ALBUQUERQUE, N.M. — Officials said Tuesday that Avangrid is terminating its merger agreement with PNM Resources.

Since the companies first announced the $8 billion merger agreement in October 2020, it has faced scrutiny from state regulators.

In December 2021, the New Mexico Public Regulation Commission voted to reject the merger. The PRC cited concerns over whether the merger would go far enough to provide benefits to its customers or support economic development in the state.

PNM swiftly filed a notice of appeal with the New Mexico Supreme Court in January 2022. While awaiting a state high court decision, the companies extended the terms of the agreement twice.

When a decision still hadn’t been made at the end of 2023, PNM said Avangrid terminated the agreement.

PNM claims the merger could’ve led to “over $300 million” for New Mexico with customer rate credits, economic development funds and programs for bill affordability and forgiveness and job training.

Statement from Gov. Michelle Lujan Grisham

“The termination of the merger agreement is not the outcome we desired, but I remain confident about future investments in our state, including by Avangrid, in the wind, solar and hydrogen solutions that are powering our state’s clean energy transition.  

“New Mexico is open for business and on solid footing when it comes to attracting top-tier energy transition companies. Arcosa, Maxeon, Pattern Energy and Star Scientific. They’re all choosing to do business in our state, and PNM is a key driver in solidifying these investments. New Mexico will continue to be a national leader in charting a clean energy economy through our electricity generation and transmission, onshoring of key supply chain components and cutting-edge technology development.” 

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• PNM’s proposed merger with Avangrid rejected by PRC
• New Mexico utility files appeal over rejected merger