ALBUQUERQUE, N.M., April 21, 2021 /PRNewswire/ -- PNM
Resources, Inc. (NYSE: PNM) wholly-owned New Mexico subsidiary, Public Service Company
of New Mexico (PNM), and Avangrid
filed a stipulation in its merger application before the New Mexico
Public Regulation Commission (NMPRC) with the New Mexico Attorney General, Western Resource
Advocates, International Brotherhood of Electrical Workers Local
611, Dine Citizens Against Ruining Our Environment, Nava Education
Project, San Juan Citizens Alliance, and To Nizhoni Ani. This
agreement among a diverse set of parties enhances and builds upon
the commitments in the original merger application to benefit
customers and the state of New
Mexico.
PNM and Avangrid share in the excitement about the possibilities
for New Mexico's future in the
global transition to clean energy. PNM customers today will
continue to be PNM customers in the future, served by local
New Mexico employees and
operations that are regulated by the NMPRC.
If approved by the NMPRC, the agreement among the parties will
bring over $250 million in benefits
to New Mexico. Below are some of
the key enhancements of the stipulation:
Customer Rate Benefits:
- Customer rate benefits of $63
million
-
- Benefits include $50 million in
rate credits over 3 years, $6 million
in COVID arrearages relief, $5
million for low-income energy efficiency assistance and
$2 million to improve the access that
low-income New Mexicans have to electricity, particularly in remote
areas.
Economic Development Benefits:
- Economic development benefits approximating $200 million
-
- 150 new full-time jobs will be added to New Mexico over 3 years, which will remain for
at least 5 years afterwards (conservatively valued between $150 million
and $200 million in economic
benefits to the State.)
- In addition to this significant contribution, the agreement
increases the commitment to economic development fundings to
$7.5 million along with a separate,
additional $12.5 million contribution
to community groups in the Four Corners region.
Enhanced Environmental Benefits:
- Other commitments aim to enhance energy efficiency and solar
programs, perform environmental studies and create a Carbon
Reduction Task Force to ensure that PNM will not only meet but
exceed its zero carbon goals by 2040.
- PNM will hire a Chief Environmental Officer with significant
environmental and climate change experience with responsibility for
meeting PNM's carbon reduction goals. Executive compensation will
be linked to carbon-reduction targets.
Maintaining Current Jobs, Low-Income Programs, and Charitable
Leadership:
- The stipulation commits to maintaining PNM jobs, with no
reduction of wages or benefits to union or non-union employees, for
a minimum of 3 years following the transaction. Avangrid will honor
PNM's current collective bargaining agreement.
- The merger commitments ensure that the benefits PNM currently
provides to its customers and communities in the past through its
PNM Good Neighbor Fund or charitable giving will not be reduced,
with a similar expectation for the PNM Resources Foundation's
separate charitable activities.
- PNM will work with the Attorney General to initiate a program
designed to increase the contract opportunities for minority and
woman-owned businesses in New
Mexico with PNM for procurement of its goods and
services.
Local Management:
- PNM will continue to be managed locally.
- PNM will be governed by a PNM Board of Directors comprised of a
majority of local leaders from New
Mexico, with forty percent qualifying as "independent
directors" as defined by the rules of the New York Stock
Exchange.
Financing and Ownership:
- As stated in the original merger application, none of the
merger costs will come from customers, and PNM and PNM Resources
will not take on any new debt in conjunction with the proposed
transaction.
- Avangrid commits not to sell its controlling interest in PNM
for a period of not less than 10 years.
- Avangrid will pay off all existing PNM Resources debt, which
will strengthen the balance sheet and credit profile of the new
company.
In order to allow all parties to the merger proceeding to
evaluate the stipulation, PNM and Avangrid are seeking to revise
the procedural calendar.
These stipulation commitments enhance the future service and
benefits of the combined companies' value to customers. The
shareholders of PNM's parent company, PNM Resources, earlier
approved the proposed merger, affirming their view that the merger
represents a reasonable and fair price for their investment and
risk associated with their ownership in the company.
PNM has always believed that this merger is good for our
customers, our employees, our communities and the state as a whole.
The proposed stipulation builds upon the underlying merger
agreements in tangible and concrete actions that improve the public
benefit of the merger.
Additional materials pertaining to the stipulation and PNM's
application for approval of the merger with the NMPRC are available
at
https://www.pnmresources.com/investors/rates-and-filings.aspx.
Background:
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.
CONTACTS:
|
|
Analysts
|
Media
|
Lisa
Goodman
|
Ray
Sandoval
|
(505)
241-2160
|
(505)
241-2782
|
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.