Eversource Closes $2.4 Billion Sale of Aquarion Water Company
The divestiture sharpens Eversource's focus as a pure-play regulated electric and gas utility while strengthening its balance sheet.
Eversource Energy (ES) completed the sale of its Aquarion Water Company subsidiary to the Aquarion Water Authority, a newly created quasi-public entity in Connecticut, for approximately $2.4 billion in cash. The transaction, structured as an asset purchase, marks the culmination of a process announced in January 2025 and positions Eversource as a pure-play regulated pipes-and-wires utility across New England.
The aggregate enterprise value of $2.4 billion comprised roughly $1.6 billion in cash proceeds and approximately $800 million in net debt extinguished at closing. The valuation represented roughly 1.7 times Aquarion's rate base as of December 2024. Eversource said it would use the proceeds to pay down parent-company debt and reinvest capital into its core electric and natural gas operations.
"We are pleased to close this transaction, which is a key piece of our commitment to further strengthen our balance sheet and credit profile," said Eversource Executive Vice President, Chief Financial Officer and Treasurer John Moreira. The company framed the divestiture as a strategic milestone in optimizing its portfolio and focusing on regulated transmission and distribution investments across Connecticut, Massachusetts and New Hampshire.
Aquarion, headquartered in Bridgeport, Connecticut, serves nearly 250,000 water and wastewater customers in 72 communities across three states and traces its roots to 1857. Under Eversource's ownership since 2017, the utility added roughly 30,000 customers through six acquisitions, growing rate base by a combined $200 million and expanding into the wastewater business. The buyer, the Aquarion Water Authority, operates alongside the South Central Connecticut Regional Water Authority and plans to run Aquarion as a not-for-profit, quasi-public utility.
The broader water-utility sector has seen a wave of consolidation. American Water Works (AWK) and Essential Utilities (WTRG) agreed in October 2025 to merge in an all-stock deal creating a combined company with roughly $29.3 billion in water and wastewater rate base serving 4.7 million connections across 17 states. Shareholders of both companies approved the merger in February 2026, with the deal expected to close by the end of the first quarter of 2027. Separately, Unitil Corporation (UTL) agreed in May 2025 to acquire Aquarion's Massachusetts and New Hampshire subsidiaries from the authority for $100 million, including assumed debt, giving Unitil a foothold in regulated water service in states where it already operates electric and gas utilities.
The closing required regulatory approvals from the Connecticut Public Utilities Regulatory Authority, the Massachusetts Department of Public Utilities and the New Hampshire Public Utilities Commission, along with Hart-Scott-Rodino clearance. Eversource reaffirmed its long-term earnings-per-share growth target of 5% to 7% through 2028 and outlined a five-year capital plan of $24.2 billion through 2029, anchored by transmission and distribution investments supporting New England's energy transition.