Full Breakdown
Aquarion Water Company Seeks 42% Rate Increase Following Regulatory Setback
12/18/2025, 1:29:52 AM
Overview of the Rate Increase Proposal
Aquarion Water Company, Connecticut's largest water utility, has announced plans to seek a 42% rate increase, amounting to an additional $88 million annually. This proposal follows the rejection by the Public Utilities Regulatory Authority (PURA) of a sale that would have transitioned Aquarion into a nonprofit quasi-public entity. The proposed rate hike marks the company's first increase in over a decade and is aimed at offsetting rising operational costs.
Background on the Regulatory Decision
The proposed sale of Aquarion to the South Central Regional Water Authority was intended to create the Aquarion Water Authority, which would manage the utility's assets. However, PURA's decision to block the sale was primarily based on concerns regarding the new entity's governance structure, rather than its financial viability or ability to provide safe drinking water. Critics of the sale argued it could lead to higher costs for customers and a loss of regulatory oversight.
Justification for the Rate Increase
In a letter to PURA, Aquarion Chief Operating Officer Lucy Teixiera attributed the need for the rate increase to the rejection of the sale, claiming it would have shielded customers from rising costs. Teixiera highlighted the company's investments, including over $448 million in water infrastructure and rising expenses related to the treatment of PFAS chemicals. The company plans to submit its application for the rate increase within 60 days, with new rates potentially taking effect on November 1, 2026.
Criticism from Officials and Advocates
Connecticut Attorney General William Tong criticized Aquarion's request, referencing the company's previous attempt to secure a $37 million rate increase in 2022, which resulted in a mandated rate cut instead. Tong emphasized the need for thorough scrutiny of Aquarion's filings to ensure that customers are not overcharged. Claire Coleman, head of the Office of Consumer Counsel, expressed skepticism about the justification for the proposed increase, stating that it appears significantly higher than initial analyses and previous estimates.
Conflicting Reports & Gaps
There is a notable discrepancy in the projected rate increases for Aquarion's customers. While the company anticipates a 42% hike, projections from other sources suggest annual increases of 6.5% to 8.35% over the next decade, indicating a potential misalignment in expectations regarding future costs.
Verbatim Quotes
- “Aquarion’s sale to AWA provided PURA with a rare and unique opportunity to shield customers from these increasing costs,” — Lucy Teixiera, Chief Operating Officer, Aquarion Water Company
- “PURA was right to reject that bad idea as well,” — William Tong, Attorney General of Connecticut
- “Once the application is filed, our review will focus solely on what the evidence supports. The notice of intent reads more like a list of grievances than a legal filing, but rates are set by evidence, not indignation.” — Claire Coleman, Head of the Office of Consumer Counsel
Conclusion
The proposed rate increase by Aquarion Water Company reflects the ongoing tensions between utility providers and regulatory bodies in Connecticut. As the company prepares to submit its application, scrutiny from state officials and consumer advocates is expected to intensify, focusing on the justification and necessity of the proposed hike.
