Maine Public Utilities Commission to investigate Versant Power

Utility workers working on power lines against a blue-sky backdrop.

File photo / Versant Power Co. Versant Power Co. technicians maintain electricity transmission lines in northern Maine.

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Following issues uncovered in an independent audit of Versant Power Co., the Maine Public Utilities Commission has launched a formal investigation focused on the utility’s management practices and oversight by its Canadian parent company ENMAX.

A statement from the PUC released Monday says the audit, which was conducted last year by Overland Consulting, looked at the company’s operations, management structure, customer service and collections practices and the reliability of its distribution system.

PUC Chair Philip Bartlett said the report “raised a number of questions regarding the judgment of Versant’s management.”

“Overland’s findings come at a time when Versant’s ratepayers are shouldering significant regular increases in their rates, and they should expect that with these large increases they will enjoy excellent service and meaningful improvements in reliability," the PUC said. "Those expectations have yet to be met and the Commission will use this audit and the upcoming investigation to better understand why not and what actions both Versant and the Commission must take to address these shortfalls.”

Versant Power is the state’s second-largest investor-owned electric transmission and distribution utility, and serves 165,000 customers in northern and central Maine.

The PUC fined the company several times in the past few years. The most recent was a $90,000 penalty levied last year for not meeting customer service targets in 2023. In 2022 the PUC fined Versant $900,000 and in 2021 the company was ordered to pay $300,000. Versant was also required to refund customers $570,000 for an accounting error related to service in 2022.

The auditor, Overland Park, Kan.-based Overland Consulting, specializes in telecommunications, electric, natural gas, water and railroad industries and offers testimony in regulatory proceedings and civil litigation, according to its website.

Versant's response

In a statement regarding the investigation, Versant responded that while it agreed with “a number of findings in the recent management audit," it took issue with the anticipated costs associated with compliance.

“This report recommends tens of millions of dollars in suggested new spending on personnel, software and corporate initiatives at Versant Power while claiming this could somehow achieve $1.5 to $4 million in customer savings per year," the company said Monday.

“The Maine Public Utilities Commission and key stakeholders also established specific terms and restrictions on Versant Power’s Canadian ownership to ensure we remain a locally-run utility, employing a local workforce and responsive to our state’s needs and goals. Our corporate parent, ENMAX, has met those commitments and more.”

PUC spokesperson Susan Faloon said a timeline for the investigation has not yet been established.