Connecticut Water Agency's $2.4B Bond Sale Is a Blowout

• Aquarion Water Authority's $2.4B tax-exempt bond sale received over $70B in orders.
• High demand attributed to wealthy Connecticut residents seeking tax-exempt income, diversification into a new issuer, varied bond structures (fixed-rate, zero-coupon, insured), and attractive pricing.
• The bond sale will finance the acquisition of Aquarion Water Company from Eversource Energy, but water rates for customers in southwest Connecticut are expected to increase by up to 60% over the next 10 years.

The Aquarion Water Authority in Connecticut successfully sold $2.4 billion in tax-exempt bonds, generating over $70 billion in demand. This 'blowout' sale was driven by high demand for tax-exempt income in Connecticut, diversification opportunities, and attractive pricing across various bond types. The proceeds will fund the acquisition of Aquarion Water Company from Eversource Energy, though customers face potential rate increases.