State regulators on Tuesday rejected a proposed settlement agreement between the state and Central Maine Power.

CMP came under scrutiny earlier this year after it issued notices to customers falsely claiming their service could be disconnected during the winter months without permission from the state’s Public Utilities Commission if they fell behind on payments.

As a result, the company agreed to pay $500,000 to customers financially impacted by Covid-19 in lieu of an administrative penalty.

But PUC Chairman Phil Bartlett says regulators believe that money should go directly to those who were impacted by the disconnect notices. The deal has also raised criticism that financial assistance for customers would only result in that money going back to CMP.

A CMP spokesperson responded to our info partners at CBS 13 on Tuesday:

“CMP has acknowledged that we sent out improperly worded disconnection notices and we have worked diligently and collaboratively with the other parties in the case to come to a settlement that would have provided $500,000 in shareholder funds to assist customers challenged to pay their electric bills during the current pandemic. Regardless of the outcome today, CMP remains committed to the idea of financial assistance, we respect the result of the Commission’s deliberations and await further direction from the Commission and their Staff on the additional procedural steps necessary to bring the investigation to a close. CMP remains committed to working transparently and constructively in whatever process is determined by the Commission going forward.”

The case could go forward to a formal hearing, or back to the negotiating table where both parties can hash out a new agreement.