Maine utility regulators voted Thursday to take the next step in investigating how Central Maine Power’s management by its parent company Avangrid affects local ratepayers. 

The Public Utilities Commission also approved a first-of-its-kind program to offset high winter heating costs with one-time bill credits for roughly 90,000 CMP and Versant Power customers.

The CMP investigation, which will include hearings and could lead the PUC to impose or require remedies for any issues found, stems from an independent audit of CMP completed last year. 

The audit raised concerns about oversight of CMP by Connecticut-based Avangrid and its owner Iberdrola of Spain, saying systemic problems with this structure could be partly to blame for the customer service and billing issues that led Maine to fine CMP nearly $10 million in 2020. 

In a state-mandated improvement plan filed in response, CMP and Avangrid promised to expand local oversight and make other changes. The PUC and Office of the Public Advocate said that the plan had promising elements but still left them with questions. 

“I remain concerned that the plan may not be sufficient to ensure that CMP’s current ownership structure will provide it with the resources, staffing and, frankly, the attention of its parents needed to ensure … safe, adequate and reliable service at just and reasonable rates,” said PUC commissioner Patrick Scully. 

The PUC’s three members agreed at Thursday’s deliberations to narrowly focus the forthcoming investigation on the factors behind Avangrid’s planning and capital budget decisions, how those affect CMP and its customers, and reforms that could help ensure better service. 

In a PUC press release, chairman Phil Bartlett framed the investigation around the question of whether improvements in CMP’s performance were sustainable. 

“Central to that question is whether decision-making by Avangrid about how to direct resources to CMP is misaligned with ratepayer interests and whether regulatory changes are needed to protect CMP’s customers,” Bartlett said in the release. 

CMP had previously said it did not think this investigation was necessary, but spokesperson Catharine Hartnett said in a statement Thursday that the company would cooperate and that officials “generally agree that performance standards are good for customers.”  

“While we have the same name, CMP is a different company than we were four years ago, and these changes are evident,” Hartnett said. “CMP has demonstrated consistent improvement in customer service, an earnest commitment to safe and efficient storm response and has consolidated operations under Maine-based leaders…. The Maine PUC focus on future regulatory strategies will better serve Maine customers and support clean energy goals.” 

Also Thursday, the PUC approved a recently proposed short-term rate relief program devised by the utilities, Gov. Janet Mills’ energy office and newly confirmed public advocate Bill Harwood. 

The plan will use federal heating assistance funds to send out $90 credits to CMP and Versant customers who are considered low income, at 150% of the federal poverty line or less. 

The credits are due to show up automatically on customers’ bills by March 30. The utilities will work with the Maine Housing Authority to cover the costs using federal heating aid. 

The PUC applauded the utilities and state officials for collaborating on the program and keeping its cost from affecting other ratepayers. In a statement, Gov. Mills and others thanked the PUC for taking quick action to approve the credits.

“While this is a welcome step forward, my Administration will continue to evaluate ways that we can provide relief to more people across the state as they grapple with these increased costs driven by Maine’s overreliance on fossil fuels, especially natural gas,” Mills said.