- Oops!Something went wrong.Please try again later.
Agreement provides additional customer and community benefits as part of planned merger between AVANGRID and PNM Resources
AVANGRID, Inc. (NYSE: AGR), a leading sustainable energy company, today joined the New Mexico Attorney General, the International Brotherhood of Electrical Workers Local 611, Western Resource Advocates and other community leaders in announcing the parties have reached a stipulation agreement that provides significant enhanced economic development and customer benefits to New Mexico as part of AVANGRID’s planned merger with PNM Resources, Inc (NYSE: PNM).
"AVANGRID is committed to the communities we serve," said Dennis V. Arriola, CEO of AVANGRID. "That’s why we listened to local leaders, customers and other stakeholders to learn more about the unique circumstances in New Mexico. As a result, we are proud to put forward this agreement, with strong local support, to increase our investments in New Mexico and build on our partnership with New Mexicans and help ensure local communities prosper."
The customer benefits in the agreement include:
$50 million in rate credits over three years;
$6 million in COVID arrearages relief;
$5 million for low-income energy-efficiency assistance; and
$2 million to bring electricity to low-income, remote customers.
"Our discussions with Avangrid have demonstrated the company’s commitment to comprehensively address climate change and its willingness to support policies that will benefit the economy and environment in New Mexico communities and beyond," said Steve Michel, deputy director of Western Resource Advocates’ clean energy program.
The City of Albuquerque, another intervenor in the merger case, through City Attorney Esteban Aguilar, also expressed confidence in the leadership of the New Mexico Attorney General Hector Balderas when he said, "The Attorney General is lead on this case, and we are confident in his work to resolve this matter."
AVANGRID looks forward to continued engagement with additional stakeholders involved in this merger case as it works to deliver a positive outcome for New Mexico and for the future of PNM and its customers.
The agreement includes significant additional economic development:
150 new full-time jobs over three years that will remain no less than five years thereafter;
$7.5 million in additional economic development funds; and
$12.5 million in economic development contributions to community groups in the Four Corners region over five years ($2.5M/year). The community groups, who signed on to the agreement, are Dine Citizens Against Ruining Our Environment, Nava Education Project, San Juan Citizens Alliance and To Nizhoni Ani.
"The legacy of pollution and generational harm to front-line communities from coal-fired energy generation cannot be solved overnight, but this stipulation represents a pathway to a different future, including ongoing dialogue with impacted communities and resources to help the region transition," said Kyle Tisdel, attorney with the Western Environmental Law Center, which represents the Navajo community groups. "I applaud AVANGRID, PNM and Attorney General Balderas for listening and responding to Native voices and for their commitment to a more sustainable future."
The stipulation also includes 51 other important commitments, including programs to source locally for future goods and services, environmental commitments for significant carbon reduction, social commitments to ensure greater diversity in hiring, management and contracting, and dozens of financial and governance protections to ensure that PNM is well protected.
The New Mexico Public Regulation Commission is expected to consider the merits of the proposed stipulation agreement in the existing merger proceeding.
"AVANGRID is proud to be bringing forward such an innovative, community-based agreement," Arriola said. "From Albuquerque and Santa Fe to small towns and the Navajo Nation, customers, communities and employees will benefit from AVANGRID’s commitment to giving back and to providing quality service."
About AVANGRID: AVANGRID, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $38 billion in assets and operations in 24 U.S. states, AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs approximately 7,000 people and has been recognized by Forbes and Just Capital as one of the 2021 JUST 100 companies – a list of America’s best corporate citizens – and was ranked number one within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2021 for the third consecutive year by the Ethisphere Institute. For more information, visit www.avangrid.com.
Certain statements made in this press release for AVANGRID that relate to future events or expectations, developments, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. All statements contained in this Press Release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as "may," "will," "would," "can," "expect(s)," "intend(s)," "anticipate(s)," "estimate(s)," "believe(s)," "future," "could," "should," "plan(s)," "aim(s)," "assume(s)", "project(s)", "target(s)"), "forecast(s)", "seek(s)" and or the negative of such terms or other variations on such terms, comparable terminology or similar expressions. These forward-looking statements generally include statements regarding the potential transaction between AVANGRID and PNM Resources, including any statements regarding the expected timetable for completing the potential merger, the ability to complete the potential merger, the expected benefits of the potential merger, projected financial information, future opportunities, and any other statements regarding AVANGRID’s and PNM Resources’ future expectations, beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events or performance. Readers are cautioned that all forward-looking statements are based upon current reasonable beliefs, expectations and assumptions. AVANGRID assumes any obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, AVANGRID cautions readers not to place undue reliance on these statements.
AVANGRID’s business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond its control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see AVANGRID’s Form 10-K and Form 10-Q filings and the information filed on Avangrid’s Forms 8-K with the Securities and Exchange Commission (the "SEC") as well as its subsequent SEC filings, and the risks and uncertainties related to the proposed merger with PNM Resources, including, but not limited to: the expected timing and likelihood of completion of the pending merger, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending merger that could reduce anticipated benefits or cause the parties to abandon the transaction, the failure by AVANGRID to obtain the necessary financing arrangement set forth in commitment letter received in connection with the Merger, the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, the risk that the parties may not be able to satisfy the conditions to the proposed Merger in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed Merger, and the risk that the proposed transaction and its announcement could have an adverse effect on the ability of PNM Resources to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally. Other unpredictable or unknown factors not discussed in this communication could also have material adverse effects on forward looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210421005952/en/
Heather Brewer, 505-310-5957
Athena Hernandez, 203-231-2146 or
Patricia Cosgel, 203-499-2624 or