’s First Selectman Toni Boucher described the structure as “absolutely biased and unfair,” saying it “gives greater control to a smaller customer base while diminishing the voice of communities like ours.”
Land Use and Conservation Issues
The sale also raises pressing questions about watershed lands currently owned by Aquarion. Thousands of acres of protected forests and buffer zones around reservoirs could face different management priorities under RWA. While these lands play a critical role in maintaining water quality and providing open space, quasi-public authorities have the ability to sell or lease certain parcels deemed “non-essential,” potentially opening the door to future development.
“Land stewardship is every bit as important as water rates,” said Greenwich First Selectman Fred Camillo. “These properties are integral to our environment and public health. Any change in ownership needs to guarantee conservation protections are not weakened.”
With state housing mandates like 8-30g exerting pressure on municipalities, even formerly safeguarded lands could face new scrutiny if ownership priorities shift.
Rate Comparisons and Projected Increases
Under the terms of the proposed transaction, RWA could recover the full $2.4 billion purchase price through customer rates — an option not available to private bidders regulated by PURA. Analysts warn this could lead to annual increases of about 6 percent for several years, tapering to around 4 percent annually thereafter. By contrast, Aquarion’s last approved rate adjustment was an 8.5 percent increase spread over a decade.
The potential for steep hikes is one of the central arguments driving legislative and community opposition.
Legislative Pushback and Court Rulings
The sale’s path was set in motion by emergency legislation passed in June 2024 that allowed RWA to bid for Aquarion without traditional public hearings. That process has drawn bipartisan criticism for its lack of transparency. “This was one of the worst examples of governmental abuse that I’ve seen in my four years in office,” Fazio said of the legislative maneuver.
In February 2025, Republican lawmakers filed a bill aimed at blocking or amending the sale, citing concerns over rates, governance, and land use — a move reported by the CT Mirror. While that bill’s prospects remain uncertain, it signals continued pushback at the state level.
Adding to the debate, in July 2025 the Connecticut Supreme Court upheld PURA’s authority in a separate Aquarion rate case. The ruling affirmed the state’s ability to limit increases under private ownership and has been cited by opponents of the sale as evidence of what consumers stand to lose if oversight shifts to RWA.
Looking Ahead
Eversource has framed the sale as part of a strategic refocus on its electric and gas operations, citing $440 million in 2023 losses as a factor. RWA, for its part, argues that public ownership will strengthen infrastructure and long-term water security.
Local officials remain unconvinced. Carlson emphasized that “assurances are not enough — we need enforceable commitments.” Camillo added, “Their public statements will be scrutinized closely. Our communities deserve transparency and accountability at every step.”
Fazio urged continued vigilance as hearings approach: “The public has a narrow window to make their voices heard. If we don’t speak up now, we could be living with the consequences for decades.”
Hearings before PURA on the proposed sale were moving slowly earlier this week, prompting regulators to add a third day of testimony. New Canaan, Ridgefield, Westport, and Fairfield are participating as intervenors.
Dionna Carlson has been representing New Canaan tirelessly during the PURA hearings on the Aquarion sale, spending full days in New Britain alongside other town leaders. With final regulatory decisions expected by year’s end, New Canaan and neighboring communities are bracing for an outcome that will shape water rates, tax revenues, and land conservation for generations.
