Eversource Energy, the New England-based utility, is trying to sell Aquarion Water Co., but many officials in the service area — including Wilton — are not happy about it.
Today, Wednesday, Nov. 19, the state’s Public Utilities Regulatory Authority (PURA), an arm of the Connecticut Department of Energy and Environmental Protection, is scheduled to vote on allowing the sale, which would net Eversource up to $2.4 billion with the transfer to the Regional Water Authority (RWA).
The new owner is described as a “public entity,” according to David Borowy, board chair of the Aquarion Water Authority (AWA), a newly formed arm of the RWA.
According to its website, RWA is a New Haven-based nonprofit corporation that describes itself as “an innovative water utility that sustains life, strengthens our communities and protects natural resources for future generations.”
“Ultimately, the new owner of AWA will be the public,” Borowy said in a Nov. 9 letter provided by Eversource media officials. “This is an exciting opportunity for the residents and town leaders within the Aquarion Water Company district to take direct and local control of their water future.”
“Its chief governing body, the Representative Policy Board (RPB), will consist of one appointed member from each of the 59 towns in the Aquarion service district, plus a Governor’s representative,” wrote Borowy, who is the former mayor of Cheshire. “This 60-member board will be the economic regulator, responsible for key decisions like rates and major construction projects.”
Five members of the AWA will join six members of the RWA to form an 11-member board of directors charged with overseeing management and budgets.
Last week, however, a group of Fairfield County municipal leaders joined Connecticut Attorney General William Tong in expressing strong opposition to the sale. Among its opponents are Wilton’s State Sen. Ceci Maher (D-26), who expressed her disapproval of the sale.
“I agree with the many members and leaders of our communities who have opposed the Aquarion sale, and this fall I joined a coalition of senators who wrote to oppose the sale from happening,” Maher said. “The sale has a lot of unknowns so I’m very pessimistic about the likely outcomes, including increasing consumer bills with a diminished return on investment for the public.”
“It’s a risky situation that could see imbalanced control and leadership on regional water control boards and has limited prospects for savings when compared to the cost increases ratepayers would be forced to absorb,” she said. “I believe it is a bad situation for the public, and our towns, as there is the potential loss of significant property tax revenue. The sale could have a disastrous impact on southern Connecticut and I oppose it.
Matt Knickerbocker, town administrator, noted that the sale would result in reduced revenue for Wilton based on RAW’s tax-exempt status.
“I can confirm that due to RWA’s status as a tax exempt cooperative, a sale of Aquarion Water Company to RWA would reduce Wilton’s annual property tax revenue by about $135,000,” Knickerbocker said.
“I am aware from recent press reports that a payment-in-lieu of taxes (PILOT) program is under discussion as a potential solution,” he said. “At present we have no details, nor do we have confirmation that a PILOT program would actually be added as a condition of sale.”
Wilton State Rep. Savet Constantine (D-42) also weighed in with her concern.
“If this deal moves forward, our residents are likely to face higher water bills for the next several years,” Constantine said, “at a time when many families are already watching every dollar. Combined with the expected loss of tax revenue from Aquarion’s removal from the Wilton grand list, this sale would ultimately leave taxpayers paying more for essential utility services.”
She also noted issues related to the environment.
“In addition to the possibility of increased utility bills and lowered taxes, towns have also questioned conservation issues with the new group’s ability to sell off watershed land,” Constantine said. “Given how we have all moved here for the rural atmosphere and open space, we do want to ensure the watershed land is preserved.”
Sarah Paduano, an Eversource spokesperson, said the company did not have a comment to offer, but noted, “Many of these criticisms have been debunked.” She cited an Offer of Compromise submitted to PURA by Eversource, which details responses to some concerns, an editorial by Aquarion President Lucy Teixeira, and Borowy’s letter.
First Selectman Toni Boucher, meanwhile, said she put her name to an editorial penned along with 19 other municipal leaders in this area, which appeared in the Connecticut Post.
“This proposal was set in motion without public input,” the editorial states. “It was rushed through the legislature in a special session, buried in an omnibus bill, and pushed forward without the transparency that residents deserve.”
“Unlike the process that created the Regional Water Authority (RWA) decades ago — which required a referendum of the towns involved — Aquarion customers never got a vote,” it states. “That lack of accountability should alarm every Connecticut resident.”
Sounds like what is happening with ASML. It’s all about the money.