Spanish Energy Giant Acquires CMP Parent Company for $2.5 Billion

Spanish energy giant Iberdrola has officially acquired Central Maine Power’s parent company in a $2.5 billion deal, making Maine’s largest electric utility privately held. The purchase was approved by New York regulators in December and finalized on Monday, with shareholders receiving $35.75 per share.

Maine regulators did not review the deal, raising concerns about transparency in the utility’s operations. Despite critics urging for a review, the completion of the acquisition has left the situation uncertain. Connecticut officials have also raised objections, arguing that the deal could impact public safety and utility bills.

As a private company, Avangrid, based in Connecticut, is no longer required to submit financial details to the U.S. Securities and Exchange Commission. This lack of transparency has raised concerns among consumer advocates and environmentalists. However, CMP states that safeguards were put in place when Iberdrola acquired Energy East Corp. in 2008 to protect Maine utilities and ratepayers.

In New York, the Public Service Commission has mandated that Avangrid and its subsidiaries continue to report financial results similar to SEC filings. Additionally, Avangrid’s subsidiaries are prohibited from passing on the costs of the transaction to ratepayers.

Iberdrola has stated that the acquisition will allow for more efficient investments in the U.S., particularly in energy infrastructure projects. This includes enhancing the electric grid and meeting the increasing demands of utilities and data centers.

Connecticut officials have petitioned for a review of the Iberdrola-Avangrid deal, citing concerns about its impact on customers, rates, and reliability. They argue that regulators should evaluate the transaction thoroughly to ensure the best interests of utility customers are protected. Despite pushback, Iberdrola and Avangrid maintain that the deal does not impose new regulatory challenges and therefore do not require further review.