Avangrid Statement on PNM Resources, Inc. Merger

ORANGE, Conn.--(BUSINESS WIRE)--AVANGRID, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, issued the following statement today on the previously announced merger agreement with PNM Resources, Inc. (PNM).

“Since 2020, Avangrid, a national leader in clean energy, has fought to gain approval of its merger with PNM, a merger that would bring over $300 million in benefits to PNM consumers and communities and utilize the company’s vast experience, and the experience of Iberdrola, S.A., a global leader at the forefront of the energy transition, to help the state achieve its clean energy goals. Avangrid and PNM had obtained all the necessary regulatory approvals for the closing of the merger by the end of 2022 except the approval of the New Mexico Public Regulation Commission. However, with the close of 2023 there is still no clear timing on the resolution of the court review of the New Mexico regulator’s denial of the merger nor any subsequent regulatory actions. Avangrid has terminated the merger agreement because all final regulatory approvals were not received by December 31, 2023, the end date under the merger agreement after which either Avangrid or PNM could terminate the merger agreement if the merger had not yet been consummated. In connection with the termination of the merger agreement, the commitment letter, pursuant to which Iberdrola agreed to provide or arrange for funds to the extent necessary for Avangrid to consummate the merger, terminated automatically by its terms.

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Avangrid intends to continue to focus on its robust growth opportunities, with over $9 billion in incremental capital projects organically secured during the pendency of the merger. We will focus on delivering over $5 billion in capital projects under our New York and Maine multi-year rate plans plus an incremental $2 billion in capital projects related to clean energy transmission in New York (CLCPA II), repowering over $5 billion of renewable assets under the benefits of the Inflation Reduction Act, and developing new renewable energy projects, including powering Vineyard Wind, the first large scale offshore wind project in the nation, which will further cement Avangrid as a national leader in clean energy.

While our merger agreement with PNM has been terminated, we remain more than ever steadfast in our commitment to New Mexico in the development of wind and solar renewables, helping explore options in the new hydrogen economy, and delivering on the partnership with the Navajo Nation to achieve its clean energy future.

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Also, with no major transaction consummated in 2023, we reaffirm our EPS and Adjusted EPS 2023 guidance as presented without the impact of Renewables transactions that we had previously provided during our third quarter earnings presentation on October 26, 2023.

Avangrid will continue its national and global legacy of climate stewardship by working tirelessly to bring clean, affordable, and renewable energy to New Mexico and the 23 states we operate in across the nation.”