Proposed merger of New Mexico, Connecticut energy companies ends; deal valued at more than $4.3B

ALBUQUERQUE, New Mexico — 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 been finalized.

Under the proposal, Connecticut-based Avangrid would have acquired PNM Resources and its two utilities: Public Service Co. of New Mexico and Texas New Mexico Power.

The cash transaction was valued at more than $4.3 billion and would have opened the door for Iberdrola and Avangrid to a state where more wind and solar energy could be generated and exported to larger markets.

“We are very 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 multibillion-dollar merger with Avangrid would have helped create jobs, serve utility customers and boost energy efficiency projects in New Mexico.

They said having the backing of Avangrid and Iberdrola would provide the New Mexico utility with greater purchasing power and help it get closer to its carbon-free goals.

The multibillion-dollar merger plan was originally drawn up in 2020.

Last January, PNM Resources filed a notice of appeal with the New Mexico Supreme Court after regulators rejected the proposed merger. The court heard oral arguments but has not yet issued a ruling.

Officials at Avangrid, owner of New York State Electric & Gas and other utilities in the Northeast said Tuesday that there is no clear timing for resolution of the court battle in New Mexico or 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 it operates.

The elected commissioners also noted that the company initially withheld information during the lengthy procedure, a move that resulted in a $10,000 fine.

Mariel Nanasi, chief executive of New Energy Economy and a critic of the proposed merger, said Tuesday that Avangrid and Iberdrola’s track record of customer service and their attitude toward regulatory oversight caused New Mexico regulators to reject the proposal.

“Its continued inability to adequately serve its customers is proof positive that the PRC made the right decision,” he said, adding that New Mexico escaped a multinational corporate takeover of what he described as an essential piece of infrastructure for the rural state.