Connecticut-based utility company agrees to buy PNM Resources

The company that owns New Mexico’s largest utility PNM is being acquired by Avangrid, a Connecticut-based utility owner, in a merger deal totalling $8.3 billion. The two companies announced the deal early Wednesday.  Avangrid operates natural gas and electric utilities and renewable energy generation assets across 24 states. The investor-owned company’s headquarters are located in […]

Connecticut-based utility company agrees to buy PNM Resources

The company that owns New Mexico’s largest utility PNM is being acquired by Avangrid, a Connecticut-based utility owner, in a merger deal totalling $8.3 billion. The two companies announced the deal early Wednesday. 

Avangrid operates natural gas and electric utilities and renewable energy generation assets across 24 states. The investor-owned company’s headquarters are located in Orange, Connecticut, but the majority shareholder is Spain-based Iberdrola, S.A., which is the third largest utility company in the world. 

Avangrid’s renewable energy-focused arm is considered one of the largest in the world. It’s the third largest wind energy operator in the U.S., with 7.4 gigawatts of installed wind and solar capacity. The company owns 1.9-gigawatt capacity wind projects in New Mexico and Texas and 200 megawatts of wind and solar capacity in Arizona.

RELATED: Natural gas will play a big role in state’s energy transition

Pat Vincent-Collawn, PNM Resources CEO, president and chairperson, emphasized the transition to clean energy as a top consideration in the merger. 

“Our combined companies provide greater opportunities to invest in the infrastructure and new technologies that will help us navigate our transition to clean energy while maintaining our commitments to our local teams and communities,” Vincent-Collawn said in a statement. 

Dennis Arriola, Avangrid CEO, said the merger is a “a strategic fit” for Avangrid. The merger “helps us further our growth in both clean energy distribution and transmission, as well as helping to expand our growing leadership position in renewables,” Arriola said in a statement.

Renewable energy advocates in the state had mixed reactions to the news of the merger. Ben Shelton, political and policy director for Conservation Voters New Mexico, said he was encouraged by the announcement. 

“New Mexico’s renewable generation potential has been on the cusp of a major boom for years,” Shelton said in a statement. “We’re encouraged to see a large renewables-focused company like Avangrid validate that belief with their investment here. We hope this move will solidify a deep, long-term commitment to New Mexico’s future as a West-wide renewable energy generation leader.”

Some questioned what the acquisition might mean for the Four Corners region of the state, which is facing an uncertain economic future as PNM plans to exit the coal-fired San Juan Generating Station. 

“Front and center is the opportunity to protect and manage water sources in the Four Corners region,” said Nicole Horseherder, director of the Diné environmental group To Nizhoni Ani. “A transition to solar, wind, renewable, clean-energy investments helps eliminate the waste and misuse of water. Precious water sources have been used to feed giant power-plants all over the Four Corners region for over half a century. These water sources are limited and have been compromised in many regions.” 

Camilla Feibelman, director of the Rio Grande Chapter of the Sierra Club, said she wants to see Avangrid commit to financially supporting a just transition for those communities. 

“We urge Avangrid to commit to a complete cleanup of San Juan and Four Corners coal plant and a reinvestment into a long-term renewable economy for the communities that have been sacrificed for PNM’s profits,” Feibelman said in a statement. “Avangrid could demonstrate its commitment to New Mexico by investing its own resources to back up the community funding created by the Energy Transition Act.” 

The merger faces a number of regulatory hurdles. It needs to be approved by PNM Resources shareholders, New Mexico’s Public Regulation Commission, the Federal Energy Regulatory Commission, the U.S. Justice Department, the federal Nuclear Regulatory Commission, the U.S. Federal Communications Commission and the Committee on Foreign Investment in the United States. 

If successful, the combined company will own 10 utilities in six states and will have renewable operations in 24 states. Arriola will serve as CEO of the combined company. 

We're ad free

That means that we rely on support from readers like you. Help us keep reporting on the most important New Mexico Stories by donating today.

Related

Senators throw support to embattled Ivey-Soto

Senators throw support to embattled Ivey-Soto

By Justin Horwath, New Mexico In Dept Sen. Daniel Ivey-Soto is running for a fourth term despite the state Democratic Party’s decision to censure…
AG announces legislative priorities for upcoming special session

AG announces legislative priorities for upcoming special session

Attorney General Raúl Torrez announced on Thursday his legislative priorities for July’s special legislative session, including the creation of a crime victim’s unit to…
Correa Hemphill to step down from legislature

Correa Hemphill to step down from legislature

State Sen. Siah Correa Hemphill, a Democrat from Silver City, won’t seek reelection in the general election in November, leaving SD 28, a swing…
EPA announces $18.9M in funding to address PFAS contamination in New Mexico

EPA announces $18.9M in funding to address PFAS contamination in New Mexico

The U.S. Environmental Protection Agency awarded the New Mexico Environment Department nearly $19 million to address PFAS and other emerging contaminants in drinking water.…
Environmental historian reflects on the legacies of Aldo Leopold and the Gila Wilderness

Environmental historian reflects on the legacies of Aldo Leopold and the Gila Wilderness

One hundred years ago, conservationist Aldo Leopold proposed designating 500,000 acres of land in the Gila National Forest as an area where no roads…

A rare NM lizard is now listed as endangered

The U.S. Fish and Wildlife Service added the dunes sagebrush lizard to the list of endangered species on Friday and is expected to designate…
Amid new graduation requirements, what do high schoolers want to learn?

Amid new graduation requirements, what do high schoolers want to learn?

By Margaret O’Hara, The Santa Fe New Mexican The main things that bring Brayan Chavez to school every day: Seeing, talking to and engaging with…
Special ed teachers hope lawmakers OK pay raises, admin changes

Special ed teachers hope lawmakers OK pay raises, admin changes

By Margaret O’Hara, The Santa Fe New Mexican Brittany Behenna Griffith has a laundry list of adjectives to describe the ideal special education teacher:…
Lawmakers must find consensus on competing education spending plans

Lawmakers must find consensus on competing education spending plans

By Margaret O’Hara, The Santa Fe New Mexican A challenging task awaits New Mexico lawmakers in the next 30 days: Reconciling three very different…
Heinrich questions FDA leadership on baby formula safety, mifepristone

Heinrich questions FDA leadership on baby formula safety, mifepristone

U.S. Food and Drug Administration Commissioner Dr. Robert Califf answered questions about the safety of human milk formula and mifepristone on Wednesday. Sen. Martin…
Health workers fear it’s profits before protection as CDC revisits airborne transmission

Health workers fear it’s profits before protection as CDC revisits airborne transmission

Amy Maxmen, KFF Health News Four years after hospitals in New York City overflowed with covid-19 patients, emergency physician Sonya Stokes remains shaken by…
Lujan Grisham, Biden admin announce $10 million in federal funds for tribes, pueblos

Lujan Grisham, Biden admin announce $10 million in federal funds for tribes, pueblos

Gov. Michelle Lujan Grisham announced Friday $10 million in funding from the federal American Rescue Plan Act was awarded to six tribal nations and…
Lujan Grisham talks reproductive healthcare with CNN host

Lujan Grisham talks reproductive healthcare with CNN host

Gov. Michelle Lujan Grisham warned that banning contraceptives “could be next” when talking to a CNN host about New Mexico’s border and abortion issues.…
UNM approves land acquisition for Las Cruces reproductive health center

UNM approves land acquisition for Las Cruces reproductive health center

Thursday, the University of New Mexico Board of Regents approved a land acquisition for a full-spectrum reproductive healthcare center, that will include abortion care,…
Heinrich questions FDA leadership on baby formula safety, mifepristone

Heinrich questions FDA leadership on baby formula safety, mifepristone

U.S. Food and Drug Administration Commissioner Dr. Robert Califf answered questions about the safety of human milk formula and mifepristone on Wednesday. Sen. Martin…
Lujan Grisham talks reproductive healthcare with CNN host

Lujan Grisham talks reproductive healthcare with CNN host

Gov. Michelle Lujan Grisham warned that banning contraceptives “could be next” when talking to a CNN host about New Mexico’s border and abortion issues.…
Study: Marriage equality has had a positive impact

Study: Marriage equality has had a positive impact

A recent study found that in the 20 years since Massachusetts became the first state in the U.S. to grant same-sex marriage licenses, same-sex…
UNM approves land acquisition for Las Cruces reproductive health center

UNM approves land acquisition for Las Cruces reproductive health center

Thursday, the University of New Mexico Board of Regents approved a land acquisition for a full-spectrum reproductive healthcare center, that will include abortion care,…
State Ethics Commission sues Apodacas dark money operation

State Ethics Commission sues Apodacas dark money operation

By Marjorie Childress, New Mexico In Depth The State Ethics Commission on Friday sued a dark money group and its president, Jeff Apodaca, to force disclosure…
Lujan Grisham talks reproductive healthcare with CNN host

Lujan Grisham talks reproductive healthcare with CNN host

Gov. Michelle Lujan Grisham warned that banning contraceptives “could be next” when talking to a CNN host about New Mexico’s border and abortion issues.…
Senators throw support to embattled Ivey-Soto

Senators throw support to embattled Ivey-Soto

By Justin Horwath, New Mexico In Dept Sen. Daniel Ivey-Soto is running for a fourth term despite the state Democratic Party’s decision to censure…
State Ethics Commission sues Apodacas dark money operation

State Ethics Commission sues Apodacas dark money operation

By Marjorie Childress, New Mexico In Depth The State Ethics Commission on Friday sued a dark money group and its president, Jeff Apodaca, to force disclosure…
EPA announces $18.9M in funding to address PFAS contamination in New Mexico

EPA announces $18.9M in funding to address PFAS contamination in New Mexico

The U.S. Environmental Protection Agency awarded the New Mexico Environment Department nearly $19 million to address PFAS and other emerging contaminants in drinking water.…
State putting pressure on firms that manage Medicaid to help solve behavioral health access problems

State putting pressure on firms that manage Medicaid to help solve behavioral health access problems

By Gabrielle Porter, The Santa Fe New Mexican New Mexico’s Medicaid middlemen need more skin in the game. That’s the message from Human Services…

GET INVOLVED

© 2023 New Mexico Political Report