Attorney General William Tong and Consumer Counsel Claire E. Coleman have filed a petition with the Public Utilities Regulatory Authority (PURA) for state review of Iberdrola's proposed acquisition of all remaining shares of Avangrid. Iberdrola, a Spain-based multinational conglomerate, currently owns 81.6 percent of United Illuminating, Southern Gas, and Connecticut Natural Gas, as well as utilities in Maine, Massachusetts, and New York. The acquisition would result in Avangrid becoming a fully private entity.
If the acquisition proceeds, Avangrid will no longer be required to file with the U.S. Securities Exchange Commission (SEC), will lack minority shareholders to check corporate behavior, and will not be bound by a 2015 shareholder agreement that mandated four independent directors on its board. Additionally, Iberdrola is expected to pay $300 million in premiums to minority shareholders, potentially diverting resources from investments beneficial to Connecticut consumers.
Iberdrola has sought regulatory approval from the SEC, the Federal Energy Regulatory Commission (FERC), and public utilities regulatory commissions in New York and Maine but has not applied for such approval in Connecticut or Massachusetts.
Attorney General Tong highlighted previous failures by Iberdrola to meet obligations to Connecticut consumers. Earlier this year, he sued United Illuminating over contamination issues at the defunct English Station power plant in New Haven. Last month, the company did not comply with a PURA order regarding credits for customers installing home electric vehicle charging stations.
“Connecticut families are hurting right now under surging, unaffordable electric costs. We need more accountability and oversight, not less when it comes to our public utilities," said Attorney General Tong. "This expensive maneuver diverts hundreds of millions of dollars away from Connecticut needs and extinguishes some of the last vestiges of local control."
Consumer Counsel Coleman emphasized the potential impact on customers served by Avangrid’s natural gas and electric utility sectors across Connecticut: “Iberdrola’s move to take Avangrid private should be reviewed in a proceeding before Connecticut’s Public Utilities Regulatory Authority.”
Assistant Attorney General John Wright, Legal Assistant Caroline McCormack, and Deputy Associate Attorney General Michael Wertheimer are assisting Attorney General Tong in this matter.