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Merger confirmed to be in the public interest, on track to close in second half of 2021
ALBUQUERQUE, N.M., May 6, 2021 /PRNewswire/ -- Today, the Public Utility Commission of Texas (PUCT) voted to approve the unanimous stipulation and agreement among parties for the merger of PNM Resources, Inc. (NYSE: PNM), including its Texas utility subsidiary, Texas-New Mexico Power Company (TNMP), with AVANGRID (NYSE: AGR).
In the now-approved unanimous settlement, which was filed on March 30, the Staff of the PUCT and all other parties to the proceeding agreed the proposed merger is in the public interest.
"Today's approval in Texas is an exciting milestone and confirms that our merger is in the public interest," said Pat Vincent-Collawn, PNM Resources' chairman, president and CEO. "PNM Resources and Avangrid are eager to carry forward the commitments and future possibilities to our TNMP and PNM employees, customers and communities with the support of a stronger, combined organization."
The merger has received federal regulatory approvals from the Federal Energy Regulatory Commission (FERC) and the Federal Communications Commission (FCC), along with clearance from the Committee on Foreign Investment in the United States (CFIUS) and the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. PNM Resources shareholders overwhelmingly approved the merger in February. The merger also requires federal approval from the Nuclear Regulatory Commission and state approval from the New Mexico Public Regulation Commission (NMPRC) as it relates to Public Service Company of New Mexico (PNM), the New Mexico utility subsidiary of PNM Resources.
In New Mexico, an initial stipulation among parties was reached in April increasing and expanding commitments related to the net public benefit of the merger to over $272 million in PNM customer rate benefits and economic development contributions for the state, alongside enhanced environmental benefits, commitments to maintain local jobs, programs and charitable leadership and a number of additional commitments. The Hearing Examiner set forth May 7 for parties to file a revised stipulation with the NMPRC, with consideration for the remaining procedural schedule to follow.
Additional materials pertaining to the regulatory approvals of the merger are available at https://www.pnmresources.com/investors/rates-and-filings.aspx.
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2020 consolidated operating revenues of $1.5 billion. Through its regulated utilities, PNM and TNMP, PNM Resources provides electricity to approximately 800,000 homes and businesses in New Mexico and Texas. PNM serves its customers with a diverse mix of generation and purchased power resources totaling 2.8 gigawatts of capacity, with a goal to achieve 100% emissions-free energy by 2040. For more information, visit the company's website at www.PNMResources.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release for PNM Resources, Inc. ("PNMR"), Public Service Company of New Mexico ("PNM"), or Texas-New Mexico Power Company ("TNMP") (collectively, the "Company") that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. PNMR, PNM, and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR, PNM, and TNMP caution readers not to place undue reliance on these statements. PNMR's, PNM's, and TNMP's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. Additionally, there are risks and uncertainties in connection with the proposed acquisition of us by AVANGRID which may adversely affect our business, future opportunities, employees and common stock, including without limitation, (i) 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, (ii) the failure by AVANGRID to obtain the necessary financing arrangement set forth in commitment letter received in connection with the Merger, (iii) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (iv) the risk that the parties may not be able to satisfy the conditions to the proposed Merger in a timely manner or at all, , and (v) the risk that the proposed transaction could have an adverse effect on the ability of PNMR to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company's Form 10-K, Form 10-Q filings and the information included in the Company's Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.
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SOURCE PNM Resources, Inc.