Attorney general challenges Aquarion sale as regulators weigh whether to reopen case

Connecticut regulators have approved the proposed sale of Aquarion Water Company, but a new filing could force regulators to revisit the decision and delay the transaction.

Attorney General William Tong and the Office of Consumer Counsel filed a petition on April 9, 2026 requesting that the Public Utilities Regulatory Authority (PURA) reopen its approval of the $2.4 billion sale of Aquarion by Eversource Energy to the South Central Connecticut Regional Water Authority (RWA).

The filing creates a new decision point for regulators and could delay the sale before it closes. PURA voted 3–0 on March 25, 2026 to approve the transaction.

Under the approved structure, Aquarion would be converted into a nonprofit entity and integrated into the RWA system. Once the transaction closes, PURA would no longer regulate water rates. Instead, rates would be set by a Representative Policy Board composed of municipal officials with weighted voting authority.

The shift in oversight is a central issue in the dispute. Supporters of the transaction argue that a nonprofit, regionally governed structure could provide long-term stability. Opponents argue that removing PURA oversight eliminates an independent regulatory check on rate increases.

In their filing, Tong and the consumer counsel argued that PURA’s approval relied on flawed financial analysis. They said the decision did not account for approximately $474 million in projected rate increases through 2066, and raised concerns about whether regulators relied on information outside the formal evidentiary record.

The challenge is not limited to state officials. Several municipalities, including Fairfield, have opposed the transaction and filed or joined legal actions contesting the approval. Aquarion serves Fairfield, meaning any change in rate-setting authority would directly affect local customers.

The next step is a decision by PURA on whether to reopen the proceeding. If regulators grant the request, the case could return to active review, potentially delaying the transaction. If the request is denied, challengers may pursue appeals in Superior Court, where a judge could remand the decision for further consideration.

No timeline for a ruling on the reconsideration petition has been confirmed in public materials.

For now, the transaction has been approved but not finalized, and its outcome will determine who sets water rates for Fairfield customers in the years ahead.

Sources: State of Connecticut; Town of Fairfield; local reporting.