Avangrid (AGR) Reaches Settlement With Key Stakeholders in Texas for PNM Resources Merger

March 30, 2021 2:35 PM EDT

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AVANGRID, Inc. (NYSE: AGR), a leading sustainable energy company, announced today that, together with TNMP (Texas-New Mexico Power Company), it has reached a unanimous settlement with the Staff of the Public Utility Commission of Texas (PUCT) and the intervenors. The signed agreement has been filed with the PUCT by AVANGRID, TNMP, Staff and the intervenors in the proceeding for the approval of the proposed merger with PNM Resources (NYSE: PNM). TNMP is the PNM Resources Texas utility subsidiary.

The PUCT is expected to consider the unanimous settlement in the near future. In the settlement, all parties agree the proposed merger, including the regulatory commitments made by the applicants, is in the public interest.

“We are pleased with the Texas settlement milestone and the continued progress of the required regulatory approvals for this important transaction,” said Dennis V. Arriola, CEO of AVANGRID. “We are hopeful the unanimous settlement will result in approval of the combination between PNM Resources and AVANGRID.”

“Combining AVANGRID and TNMP’s parent company, PNM Resources, strengthens our commitment to a clean energy future,” Arriola continued. “The merger will deliver tangible benefits for Texas customers, while maintaining the crucial role of TNMP’s senior management and employees in managing the utility.”

Today’s announcement follows the recent Federal Communications Commission (FCC) approval, the approval of the merger by PNM Resources’ shareholders, the receipt of regulatory 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.

In addition to the settlement, AVANGRID continues to pursue state and Federal regulatory approvals for the merger, including from the Nuclear Regulatory Commission and the Federal Energy Regulatory Commission (FERC), as well as the New Mexico Public Regulation Commission.

AVANGRID announced the strategic PNM Resources merger combination in October 2020 in an all cash offer for PNM Resources’ shares at $50.30 per share, an $8.3 billion enterprise value transaction. The resulting entity would be one of the major clean energy companies in the US with ten regulated utilities in six states and the third largest renewables company with operations in 24 states.

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