AVANGRID-PNM merger gains support in N.M. regulatory proceeding
AVANGRID, Inc. and PNM Resources, Inc. announced an update to merger efforts this week, confirming that almost all of the 24 entities intervening in the New Mexico Public Regulation Commission (NMPRC) proceeding to review the merger have either thrown support before the agreement or signaled they will not oppose it.
The corporate consolidation effort would bring $94 million in customer rate benefits, including $67 million in customer rate credits for the next three years. If approved, customers of the companies would also be able to gain $10 million in COVID arrearages relief, $15 million for low-income customer energy-efficiency assistance and $2 million to power the remote and low-income.
“Our team has listened and worked hard to understand the needs of the local communities and stakeholders in New Mexico,” Dennis Arriola, CEO of AVANGRID, said. “The progress we have made to gain this nearly unanimous stakeholder support for this merger is not something we take for granted and we look forward to continuing this process toward the successful culmination of this transaction which will bring significant benefits to the people of New Mexico.”
The merger would affect multiple states, and accordingly, AVANGRID has netted six governmental approvals for the arrangement so far. These included five federal agencies and the Public Utility Commission of Texas, but approvals are still needed in New Mexico. PNM is the parent company of the Public Service Company of New Mexico, and the New Mexico Public Regulation Commission must weigh in on the decision, too.
Proponents of the deal argue that it will bring benefits to New Mexico beyond those benefits to direct customers of the companies, including new full time jobs and millions of dollars in economic development efforts, scholarships and apprenticeship programs.
The original application to the NMPRC was submitted in November 2020, and the process has been ongoing since.
The combined entity would create a larger, more diversified utility and renewable energy company with electric and gas utilities in complementary geographies, PNM said. The combined company would serve more than 4 million electric and natural gas customers of 10 regulated utilities across New York, Connecticut, Maine, Massachusetts, New Mexico, and Texas. The combined operations would be supported by $14 billion of rate base, including more than 104,000 miles of electric transmission and distribution lines, according to the company.
