In tandem with Eversource deal, Aquarion Water Authority to sell 3 subsidiaries to New Hampshire utility operator
Courtesy of South Central Connecticut Regional Water Authority
One of the Regional Water Authority's reservoirs in Connecticut.
Three subsidiaries of the newly created Aquarion Water Authority will be sold to New Hampshire-based public utility holding company Unitil Corp. for $100 million.
In January, Eversource Energy announced it had reached an agreement to sell Aquarion Water Co. to the Aquarion Water Authority in a $2.4 billion deal.
According to an announcement Wednesday, Unitil has entered into a definitive agreement to acquire Aquarion Water Co. of Massachusetts Inc., Aquarion Water Co. of New Hampshire Inc. and Abenaki Water Co. Inc. from the Aquarion Water Authority.
That deal is expected to occur when Eversource completes its sale of Aquarion Water Co. to the Aquarion Water Authority in late 2025.
Aquarion Water Authority will share resources with New Haven-based South Central Connecticut Regional Water Authority, but will remain a separate quasi-public entity.
Connecticut customers will continue to be served by the Aquarion Water Authority.
Aquarion’s out-of-state subsidiaries involved in the sale control 330 miles of water distribution mains serving about 12,000 customers in seven communities in Massachusetts, and 11,000 customers in eight communities in New Hampshire.
Upon closing, the three subsidiaries will be wholly owned by Unitil, which is a publicly traded company.
“Our acquisition of the Aquarion Companies presents a unique opportunity to expand into a complementary regulated utility service in states where we currently operate,” said Thomas P. Meissner Jr., chairman and CEO of Unitil. “We look forward to welcoming the Aquarion Companies’ dedicated, locally managed teams to Unitil and continuing the high quality of service provided to the communities served in Massachusetts and New Hampshire.”
The sale requires approvals from the Massachusetts Department of Public Utilities, New Hampshire Public Utilities Commission and the Maine Public Utilities Commission.
Unitil has obtained debt financing from Scotiabank to fund the transaction.
Unitil, which operates in Maine, New Hampshire and Massachusetts, serves about 109,400 electric customers. It recently acquired Bangor Natural Gas Co., which added 97,600 natural gas customers in Maine.
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