Water Company Acquisition Proceedings
(CGS Sections 16-46 & 16-262n)
Pursuant to Conn. Gen. Stat. § 16-46(a), a water company may not cease operations, or unilaterally discontinue the provision of water service to customers, without the consent of both the Public Utilities Regulatory Authority (“PURA”) and the Department of Public Health (“DPH”) (collectively, “the Departments”). Conn. Gen. Stat. § 16-46(a) requires the Departments, upon receipt of a request to cease operations or discontinue service, to hold a hearing in accordance with the provisions of Conn. Gen. Stat. §§ 4-176e, 4-177, 4-177c and 4-180 and issue a final decision setting forth the actions that the water company shall take to ensure a continuous supply of potable water at adequate volume and pressures, in accordance with the procedures and criteria set forth in Conn. Gen. Stat. §§ 16-262n to 16-262q, inclusive.
Conn. Gen. Stat. § 16-262n(c) requires the Departments, whenever a request from a water company is filed pursuant to Conn. Gen. Stat. § 16-46(a) or whenever a water company fails to comply with an order issued pursuant to Conn. Gen. Stat. §§ 16-11, 25-32, 25-33 or 25-34, to determine the actions that may be taken and the expenditures that may be required, including acquisition of the water company by a suitable public or private entity, to assure the availability and purity of water at adequate volume and pressure to the persons served by the water company at a reasonable cost.
Once a proceeding has been conducted pursuant to Conn. Gen. Stat. § 16-262n, upon a determination that the costs of improvements to and the acquisition of a water company are necessary and reasonable, Conn. Gen. Stat. § 16-262o authorizes the Departments to order the acquisition of the water company by the most suitable public or private entity.
Docket Number: DPH15-06-01 - Joint Investigation of DPH and PURA Regarding Cedarhurst Association, Inc.'s Request to Cease Operations as a Water Company