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Greenwich Officials Raise Concerns Over Aquarion Sale

By Elizabeth Barhydt

On January 27, Eversource Energy announced the sale of Aquarion Water Company to the newly formed quasi-public Aquarion Water Authority (AWA), operating alongside the South Central Connecticut Regional Water Authority (RWA). The $2.4 billion transaction includes $1.6 billion in cash and $800 million in debt. Eversource CEO Joe Nolan called it a strategic move to refocus on core operations, but municipal officials fear higher rates and lost tax revenue.

State Senator Ryan Fazio, a vocal critic, described the deal as predetermined. (see Sen. Fazio’s OpEd in this week’s issue) “The legal change allowing an RWA acquisition of Aquarion was only publicly known when news was broken by a reporter two days before the special session of the legislature,” he stated. The 50-page legislation enabling RWA’s bid was released hours before a vote, leaving no time for debate.

Greenwich First Selectman Fred Camillo had raised concerns months earlier. On August 22, he testified at RWA’s public hearing. “I am concerned about the potential impact this might have on Aquarion’s customers in Greenwich,” Camillo stated. “This sale could well result in higher water rates.” He cited data showing RWA customers already pay 23% more than Aquarion customers. “I am also concerned about the potential debt that the Authority would be taking on if this sale proceeds and how that potentially could result in further rate increases.”

Camillo also warned that Greenwich could lose tax revenue. Currently, Aquarion pays property taxes, but RWA, as a quasi-governmental entity, is tax-exempt. “That is a potential loss of revenue for the Town,” he said, urging careful consideration of the financial implications.

On January 28, after the sale was finalized, Camillo reiterated his concerns. “The recent sale of Aquarion to Regional Water Authority still has not addressed the concerns I expressed when this issue first surfaced last year,” he stated. “However, now that the sale has been completed, I would hope that their assurances about PILOT taxes and not raising rates for our residents will hold.” He pledged to monitor the new authority closely. “Their public statements will now be scrutinized, and while I wish them well, I will surely be following up on my previous concerns.”

Fazio remains skeptical, highlighting governance structure flaws. RWA’s board will have six representatives from the New Haven area and only five from Aquarion’s much larger service area. “There will not be fair representation on the board that runs the company,” he said.

He also pointed to the financial structure of the sale. Private bidders were restricted to offering book-value rates, while RWA can pass the full purchase cost onto customers. “The higher bid was rumored only $200 million below the RWA bid of $2.4 billion,” Fazio noted. “RWA could always likely bid higher because it can charge its customers more.”

PURA is the last regulatory hurdle. “The only remaining check on the sale is now PURA,” Fazio stated, urging scrutiny of its impact on consumers. The sale also requires approval from regulators in Massachusetts, New Hampshire, and under federal antitrust laws.

Fazio was blunt: “Connecticut residents deserve lower cost of living and trustworthy government. Unfortunately, the Aquarion sale to Regional Water Authority, which their elected officials foisted upon them through special legislation, will deliver higher utility bills and diminished trust.”

Camillo vowed to keep Greenwich engaged. The question now is whether local concerns will influence the final regulatory decisions.

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