AVANGRID, PNM Resources Merger Agreement Extended

Rhea-AI Summary

AVANGRID, Inc. (NYSE: AGR) has extended its merger agreement with PNM Resources (NYSE: PNM) until July 20, 2023, allowing more time for regulatory review in New Mexico. AVANGRID’s CEO, Pedro Azagra, stated that the merger is expected to generate over $300 million in benefits for New Mexico and $16 million in rate relief for Texas customers. The merger has gained approval from five federal agencies and the Public Utility Commission of Texas. The companies recently filed a motion in the New Mexico Supreme Court to dismiss an appeal regarding a previous regulatory decision. AVANGRID aims to enhance clean energy prospects and economic development in the regions served.

Positive

• Merger expected to generate over $300 million in benefits for New Mexico customers.
• $16 million rate relief anticipated for Texas customers.
• Approval received from five federal agencies and the Public Utility Commission of Texas.

Negative

• Potential risks associated with regulatory challenges in New Mexico.

ORANGE, Conn.--(BUSINESS WIRE)-- AVANGRID, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, announced today that it has agreed to extend the merger agreement with PNM Resources (NYSE: PNM) through July 20, 2023. The extension will allow the companies time to continue to work together through the regulatory review process in New Mexico.

“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,” said Pedro Azagra, AVANGRID CEO. “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.”

The merger has received approval from five federal agencies and the Public Utility Commission of Texas. AVANGRID and PNM Resources together with the New Mexico Public Regulation Commission (NMPRC) filed a joint motion at the New Mexico Supreme Court in March 2023 to dismiss the companies’ appeal of the December 2021 NMPRC denial and remand the case back to the NMPRC.

About AVANGRID: AVANGRID, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $41 billion in assets and operations in 24 U.S. states, AVANGRID has two primary lines of business: networks and renewables. Through its networks business, AVANGRID owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewables business, AVANGRID owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs more than 7,500 people and has been recognized by JUST Capital in 2021, 2022 and 2023 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2023, AVANGRID ranked first within the utility sector for its commitment to the environment. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2023 for the fifth consecutive year by the Ethisphere Institute. AVANGRID is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit www.avangrid.com.

Forward Looking Statements

Certain statements in this release may relate to our future business and financial performance and future events or developments involving us and our subsidiaries that are not purely historical and may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terms such as “may,” “will,” “should,” “would,” “could,” “can,” “expect(s),” “believe(s),” “anticipate(s),” “intend(s),” “plan(s),” “estimate(s),” “project(s),” “assume(s),” “guide(s),” “target(s),”“forecast(s),” “are (is) confident that” and “seek(s)” or the negative of such terms or other variations on such terms or comparable terminology. Such forward-looking statements include, but are not limited to, statements about our plans, objectives and intentions, outlooks or expectations for earnings, revenues, expenses or other future financial or business performance, strategies or expectations, or the impact of legal or regulatory matters on business, results of operations or financial condition of the business and other statements that are not historical facts. Such statements are based upon the current reasonable beliefs, expectations, and assumptions of our management and are subject to significant risks and uncertainties that could cause actual outcomes and results to differ materially. Important factors are discussed and should be reviewed in our Form 10-K and other subsequent filings with the SEC. Specifically, forward-looking statements include, without limitation:

• our ability to close the proposed merger with PNMR, the anticipated timing and terms of the proposed merger, our ability to realize the anticipated benefits of the proposed merger and our ability to manage the risks of the proposed merger;
• future financial performance, anticipated liquidity and capital expenditures;
• actions or inactions of local, state or federal regulatory agencies;
• adverse publicity or other reputational harm; and
• other presently unknown unforeseen factors.

Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may vary in material respects from those expressed or implied by these forward-looking statements. You should not place undue reliance on these forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this report, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Other risk factors are detailed from time to time in our reports filed with the SEC, and we encourage you to consult such disclosures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230412005786/en/

MEDIA:

Sarah Warren

sarah.warren@avangrid.com

585-794-9253

Source: AVANGRID, Inc.

FAQ

What are the benefits of the AVANGRID and PNM Resources merger?

The merger is expected to provide over $300 million in benefits to New Mexico and $16 million in rate relief to Texas customers.

What is the deadline for the AVANGRID and PNM merger agreement?

The merger agreement has been extended to July 20, 2023.

What regulatory approvals have been obtained for the AVANGRID and PNM merger?

The merger has received approval from five federal agencies and the Public Utility Commission of Texas.

What challenges does AVANGRID face regarding the merger with PNM Resources?

AVANGRID is facing potential regulatory challenges in New Mexico as it seeks to finalize the merger.

How will the AVANGRID and PNM merger impact clean energy in Texas and New Mexico?

AVANGRID aims to enhance clean energy efforts and provide improved reliability and resiliency for customers in both states.