By: Dan Onofrio

As the President and CEO of the Bridgeport Regional Business Council (BRBC), supporting our local businesses to grow our state’s economy, particularly in the greater Bridgeport region, is both what keeps me going and what keeps me up at night. Economic development is not easy, after all, especially in an environment of high inflation and workforce shortages. Simply put, the cost of doing business in CT is a tough sell for our business recruitment, retention and expansion efforts.

We may not think of it and perhaps even take it for granted; but safe and reliable water service is paramount to both public health and economic development. Whether publicly or privately owned, water and how it’s managed plays a crucial role in economic development by influencing various aspects of a community’s infrastructure, real estate development, public health and overall quality of life.

In the coming days, the government-run and New Haven-based South Central Regional Water Authority (RWA) will be holding public hearings for the approval of a bid submission to acquire privately owned, Aquarion Water Company (AWC). We can debate the pros and cons of a privately held utility versus a government-run water authority and while I have not had direct experience with RWA both professionally or as a customer, I do believe both organizations fundamentally strive to provide safe and reliable water service. That said, I do have several concerns on the impact a government-run water authority will have on the customers, both residential and commercial customers, of the greater Bridgeport service area.

For instance, unlike government utilities, private water companies do not set their own rates. Private water companies are accountable to professional public utility commissions, like the Public Utilities Regulatory Authority (PURA) here in CT. In fact, the last 10-years they have only allowed Aquarion rates to increase 8%, while the government-run RWA’s rates have increased 40%. This means a New Haven customer pays 23% more for water than a Bridgeport customer.

Private utilities are also leaders in infrastructure investment, with the largest 15 private water utilities investing over $5 billion every year. Aquarion, despite its lower rates, invests in infrastructure at twice the rate as RWA on a per customer basis. Additionally, the model of a publicly funded water authority can be more vulnerable to the impact of economic downturns, leading to budget cuts and the political pressures of the communities they serve limiting their ability to invest in infrastructure improvements.The BRBC is the lead convener of the Southwest CT Manufacturing Partnership and the Bridgeport Regional Energy Partnership. Manufacturing, energy, and technology-based businesses are key sectors in greater Bridgeport and require competitive rates to support their growth, leading to job creation and increased economic output. What concerns me is the upward pressure on ratepayers should a government-run utility, like RWA, be the successful bidder as they look to maintain the level of service that AWC customers are accustomed to.

Finally, our municipalities are extremely stressed. In the last fiscal year, Aquarion paid $18.3 million in property taxes. Government-run utilities make Payments in lieu of Property Taxes (PILOT). RWA paid $8.5 million in PILOT. How will our municipalities budgets be impacted by this “loss” of tax revenue?

As the BRBC continues its work to recruit and retain businesses, these factors play a significant role in the cost of living and quality of life in the region. As the towns in the RWA’s existing service territories vote on a takeover bid, they should consider these factors and whether they can live up to the standards Aquarion Water Company have set. Anything short will negatively impact already strained household budgets and the cost of doing business and ultimately, impacting economic growth in greater Bridgeport.