CMP seeks to waive requirement that could affect parent company’s acquisition

Central Maine Power and parent company Avangrid are asking Maine utility regulators to waive a requirement that could affect Avangrid’s acquisition by Spanish company Iberdrola.

Maine state law requires the Maine Public Utility Commission approve any reorganization of a public utility.

In May, CMP and Avangrid submitted a request for the commission to waive that approval process, arguing it’s not a reorganization because Iberdrola already held a controlling stake — more than 80 percent — in the company.

But consumer-interest groups like the Maine Office of the Public Advocate are opposed to the request on the basis that the buyout would transform the publicly traded Avangrid into a private company, making it exempt from filing certain financial records with the Securities and Exchange Commission.

“It is also a source of information for the public, including our office to learn more about the internal workings of Avangrid,” Public Advocate Bill Harwood said. “So that will be a loss to our office and to the ratepayers.”

“In this day and age, we can’t afford to allow our utilities to do whatever they want without offering benefit to Maine and ratepayers,” said Rebecca Schultz, senior advocate for the National Resources Council of Maine who participated in Monday’s meeting. “Not today when we have this urgent need to reform the way that we plan, build and operate our grid to come into compliance with our climate requirements — and to do so while keeping costs affordable for Maine homes and businesses.”

Iberdrola held 81.6 percent of Avangrid’s stock before purchasing the remaining 18.4 percent in a $2.6 billion deal last month.

The utilities commission said it will deliberate in November. Until then, all sides will continue working towards reaching a settlement agreement for the commission to approve.

While Avangrid would no longer be required to submit those documents, former chair of the Maine Public Utilities Commission Sharon Reishus said the commission will still retain broad regulatory power over CMP — including its authority to conduct management audits.

”So there really is plenty of authority to obtain whatever kind of detailed financial information that might otherwise be lost, because Iberdrola would not be providing SEC reports,” Reishus said.

Avangrid and the intervening groups will continue working on reaching an agreement before the issue goes to the commission for deliberation in November.

This article appears through a media partnership with Maine Public .