February 17, 2022
Hallowell, Maine – The Maine Public Utilities Commission (Commission) today opened an investigation into the management practices of Central Maine Power (CMP) and its parent company, Avangrid. The survey will focus on how revenue considerations influence decision-making by CMP and Avangrid, the potential consequences for CMP customers, and how to better align incentives through regulatory oversight.
In September 2021, the Commission launched a summary investigation into the management issues concerning the CMP, as described in the management audit report filed in case number 2018-00194. The Commission ordered CMP to file a plan to address the issues and concerns raised in this report by November 30, 2021. CMP filed the report, which included significant changes to its management structure.
“The CMP is directly impacted by Avangrids’ decision-making and investment planning. While we have seen an improvement in the performance of the CMP, we want to be sure it is sustainable,” said the Commission Chairman. , Philip L. Bartlett II. At the heart of this question is whether Avangrid’s decision-making on how to direct resources to the CMP is misaligned with the interests of taxpayers and whether regulatory changes are needed to protect CMP customers.
In a separate case, the Commission ordered the conditional removal of a substantial 100 basis point reduction in CMP’s return on common equity. Under the previous order, CMP could apply for the denial to be lifted once it had met all quality of service metrics for at least 18 consecutive months, which commissioners agreed today that the utility had. The Commission noted that CMP would still be required to report quarterly on service quality metrics and that the penalty could be reimposed if the utility fails to meet standards. This denial, totaling approximately $12.5 million, was the largest ever imposed by the Board on a transmission and distribution utility due to mismanagement.
All documents related to these cases can be viewed at: https://www.maine.gov/mpuc/online-services. Please refer to file numbers 2018-00194, 2021-00303 and 2022-00038.
About the Board
The Maine Public Utilities Commission regulates electric, telephone, water, and gas utilities to ensure Maine citizens have access to safe and reliable utility services at rates that are fair and reasonable to all ratepayers. . Commission programs include the Maine Enhanced 911 Service, Gas Safety, and Dig Safe. Philip L. Bartlett, II is Chairman, Randall Davis and Patrick Scully are Commissioners.
Learn more about the Commission at www.maine.gov/mpuc
CONTACT: Susan Faloon, Media Liaison CELLULAR: 207-557-3704 EMAIL: [email protected]