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February 17, 2022

Hallowell, Maine - The Maine Public Utilities Commission (Commission) opened an investigation today into the management practices of Central Maine Power (CMP) and its parent, Avangrid. The investigation will focus on how earnings considerations drive decision-making by CMP and Avangrid, the potential consequences for CMP's customers, and how to better align incentives through regulatory oversight.

In September 2021, the Commission initiated a summary investigation of management issues concerning CMP as described in the management audit report filed in Docket No. 2018-00194. The Commission directed CMP to file a plan for addressing the matters and concerns raised in that report by November 30, 2021. CMP filed the report, which included significant changes in its management structure.

"CMP is directly impacted by Avangrids decision-making and investment planning. While we have seen improvement in CMPs performance, we want to be sure that it is sustainable," said Commission Chairman Philip L. Bartlett II. 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 CMPs customers.

In a separate case, the Commission ordered the conditional removal of a substantial reduction to CMPs return on common equity of 100 basis points. Under the prior Order, CMP could seek to have the disallowance lifted once it met all service-quality metrics for at least 18 consecutive months, which Commissioners agreed today the utility had. The Commission noted that CMP would still be required to report on Service Quality Metrics on a quarterly basis and that the penalty could be reimposed should the utility fail to meet the standards. This disallowance, totaling approximately $12.5 Million, was the largest ever imposed by the Commission on a transmission and distribution utility due to poor management.

All documents related to these cases can be found at: Please references Docket Nos. 2018-00194, 2021-00303 and 2022-00038.

About the Commission The Maine Public Utilities Commission regulates electric, telephone, water and gas utilities to ensure that Maine citizens have access to safe and reliable utility service at rates that are just and reasonable for all ratepayers. Commission programs include Maine Enhanced 911 Service, gas safety and Dig Safe. Philip L. Bartlett, II serves as Chairman, Randall Davis and Patrick Scully serve as Commissioners.

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CONTACT: Susan Faloon, Media Liaison CELL: 207-557-3704 EMAIL: