State regulators waived Tuesday a requirement that they approve Spanish energy firm Iberdrola’s takeover of Central Maine Power’s parent company.
Iberdrola held 81.6 percent of CMP parent Avangrid’s stock before purchasing in June the remaining 18.4 percent in a $2.6 billion deal. Maine’s largest utility and its parent firm Avangrid, which is headquartered in Connecticut, had submitted a request in May for the Public Utilities Commission to waive a state law requiring regulators to approve any reorganization of a utility.
By agreeing Tuesday morning to waive the requirement, the commission avoided adding extra hurdles to Iberdrola’s takeover. Opponents who included Public Advocate William Harwood and consumer groups argued it transforms the publicly traded Avangrid into a private company and exempts it from filing certain financial records with the Securities and Exchange Commission.
CMP and Avangrid argued the request was not a reorganization because Iberdrola already held a controlling stake in the company. The Public Utilities Commission agreed in a 2-1 vote. Chair Phil Bartlett and Commissioner Patrick Scully pointed to how Iberdrola had indirectly obtained a 100 percent stake in a former CMP parent company in 2008. Scully, with the most detailed explanation Tuesday, said the 2008 case was “thoroughly litigated” and included safeguards meant to protect CMP and ratepayers.
“I do not see a reason to effectively relitigate the 2008 approval at this time,” Scully said, adding he did not support the argument from opponents that transferring control of a company can occur “by a degree” that requires additional approval.
Commissioner Carolyn Gilbert disagreed with Scully and Bartlett and said she was concerned about the amount of time that had passed since the 2008 reorganization, adding she hoped the parties could provide more details on what may or may not change going forward.
Ahead of Tuesday’s meeting, groups that opposed CMP and Avangrid’s request argued extreme weather and flooding that hit Maine in recent years heightened concerns about CMP’s owners “going dark” while focusing on profits. Natural Resources Council of Maine climate and clean energy senior advocate Rebecca Schultz said Iberdrola’s takeover “could result in an enormous loss for public transparency, making it even harder for citizens, reporters and regulators to hold our utilities accountable and understand how the needs of Maine customers may or may not be taken into account by one of the biggest energy companies in the world.”
But former Maine Public Utilities Commission Sharon Reishus told Maine Public earlier this year the commission will still retain broad regulatory power over CMP, including the authority to conduct management audits.
