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

Summary

The court upheld PURA’s disallowance of most postapplication plant additions and all requested employee incentive compensation because substantial evidence supported PURA’s prudence findings under deferential administrative review. It held that PURA improperly evaluated deferred conservation expenses by relying on hindsight and subsequent cost savings rather than 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.