Aquarion Water Co. of Connecticut v. Public Utilities Regulatory Authority

Summary

The court held that PURA reasonably disallowed postapplication plant additions and employee incentive compensation because the record did not adequately establish their prudence. It held, however, that PURA improperly evaluated deferred water conservation expenses using hindsight and remanded for reconsideration under the information available when the expenses were incurred. The court also rejected Aquarion's confiscatory-takings challenge, concluding that disallowed costs did not reduce the approved return on equity and that Aquarion failed to show the rate order was unjust and unreasonable.