Officials of 15 Organizations Voice Support for PNM and AVANGRID Merger

Rhea-AI Summary

On December 2, 2021, PNM Resources (NYSE: PNM) and AVANGRID (NYSE: AGR) held a news conference to address concerns regarding their proposed merger. Key stakeholders, including various New Mexico organizations, expressed strong support for the merger, highlighting anticipated benefits such as $94 million in customer advantages and a $300 million economic impact. PNM's CEO emphasized the merger's role in achieving renewable energy goals, while AVANGRID executives stressed their commitment to ethical management and local governance. The New Mexico Attorney General called the merger a historic opportunity for the state.

Positive

• Estimated $94 million in customer benefits.
• Total economic impact projected at over $300 million.
• Support from major organizations like the New Mexico Chamber of Commerce.
• Commitment to renewable energy and achieving 100% emissions-free energy by 2040.

Negative

• None.

ALBUQUERQUE, N.M., Dec. 3, 2021 /PRNewswire/ -- Yesterday, PNM Resources (NYSE: PNM) and AVANGRID, Inc. (NYSE: AGR) answered open questions at a news conference about their proposed merger and addressed some concerns heard at the New Mexico Public Regulation Commission open meeting on Wednesday, December 1, 2021. Joining PNM Resources and AVANGRID were elected officials and organizations representing customers and business representing tens of thousands of New Mexicans.  To listen to the entire news conference, click here for the recording.

Organizations that spoke in favor of the merger included the New Mexico Office of the Attorney General, the All-Pueblo Council of Governors (APCG), the New Mexico Chamber of Commerce, the Greater Albuquerque Chamber of Commerce, the Albuquerque Hispano Chamber of Commerce, and Western Resource Advocates (WRA). Other supporting organizations represented were Ralph Arellanes with the Hispano Roundtable, Joseph Hernandez with the Native American Voters Alliance, Noah Long with the Natural Resources Defense Council (NRDC), Cara Lynch with the Coalition for Clean and Affordable Energy (CCAE), Kyle Tisdale with the Western Environmental Law Center, The Office of Representative Javier Martinez, Lawrence Rael with the City of Albuquerque, Keith Kirk with the Santa Fe Lodgers Association, and Shannon Fitzgerald with International Brotherhood of Electrical Workers (IBEW).

Not only are existing supporters holding steadfast, the merger continues to gather support. Chairman Wilfred Herrera on the All-Pueblo Council of Governors (APCG) representing 20 Pueblo Governors of New Mexico announced that the APCG has formally endorsed the merger. This coming week additional supporters are expected to be announced.

Pat Vincent-Collawn, Chairman, President and CEO of PNM Resources said, "We are here today to answer any questions you may have because PNM has a responsibility to our customers, employees and community partners to ensure they have all the facts when forming an opinion regarding the PNM/AVANGRID merger." She added, "With over $94 million in customer benefits, a total economic impact of over $300 million, and reliability, customer and governance safeguards, this merger is where New Mexico needs to go if it's going to be a leader in renewable energy and if it is going to help us tackle that last hurdle of carbon emissions- transportation." (At 0:00:55 and 0:36:39 in the recording)

Don Tarry, Chief Financial Officer and incoming President and CEO of PNM Resources said, "We believe in open and transparent communication, and are available to you - not only to provide the other side of the story, but to be available for questions you might have." He continued, "My team and I will be at the helm for the day-to-day operations of PNM, and we will be held to these responsibilities through our regulatory commitments. The PNM board of directors will provide oversight of my team and the company, and the board will be made up entirely of New Mexicans with a majority of independent board members. Those independent board members will have the independence to look out for New Mexicans. The independent board will control when dividends can be paid up to AVANGRID and also set officer compensation and goals." (At 0:02:48 and 0:31:04 in the recording)

Bob Kump, Deputy CEO of AVANGRID said, "Culturally, we have always stressed the highest levels of ethics and accountability in everything we do. Philosophically, we manage our utilities on the basis of local management and control." He added, "Iberdrola has been named one of the most ethical companies in the world for the last seven consecutive years."  (At 0:04:18 in the recording)

Pedro Azagra Blazquez, Corporate Development at Iberdrola, AVANGRID's largest shareholder said, "Contrary to what has been said, Iberdrola has a strong history and culture of compliance and ethics." He added, "We have heard concerns about whether AVANGRID and Iberdrola can help PNM meet the New Mexico renewable energy and carbon reduction goals. The answer is clearly yes.  That is what we do.  We are experts at owning, developing and operating renewable generation facilities, and we have renewable policies that contribute to our nation's commitment to combat climate change." (At 0:17:06 in the recording)

New Mexico Attorney General Hector Balderas said, "This is one of the most important transactions in the history of New Mexico. This is the most important transaction that the legislature, the PRC [New Mexico Public Regulation Commission], and consumers have either ever been given the opportunity to vet, or potentially, may miss an historic opportunity that sets New Mexico back for generations." (At 0:40:20 in the recording)

Wilford Hererra, Jr., Chairman of the All-Pueblo Council of Governors said, "We recognize this merger presents an opportunity to preserve and improve a relationship between tribal nations and the primary electric utility authority in New Mexico." (At 0:55:16 in the recording)

Terri Cole with the Greater Albuquerque Chamber of Commerce said, "We are strong supporters of this merger for many reasons." She added, "We should all want a company like AVANGRID in our state – large, successful, 7,000 employees, understands clean energy investments, and will give back to our community and ratepayers. It would be unwise and unhelpful to our long-term economic growth to be unwelcoming to job creators like AVANGRID and display an unreasonable uncompromising regulatory attitude." (At 1:08:52 in the recording)

Ernie C'deBaca with the Hispano Chamber of Commerce said, "23 of the 24 original interveners are now either fully supporting or not opposing the merger." He added, "The merger keeps New Mexicans at the leadership level of the company. They are great people who live here and raise their families here. These executives are dedicated to New Mexico and will continue to focus on what is best for New Mexico, and the benefits that come with the merger ensure that aspect. It bothered me to hear some people that have never set foot into New Mexico bring their own agendas to influence a transaction that is so beneficial to the state." (At 1:12:23 in the recording)

Contacts:
PNM Resources Investor Contact: Lisa Goodman; 505-241-2160; lisa.goodman@pnmresources.com 
PNM Resources Media Contact: Ray Sandoval; 505-241-2743; raymond.sandoval@pnm.com 
AVANGRID Investor Contact: Patricia Cosgel; 203-499-2624; patricia.cosgel@avangrid.com
AVANGRID Media Contact: Zsoka McDonald, 203-997-6892; Zsoka.McDonald@Avangrid.com
AVANGRID Media Contact (New Mexico): Joanie Griffin; 505-261-4444; jgriffin@sunny505.com

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 achieve100% emissions-free energy by 2040. For more information, visit the company's website at www.PNMResources.com.

AVANGRID, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $39 billion in assets and operations in 24 U.S. states, AVANGRID has two primary lines of business: AVANGRID Networks and AVANGRID Renewables. AVANGRID Networks owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. AVANGRID Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs approximately 7,000 people and has been recognized by Forbes and Just Capital as one of the 2021 JUST 100 companies – a list of America's best corporate citizens – and was ranked number one within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.'s Sustainable Development Goals and was named among the World's Most Ethical Companies in 2021 for the third consecutive year by the Ethisphere Institute. For more information, visit www.avangrid.com.

Forward-Looking Statements
Certain statements made in this press release for AVANGRID that relate to future events or expectations, developments, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. All statements contained in this Press Release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as "may," "will," "would," "can," "expect(s)," "intend(s)," "anticipate(s)," "estimate(s)," "believe(s)," "future," "could," "should," "plan(s)," "aim(s)," "assume(s)", "project(s)", "target(s)"), "forecast(s)", "seek(s)" and or the negative of such terms or other variations on such terms, comparable terminology or similar expressions. These forward-looking statements generally include statements regarding the potential transaction between AVANGRID and PNM Resources, including any statements regarding the expected timetable for completing the potential merger, the ability to complete the potential merger, the expected benefits of the potential merger, projected financial information, future opportunities, and any other statements regarding AVANGRID's and PNM Resources' future expectations, beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events or performance. Readers are cautioned that all forward-looking statements are based upon current reasonable beliefs, expectations and assumptions. AVANGRID assumes any obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, AVANGRID cautions readers not to place undue reliance on these statements.

AVANGRID's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond its control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see AVANGRID's Form 10-K and Form 10-Q filings and the information filed on AVANGRID's Forms 8-K with the Securities and Exchange Commission (the "SEC") as well as its subsequent SEC filings, and the risks and uncertainties related to the proposed merger with PNM Resources, including, but not limited to: 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, the failure by AVANGRID to obtain the necessary financing arrangement set forth in commitment letter received in connection with the Merger, the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, the risk that the parties may not be able to satisfy the conditions to the proposed Merger in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed Merger, and the risk that the proposed transaction and its announcement could have an adverse effect on the ability of PNM Resources to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally. Other unpredictable or unknown factors not discussed in this communication could also have material adverse effects on forward looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

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 is the significance of the PNM and AVANGRID merger?

The merger is seen as a historic opportunity for New Mexico, expected to deliver substantial economic benefits and support the state's renewable energy goals.

How much customer benefit is projected from the PNM and AVANGRID merger?

The merger is expected to provide approximately $94 million in customer benefits.

What organizations support the PNM and AVANGRID merger?

Supporters include the New Mexico Office of the Attorney General and the New Mexico Chamber of Commerce, among others.

What is the expected economic impact of the merger?

The anticipated economic impact of the merger is over $300 million.

When did the news conference about the merger take place?

The news conference was held on December 2, 2021.