Maine's governor vetoes plan to remove subsidiary from Avangrid

Jul. 14—A utility company that hopes to acquire Public Service Company of New Mexico won a decision Tuesday from Maine's governor, who vetoed a plan to create a customer-run company there.

Gov. Janet Mills, a Democrat, said the proposal that passed Maine's House and Senate was inadequately debated and hastily created. Mills argued for the status quo, which would keep parent company Avangrid's Central Maine Power in place. Avangrid hopes to merge with, or acquire, PNM this year.

Mills said the performance of Maine's two utility companies, Versant and Avangrid's Central Maine Power, has been "abysmal."

"We are well beyond the point of debating whether our utilities can do better," she said in a written statement. "They can, and they must." But she didn't think the plan to create a consumer-owned company was the answer.

Meanwhile, a consulting firm this week released an extensive audit of Avangrid's and Central Maine Power's efforts. The audit found Avangrid and its subsidiary have increased their focus and resources to improve service. The changes "have much improved customer service performance," said the Liberty Consulting Group of Pennsylvania.

The audit included faint praise.

"We did not find Avangrid a fundamentally or irredeemably flawed operation," the report said. "Nevertheless, it has faced an unusual array of substantial and continuing difficulties" since joining the Maine market.

Over the past five years, management has emphasized cuts and "sacrificed effectiveness in providing service," the audit said. That situation appears to have improved since 2019, the report added.

An Albuquerque-based spokeswoman for Avangrid focused on the positive results of the audit. "The short statement would be that Avangrid in Maine is making progress," said Joanie Griffin.

The audit said: "Like all organizations, it [Avangrid] can improve, cares about doing so, and has taken efforts to get better."