PRC asks to reconsider PNM-Avangrid merger case

Mar. 8—More than a year after a proposed multibillion-dollar merger between PNM and a subsidiary of a Spain-based global power giant was unanimously rejected by elected state utility regulators, the proposal soon may return for consideration by the current Public Regulation Commission.

The governor-appointed PRC has requested to rehear and reconsider the merger case, which is currently on appeal before the New Mexico Supreme Court.

Public Service Company of New Mexico, which seeks to merge with Connecticut-based Avangrid, Inc. — a subsidiary of Spanish company Iberdrola — appealed the commission's December 2021 rejection of the merger in the state Supreme Court in early January 2022.

The PRC and the appellant utility companies on Wednesday filed a joint motion requesting the court dismiss the appeal and remand the case for rehearing and reconsideration before the commission.

The motion argues dismissing the appeal, which would in turn allow the PRC "to promptly rehear and reconsider" the 2021 order, would serve the public interest and conserve resources of the court.

The parties also requested expeditious consideration by the court, in order to "assist in the prompt reconsideration and resolution" of the proceeding by the commission.

Of the three member who began serving in the PRC in January, one commissioner — Patrick O'Connell — in January recused himself from the merger proceeding in anticipation that the issue would return to the PRC.

O'Connell stated he voluntary recused himself from the matter due to having filed testimony in the case while working for Western Resource Advocates, which intervened in the matter. His recusal leaves the other two commissioners, James Ellison and Gabriel Aguilera, to decide the case.

PNM and Avangrid have requested the PRC issue a final order on the matter by April 12, according to the motion, which would potentially leave about one month for a rehearing and reconsideration of the case. The most recent merger agreement approved by PNM and Avangrid contained an end date of April 20, an extension the companies announced along with the merger appeal last January.

While the PRC acknowledged the request in the motion, it agreed only to "endeavor to reach a decision and issue its final order on rehearing and reconsideration in a timely manner."

Some other parties to the merger proceeding — including environmental and Native advocacy groups and the Attorney General's Office — shared their positions on the joint motion and its potential implications.

The Attorney General's Office, led by recently elected Raúl Torrez, responded it did not oppose the motion requesting dismissal of the merger appeal, "provided that the procedure on remand establishes adequate guarantees of due process for all parties," which would include notice, an opportunity to be heard, an opportunity for the introduction of additional evidence and a public hearing.

Former state Attorney General Hector Balderas eventually declared the proposed merger to be in line with public interest in spring 2021 after initially expressing concerns about the deal. His support for the merger was the subject of contention with former commissioners who rejected it, citing concerns a commission hearing examiner brought forth regarding Avangrid's electricity service in other states.

Other groups that have intervened in the appeal, including Coalition for Clean Affordable Energy, Western Resource Advocates and Diné Citizens Against Ruining the Environment, along with several other Native groups, all declared support for the joint motion, with qualifiers.

Advocacy group New Energy Economy, which opposed the merger during PRC proceedings in 2021, was the only party to declare opposition to the motion, as well as "its request for expedited treatment."

For several decades, the commission was comprised five members who were elected by voters. But a constitutional amendment approved by voters in recent years reworked the regulatory body into three governor-appointed positions serving staggered terms.

The change went into effect in January, with three appointees selected by Gov. Michelle Lujan Grisham taking the place of the elected commission.