Officers with New Mexico’s largest electrical utility stated Tuesday {that a} proposed multibillion-dollar merger with a U.S. subsidiary of world vitality large Iberdrola has been scuttled.
Beneath the proposal, Connecticut-based Avangrid would have acquired PNM Assets and its two utilities — Public Service Co. of New Mexico and Texas New Mexico Energy.
The all-cash transaction was valued at greater than $4.3 billion and would have opened the door for Spain-based Iberdrola and its American unit Avangrid in a state the place extra wind and solar energy may very well be generated and exported to bigger markets.
“We are greatly disappointed with Avangrid’s decision to terminate the merger agreement and its proposed benefits to our customers and communities,” PNM president and CEO Pat Vincent-Collawn stated in an announcement.
PNM officers beforehand stated the proposed multibillion-dollar merger with Avangrid would have helped create jobs, serve utility prospects and enhance vitality effectivity tasks in New Mexico.
They stated being backed by Avangrid and Iberdrola would offer the New Mexico utility higher buying energy and assist transfer it nearer to its carbon-free targets.
The multibillion-dollar merger plan was initially crafted in 2020.
Final January, PNM Assets filed a discover of enchantment with the New Mexico Supreme Court docket after regulators rejected the proposed merger. The court docket heard oral arguments final fall however has but to difficulty a ruling.
Officers with Avangrid, which owns New York State Electrical & Fuel and different utilities within the Northeast, stated Tuesday that there is no such thing as a clear timing on the decision of the court docket battle in New Mexico nor any subsequent regulatory actions.
The Public Regulation Fee had stated it was involved about Avangrid’s reliability and customer support observe report in different states the place it operates.
The elected commissioners additionally pointed to the corporate initially withholding info through the prolonged continuing, a transfer that resulted in a $10,000 penalty.
Mariel Nanasi, government director of New Vitality Economic system and a critic of the proposed merger, stated Tuesday that Avangrid and Iberdrola’s customer support report and angle towards regulatory oversight triggered New Mexico regulators to reject the proposal.
“Their continuing failure to properly serve their customers is proof positive that the PRC made the right call,” she stated, including that New Mexico escaped a multinational company takeover of what she described as a vital piece of infrastructure for the agricultural state.
