Eversource Energy announces $2.4bn sale of Aquarion Water Company

Eversource Energy, a prominent energy and utilities provider in the Northeastern United States, has announced its decision to sell Aquarion Water Company to the newly formed Aquarion Water Authority (AWA). The sale, valued at $2.4 billion, includes $1.6 billion in cash and $800 million in net debt, marking a significant shift in the New England utility landscape.

The deal underscores Eversource’s commitment to focusing on its core electric and natural gas operations while strengthening its financial position. For Aquarion, the transition represents a pivotal step towards regional collaboration and service optimization under the stewardship of the South Central Connecticut Regional Water Authority (RWA).

Why Is Eversource Selling Aquarion Water Company?

Eversource Energy’s decision to divest Aquarion aligns with its broader strategic goals of portfolio optimization and customer-focused investment. By streamlining its operations, Eversource plans to reinvest the proceeds from the sale into its core electric and natural gas businesses, enhancing infrastructure reliability and energy efficiency programs for customers across Connecticut, Massachusetts, and New Hampshire.

CEO Joe Nolan explained that the transaction reinforces Eversource’s position as New England’s largest regulated utility while enabling the company to meet its long-term earnings-per-share (EPS) growth target of 5% to 7% through 2028.

“This move allows us to focus on delivering safe, reliable, and affordable electric and natural gas services to millions of customers. It also positions us to strengthen our balance sheet and ensure continued financial stability,” Nolan said.

What Does This Mean for Aquarion Customers?

Aquarion Water Company, headquartered in Bridgeport, Connecticut, serves nearly 250,000 water and wastewater customers across 72 cities and towns in New England. Over its 168-year history, the utility has built a reputation for high-quality service, bolstered by strategic growth under Eversource’s ownership since 2017.

Under the new ownership of AWA, a quasi-public corporation, customers can expect continued commitment to affordability, environmental stewardship, and operational excellence. Interim CEO Sunder Lakshminarayanan of the South Central Connecticut Regional Water Authority emphasized the organization’s mission to provide reliable services while maintaining the highest environmental standards.

“Both RWA and Aquarion share a vision of being trusted service providers and responsible environmental stewards. Together, we aim to ensure safe, affordable water services while fostering a positive workplace culture for employees,” Lakshminarayanan said.

How Will the Sale Impact Eversource’s Financial Strategy?

The sale of Aquarion Water Company is expected to yield approximately $2.4 billion in proceeds, significantly enhancing Eversource’s ability to reduce debt and reinvest in its primary energy businesses. The transaction includes a $300 million loss in the company’s Q4 2024 financial results, partly due to $140 million in tax expenses.

However, Eversource’s leadership has reassured investors of its financial resilience. By prioritizing investments in renewable energy initiatives—such as offshore wind, solar, and networked geothermal systems—the company is poised to lead the region’s transition toward a clean energy future.

Eversource’s recognition as the #1 U.S. utility on TIME’s 2024 list of the World’s Best Companies underscores its commitment to innovation and customer service.

What Does the Sale Mean for New England’s Utility Industry?

The transition of Aquarion to a quasi-public model signals a shift toward increased public oversight in water utility management, which may influence how utilities across the region operate. Aquarion’s legacy of growth through acquisitions—including notable deals like New England Service Company in 2021 and the Torrington Water Company in 2022—positions it as a strong partner for AWA’s vision.

With regulatory approval pending from the Connecticut Public Utilities Regulatory Authority, the Massachusetts Department of Public Utilities, and the New Hampshire Public Utilities Commission, the deal is expected to close in late 2025.

Expert Perspectives on the Deal

Analysts believe the transaction reflects the growing importance of public-private partnerships in utility management. Eversource’s strategic divestiture highlights a broader industry trend of focusing on core operations while leveraging partnerships to deliver enhanced customer value.

The newly created AWA, supported by RWA’s expertise, brings decades of not-for-profit management experience to Aquarion. This move is expected to improve service delivery while maintaining affordability for customers in the region.

“This transaction offers a unique opportunity to combine the strengths of two organizations with aligned missions. It could serve as a model for future public-private utility transitions,” said a regional utility analyst.

The $2.4 billion sale of Aquarion Water Company by Eversource Energy marks a transformative moment for the New England utility sector. While Eversource refocuses on energy infrastructure, Aquarion is set to benefit from public-sector expertise under AWA’s ownership. Customers and stakeholders alike will be watching closely as this transition unfolds, with the potential to reshape water and energy service delivery in the region.