NEW BRITAIN, CT – Today, Consumer Counsel Coleman issued the following statement regarding the reconsideration of Public Utilities Regulatory Authority’s (PURA) Final Decision in Docket No. 25-04-03, which approves the acquisition of Aquarion Water Company (AWC) by a new Aquarion Water Authority (AWA). After originally denying the application, an appeal by the applicants led the Superior Court to remand the decision for additional proceedings on the basis that the grounds for denial solely on managerial capabilities and governance structure superseded legislative authorization. The Court’s decision also upheld PURA’s authority to independently consider the public interest in reviewing an acquisition change of control application and rejected the company’s overreach in requesting that the application be deemed approved. Today’s approval saddles Aquarion ratepayers with approximately $5.9 billion of acquisition debt and financing costs, including roughly $3.646 billion in interest on a $2.249 billion principal purchase price.
“The Authority’s approval of the transaction despite finding that the exorbitant purchase price ‘places the proposed transaction on the knife’s edge of a public interest finding’ is truly disappointing for Aquarion customers. Ratepayers should never be asked to subsidize a restructuring of this magnitude unless it lowers costs and presents a credible, detailed plan to improve services and protect customers. This deal does none of those things. To the contrary, the evidence showed that Aquarion customers will see immediate and sustained bill increases from the transaction, in addition to being saddled with paying off the debt service for decades to come. PURA had the tools to prevent this outcome and chose not to use them. OCC is evaluating all available options to protect the Aquarion customers that will have to live through the results of this decision,” said Consumer Counsel Claire Coleman.
More information and today’s decision can be found here, while PURA’s original denial in November can be found here. OCC’s opposition can be found in our original brief, remand brief and exceptions. The documentation filed by the applicants showing sustained rate increases through 2055 can be found here.
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Media Contact: Brooke Parker
brooke.parker@ct.gov | 203-540-7154
About the Office: The Office of Consumer Counsel (OCC) is an independent state agency that represents the interests of consumers of Connecticut’s electric, natural gas, telecommunications, and private water companies before PURA, federal regulatory agencies, the legislature and courts. OCC’s team of attorneys, accountants, financial and policy analysts appear before PURA to argue for the most reasonable rates while expecting the best utility service possible for all customers.