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April 21, 2021

FERC approves planned $8.3B Avangrid merger 

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

The Federal Energy Regulatory Commission has approved Orange-based utility company Avangrid’s planned merger with PNM Resources, an energy holding company in New Mexico.

The approval was a key one for the merger to proceed, according to Avangrid CEO Dennis V. Arriola.

The companies announced plans for the merger in October. The cash offer is for PNM’s shares at $50.30 per share, for a $8.3 billion deal. Company leaders expect the merger to be finalized in the second half of 2021.

“This approval is an important step in the merger process, which will bring together two companies focused on delivering safe, reliable and clean energy for customers and communities,” Arriola said in an announcement.

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

According to Avangrid, it previously received the necessary merger approvals and clearances from the Federal Communications Commission, PNM Resources’ shareholders, and the Committee on Foreign Investment in the United States. The company also recently announced a unanimous stipulation agreement with all parties for the merger approval before the Public Utility Commission of Texas.

Avangrid is continuing to pursue state approval for the merger from the New Mexico Public Regulation Commission. The Nuclear Regulatory Commission also needs to sign off on the plan.

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 some 328,000 customers in greater New Haven and Bridgeport.

Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.

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