CMP and Maine

A little over a year ago, the Maine Public Utilities Commission wanted to make sure that the merger between CMP and Energy East didn’t result in a loss of service to CMP customers. The commissioners “don’t want them to become more efficient by laying off all their linemen,” PUC senior utilities analyst Phil Lindley said at the time. Whether they were layoffs or voluntary departures, the PUC, it turns out, could have spent less time worrying about who was in the utility trucks and more looking into the soon-to-be empty executive offices.

The announced departure Monday of David T. Flanagan, president of CMP Group and Energy East Corp. makes him the fourth and highest member of CMP’s senior management to leave as a result of the merger. Earlier, Arthur Adelberg, executive vice president, was a surprise departure; David Marsh, CMP treasurer, and Gerry Poulin, vice president of generation and engineering, left before the merger was complete. And since then, two other CMP officials, Ray Hepper, general counsel, and Michael Caron, comptroller, have left.

What is Maine to make of this turnover? It is hard to be shocked that a merger has produced a change in management, although the thoroughness of this one suggests more than just a typical process of two companies learning where they can get along and where new personnel are needed. Sources within CMP say that Mr. Flanagan and Energy East Chairman Wes Von Schack disagreed initially about what Mr. Flanagan would control and later Mr. Flanagan found himself with more travel and less authority in the larger company. Maine policy-makers might be concerned about how well Maine’s interests will be represented at a company with ever fewer Maine voices.

The changes at CMP since 1994, when David Flanagan joined Maine’s largest utility, have been profound. The company branched out into allied businesses, im-proved service while holding down rates and raising the company’s customer satisfaction level from 44 percent to more than 90 percent, weathered the shutdown of Maine Yankee, found solid financial footing, sold its generation to FPL in a deal that made shareholders rejoice and got bigger with the merger that now seems responsible for his parting. The 1990s were a wild decade for utilities; Mr. Flanagan ensured that CMP not only rode them out, but that the company was ready for the future of deregulated energy markets. Throughout, he has been a strong advocate for Maine.

It is difficult to guess what happens next. Like any large company in a rural state, CMP is an easy target, occasionally deserving, of public anger. But it also has been active in programs like its Public Safety Team, which teaches children to be safe around wires and instructs volunteers on fire and ambulance crews. It offers conservation advice, takes part in community programs such as Big Brother/Big Sister, Red Cross, United Way and groups working to end domestic violence. It has a program that sends Caldicott-winning children’s books to every library in its coverage area and another that gets good used office equipment to nonprofits.

CMP is not unique in this kind of corporate citizenship, but it would sure be missed if a bottom-line, out-of-state parent started caring less about the wellbeing of Maine. The departure of Mr. Flanagan is far from an encouraging sign.