Proposed merger of New Mexico, Connecticut energy companies ends; deal valued at more than $4.3B
ALBUQUERQUE, N.M. — Officials at New Mexico's largest electric utility said Tuesday that a proposed multibillion-dollar merger with a U.S. subsidiary of global energy giant Iberdrola has ended.
Under the proposal, Connecticut-based Avangrid would have acquired PNM Resources and its two utilities: Public Service Co. from New Mexico and Texas New Mexico Power.
The all-cash transaction was valued at more than $4.3 billion and would have opened the door for Iberdrola and Avangrid in a state where more wind and solar energy could be generated and exported to larger markets.
“We are extremely disappointed with Avangrid's decision to terminate the merger agreement and the proposed benefits to our customers and communities,” PNM President and CEO Pat Vincent-Collawn said in a statement.
PNM officials previously said the proposed multimillion-dollar merger with Avangrid would have helped create jobs, serve utilities and spur energy efficiency projects in New Mexico.
They said the support from Avangrid and Iberdrola would give the New Mexico utility more purchasing power and move it closer to its carbon-free goals.
The multi-million merger plan was originally drawn up in 2020.
Last January, PNM Resources filed an appeal with the New Mexico Supreme Court after regulators rejected the proposed merger. The court has heard oral arguments but has not yet made a ruling.
Officials at Avangrid, owner of New York State Electric & Gas and other utilities in the Northeast said Tuesday there is no clear timing for the resolution of the New Mexico lawsuit, nor for any subsequent regulatory action.
The Public Regulation Commission had said it was concerned about Avangrid's reliability and customer service record in other states where the company operates.
The elected commissioners also pointed out that the company initially withheld information during the lengthy proceeding, an action that resulted in a $10,000 fine.
Mariel Nanasi, executive director of New Energy Economy and a critic of the proposed merger, said Tuesday that Avangrid and Iberdrola's customer service record and attitude toward regulatory oversight led New Mexico regulators to proposal rejected.
“Their continued inability to properly serve their customers is proof positive that the PRC made the right decision,” she said, adding that New Mexico escaped a takeover by multinationals of what she described as a vital part of its infrastructure for the rural state.