Water rates go down in the new year due to tax reg changes
Shelton residents who use Aquarion Water Co. should see a 5.6% decrease in their bills in the new year.
The decrease is due to new tax law regulations issued by the IRS, which resulted in a refund to the private water company that Aquarion is passing on to customers.
Connecticut customers will receive a rate credit of 5.6% on their billing statements, effective for the next three years. In addition to the rate credit, Aquarion will delay its next general rate case.
The total amount to be returned to customers in Connecticut through rate credits is $29 million.
‘Stability for our customers’
“As a result of this federal tax rebate and the new regulations, we have been able to pass on savings to our customers and delay our next scheduled rate application to PURA [the state agency that regulates utilities], which means greater stability for our customers’ water rates,” said Charles V. Firlotte, Aquarion president and CEO.
The IRS regulations effectively allow Aquarion to adopt an alternative to how capital expenditures are treated for income tax purposes. The Connecticut Public Utilities Regulatory Authority (PURA) reviewed and approved Aquarion’s proposal before it was finalized.
People should still conserve
“While we are lowering water bills for our customers, we will continue to make prudent investments to improve and maintain the integrity of our system’s infrastructure,” Firlotte said.
“Customers should also continue to employ water conservation measures,” he said. “While their water bills are lower, the overall water supply is still finite and it is more important than ever to conserve it.”
Aquarion Water Co. is the public water supply company for more than 625,000 people in 50 cities and towns throughout Connecticut, including Shelton. It also serves customers in Massachusetts and New Hampshire.
Based in Bridgeport, it is the largest investor-owned water utility in New England. The company began in 1857 as the Bridgeport Hydraulic Co. Learn more at www.aquarionwater.com.