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December 1, 2021

CMP sets new management structure in wake of critical audit report

In the wake of a critical audit report, Central Maine Power Co. said Wednesday it is planning to change its organizational structure in an effort to improve local management and customer service.

The Maine Public Utilities Commission had required CMP to produce a performance plan to address how it will respond to the audit by an independent consultant, which cited concerns about the utility’s management and how it affected service.

Among the changes, CMP said it is realigning its management to enhance local control, decision making and accountability. Adam Desrosiers, recently named vice president of electric operations, will have expanded responsibilities including vegetation management, substation maintenance and control center operations, the company said.

Additionally, CMP announced the establishment of an entirely Maine-based and Maine-focused leadership team that will include a broad cross-section of the business and a new community relations team to enhance communications with CMP stakeholders.

"The commission will determine the additional procedural steps necessary to fully assess the plan and ensure that it addresses the performance issues that have been identified," the PUC said in a statement.

CMP, which has been criticized for inaccurate billing and difficulty handling customer service calls, is owned by Connecticut-based Avangrid Inc. (NYSE: AGR). Spain’s Iberdrola is the majority owner of Avangrid.

The moves address the Liberty Consulting Group’s audit report that was issued in July. That report concluded that CMP had improved customer service satisfaction levels on actual customer interactions since 2018 and had a decrease in the number of customer complaints. Still, the report outlined opportunities for the company to further improve its service to customers.

“CMP is well down the road to making organizational improvements that emphasize local management with Maine leadership and that also leverage the resources of the larger Avangrid organization,” said CMP President and CEO Joe Purington.

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Courtesy / Central Maine Power
Joseph Purington

“The audit report recognized that CMP is on the right path to making needed improvements, and this plan solidifies our commitment to continuing those improvements and builds in accountability.   Our focus will continue to be how we can best serve our customers into the future, and help the state achieve clean energy goals with a commitment to reliable power delivery and quality customer service,” Purington said.

CMP also said it would work with stakeholders and the PUC to establish multiyear rate plans that provide more rate predictability and performance expectations that can be tracked and measured.

Among other changes, CMP said a new, non-affiliated director from Maine will join the Avangrid Networks board. That person will be in addition to former Gov. John Baldacci, who currently serves as vice chair of the board of Avangrid Inc., and Elizabeth Timm, a Maine banking executive and member of University of Maine’s board of trustees, who also serves on the parent company board.

At the CMP board, former state Sen. Dawn Hill will make regular presentations to the board to maintain focus and alignment on customer needs and concerns.

Also, a separate CMP treasurer and controller has been appointed to link financial performance to local operations. The CMP treasurer and controller will provide direct financial reporting monthly to CMP leadership.

CMP recently halted construction of a $1 billion power line project while legal challenges wind their way through the courts. The project aimed to bring Canadian hydropower to the New England power grid.

“Maine’s electric system is evolving to meet our clean energy goals, and this plan provides greater local control and accountability, and proposes consideration of future regulatory models to support the modernization of Maine’s electric grid and predictability of CMP-related costs,” Purington said.

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