Energy giants Iberdrola and Avangrid accused of bid-rigging, racketeering
A cybersecurity company filed a $110 million lawsuit in New York on Monday, accusing the Spanish global energy giant Iberdrola and its U.S. subsidiary Avangrid of bid-rigging and racketeering.
The 72-page federal court complaint outlines an elaborate scheme by Iberdrola executives to generate millions of dollars in wasteful equipment expenditures in order to turn a profit from its utility customers in New York, Connecticut and Maine. The lawsuit further alleges that much of this equipment was never put to use and is instead collecting dust in warehouses across the region.
Iberdrola came to prominence about 20 years ago with investments in massive wind farms, natural gas and hydroelectric power. In addition to Avangrid, it holds subsidiaries throughout Europe, Brazil and Mexico. The complaint comes just as New Mexico authorities are deciding whether to approve a proposed merger between the state’s largest utility, PNM, and Avangrid.
Even before the filing of the lawsuit, New Mexico officials involved in vetting the merger had raised concerns over Avangrid’s parent company, which has come under growing scrutiny in its home country, Spain. Two of the Iberdrola defendants named in the lawsuit, Antonio Asenjo and Enrique Victorero, are currently under investigation in Spain for alleged corporate espionage and fraud. These allegations are among a list of reasons that prompted the staff of New Mexico’s utility regulator, the Public Regulation Commission, to recommend rejecting the merger. A majority of the commission members said in their Dec. 1 meeting that they planned to vote against it.
Read more: https://searchlightnm.org/iberdrola-avangrid-accused-of-bid-rigging-racketeering-in-lawsuit/