Hartford Business Journal

HARTFORDBUSINESS.COM | MARCH 9, 2026 13 COLUMBUS 25_015570_Hartford_Business_Journal_MAR Mod: January 26, 2026 9:48 AM Print: 01/26/26 page 1 v2.5 π SHIPPING SUPPLY SPECIALISTS COMPLETE CATALOG 1-800-295-5510 uline.com THE BEST PRODUCTS, LOCATIONS AND SERVICE ORDER BY 6 PM FOR SAME DAY SHIPPING recovered from water customers. Last year, state lawmakers approved a new surcharge — called the Water Quality and Treatment Adjustment — that allows water companies to begin recovering PFAS-related capital costs as projects move forward. The approach spreads the expense over time instead of concentrating it in a single year. "That's one of the benefits of having these surcharges — it avoids rate shock for customers," Teixeira said. Connecticut Water has filed to begin recovering PFAS planning and engi- neering costs incurred through 2025. If regulators approve the request, the surcharge could begin appearing on customers' bills in April. Water companies can also recoup costs through the state's regular rate adjustment process. Consolidation pressure The capital demands, industry execu- tives said, are intensifying consolidation pressure across the state's water sector. Many small systems lack the finan- cial capacity to absorb PFAS treatment costs, prompting inquiries about acqui- sitions or interconnection agreements. "(They) are coming to realize that installing treatment is going to be cost-prohibitive," Lawrence said. Teixeira said Aquarion receives roughly a dozen inquiries annually from small systems — often local taxing districts serving 50 to 500 customers. Connecticut Water has already moved on that trend. The company acquired the Miami Beach water system in Old Lyme in 2022, and is in the process of folding the Shaker Heights system in Enfield into its northern Connecticut network. Connecticut Water and Aquarion, as investor-owned utilities, can raise capital through equity markets to finance large infrastructure programs — an advantage many small systems lack. However, that dynamic could change for Aquarion. Eversource Energy has proposed selling the utility in a $2.4 billion deal to the South Central Connecticut Regional Water Authority and a newly created Aquarion Water Authority, which would operate as a quasi-public entity. The controversial deal was rejected by the Public Utilities Regulatory Authority last year and is now under appeal. If approved, Teixeira would continue leading the company. As a quasi-public entity, Aquarion would gain access to tax-exempt munic- ipal bonds, reducing its cost of capital. Water executives said PFAS mitiga- tion underscores broader pressures on the industry, including aging infrastructure and emerging contam- inants that will require sustained capital investment. "If we don't take a proactive approach to replacement, the day of reckoning will arrive," Patla said. "It can't be about low rates. Low rates mean you're not investing, you're not being a proper steward. It's not about low rates — it's about correct rates." An Avon well facility owned by Connecticut Water Co. recently underwent a $1.17 million upgrade, including installation of an ion-exchange treatment system to remove PFAS chemicals from drinking water. Contributed Photo

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