ALBUQUERQUE, N.M. (KRQE) – PNM has announced that AVANGRID, the third-largest wind operator in the United States, has acquired PNM Resources, including PNM. The agreement was unanimously approved by both companies’ Board of Directors. In a press release, PNM states that PNM Resources will continue to be overseen locally and the PNM headquarters will stay in New Mexico.
The transaction merges both companies creating a national regulated utility and renewable energy platform with an estimated $14 billion rate base, over 4 million electric and natural gas utility customers, and more than 7.4 gigawatts of renewable energy assets. In a press release, PNM reports that its customers will continue to rely on the company for safe and reliable electric service and that it plans to provide rate benefits to customers if approved by regulators and customers will not pay for transaction costs.
Additionally, the merge will allow PNM to have access to AVANGRID’s advanced technologies and infrastructure in order to enhance PNM’s customer experience and support. PNM states they are committed to creating jobs in New Mexico and will continue their local presence and support of the local economies.
The agreement will not reduce the PNM employee headcount and its headquarters and management will remain in New Mexico. The combined entity will also maintain PNM Resources’ charitable contributions through its existing programs.
PNM continues to remain committed to exit coal with the approved abandonment of the San Juan coal plant in 2022 as well as its efforts to exit the Four Corners coal plant before the expiration of ownership and coal supply agreements in 2031.
AVANGRID is a sustainable energy company with over 7.5 gigawatts of installed wind and solar capacity. In its merge with PNM Resouces, the company plans to expand in the southwest beyond its current 1.5-gigawatt capacity wind projects in New Mexico and Texas as well as its 200-megawatt wind and solar capacity in Arizona.
PNM reports that the transaction is subject to PNM Resources shareholder approval, regulatory approvals from the New Mexico Public Regulation Commission, Public Utility Commission of Texas, Federal Energy Regulatory Commission, Department of Justice, Nuclear Regulatory Commission, Federal Communications Commission and Committee on Foreign Investment in the United States in addition to other customary closing conditions. The deal is expected to close between October and December 2021,