Iberdrola subsidiary Avangrid terminated a merger agreement with New Mexico’s largest utility, citing delays and lack of regulatory approval.

Under the proposal, first announced in 2020, Avangrid would have acquired PNM Resources and its two utilities — Public Service Co. of New Mexico and Texas New Mexico Power. The all-cash transaction was valued at more than $4.3 billion and would have opened the door for Iberdrola and Avangrid in a state where more wind and solar power could be generated and exported to larger markets.

The utilities said the merger would have brought more than $300 million in benefits to PNM customers. PNM had argued the merger would provide it greater purchasing power to help move it closer to its carbon-free goals.

But the New Mexico Public Regulation Commission rejected the proposal in 2021, citing concerns about Avangrid’s reliability and customer service track record in other states where it operates. PNM Resources then filed a notice of appeal with the New Mexico Supreme Court.

Avangrid said the group needed to receive approval for the merger from regulators by the end of 2023. The company said Dec. 31 was the date that either Avangrid or PNM could terminate the merger agreement if it had not yet been finalized.

“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,” reads an Avangrid company statement in-part.

“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,” the company said.

PNM Resources said its Board of Directors had approved an extension beyond Dec. 31 that was not accepted by Avangrid.

“We are greatly disappointed with Avangrid’s decision to terminate the merger agreement and its proposed benefits to our customers, communities and shareholders,” said Pat Vincent-Collawn, PNM Resources Chairman and CEO. “As we move forward, our strategic plans remain focused on the infrastructure investments necessary to meet the future energy needs of our customers and communities.”

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