Aquarion Water customers worried takeover would mean higher bills

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Could a takeover of Aquarion Water mean higher bills for 770,000 customers? Dozens of Aquarion customers and local officials packed into two public hearings on Tuesday, concerned about a possible sale to the New Haven-based South Central Connecticut Regional Water Authority. AQUARION TAKEOVER? If you live in Fairfield or Litchfield counties, there’s a good chance that your water comes from Aquarion. The company serves nearly five dozen communities. The Regional Water Authority wants to buy Aquarion from Eversource. RWA leaders insist that rates would not increase. But at Tuesday’s hearings, customers and town leaders said they aren’t convinced. “I do have some concerns,” said Westport First Selectman Jennifer Tooker. “The average water customer for RWA pays about 20, 23% more than the average water customer at Aquarion.” And over the last decade, RWA rates have jumped 40% -- compared to just 9.8% for Aquarion customers. Water Authority leaders pushed back on the comparison. “You’re really comparing apples and oranges,” said RWA President and CEO Larry Bingaman. “First of all, the RWA has regular rate increases so that we can issue debt to invest in our infrastructure -- because that’s really what drives water rate increases.” NO STATE OVERSIGHT Last year, state regulators rejected a 9% increase for Aquarion. Instead, they actually ordered the company to reduce rates – a move that partially led Eversource to sell the company. But if the deal goes through, the Public Utilities Regulatory Authority (PURA) could no longer approve Aquarion’s rate increases – because RWA is publicly-owned. The lack of state oversight worries Darien First Selectman Jon Zagrodzky. “I’m paying more for groceries. I am paying more for rent. I just got this huge increase in my power bill for – quote – ‘public benefit.’ And now you’re telling me that maybe there's going to be water rate increases.” But RWA said that a new board – made up of all 59 towns in Aquarion’s service area – would vote on any proposed increase. “So it’s a very transparent process, in which each application is scrutinized very closely by that policy board, as well as the Board of Directors,” said Bingaman. WHAT’S NEXT? This is far from a done deal. The Regional Water Authority isn’t the only company that wants to buy Aquarion. Eversource is expected to pick a winner by the end of this year. Then next year, PURA would have to approve a takeover after a round of public hearings. That process could take more than 6 months, RWA leaders said. "