Central Maine Power Maine’s Public Utility no longer public

The Spanish energy giant Iberdrola completed its $2.5 billion acquisition of Avangrid on December 23, marking another chapter in Maine's long history of local institutions falling under out-of-state and foreign control.

The deal, which takes Central Maine Power's parent company private, strips away public oversight and financial transparency at a time when the utility faces mounting criticism over rates, reliability, and customer service.

"This move puts Maine ratepayers at significant risk," said William Harwood, Maine's Public Advocate. "We're losing critical visibility into the company's operations and financial decisions right when we need it most."

Under the acquisition, Iberdrola purchased the remaining 18.4% of Avangrid shares it didn't already own, paying $35.75 per share. The transaction removes Avangrid from the New York Stock Exchange and eliminates requirements to file detailed financial reports with the U.S. Securities and Exchange Commission.

The Maine Public Utilities Commission declined to review the sale, with Chair Phil Bartlett noting that Iberdrola already controlled Avangrid's management. But critics say this hands-off approach ignores fundamental changes in oversight and accountability.

"The difference between majority control and total private ownership is stark," said Seth Berry, executive director of Our Power, which opposed the acquisition. "We've lost the last remaining checks and balances that came with public trading and minority shareholders."

For Maine consumers, the deal marks the latest transfer of local control to distant owners. Both of Maine's major electric utilities are now fully foreign-owned - CMP by Spain's Iberdrola and Versant Power by Canada's Enmax Corporation.

This pattern of outside takeovers extends beyond utilities. Just months ago, the National Trust for Local News acquired five of Maine's daily newspapers and 17 weekly publications, though that nonprofit transaction aimed to preserve local journalism rather than maximize profits.

"Maine is experiencing a slow erosion of local control across critical sectors," said Andrew Price, president of Portland-based Competitive Energy Services. "While the circumstances differ, the trend is concerning."

Connecticut and Massachusetts officials have pushed back harder against the Iberdrola takeover. Connecticut Attorney General William Tong and Consumer Counsel Claire Coleman petitioned regulators for a full review, arguing the deal threatens consumer protections and diverts resources from needed investments.

"Connecticut families are hurting under surging, unaffordable electric costs," Tong said. "We need more accountability and oversight, not less."

The acquisition raises concerns given Iberdrola's track record. Its executives currently face trial in Spain over alleged price manipulation, while a 2021 federal lawsuit accused the company of bid rigging and racketeering in New York, Connecticut, and Maine.

Security Limits Inc., a cybersecurity contractor, alleged in that suit that Iberdrola and Avangrid engineered an elaborate scheme to generate millions in wasteful equipment purchases, costs ultimately borne by ratepayers. The complaint described warehouses filled with unused equipment bought at inflated prices through manipulated bidding.

Maine ratepayers have already experienced the downsides of foreign ownership. Since Avangrid took control, CMP customers have endured soaring bills and frequent outages. The utility ranks near bottom nationally in customer satisfaction.

"The track record isn't encouraging," said Rebecca Schultz of the Natural Resources Council of Maine. "Instead of improving operations and investing in grid resilience, CMP's parent companies appear focused on financial engineering that consolidates their control and profits."

Some particularly troubling aspects of the privatization deal:

- Loss of SEC oversight removes requirements to disclose insider stock trades, executive compensation, and details about mergers and acquisitions

- Elimination of minority shareholders who could challenge risky corporate behavior

- Reduced transparency around investments and financial decisions affecting rates

- No obligation to report risks that could impact Maine operations

- Harder to track money flowing between Iberdrola's global subsidiaries

The timing also raises red flags as Maine grapples with extreme weather and grid reliability challenges. Devastating storms can leave thousands without power, for some over a week.

"At this critical moment, we're flying blind on the company's ability to meet these challenges," said former PUC Chair Sharon Reishus. "The commission has retained regulatory authority but lost vital visibility into corporate decision-making."

The privatization particularly threatens oversight of CMP's expanding renewable energy investments. As Avangrid pursues major offshore wind projects, reduced transparency could mask problems until they directly impact ratepayers.

Maine's experience mirrors a broader national pattern of foreign acquisition of U.S. utilities, though most remain publicly traded. Industry experts say private ownership by foreign corporations is relatively rare for utilities of CMP's size.

"This creates an accountability gap," said Georgetown law professor Scott Hempling, who studies utility regulation. "State regulators have limited insight into decisions made in corporate boardrooms an ocean away."

For Maine citizens, the Iberdrola deal continues a troubling shift of local institutions to outside control. While the newspaper acquisition by the National Trust aims to sustain local journalism through nonprofit ownership, the utility privatization appears driven by corporate profits.

"The comparison is telling," said Berry. "One transaction seeks to preserve local voices, while the other effectively silences them."

As climate change and aging infrastructure create mounting challenges for Maine's electric grid, the loss of transparency from this privatization looms large. With both major utilities now under total foreign control, regulators and ratepayers face a more difficult task ensuring reliable, affordable power for Maine's future.

"We've handed the keys to our energy future to overseas boardrooms," said Harwood. "Time will tell the true cost to Maine consumers."