Orange-based utility giant Avangrid Inc. announced this week it has agreed to extend its merger agreement with PNM Resources through July 20.
Avangrid originally announced its plans for the $8.3 billion acquisition of the New Mexico-based utilities operator in October 2020.
The extension is needed to allow the companies additional time to work together through the regulatory review process in New Mexico, according to an announcement.
Avangrid CEO Pedro Azagra said the company remains committed to the merger.
PNM serves customers in both New Mexico and Texas.
“Together, we will accelerate Texas and New Mexico’s clean energy futures and increase the focus on reliability and resiliency for customers,” Azagra said.
To date, the planned merger has received approval from five federal agencies and the Public Utility Commission of Texas.
In 2021, the New Mexico Public Regulation Commission (NMPRC) rejected the merger, citing concerns such as potential higher prices.
Azagra, however, asserted that the merger would mean rate relief for customers.
The companies appealed the NMPRC denial. In the latest development, in March 2023, Avangrid and PNM Resources, together with NMPRC, filed a motion with the New Mexico Supreme Court to dismiss their appeal of the 2021 denial, with the hope of the case being remanded back to the NMPRC for reconsideration.
Pat Vincent-Collawn, PNM Resources chairman and CEO, said in an announcement Wednesday, “Our merger with Avangrid remains the right path to achieve a clean energy future and deliver additional benefits to our customers and communities.”
“As we continue to navigate the regulatory approval process in New Mexico, we remain focused on managing our standalone business to meet our customers’ needs across New Mexico and Texas and optimize our financial plans to deliver shareholder value,” Vincent-Collawn said.
Avangrid is the parent company of Southern Connecticut Gas, Connecticut Natural Gas, and United Illuminating.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
