Laura: I AM LAURA PASKUS.

NEW MEXICANS ARE FACING SOME  POTENTIALLY BIG CHANGES WHEN IT COMES TO OUR ELECTRICAL  UTILITY.

THAT IS BECAUSE THERE IS A  MERGER BEING WORKED OUT BETWEEN PNM RESOURCES AND  AVINGRID, THE U.S. SUBSIDIARY OF A SPANISH POWER COMPANY.

HOW THAT WILL PLAY OUT AND WHAT THE CONSEQUENCES MIGHT BE  REMAIN TO BE SEEN.

BUT I CHECKED IN RECENTLY WITH  CAITLIN ANDREWS A REPORTER FOR THE BANGOR DAILY NEWS.

AVINGRID HAS BEEN IN MAINE FOR MORE THAN A DECADE AND THE  COMPANY HAS NOT BEEN WITHOUT CONTROVERSY.

HERE IN NEW MEXICO THERE IS A PLANNED MULTI BILLION DOLLAR  MERGER BETWEEN PNM RESOURCES AND AVINGRID.

PNM HAS OPERATED AS A MONOPOLY THE STATE'S ELECTRICAL  UTILITIES FOR DECADES AND AVINGRID IS A U.S. BASED  SUBSIDIARY OF A SPANISH POWER COMPANY.

THIS IS ALL STILL PLAYING OUT HERE IN NEW MEXICO.

IN MAINE IN 2008 AVINGRID BOUGHT CENTRAL MAINE POWER.

WHEN THE COMPANY WAS COMING TO MAINE WHAT ARE SOME OF THE  THINGS THAT THEY PROMISED AND WHAT HAVE PEOPLE SEEN HAPPEN  OVER THE PAST 14 YEARS?

Andrews: I SHOULD SAY TO  START THE WAY IT ACTUALLY CAME ABOUT, WAS IBERDROLA BOUGHT  ENERGY EAST WHICH CENTRAL MAINE POWER WHICH WAS A  SUBSIDIARY 2008 AND THEN IN 2015 IBERDROLA BOUGHT THIS  OTHER COMPANY CALLED UIL HOLDINGS.

THEY MERGED THEM TOGETHER AND CREATED AVINGRID.

SO, AVINGRID WAS BIRTHED IN 2015 AND CMP ENDED UP BEING  SOMETHING UNDERNEATH THAT.

I BELIEVE THE IDEA OF MERGING  THEM TOGETHER WOULD CREATE MORE RELIABILITY, CREATE MORE  DEPENDABLE CUSTOMER SERVICES AND IT WOULD CREATE A STRONGER  UTILITY ALTOGETHER.

SOME OF THE CHALLENGES THAT  HAVE COME UP SINCE THEN, YOU KNOW, YOU CAN MAKE THE  ARGUMENT, WELL, AT LEAST THE STATE FOUND VERY RECENTLY  COULD HAVE STRONG FROM THE AVINGRID MERGER.

THEY RELEASED A AUDIT THAT HAS BEEN THREE YEARS IN THE MAKING  WITH LIBERTY CONSULTING GROUP THIS YEAR THAT FOUND AVINGRID  ITSELF IS NOT A BAD COMPANY BUT IT HAS STRUGGLED SINCE THE  MERGER TO BE ABLE TO PROVIDE CUSTOMER SERVICE, LARGELY  BECAUSE IT HAS BEEN CUTTING OR LIMITING SOME OF ITS RESOURCES  TO MEETS ITS EARNINGS EXPECTATIONS.

THE CHALLENGES IT CREATED THAT HAPPENED FROM THAT WAS THAT IT  CREATED STAFFING FLUCTUATIONS, WITH STAFF SOMETIMES BEING CUT  AND SOMETIMES RESTORED, WHICH CREATED AN UNEVEN EXPECTATION  OF CUSTOMER SERVICE RELIABILITY.

THAT INVESTIGATION REALLY SPRANG OUT OF A SCANDAL THAT  CAME OUT IN OCTOBER OF 2017 WHEN THERE WAS A LOCAL STORM  WHERE SOME PEOPLE LOST POWER FOR AT LEAST A WEEK AND  RECEIVED HIGH BILLS AFTERWARDS.

WHICH, LATER LED TO THE PUBLIC UTILITIES COMMISSION IN MAINE  FINDING THAT CMP NEEDED TO ACCOMMODATE ITS CUSTOMERS FOR  BILLING THEM WHEN THEY EXPERIENCE HIGH OUTAGES.

Laura: RECENTLY REPRESENTATIVE SETH BERRY, A  MAINE LAWMAKER, HE WROTE AN OP ED THAT WAS CIRCULATED PRETTY  WIDELY HERE IN NEW MEXICO WARNING THE STATE AGAINST THE  MERGER.

IS THE COMPANY THIS UNPOPULAR  IN MAINE?

Andrews: CERTAINLY, I THINK ANY CONVERSATION ABOUT  AVINGRID IS REALLY A REFLECTION OF CMP.

THAT IS A LOCAL UTILITY, ONE MORE PEOPLE ARE FAMILIAR WITH.

YOU SEE AVINGRID COMING UP IN THE CONVERSATION AROUND THE  NEW ENGLAND CLEAN ENERGY CONNECT WHICH IS A HYDROPOWER  CORRIDOR THAT IS GOING TO BRING HYDROPOWER ELECTRICITY  DOWN THROUGH MAINE INTO MASSACHUSETTS AND ALSO INTO  THE REGIONAL GRID BUT IT IS HAPPENING TO FULFILL A BIG  MASSACHUSETTS ATTEMPT TO FILL ITS RENEWABLE ENERGY GOALS.

SO, WHEN PEOPLE ARE TALKING ABOUT AVINGRID, THEY ARE  USUALLY TALKING ABOUT IT THROUGH THE PERSPECTIVE OF THE  CORRIDOR ABOUT HOW THIS COMPANY DOESN'T CARE ABOUT THE  MAINE CUSTOMERS BECAUSE THEY ARE SUCH A SMALL PERCENTAGE OF  EARNINGS OVERALL.

THERE IS NO GUARANTEE THEY ARE  GOING TO HAVE YOUR BEST INTERESTS IN MIND WHEN IT  COMES TO THIS.

Laura: SO, ONE OF THE  THINGS THAT REPRESENTATIVE BERRY WROTE ABOUT IN HIS SORT  OF WARNING TO NEW MEXICANS, HE MENTIONED THAT THERE IS A BILL  THAT THE MAINE LEGISLATURE PASSED TO REVOKE AVINGRID'S  MONOPOLY AND REPLACE CENTRAL MAINE CENTRAL POWER WITH A  NONPROFIT CONSUMER-OWNED UTILITY.

HE ALSO WROTE THAT THE BILL IS SUPPORTED BY 75% OF MAINERS  AND THAT IF IT BECAME LAW, IT WOULD SAVE RATE PAYORS NINE  BILLION DOLLARS IN THE FIRST 30 YEARS AND ACCELERATE THIS  STATE'S TRANSITION TO RENEWABLE ENERGY.

BASED ON YOUR REPORTING, IS THIS ACCURATE INFORMATION?

IS THIS AN ACCURATE ASSESSMENT?

Andrews: WELL, I CAN'T QUITE SPEAK TO HOW, I GUESS,  WIDESPREAD FAVORABILITY IS FOR THE CONCEPT OF CONSUMER-OWNED  UTILITIES.

I ACTUALLY WOULD SAY THAT I  DON'T KNOW THAT A LOT OF PEOPLE WOULD KNOW WHAT IT  WOULD DO BUT I DO KNOW THAT THERE WAS A STUDY THAT CAME  OUT THAT IF A CONSUMER-OWNED UTILITY HAPPENED WHICH IN  MAINE THE CONCEPT HERE IS THAT IT WOULD CREATE A NONPROFIT  THAT WOULD THEN GO TO BOND IN ORDER TO BUY OUT CMP AND  VERSANT POWER WHICH ARE THE TWO BIGGEST UTILITY COMPANIES  IN THE STATE.

THERE IS A LOT OF QUESTIONS  ABOUT WHETHER THEY WOULD BE ABLE TO SELL.

THERE IS ACTUALLY A COMPETING REFERENDUM TRYING TO STOP  THAT, BUT THERE WAS A STUDY THAT CAME OUT THAT INITIALLY  RATES WOULD INCREASE FOR THE FIRST FEW YEARS BUT THEN  EVENTUALLY THE CUSTOMERS WOULD SEE POSSIBLE RATE DECREASES  OVER TIME.

Laura: HERE IN NEW MEXICO,  PNM RESOURCES IS LIKE A POLITICAL POWERHOUSE.

YOU KNOW, THEY HAVE A GREAT DEAL OF INFLUENCE IN THE  LEGISLATURE AND OVER STATE GOVERNMENT.

I AM CURIOUS IN TERMS OF POLITICAL INFLUENCE KIND OF  WHAT THE SITUATION IS WITH CMP  AND AVINGRID IN MAINE?

Andrews: WELL, CERTAINLY,  CMP AND AVINGRID HAVE NOT BEEN SHY ABOUT FLEXING SOME  POLITICAL MONEY AROUND THIS REFERENDUM.

THE REFERENDUM SPENDING ALTOGETHER IS BETWEEN THIS ONE  AND FIRST ONE THAT WAS STRUCK DOWN FOR CONSTITUTIONAL  PURPOSES IS OVER 62 MILLION AND WITHIN THIS QUARTER ALONE,  AVINGRID SPENT 8.7 MILLION TO CLEAN ENERGY MATTERS.

THERE HAS BEEN A LOT OF SPENDING ON LIKE ADS AND  MAILERS AND YOU CAN MAKE ARGUMENT ABOUT HOW USEFUL  THOSE CAN BE IN A POLITICAL SEASON BUT IT IS CERTAINLY  WAYS THAT PEOPLE LIKE TO FLEX THEIR POLITICAL FORCES.

THEY HAVE VERY POWERFUL INFLUENCE IN AUGUSTA.

THEY HAVE SOME OF THE MOST HIGH PAID LOBBYING FIRMS THAT  WORK TO DEFEAT THE CONSUMER-OWNED UTILITY BILL.

I CANNOT SPEAK SPECIFICALLY TO SOME OF THE OTHER BILLS BUT  THAT ONE THEY WERE DEFINITELY HAVING SOME PRESENCE ON.

Laura: I AM CURIOUS, WHAT QUESTIONS DO YOU THINK THAT  PEOPLE SHOULD BE ASKING AVINGRID RIGHT NOW TO HOLD THE  COMPANY ACCOUNTABLE IF THE MERGER GOES THROUGH AND INTO  THE FUTURE?

Andrews: ONE OF THE THINGS  THAT REALLY STOOD OUT TO ME IS THAT AUDIT LIBERTY CONSULTING  GROUP WHEN THEY REALLY EXPLAINED HOW   BIG AVINGRID IS, YOU KNOW.

IT SAID THAT ITS FORCE, WHICH MEANS WORKFORCE, HAS RECEIVED  35,000 COMPARED TO CMT WHICH HAS JUST OVER 900 PEOPLE.

MADE A NOTE THAT SAYING THAT MAINE COMPRISES ABOUT 20% OF  U.S. UTILITIES OPERATIONS BUT JUST 2% OF OVERALL UTILITY  CUSTOMERS.

IF I AM IN NEW MEXICO, I WOULD  ASK AVINGRID, HOW ARE YOU GOING TO GUARANTEE THAT YOU  UNDERSTAND OUR SPECIFIC ENERGY NEEDS, YOU KNOW, WHAT OUR  UTILITY NEEDS ARE.

WHO ARE YOU GOING TO WORK  WITH, YOU KNOW, IF THERE IS AN UNSATISFACTORY CUSTOMER  SERVICE, WHAT ARE YOU GOING TO TRY TO DO TO MAKE THAT BETTER,  HOW WELL IS YOUR UNDERSTANDING OF WHAT NEW MEXICO CUSTOMERS  NEED?

Laura: WELL, CAITLIN  ANDERSON, I REALLY APPRECIATED READING YOUR COVERAGE OF  UTILITY IN MAINE AND I REALLY APPRECIATE YOU COMING ON NEW  MEXICO FOCUS TODAY.

THANKS.

Andrews: THANK YOU SO MUCH.