Thoughts on collapse of the PNM/Avangrid merger

According to news reports the proposed merger between PNM and Avangrid has collapsed and will no longer take place.  The Rio Grande Foundation never took a position on the issue one way or the other (we’ll explain why here), but considering that PNM is by far the State’s biggest publicly traded company and given the ongoing push for “renewables,” this is momentous news.

Pros (why the merger would have been a good thing): Given the push for an “energy transition” Avangrid is likely better equipped from an expertise perspective to handle this.

Also, having an outside company invest in New Mexico represents a vote of confidence for the State’s economy and the ability to make money even in a heavily-regulated sector.

Cons (why the merger would have been negative):

Several stipulations within the agreement would have been nothing more than giveaways to various special interests (inevitably paid at taxpayer expense).

PNM will continue to be HQ’d and run locally with a focus on New Mexico.

In summary, there were arguments on both sides. RGF never saw a clear and convincing case that one side had a clear and convincing case based on free market principles. What do you think? Let us know in the comments.