PNM Resources, Avangrid file to remand merger case back to New Mexico regulator

PNM Resources (NYSE:PNM) and Avangrid (NYSE:AGR) have filed a joint motion along with New Mexico Public Regulation Commission to dismiss its merge appeal with the State Supreme Court and and remand the case back to the NMPRC for rehearing and reconsideration.

Under the filed motion, the NMPRC will conduct the rehearing and reconsideration in accordance with its rules of procedure and work to reach a decision and issue a final order in a timely manner, according to a statement on Wednesday. The NMPRC acknowledges that the companies are seeking a resolution by no later than April 12.

The filing comes as Avangrid (AGR) tries to complete its acquisition of PNM Resources (PNM), which was originally blocked by the New Mexico utility regulator in December 2021. In January, New Mexico Governor Michelle Lujan Grishan appointed three commissioners to the NMPRC, who analysts and investors expect are more likely to approve the deal.

PNM Resources (PNM) sale to Avangrid (AGR) is likely to close by May 1 after the governor appointed three commissions to the NMPRC, all three who have "extensive" experience working in utility regulation and renewable energy policy, Mizuho analyst Anthony Crowdell wrote in a note in January, when he downgraded PNM to hold as it neared its $50.30 a share takeout price from Avangrid.

PNM Resources (PNM) and Avangrid (AGR) previously agreed to extend the merger agreement until April 20, which can be extended 90 days by agreement from both companies.

Last January PNM and Avangrid appealed the decision to the New Mexico Supreme Court and the companies extended the end date of their merger agreement. Avangrid has said it expects the PNM deal to close by mid 2023.