New Mexico Public Regulation Commission Rejects Agreement Reached with Parties in PNM / AVANGRID Merger

Rhea-AI Summary

The New Mexico Public Regulation Commission (NMPRC) has unanimously rejected the merger agreement between PNM Resources (NYSE: PNM) and AVANGRID, Inc., following a vote of 5-0. This decision comes after a previous denial of a request for oral arguments on the matter. CEO Pat Vincent-Collawn expressed disappointment but emphasized their focus on customer service and shareholder value. With five federal agencies previously approving the merger, the NMPRC's rejection leaves a critical hurdle for the transaction, initially filed in November 2020.

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• None.

Negative

• The NMPRC's 5-0 vote against the merger agreement indicates significant regulatory challenges that could hinder PNM's future growth prospects.
• The rejection follows a denied request for oral arguments, limiting PNM's ability to advocate for the merger's benefits.

ALBUQUERQUE, N.M., Dec. 8, 2021 /PRNewswire/ -- Today the New Mexico Public Regulation Commission (NMPRC) rejected the agreement reached by parties in the merger application involving PNM Resources, Inc. (NYSE: PNM), its wholly-owned subsidiary Public Service Company of New Mexico (PNM) and AVANGRID, Inc.

The NMPRC voted 5-0 to reject the parties' agreements reached in the merger proceedings, following a 4-1 vote to deny a request for oral argument seeking to address concerns expressed by the NMPRC.

"I am disappointed the Commission didn't see the merits of the agreements reached by parties and also rejected our request to hear oral arguments. We put forth an agreement that would strengthen New Mexico's future as we partnered with a global company to meet the challenges of climate change while ensuring affordable and reliable service to PNM customers for years to come," said Pat Vincent-Collawn, PNM Resources' chairman, president and CEO. "We will review and evaluate the order. Meanwhile, we remain focused on managing our business, prioritizing our customers and delivering strong shareholder results."

Five federal agencies and the Public Utilities Commission of Texas had already completed their reviews and approved the proposed merger, leaving the New Mexico Public Regulation Commission as the only remaining approval necessary for the merger. The original application before the NMPRC was filed in November 2020.

Parties that were in support of the amended stipulated agreement included: the Attorney General of the State of New Mexico, Western Resource Advocates, the International Brotherhood of Electrical Workers Local 611, Dine Citizens Against Ruining Our Environment, Nava Education Project, San Juan Citizens Alliance, To Nizhoni Ani, the Coalition for Clean Affordable Energy, Interwest Energy Alliance, Walmart, Inc., Onward Energy Holdings, LLC, M-S-R Power and Los Alamos County.

Additional materials pertaining to the NMPRC application for the merger are available at https://www.pnmresources.com/investors/rates-and-filings.aspx.

Background:
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2020 consolidated operating revenues of $1.5 billion. Through its regulated utilities, PNM and TNMP, PNM Resources provides electricity to approximately 800,000 homes and businesses in New Mexico and Texas. PNM serves its customers with a diverse mix of generation and purchased power resources totaling 3.1 gigawatts of capacity, with a goal to achieve 100% emissions-free energy by 2040. For more information, visit the company's website at www.PNMResources.com.

CONTACTS:
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release for PNM Resources, Inc. ("PNMR"), Public Service Company of New Mexico ("PNM"), or Texas-New Mexico Power Company ("TNMP") (collectively, the "Company") that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. PNMR, PNM, and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR, PNM, and TNMP caution readers not to place undue reliance on these statements. PNMR's, PNM's, and TNMP's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. Additionally, there are risks and uncertainties in connection with the proposed acquisition of us by AVANGRID which may adversely affect our business, future opportunities, employees and common stock, including without limitation, (i) the expected timing and likelihood of completion of the pending Merger, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending Merger that could reduce anticipated benefits or cause the parties to abandon the transaction, (ii) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (iii) the risk that the parties may not be able to satisfy the conditions to the proposed Merger in a timely manner or at all, and (iv) the risk that the proposed transaction could have an adverse effect on the ability of PNMR to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company's Form 10-K, Form 10-Q filings and the information included in the Company's Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.   

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SOURCE PNM Resources, Inc.

FAQ

What was the decision made by the New Mexico Public Regulation Commission regarding PNM?

The New Mexico Public Regulation Commission rejected the merger agreement between PNM Resources and AVANGRID, Inc.

When was the merger application originally filed for PNM and AVANGRID?

The merger application was originally filed in November 2020.

What are the implications of the NMPRC's decision for PNM's future?

The NMPRC's rejection poses significant regulatory hurdles for PNM, potentially affecting its growth and strategic plans.

Who supported the merger agreement before its rejection?

Support for the merger included New Mexico's Attorney General and various advocacy groups, but the NMPRC ultimately voted against it.

What is PNM's focus following the NMPRC's rejection of the merger?

PNM remains focused on managing its business, prioritizing customer service, and delivering value to shareholders.