Connecticut regulators have granted final approval for the proposed sale of Aquarion Water Company, allowing Eversource Energy to proceed with the divestment of its water business. The state’s Public Utilities Regulatory Authority (PURA) voted 3–0, with two abstentions, to approve the transaction, which will see Aquarion acquired by the South Central Connecticut Regional Water Authority (RWA). The decision follows an earlier draft ruling signaling approval and marks a key step in a process first outlined when Eversource indicated it was considering selling the utility as part of a broader strategic shift.
The $2.4 billion deal will transform Aquarion into a quasi-public entity operating under a locally governed, not-for-profit model. The new structure, enabled by legislation passed in 2024, will place oversight in the hands of a board appointed by 59 municipalities within the service area, while Aquarion will continue to operate as a separate authority. In a joint statement, Eversource and the RWA said the transition is intended to support reliable service, accountability, and long-term investment for approximately 226,000 customers.
The approval follows a broader strategic repositioning by Eversource, which has been focusing on its core electric and natural gas operations and divesting non-core assets. The company acquired Aquarion in 2017 and had previously indicated that a potential sale of its water business could help reduce equity needs and improve regulatory diversification.
The approval has also drawn criticism from public officials and stakeholders. Concerns have been raised regarding projected rate increases, estimated between 6.5% and 8.35% annually from next year through 2040, as well as the financial burden associated with the transaction. Opponents, including state officials and consumer advocates, argue that customers may face higher costs and long-term debt obligations, while supporters point to potential benefits linked to public ownership, including tax advantages and lower capital costs. Although the decision is final, legal challenges from municipalities opposing the sale remain possible, and additional legislation under consideration could extend regulatory oversight after the transaction is completed.
