The Maine Public Utilities Commission is launching a formal investigation into the management practices of Versant Power Company.

The PUC says the probe is based on a recent audit that raised questions about the judgment of Versant’s management.

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

The investigation will evaluate Versant’s compliance with PUC orders and its delivery of services.

The PUC did not specify the findings of the audit, but Commission Chair Philip Bartlett said it raised questions about Versant’s management.

“Through this investigation we will review any other relevant evidence to determine whether there are any deficiencies and, if so, what action should be taken to address them,” said Bartlett. “We are committed to holding utilities accountable for meeting their statutory obligations to their customers.”

That audit, conducted by Overland Consulting in May 2024, focused on Versant’s management structure, customer service and collections practices, operations, and the reliability of it’s electric distribution system.

Versant released a statement saying it agrees with a number of the audit’s findings and is working on working on improvements, but raised concerns about the affordability of some of the recommendations as well as conflicting messages from auditors.

“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,” said a statement released by Versant Tuesday.