Nuclear Regulatory Commission Approves PNM Merger with AVANGRID

Rhea-AI Summary

PNM Resources (NYSE: PNM) and AVANGRID (NYSE: AGR) received approval from the Nuclear Regulatory Commission for their merger, leaving only the New Mexico Public Regulation Commission’s approval pending. This marks the sixth regulatory entity to approve the merger. The merger promises significant benefits for PNM customers, including $50 million in rate credits and $6 million in COVID arrearages relief. Additionally, it includes over $250 million in economic development commitments for New Mexico, aimed at job creation and community support.

Positive

• $50 million in customer rate credits over three years.
• $6 million for COVID arrearages relief for residential customers.
• Creation of 150 new full-time jobs over three years.
• Total of over $250 million committed to economic development in New Mexico.

Negative

• Risks related to the completion of the merger and regulatory approvals.
• Potential adverse effects on business operations and employee retention due to merger uncertainties.

ALBUQUERQUE, N.M., May 26, 2021 /PRNewswire/ -- PNM Resources, Inc. (NYSE: PNM) and AVANGRID (NYSE: AGR) yesterday received approval from the sixth regulatory entity, the Nuclear Regulatory Commission (NRC), for their proposed merger.

With this approval, the only remaining approval is from the New Mexico Public Regulation Commission (NMPRC). PNM, AVANGRID and several parties are hopeful the NMPRC will commence public hearings on the proposed merger stipulation in June.

The other entities that have approved the merger:

• Hart-Scott-Rodino Antitrust Clearance – January 20, 2021
• Committee on Foreign Investment – February 1, 2021
• Federal Communication Commission – March 10, 2021
• Federal Energy Regulatory Commission – April 20, 2021
• Public Utility Commission of Texas – May 13, 2021

"The merger has won these approvals by showing the benefits of our companies joining," said Pat Vincent-Collawn, PNM Resources' chairman, president and CEO. "We are also pleased that as these approvals come in, we have also garnered the support of 2 additional parties to our stipulation in the New Mexico Public Regulation Commission case, bringing the total to 13 parties supporting the merger."

The PNM customer benefits in the merger stipulation includes:

• $50 million in customer rate credits over three years;
• $6 million in COVID arrearages relief for residential customers;
• $15 million for low-income customer energy-efficiency assistance; and
• $2 million to bring electricity to low-income, remote customers.
  

The stipulation agreement includes over $250 million in economic development for New Mexico:

• 150 new full-time jobs over three years that will remain no less than five years after that;
• $7.5 million in additional economic development funds; and,
• $12.5 million in economic development contributions to community groups in the Four Corners region over five years ($2.5 million/year).

Additional materials pertaining to the regulatory applications 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 2.8 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:
Analysts	Media
Lisa Goodman	Ray Sandoval
(505) 241-2160	(505) 241-2782

 

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 failure by AVANGRID to obtain the necessary financing arrangement set forth in commitment letter received in connection with the Merger, (iii) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (iv) 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 (v) 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 recent approval did PNM Resources and AVANGRID receive?

They received approval from the Nuclear Regulatory Commission for their proposed merger.

What is the status of the PNM and AVANGRID merger?

The merger is pending final approval from the New Mexico Public Regulation Commission.

What benefits are included for PNM customers in the merger?

The merger includes $50 million in rate credits and $6 million for COVID arrearages relief.

How much economic development funding is committed by PNM and AVANGRID?

They are committing over $250 million for economic development in New Mexico.

What are the risks associated with the PNM and AVANGRID merger?

There are risks regarding the completion of the merger and potential effects on business relationships and operations.