Support Continues to Build for Merger as Two Additional Parties Seek to Join PNM and AVANGRID Merger Stipulation

Rhea-AI Summary

PNM Resources' subsidiary, Public Service Company of New Mexico (PNM), and AVANGRID reported that two additional parties, M-S-R Power and Los Alamos County, have filed to join their merger stipulation with the New Mexico Public Regulation Commission (NMPRC). This brings the total supporting parties to 13, contingent upon the addition of specific language related to the San Juan Generating Station decommissioning. If approved, the merger could yield over $270 million in benefits for New Mexico. Governor Michelle Lujan Grisham supports the agreement, which also emphasizes investments in clean energy and grid reliability.

Positive

• Merger could provide over $270 million in benefits to New Mexico.
• Support from a total of 13 parties, indicating strong alignment and backing.
• Commitment to Environmental, Social and Governance principles, enhancing company image.

Negative

• Risk of regulatory approval delays affecting merger benefits.
• Potential challenges in retaining key personnel post-merger.

ALBUQUERQUE, N.M., May 25, 2021 /PRNewswire/ -- PNM Resources, Inc. (NYSE: PNM) wholly-owned New Mexico subsidiary, Public Service Company of New Mexico (PNM), and AVANGRID announced two additional parties filed motions to join its merger stipulation before the New Mexico Public Regulation Commission (NMPRC).

Under the filing, M-S-R Power and Los Alamos County request the Hearing Examiner allow the parties to join the other 11 signatories supporting the agreement, under the condition that agreed-upon language to support the decommissioning of the San Juan Generating Station is added to the agreement.

New Mexico Governor Michelle Lujan Grisham has also expressed support for the agreement. If approved by the NMPRC, the agreement among the parties will bring over $270 million in benefits to New Mexico.

PNM and AVANGRID are aligned in their commitment to Environmental, Social and Governance principles supporting investments in clean energy along with infrastructure strengthening the safety, reliability and value of service to customers. The regulatory commitments included as part of the proposed merger ensure that local PNM management continues to maintain a high degree of focus on customer service, reliability of the grid and alignment with all regulatory compliance matters.

M-S-R Power and Los Alamos County would grow the list of parties supporting the agreement to 13 by joining the previous parties to the stipulation: 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., and Onward Energy Holdings, LLC.

Additional materials pertaining to the stipulation and PNM's application for approval of the merger with the NMPRC 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 is the significance of the additional parties joining the PNM and AVANGRID merger?

The addition of M-S-R Power and Los Alamos County as supporting parties increases the total to 13, demonstrating broader backing for the merger, which could enhance its chances of approval by the NMPRC.

How much in benefits could the PNM and AVANGRID merger bring to New Mexico?

If approved, the merger agreement may yield over $270 million in benefits for New Mexico.

Who supports the merger between PNM and AVANGRID?

The merger is supported by various parties, including the New Mexico Attorney General, environmental groups, labor organizations, and now two additional entities, bringing the total to 13 supporters.

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

Risks include possible delays in regulatory approval and challenges in retaining key personnel, which could impact operational stability and desired merger outcomes.