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NM Supreme Court approves dismissal of PNM-Avangrid merger case
Power lines span the sky in Santa Fe County. Delays in building new solar plants to replace coal-based electricity are pushing Public Service Company of New Mexico deeper into wholesale energy markets to secure power. (Eddie Moore/Journal)
Following the fall through earlier this month of a proposed merger between the Public Service Company of New Mexico and Avangrid, the New Mexico Supreme Court is also done with the formerly proposed merger.
On Monday, the Supreme Court approved a motion from PNM to dismiss most aspects of its appeal of the New Mexico Public Regulation Commission’s 2021 rejection of the merger of the energy companies.
The judges also approved Avangrid’s request to withdraw from the appeal following the company’s termination of the merger.
It’s a natural progression after Avangrid, a subsidiary of the energy giant Iberdrola, announced the dissolution of the merger in early January. It was a major move PNM said it was disappointed with, leaving customers without some economic and clean energy transition benefits the company said would’ve come with the melding of the companies.
PNM and Avangrid had been waiting for two years for a court decision on the merger. In January 2022, the companies filed an appeal with the court, hoping to overturn the December 2021 decision from the PRC that rejected the merger.
A decision didn’t come soon enough. Instead of choosing to renew the merger agreement by Dec. 31, 2023, Avangrid let it dissolve.
The New Mexico Supreme Court still has jurisdiction over issues relating to sanctions imposed by the PRC. In their 2021 decision, the state regulators imposed a $10,000 penalty on PNM and Avangrid for discovery responses by Avangrid.
