Joint news release:
Regional municipal leaders and a bipartisan group of state legislators today called on the Connecticut General Assembly to pass legislation, House Bill 5249, protecting ratepayers and preserving regulatory oversight in response to the proposed $2.4 billion sale of Aquarion Water Company to a newly created quasi-public entity affiliated with the South Central Connecticut Regional Water Authority (RWA). These municipal leaders and legislators plan to testify today in the Energy and Technology Committee to support HB 5249 and call for its emergency certification later this week.
The legislation follows renewed public attention surrounding the transaction. In October 2025, the Public Utilities Regulatory Authority (PURA) denied the application, citing concerns related to governance, rate impacts, and regulatory oversight. In January 2026, a Superior Court judge remanded the matter to PURA for further review. PURA is expected to act following a March 25 filing deadline. House Bill 5249 will have a public hearing today in the Energy and Technology Committee. Municipal leaders and legislators have had conversations with legislative leadership about including the bill in the emergency certification (e-Cert) legislation to be considered by the CT General Assembly later this week. This timeframe would allow regulators to have the benefit of this legislation prior to their March 25 deadline.
All 26 municipalities that formally intervened in the PURA proceeding opposed the transaction. Recent briefs filed by intervening municipalities and the Office of Consumer Counsel reiterate that the proposal is not in the public interest, citing guaranteed rate increases, the reported inclusion of a $500 million acquisition premium in the rate base, and structural governance concerns.
Both regional councils of government urged lawmakers to act to ensure that consumer protections, transparency, and local representation are not diminished.
Under the current framework, Aquarion operates under PURA oversight, which provides independent review of rates, service quality, infrastructure investments, and consumer complaints. If the sale proceeds, PURA would no longer retain jurisdiction over the new water authority.
“Once this deal is approved, PURA will have no oversight over the new authority,” said Ridgefield First Selectman Rudy Marconi, Chair of WestCOG. “Consumers would lose independent regulatory protection against excessive rate increases and lose access to PURA’s Customer Affairs Resolution Center. That is a fundamental change in accountability, and the Legislature should ensure that Connecticut ratepayers are not left without meaningful safeguards. I encourage the Energy and Technology Committee to approve this bill and pass it via emergency certification. I cannot think of a greater emergency for Connecticut consumers.”
Speakers emphasized that PURA’s ratemaking staff and consumer complaint process provide an expert, independent layer of scrutiny that cannot be replicated by an appointed board.
Municipal leaders and legislators highlighted the financial implications of the proposed transaction, including concerns that the multi-billion-dollar purchase price and associated acquisition premium would ultimately be borne by ratepayers.
State Senator Tony Hwang stated, “Connecticut families deserve transparency, accountability, and a meaningful voice when decisions affect essential resources like water. PURA’s independent oversight, strong municipal engagement, and environmental stewardship must remain central to any ownership change.”
“With this transaction, financial risk shifts from investors to ratepayers and taxpayers,” added State Senator Julie Kushner. “If PURA oversight is removed and customers are required to repay the acquisition premium, families will bear the cost without the protections they currently rely on. That is why legislative clarity and consumer safeguards are essential.”
Under the proposed structure, RWA would appoint six members to the new governing board, while Aquarion interests would appoint five making Aquarion customers a permanent minority despite representing a larger customer base and asset footprint.
“Don’t be misled by the name ‘Aquarion Water Authority,’” said Trumbull First Selectwoman Vicki Tesoro, Chair of MetroCOG. “Under this proposal, Aquarion communities become the minority voice in decisions about their drinking water and rates. That is not a substitute for independent regulatory oversight, nor does it reflect equitable governance.”
“Shelton residents depend on reliable, affordable water service, and they deserve the same strong, independent regulatory oversight they have today,” said Shelton Mayor Mark Lauretti. “This proposed transaction raises serious concerns about long-term rate impacts, governance, and accountability. I urge the General Assembly to act swiftly to preserve transparency, consumer safeguards, and a fair voice for Aquarion communities.”
Representative Chris Rosario underscored the impact on communities of color and working-class cities served by Aquarion. “With this proposal, the communities I represent stand to pay more while losing both oversight and a voice,” said Representative Chris Rosario. “I am deeply concerned that this deal would increase financial burdens on working-class families, eliminate PURA’s independent oversight and consumer protections, and permanently place Aquarion customers in the minority on a new governing board. In communities already facing economic and political marginalization, water affordability is not just an economic issue — it is a justice issue. Our constituents deserve strong oversight, fair representation, and a structure that protects them, not one that disenfranchises them.”
Both councils of government urged the General Assembly to pass legislation this week that encourages PURA to reject this deal because it is not in the public’s interest and provides:
Continued independent regulatory oversight and consumer protections;
Transparent governance structures that protect Aquarion communities from minority control;
Full scrutiny of rate impacts and acquisition premium recovery; and
Clear accountability mechanisms prior to any transfer of ownership.
“The PURA record on this docket has already raised serious concerns about rate impacts, governance, and unanswered questions,” Marconi said. “The Legislature must act to ensure that the long-term public interest, not financial structuring drives this decision.”Tesoro added, “Water is essential to public health, economic stability, and quality of life. Any ownership change of this magnitude must strengthen, not weaken, protections for Connecticut residents.”
WestCOG and MetroCOG reaffirmed their commitment to working collaboratively with lawmakers from both parties to safeguard ratepayers, preserve strong oversight, and protect the interests of communities across western and metropolitan Connecticut.
