PUC to investigate Central Maine Power's management structure

Courtesy / CMP Central Maine Power Co. faces concerns about management structure and customer service.

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By Jessica Hall

The Maine Public Utilities Commission has ordered a preliminary investigation into Central Maine Power’s management structure to determine whether that led to a drop in the quality of customer service in recent years.

The company must produce a performance plan due Nov. 30 to address how it will respond to an audit report by an independent consultant that cited concerns about the utility’s management and how it affected customer service. The PUC said a full investigation could be opened if necessary.

The report by Liberty Consulting Group noted there had been improvements in CMP customer service, but also raised several areas of concern. For example, the report asked whether CMP customers would remain a priority for quality service even as the utility becomes a smaller part of its overall parent company and investor’s holdings.

Center Maine Power Co., 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 report also cited the move of key executives and employees to Avangrid creating concerns about organizational stability.

“The commission has concerns about whether, without demonstrated improvement in the management relationship between CMP and Avangrid, that relationship is sustainable,” the PUC said in its notice.

“CMP will continue to serve customers led by a strong Maine leadership team committed to operational excellence. Our Maine team has deep service and operational experience, particularly our new CEO, Joe Purington, who began at CMP this week and who will draw on his 28 years of operations experience with the company,” CMP said in a statement.

“CMP has made demonstrable improvements in our daily service to customers as measured by responsiveness to customer calls and billing accuracy and timeliness. Last Spring, the Liberty audit noted many steady improvements at CMP, and we remain committed to sustainable improvement across the company.

Last week, CMP said it has improved customer service and a financial penalty weighing on its finances should be lifted.

“The Mills administration supports the PUC’s decision to investigate CMP’s management structure,” said Dan Burgess, director of the governor’s energy office. “We will follow these proceedings closely and strongly believe that Maine should use every regulatory tool within its power to ensure that our electric utilities are meeting their statutory mission to deliver safe, reliable, and adequate services at just and reasonable rates for Maine people.”

In addition to customer service issues, CMP also faces controversy surrounding a power line project in western Maine that crosses public lands, as well as an effort from critics to force a buyout of CMP and Versant Power to create a consumer-owned utility.

Voters will weigh a referendum this fall on the $1 billion power line project that aims to bring Canadian hydropower to the New England power grid.

“For years, CMP has allowed its customer service and dependability slide while waging an expensive campaign to force a for-profit corridor through the heart of western Maine against the will of its customers,” said Sandi Howard, a volunteer with the Yes on 1 campaign on the corridor issue.