Avangrid promotes natural gas vet

Avangrid has promoted Frank Reynolds to lead its United Illuminating and natural gas operations in Connecticut and Massachusetts — but reporting to his predecessor who stays on to focus on his larger role as CEO of Avangrid Networks.

Separately Tuesday in a possible $4.3 billion transaction, Orangebased Avangrid announced plans to acquire PNM Resources, which has nearly 800,000 utility customers in New Mexico and Texas. Avangrid would assume $4 billion in PNM debt as part of the deal. Hearst subsidiary Fitch Ratings issued an update Wednesday maintaining its “BBB+” outlook for long-term debt owed by Avangrid, calling the company “well positioned” with a manageable risk profile.

Avangrid and Eversource face another round of questioning beginning Wednesday from the Connecticut Public Utilities Regulatory Authority over their response to Tropical Storm Isaias in early August, with prolonged power outages blanketing the state.

In its own hearing in August separate from PURA deliberations, the Connecticut General Assembly members praised Avangrid Networks CEO Tony Marone for United Illuminating’s planning and response to Isaias.

Not all were pleased with the utility, however, including Bridgeport Mayor Joe Ganim who complained the company was not responsive to the city’s pleas to prioritize power restoration to elevator apartment buildings with elderly residents. Gov. Ned Lamont subsequently signed a “take back the grid” act to allow PURA to weigh past performance by Avangrid and Eversource in the rates they are allowed to charge.

On Tuesday, Avangrid Networks reported a $94 million profit for the third quarter, up $6 million from a year earlier, with the company indicating storm restoration costs wiped out profit gains it would have otherwise tallied as a result of rate increases in its service territories.

Gas vet to oversee UI

Reynolds is now president of Avangrid’s electric and natural gas utilities in Connecticut and Massachusetts, which include Southern Connecticut Gas, Connecticut Natural Gas and Berkshire Gas. Under Marone who in turn reports to new Avangrid CEO Dennis Arriola, Reynolds will have 1,500 employees under his management providing services to 765,000 customers.

Reynolds has led Berkshire Gas since January 2019, also holding the role of vice president of gas integration. Earlier in his career, he worked for Connecticut Natural Gas and Southern Connecticut Gas, which are two of the state’s three big natural gas utilities along with Eversource.

He retired in 2004 from the U.S. Army National Guard with the rank of major.

Avangrid did not state immediately whether Isaias prompted any consideration of assigning an experienced electric utility executive to lead the Connecticut operations, and whether Reynolds has experience in leading a large-scale emergency response. Reynolds has familiarity with the company’s overall grid operations, having spent several years leading an “asset management” function within Avangrid with responsibilities including oversight of electric transmission and distribution planning and reliability, including tree removal and pruning.

In addition to United Illuminating, Avangrid owns New York State Electric & Gas and Rochester Gas & Electric upstate, whose CEO Carl Taylor came through the electric utility side of the business; and Central Maine Power, whose CEO Doug Herling previously was Avangrid vice president of electric field operations spanning Connecticut, New York and his native Maine.

Reynolds grew up in Bloomfield and holds an undergraduate degree from Central Connecticut State University and an MBA from the University of New Haven.

Reynolds