By Elizabeth Barhydt

Connecticut utility regulators halted the proposed sale of Aquarion Water Company on Wednesday, issuing a unanimous ruling that cited fundamental flaws in the deal’s structure and its impact on residents and towns. The decision followed months of coordinated opposition from communities across western Connecticut, including New Canaan, which argued that the plan would raise rates, weaken oversight, and reduce local control.

PURA’s ruling laid out a clear concern: the proposed governance model would have created overlapping fiduciary duties that board members could not realistically meet, leaving ratepayers exposed. Regulators concluded that the structure was “unworkable” and did not meet the state’s public-interest standard.

Local officials had been preparing for tha

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