Local Officials Express Concern Over BHC Sale

By Steve Bigham

The pending sale of the Bridgeport Hydraulic Company (BHC) has some area town leaders, including First Selectman Herb Rosenthal, concerned about the future of the company’s 20,000 acres of land in Connecticut.

A total of 684 of those acres lie in Newtown, and Mr Rosenthal says there is always the chance that some of that land could be sold to a developer.

“It may not have any impact on us, but there is the possibility that some of the land could be sold,” he told the Legislative Council Wednesday might.

The British water company, Yorkshire, PLC, a subsidiary of Kelda Group, is reportedly on the verge of buying the company for $444 million ($37 per share for the stock) and would assume $150 million worth of debt. Mr Rosenthal wonders if the new company might sell off some of the land to offset the high cost.

Much of the Bridgeport Hydraulic Company (aka Aquarion) land in Newtown is deemed Class I land, which cannot be sold due to its close proximity to reservoirs, rivers and streams. However, there is some Class II and III land that can be sold. Of course, Newtown has far less to worry about than does Easton, which is home to 6,300 acres of BHC-owned land.

Mr Rosenthal said there is no indication that the Kelda Group plans to sell the land. Any sale, however, must first be offered to the town under a right-of-first-refusal law – similar to the current situation at Fairfield Hills where the town has the first option to buy.

Town leaders, state legislators and environmentalists are seeking to have the land locked into conservation easements.

None of Newtown’s water supply comes from the Bridgeport Hydraulic Company, so any rate changes would not apply. Newtown’s public water supply comes from United Water, which was recently purchased by Suez, a French company.

The pending sale of BHC is currently before the Department of Public Utilities Commission (DPUC). Mr Rosenthal said first selectman and mayors of Fairfield Country towns and cities have met with state legislators John Stripp and John McKinney to ensure that DPUC is aware of their concerns. The first selectmen of Newtown, Easton, Weston and Westport have sought intervener status in the negotiations. Both the mayors of Bridgeport and Stamford have also joined the cause. Talks have been going on for some time, said Mr Rosenthal, “we’re coming in at the 11th hour.”

Any legal expenses incurred by the towns and cities will be paid for by the Connecticut Fund for the Environment. The DPUC hearing is scheduled for Monday. It is expected to rule on the sale by December 8.

Aquarion serves 141,000 water customers in Connecticut and Long Island. In June, it announced it would sell all its holdings to Kelda Group.