By William Opalka

Earnings from U.S. operations were a bright spot for Spanish utility conglomerate Iberdrola SA, as the company coped with the effects of slashed government subsidies for renewable energy in its home country.

Iberdrola said 2014 profits fell to 2.33 billion euros ($2.66 billion), from 2.57 billion euros in the same period last year. The Spanish government’s cuts in renewable-power subsidies and distribution reduced earnings by 617 million euros, the company said.

U.S. earnings, however, grew. “Our U.S. businesses grew EBITDA by 7.2% over last year, which enabled us to contribute more than $1.6 billion (1.2 billion euros) of EBITDA to the [Iberdrola] Group’s strong performance,” said Bob Kump, chief corporate officer of Iberdrola USA.

Subsidiary Iberdrola USA is the parent of New York State Electric & Gas, Rochester Gas & Electric, Central Maine Power and other natural gas units in Maine and New Hampshire, with a combined customer base of about 3 million.

Iberdrola officials pointed to a rate case in Maine that raised distribution rates by $24.3 million. Looking ahead, the company said it is on schedule and within budget for the Maine Power Reliability Program (MPRP), a $1.4 billion upgrade that includes 40 substations and 440 miles of transmission lines with links between Maine and New Brunswick, Canada.

The company is also due to file a rate case in the RG&E territory, which will positively affect earnings, it said. Other transmission investments are expected to pay dividends in the coming years.

“In New York now we’re already involved in two projects, transmission projects, to inject electricity into New York City,” CEO Ignacio Galan told analysts in the earnings call.

Through NYSEG and RG&E, Iberdrola is a partner in New York Transco, a joint venture designed to bring upstate power generation to the New York City area. It is also a partner in the Champlain Hudson Power Express project, which would ship hydropower from Quebec. (See NYISO Supports TO Exemptions to BSM Rules.)