Orange-based Avangrid has pulled the plug on its proposed purchase of a New Mexico utility operator after a three-year effort.
Avangrid announced in 2020 that it planned to expand its U.S. footprint through an $8.3 billion acquisition of PNM Resources Inc., which provides utilities for customers in New Mexico and Texas.
Avangrid serves more than 341,000 customers in Connecticut and is owned by Spanish energy giant Iberdrola Group.
The planned merger received all required regulatory approvals, except for the New Mexico Public Regulation Commission, according to an announcement from Avangrid early Tuesday.
In 2021, the New Mexico Public Regulation Commission rejected the merger, citing concerns such as potential higher prices – a contention that Avangrid officials denied.
In March 2023, Avangrid and PNM Resources appealed to the New Mexico Supreme Court.
In Tuesday’s announcement, Avangrid said that it had terminated the deal because final regulatory approvals had not been received by a Dec. 31, 2023 deadline.
PNM Resources released a statement that said its board of directors had approved an extension, which Avangrid rejected.
“We are greatly disappointed with Avangrid’s decision to terminate the merger agreement and its proposed benefits to our customers, communities and shareholders,” said Pat Vincent-Collawn, chairman and CEO of PNM Resources.
Avangrid said the deal would have brought more than $300 million in benefits to PNM and would have helped New Mexico achieve its clean energy goals.
Avangrid, which operates in 23 states, said it has $5 billion in capital projects planned in New York and Maine. It is also developing Vineyard Wind, the first large-scale offshore wind project in the nation, off the coast of Martha’s Vineyard and Nantucket.
