The New Mexico Public Regulation Commission essentially denied the merger between Avangrid and Public Service Company of New Mexico on Wednesday.
The commissioners voted unanimously on Wednesday to reject the stipulated agreement, following a recommendation from the PRC hearing examiner that the potential risks to customers outweigh the benefits.
“This whole deal to me kind of boils down to promises versus actual performance,” Commission Chairman Stephen Fischmann said, highlighting Avangrid’s past performance in New England where it owns several utilities and has faced more than $60 million in fines from regulators.
PNM and Avangrid promoted the merger as an opportunity to transition faster away from fossil fuels through access to Avangrid’s better credit ratings as well as benefits associated with Avangrid’s scale. Avangrid’s large size could lead to lower costs for equipment because the company would be able to buy in bulk.