A former subcontractor of Central Maine Power’s parent company Avangrid has dropped a lawsuit that accused the energy company of bid rigging to inflate profits.
The head of Pennsylvania-based Security Limits Inc. voluntarily dismissed his suit against Avangrid and its owner, Spain-based Iberdrola, in federal court this week.
Plaintiff Paulo Silva had accused the companies of racketeering and other efforts to inflate profits at ratepayers’ expense. Avangrid, which the company styles in capital letters, maintained the claim was baseless and said Silva never provided evidence to support it after filing his suit.
“Critics of AVANGRID seized on these unverified allegations in a rush to judgment, disregarding AVANGRID’s well-documented and independently-recognized compliance and ethics culture, system and practices,” Avangrid president Robert Kump said in a statement.
The suit led Maine’s Public Utilities Commission to consider opening an investigation into whether ratepayers in the state were affected by the actions Silva alleged. On Thursday, CMP asked the PUC to close this docket now that the lawsuit is dismissed.
Avangrid said it will continue to pursue its countersuit against Silva in a New Mexico court. The company accuses Silva of extortion and making defamatory statements against Avangrid during its ultimately failed efforts to acquire that state’s public utility late last year.
The company added that it did not reach any settlement with or offer payment to Silva before he dismissed the case this week.