State AG Urges PURA to Reject Aquarion Sale

CT Attorney General Press Releases

Filed March 12th, 2026

Detected March 13th, 2026

Summary

Connecticut Attorney General William Tong urged the Public Utility Regulatory Authority (PURA) to reject the sale of Aquarion Company. The AG cited concerns that the sale would double household water bills, gut consumer protections, and end public oversight, despite PURA's preliminary approval.

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What changed

Connecticut Attorney General William Tong has formally urged the Public Utility Regulatory Authority (PURA) to reject the proposed sale of Aquarion Company to a new non-profit entity. This action follows PURA's preliminary approval of the sale, reversing its initial denial. The Attorney General's office argues that the transaction, which would finance $5.895 billion in acquisition costs over forty years, is not in the public interest due to the expected doubling of household water bills and the inadequacy of the proposed Office of Consumer Affairs structure, which lacks sufficient resources and independence.

Regulated entities, particularly those involved in utility sales or mergers, should monitor PURA's final decision and the ongoing legal and regulatory challenges. The Attorney General's office is advocating for oral arguments and a final rejection of the sale. Failure to adequately protect consumer interests or demonstrate managerial suitability in such transactions could lead to regulatory scrutiny and potential rejection by authorities, impacting future deals and consumer rates.

What to do next

Monitor PURA's final decision on the Aquarion sale.
Review transaction structures for potential impacts on consumer rates and protections.
Assess the adequacy of consumer advocacy office resources in proposed utility acquisitions.

Source document (simplified)

The Office of the Attorney General William Tong

Press Releases

03/12/2026

Attorney General Tong Urges PURA to Reject Aquarion Sale

(Hartford, CT) – In written comments to the Public Utility Regulatory Authority, Attorney General William Tong this week urged regulators to reconsider their draft decision and to reject the sale of Aquarion Company to a new non-profit entity expected to double household water bills, gut consumer protections and end public oversight over water rates.

PURA initially denied the transaction on November 19. Aquarion appealed and the court remanded the matter back to PURA for reconsideration. Last Friday, PURA reversed itself and preliminarily approved the sale.

“The record in this case has not changed since the matter was remanded back to PURA. Yet, for reasons that are unclear, PURA has retreated from its initial decision – now approving the very same application that recently rejected for lack of managerial suitability in a manner consistent with the public interest - to the profound detriment of every Aquarion customer for years to come. To be clear, nothing in the court’s decision requires this reversal. The court squarely held that PURA maintains full authority to evaluate public interest and aspects of managerial suitability, and either of these reasons alone provides sufficient grounds to reject the Application,” Attorney General Tong states in his letter.

Attorney General Tong goes on to state that the massive rate increases that will result from the acquisition are alone sufficient grounds to find the application is not in the public interest and to reject it.

“If approved the proposed transaction will require Aquarion ratepayers to pay $5.895 billion in acquisition costs financed out over forty years. The PURA does not dispute the amount of these acquisition costs or that they will be borne by ratepayers,” Attorney General Tong states.

Further, Aquarion has failed to demonstrate necessary managerial suitability, specifically due to insufficiencies in the structure of the Office of Consumer Affairs, a non-independent advocate lacking resources to effectively protect customers. That deficiency alone would also be sufficient grounds for PURA to reject the transaction.

Click here for the full letter, in which Attorney General Tong urges PURA to hold oral argument on the matter and to reject the transaction.
Twitter: @AGWilliamTong Facebook: CT Attorney General