Connecticut lawmakers are concerned that Avangrid, one of the state’s leading energy suppliers, may become a fully private company.
Iberdrola, a Spanish multinational conglomerate, owns more than 80% of Avangrid. The Spanish company wants to acquire the remaining shares.
The acquisition would mean the company would no longer have to make filings with the U.S. Securities Exchange Commission, and no longer be required to honor a 2015 shareholder agreement. The agreement appointed four independent directors to the company’s board. Without the independent directors and minority shareholders, lawmakers say they’re worried there would be no accountability or transparency from Avangrid.
“Avangrid may have a Connecticut address, but we know far too many major decisions are made in Spain. This expensive maneuver diverts hundreds of millions of dollars away from Connecticut’s needs and extinguishes some of the last vestiges of local control. This deal needs rigorous state scrutiny,” Connecticut Attorney General William Tong said. Tong, along with Consumer Counsel Claire E. Coleman, filed a petition to protect the remaining shares of Avangrid.
“This merger will strengthen our capacity to meet the growing demand for sustainable energy solutions and further our mission to lead the transition to a cleaner energy future in the United States,” said Pedro Azagra, Avangrid’s Chief Executive Officer, in a statement.
But some Connecticut lawmakers say the merger may make already existing problems worse. “Connecticut is one of the top three utility cost states in this country. Transparency, accountability, and the respect for the trust they’ve been given to deliver critical services to consumers and ratepayers need to get better,” Connecticut Senator Tony Hwang said.
Iberdrola also owns utilities in New York, Maine and Massachusetts. If the acquisition is successful, the company will also own United Illuminating, Southern Gas and Connecticut Natural Gas.
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Publish date : 2024-09-18 04:27:00
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