CT Water Seeks 42% Rate Hike After Blocked Sale, Condemned

Eversource, which owns Aquarion Water Company, wants a big increase in water rates for hundreds of thousands of Connecticut customers. State regulators recently blocked Eversource’s plan to sell Aquarion to a nonprofit regional water authority, so now the company’s back at the table asking for more money.

This has kicked off a new fight with state officials over what people in places like Bridgeport, Stamford, New Haven, Norwalk, and plenty of other towns should pay to keep their taps running and pipes updated.

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Eversource Seeks Up to 42% Aquarion Water Rate Hike

Eversource says Aquarion customers could end up with water bills as much as 42 percent higher if regulators approve their plan. The company claims this hike is directly tied to the state’s decision to block the sale, which they say would’ve meant a smaller, temporary bump instead.

Aquarion serves about 688,000 customers in 57 communities across Connecticut. That includes big cities like Hartford, West Hartford, Danbury, and a lot of shoreline and Fairfield County towns. In its filing, Aquarion is asking for an $88 million annual increase in water revenues.

Company Says Rates Are Lower Than 12 Years Ago

Eversource is trying to justify the hike by pointing out that Aquarion’s current rates are actually lower than they were 12 years ago. Company officials say their operating costs and infrastructure needs have gone up a lot, but they haven’t gotten a similar rate boost in over a decade.

Eversource says if the sale to the nonprofit South Central Connecticut Regional Water Authority had gone through, customers would’ve seen a smaller, short-term increase, and then a whole new regulatory setup under the new owner.

Attorney General Tong Vows Aggressive Review

Connecticut Attorney General William Tong didn’t waste any time pushing back. He’s clashed with Eversource before on rates and consumer protections, and now he says he’ll go over this filing “line by line,” challenging anything he sees as excessive or unsupported.

Tong’s no stranger to fighting with the utility over water and energy costs. He pointed to his office’s record in past rate cases and made it pretty clear he’s ready for another long regulatory battle.

History of Disputes Over Eversource Rate Requests

Tong brought up a 2022 Eversource rate request as a reminder that regulators and consumer advocates need to stay sharp. Back then, the Public Utility Regulatory Authority (PURA) rejected what Tong called an unnecessary hike and instead ordered a $4 million revenue reduction for the company.

Eversource appealed that decision to the Connecticut Supreme Court, but the justices sided with the regulators. Tong now holds that up as an example for how to handle the new Aquarion request.

Blocked $2.4 Billion Sale Looms Over New Rate Battle

This latest fight is happening because PURA unanimously blocked a $2.4 billion deal that would’ve moved Aquarion from Eversource to the South Central Connecticut Regional Water Authority. That authority already supplies water to a lot of communities around New Haven and runs under a different model than for-profit utilities.

PURA warned that customers might see big rate hikes under the nonprofit’s less regulated structure. There were worries that consumer protections could weaken outside the usual utility oversight.

Tong Warned Sale Could Have Doubled Rates

Attorney General Tong loudly criticized the proposed sale, saying it could have doubled customer water rates if it went through. He argued that moving Aquarion customers to the nonprofit system would have left them open to steep hikes and less regulatory control.

Now that the sale’s dead, Eversource is telling a different story. They claim that regulators’ efforts to shield customers from possible nonprofit rate spikes have landed everyone in a spot where a big increase is now unavoidable with Eversource still in charge.

Aquarion Cites Infrastructure, PFAS, and New Standards

Aquarion says the proposed $88 million annual increase is about catching up on expenses they haven’t recovered in more than ten years. Since the last approved rate hike in 2013, the company reports spending more than $488 million on infrastructure upgrades across its service area.

They tie those capital costs to necessary projects: swapping out old mains in cities like New Britain, boosting pressure and storage in growing suburbs like Milford and Fairfield, and shoring up treatment plants that serve several towns in Fairfield and New Haven counties.

Environmental and Health Mandates Add Pressure

Aquarion also points to rising costs from new health and environmental standards. One of the biggest is dealing with PFAS contamination—those “forever chemicals” that have become a huge issue in drinking water regulation across the country.

The company says they need new filtration systems, better monitoring, and upgraded treatment to keep water safe and compliant. All those expenses are now part of the push for higher rates.

Eversource Appeals PURA Decision as Connecticut Customers Wait

Eversource is now appealing PURA’s rejection of the Aquarion sale. The company claims regulators went too far by blocking a deal the state legislature had already approved.

This move raises some tricky questions about who really calls the shots—lawmakers or utility regulators. Nobody seems entirely sure where that line should be drawn.

Meanwhile, customers from Bridgeport and Stamford along I‑95 to Norwalk, plus inland cities like Danbury, Hartford, and New Britain, are stuck waiting. They’re just hoping for clarity from PURA’s next decision.

The upcoming hearings will decide if Eversource gets the 42 percent rate hike it wants, a smaller bump, or maybe another stern “no” from Connecticut regulators who want to keep water bills from spiraling.

Here is the source article for this story: After blocked sale, CT water company seeks 42% increase in rates. Request draws condemnation.

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