Officers with New Mexico’s largest electrical utility stated Tuesday {that a} proposed multibillion-dollar merger with a U.S. subsidiary of world vitality big Iberdrola has been scuttled.
Beneath the proposal, Connecticut-based Avangrid would have acquired PNM Sources 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 could possibly 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 a press release.
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 supply the New Mexico utility larger buying energy and assist transfer it nearer to its carbon-free objectives.
The multibillion-dollar merger plan was initially crafted in 2020.
Final January, PNM Sources filed a discover of enchantment with the New Mexico Supreme Courtroom after regulators rejected the proposed merger. The court docket heard oral arguments final fall however has but to challenge a ruling.
Officers with Avangrid, which owns New York State Electrical & Gasoline and different utilities within the Northeast, stated Tuesday that there isn’t 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 in the course of the prolonged continuing, a transfer that resulted in a $10,000 penalty.
Mariel Nanasi, govt director of New Power Economic system and a critic of the proposed merger, stated Tuesday that Avangrid and Iberdrola’s customer support report and angle towards regulatory oversight induced 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 an important piece of infrastructure for the agricultural state.
