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May 26, 2021

Avangrid secures key NRC approval for planned $8.3B merger

PHOTO | New Haven BIZ Avangrid’s headquarters in Orange.
By Michelle Tuccitto Sullo

The Nuclear Regulatory Commission has granted approval for Orange-based utility giant Avangrid’s planned $8.3 billion merger with PNM Resources Inc.

According to Avangrid, it now has six out of seven governmental approvals required for the deal to proceed.

PNM provides electricity to approximately 800,000 homes and businesses in both New Mexico and Texas.

The companies announced plans for the merger in October. The cash offer is for PNM’s shares at $50.30 per share. Company leaders expect the merger to close in the second half of this year.

Dennis V. Arriola, CEO of Avangrid, said this latest approval is another key one in the process. He said the company looks forward to working with PNM and its customers to “spur economic growth and accelerate the clean energy transformation.” 

Since January, the governmental bodies that have signed off on the deal include the Hart-Scott-Rodino Antitrust Clearance, Committee on Foreign Investment, Federal Communications Commission, Federal Energy Regulatory Commission and the Public Utility Commission of Texas.

The seventh and remaining required approval is from the New Mexico Public Regulation Commission. Its hearing examiner is expected to have a conference among interested parties on May 28.

Avangrid’s utilities currently operate in four states, including in New York and New England. This merger would add two more states, New Mexico and Texas, to its utility network.

Avangrid is the parent company of Southern Connecticut Gas, Connecticut Natural Gas, and United Illuminating. The gas companies serve approximately 360,000 residential, commercial and industrial customers in Connecticut, while United Illuminating provides electricity to approximately 328,000 customers in greater New Haven and Bridgeport.

Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.

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