PNM Resources Merger with AVANGRID Approved by Public Utility Commission of Texas
The Public Utility Commission of Texas has approved the merger of PNM Resources (NYSE: PNM) with AVANGRID (NYSE: AGR). This unanimous decision, reached on May 6, 2021, followed earlier approvals from federal agencies and PNM shareholders. The merger is projected to provide over $272 million in benefits to PNM customers and enhance environmental commitments. The next regulatory milestone is a revised stipulation filing with the New Mexico Public Regulation Commission on May 7. PNM aims for 100% emissions-free energy by 2040.
- Merger approval boosts PNM and AVANGRID's strategic alignment.
- Projected benefits exceed $272 million for PNM customers and state economic development.
- Support from federal agencies enhances merger outlook.
- Commitment to maintain local jobs and increase environmental benefits.
- Pending regulatory approvals from the Nuclear Regulatory Commission and New Mexico Public Regulation Commission remain.
ALBUQUERQUE, N.M., May 6, 2021 /PRNewswire/ -- Today, the Public Utility Commission of Texas (PUCT) voted to approve the unanimous stipulation and agreement among parties for the merger of PNM Resources, Inc. (NYSE: PNM), including its Texas utility subsidiary, Texas-New Mexico Power Company (TNMP), with AVANGRID (NYSE: AGR).
In the now-approved unanimous settlement, which was filed on March 30, the Staff of the PUCT and all other parties to the proceeding agreed the proposed merger is in the public interest.
"Today's approval in Texas is an exciting milestone and confirms that our merger is in the public interest," said Pat Vincent-Collawn, PNM Resources' chairman, president and CEO. "PNM Resources and Avangrid are eager to carry forward the commitments and future possibilities to our TNMP and PNM employees, customers and communities with the support of a stronger, combined organization."
The merger has received federal regulatory approvals from the Federal Energy Regulatory Commission (FERC) and the Federal Communications Commission (FCC), along with clearance from the Committee on Foreign Investment in the United States (CFIUS) and the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. PNM Resources shareholders overwhelmingly approved the merger in February. The merger also requires federal approval from the Nuclear Regulatory Commission and state approval from the New Mexico Public Regulation Commission (NMPRC) as it relates to Public Service Company of New Mexico (PNM), the New Mexico utility subsidiary of PNM Resources.
In New Mexico, an initial stipulation among parties was reached in April increasing and expanding commitments related to the net public benefit of the merger to over
Additional materials pertaining to the regulatory approvals of 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
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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 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.
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