Lawmakers ask Maine PUC to investigate allegations in lawsuit against parent company CMP

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A bipartisan group of lawmakers has called on the Maine Public Utilities Commission to open an immediate investigation into allegations made in a lawsuit last week against Avangrid, the parent company of Central Maine Power, by a former contractor.

Security Limits Inc., based in Jessup, Pa., And its CEO, Paulo Silva, have filed a federal lawsuit accusing Avangrid of rigging bids, racketeering and buying unnecessary equipment so that it can charge rates for higher electricity to its customers and increase its profits. The lawsuit against Avangrid Networks, a subsidiary of Avangrid, has been filed in US District Court for the Southern District of New York.

Neither CMP nor any of its leaders are mentioned in the lawsuit. Silva is seeking more than $ 600 million in damages, including punitive damages.

Avangrid denied the allegations and described the complainant as a disgruntled and bitter subcontractor because the company chose not to continue awarding him new contracts. Avangrid filed a counter-suit against Silva on December 4, citing libel and extortion.

State Representative Nathan Carlow, R-Buxton, a member of the Legislature’s Energy, Utilities and Technology Committee, wrote the letter to the PUC, which was co-signed by two others Republican lawmakers, Senator Richard Bennett of Oxford and Representative Jennifer. Poirier from Skowhegan, and two Democrats, Rep. Seth Berry from Bowdoinham and Rep. Nicole Grohoski from Ellsworth.

“The principals deserve to know the truth behind these allegations, and it is for the Commission to determine to what extent taxpayers may have been affected by the irregularity alleged by the complainant in this matter,” Carlow said in a statement Thursday. “The letter is simple, if the law has been broken, then penalties must be imposed. It is a fundamental principle and that is why there is support from all parties for this inquiry. “

It is not clear whether the PUC will investigate. PUC President Philip Bartlett and PUC spokesperson could not be reached for comment Thursday evening.

But on Monday, the PUC released a statement that called the allegations in the initial trial “serious” and said it would follow the case closely. The PUC regulates Maine’s power companies, including the CMP, and has the final say on the rates charged to customers. It can use its pricing power to limit a utility’s profits if it believes a utility has acted improperly and raised tariffs unfairly.

“As we learn more, we will determine what further consideration by the commission may be warranted,” the PUC said in a statement.

In their letter, lawmakers called on the agency to launch an investigation to determine whether Maine taxpayers may have been affected by the irregularities alleged by Silva.

Each of these claims is deeply disturbing and the people of Maine deserve to know the truth behind this alleged misconduct. However, given that Maine taxpayers experience the lowest reliability in the country, coupled with absurdly high rates, the claim of reckless frivolity and blatant abuse of the monopoly franchise granted to the subsidiary of Of particular concern is Avangrid, Central Maine Power, ”lawmakers wrote. .

Lawmakers have said the merits of adversarial prosecutions should be left to the courts to decide, adding that if “wrongdoing is determined in this case or wrongdoing is uncovered by the investigation we are requesting, then we urge the Commission to act quickly in imposing penalties to remedy the financial loss of taxpayers.

Avangrid’s lawsuit against Silva and his company says Security Limits Inc. provided technology services in 2018-2019 and after the work was completed disputes arose with third-party companies over the payment. Unhappy with the outcome of these disputes, Silva’s company began to harass Avangrid, according to the lawsuit. After unsuccessfully seeking new contracts with Avangrid, he threatened to make negative public statements against the company, according to Avangrid’s lawsuit.

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