New Details: CMP Identifies Reliability Projects That Could Be Delayed Amid Financial Pressures

Projects serving thousands of customers may face delays as financial constraints limit the company's ability to sustain current investment levels. 

 

AUGUSTA, Maine — October 5, 2026 — Central Maine Power (CMP), a subsidiary of Avangrid Inc., filed exceptions with the Maine Public Utilities Commission (MPUC) on Friday detailing how mounting financial pressures are affecting infrastructure investments. These investments are intended to address known reliability needs for thousands of customers. 

 

In July, S&P Global Ratings revised CMP's outlook from stable to negative, citing the company's weakening financial position. The downgrade reflects growing pressure on the company's ability to finance grid investments and underscores the importance of maintaining the financial stability necessary to support reliable electric service and ongoing infrastructure improvements. 

 

CMP's exceptions explain that years of inflation pressures, higher borrowing costs, and rising labor, equipment, and construction expenses have significantly increased the cost of operating and improving the electric system. At the same time, more frequent severe weather, growing electrification, and aging infrastructure are placing greater demands on the electric system, requiring continued investment to maintain reliability, even as company revenues have failed to keep pace with rising costs. 

 

CMP remains committed to completing these projects, but without greater financial stability, projects intended to address known reliability concerns, replace aging equipment, and strengthen the grid may be delayed or deferred. Some of those projects include: 

• Lewiston and Auburn: Reliability upgrades at two substations serving more than 12,000 customers, including transformer repairs, smart device installations, and replacement of a failed transformer. More than 4,800 customers are currently being served through a temporary mobile substation. 
• South Portland: Upgrades at a substation serving more than 7,000 customers, including work to address equipment that exceeded its operating limits during extreme heat in July 2026. 
• Biddeford and Saco: Upgrades to a substation serving approximately 6,500 customers, including replacement of a strained transformer and modernization of a facility dating to the 1940s. The project is designed to address growing electricity demand and support reliability as the two communities continue to grow. 
• Limington, Baldwin, Sebago and Standish: Reliability upgrades on one of CMP’s poorest-performing distribution lines, including installation of smart devices, tree wire, and stronger poles. More than $1.5 million of the project is supported by a Maine Department of Energy Resources resiliency grant. 
• West Bridgton: Replacement of deteriorated substation poles serving approximately 1,900 customers. The project would replace aging wooden structures with steel poles following temporary measures taken to maintain reliability and safety. 

 

“For more than a year, we have continued investing in reliability and system improvements while managing rising costs and awaiting the necessary regulatory approval to align rates with the cost of providing service,” said Linda Ball, President and CEO of Central Maine Power. “That approach is becoming increasingly difficult to sustain due to inflation, rising costs, and other factors.” 

 

The projects identified in CMP’s filing are designed to address known reliability challenges before they become larger customer impacts. After a year marked by winter storms, more than 100,000 storm-related outages, and periods of extreme summer heat, the need for continued investment in grid reliability and resilience has become even more apparent. Delaying these investments does not eliminate costs or system needs. It simply postpones solutions and increases the risk of larger, more expensive challenges in the future.