Merger agreement between Avangrid and PNM Resources extended to July
The merger agreement between Avangrid and PNM Resources has been extended through July 20, as the companies work through the regulatory review process in New Mexico.
The merger of the two energy companies has already received approval from five federal agencies as well as the Public Utility Commission of Texas. But the New Mexico Public Regulation Commission (NMPRC) rejected the merger agreement in 2021, and the companies filed an appeal with the New Mexico Supreme Court last year. The NMPRC has since gained a slate of new commissioners.
PNM Resources, based in New Mexico, and Avangrid, based in Connecticut, along with the New Mexico Public Regulation Commission (NMPRC), filed a joint motion at the New Mexico Supreme Court in March to dismiss the companies’ appeal of the December 2021 NMPRC denial and remand the case back to the NMPRC. The motion remains pending.
Meanwhile, there is no statutory deadline for the court’s decision nor the potential remanded case at the NMPRC.
Nonetheless, both companies remain committed to the merger.
Avangrid is a leading sustainable energy company with approximately $41 billion in assets and operations in 24 U.S. states.
“We remain committed to the merger of AVANGRID and PNM Resources, which will bring more than $300 million in benefits to the customers and communities of New Mexico and more than $16 million in rate relief to Texas customers,” Pedro Azagra, Avangrid CEO, said. “Together, we will accelerate Texas and New Mexico’s clean energy futures and increase the focus on reliability and resiliency for customers. We also understand that we are an anchor institution in the communities we serve, beyond just the services we provide. Through this merger, we will contribute to the economic development of the regions and support their continued vibrancy and prosperity.”
PNM Resources is an energy company based in Albuquerque that provides electricity to more than 800,000 homes and businesses in New Mexico and Texas.
“Our merger with Avangrid remains the right path to achieve a clean energy future and deliver additional benefits to our customers and communities,” Pat Vincent-Collawn, PNM Resources chairman and CEO, said. “As we continue to navigate the regulatory approval process in New Mexico, we remain focused on managing our standalone business to meet our customers’ needs across New Mexico and Texas and optimize our financial plans to deliver shareholder value.”
