Spanish energy giant Iberdrola says it has completed a buyout of Central Maine Power’s parent company. The international corporation intends to operate Avangrid as a private company, which critics say raises transparency concerns.
Iberdrola bought the remaining 18% of Avangrid’s publicly traded stock for $2.5 billion this month after receiving approval from state and federal regulators. The Spanish company already owned the overwhelming majority of Avangrid shares.
The company will operate Avangrid as a private entity, which allow it to participate more economically in energy infrastructure projects.
"The merger will allow Iberdrola to invest in the United States more efficiently," the company said in a press release.
"The subsidiary will be able to participate more economically in new energy infrastructure projects in its grid and renewable businesses, representing a significant investment in local communities and generating hundreds of direct and indirect jobs," Iberdrola added.
The Maine Public Utilities Commission declined to review the sale this fall. Commissioners found that since Iberdrola already controlled Avangrid’s management and board of directors, the sale wouldn’t change overall control of the company.
The commission previously approved private ownership of Avangrid in 2008. It still requires the company to provide thorough public financial and operational records.
Critics of the final acquisition plan however, including the Office of the Public Advocate argued private ownership will limit transparency since the company will not need to divulge financial information to federal regulators and the public.
Avangrid owns Central Maine Power, the state's largest electric utility, and Maine Natural Gas.
