Texas Regulatory Commitment From Avangrid Would Require Utility Texas-New Mexico Power To Maintain Separate Name/Logo, But Would Allow Avangrid Name And Logo To Be, "Added For Branding Purposes"
TNMP Proposes Customer Rate Credit Provided Through Retail Providers Under Merger Application
November 24, 2020 Email This Story Copyright 2010-20 EnergyChoiceMatters.com
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Texas-New Mexico Power Company (TNMP or the Company) and Avangrid, Inc. have filed at the Public Utility Commission of Texas for approval of the previously reported merger of Avangrid and PNM Resources, the ultimate parent of TNMP (see background on the merger here)
Notably, the applicants include the following regulatory commitment as part of their merger approval application:
Name and Logo – TNMP will maintain a separate name and logo from Avangrid,
Iberdrola, and all other Avangrid and Iberdrola subsidiaries and affiliates; provided
that the Avangrid name and logo can also be added for branding purposes (e.g., 'An
Among other things, Avangrid owns the recently launched Iberdrola Texas retail electric provider in Texas, as well as Avangrid Renewables, which operates as a retail supplier in several states in addition to owning and developing renewable energy assets. Avangrid currently owns 1,900 MW of renewable energy and a pipeline of 1,400 MW of renewable assets in New Mexico and Texas.
The applicants also propose that, "TNMP will provide a direct financial benefit to TNMP customers in
the form of a $8.6 million rate credit to electric delivery rates payable over three
years following closing of the Transaction."
"This credit can be passed through directly
to end-use customers by retail electric providers (REPs), and TNMP commits to
working in good faith with affected REPs to determine an acceptable method for
implementation of such electric delivery rate credits to implement this commitment," TNMP said
To implement the credit, TNMP would institute new Rider MRC –Merger Rate Credit, with amounts as follows:
Residential Service: $0.64 Per Customer
Secondary Service (Less Than or Equal to 5KW): $0.20 Per Customer
Secondary Service (Greater Than 5 KW): $2.93 Per Customer
Primary Service: $24.11 Per Customer
Transmission Service: $52.84 Per Customer
Lighting Service - Metered: $0.002 Per kWh
Lighting Service - Non Metered: $0.161 Per Unit
Rider MRC will expire the three years after the effective date of the rider or
when the $8.6 million credit has been issued.
TNMP proposes to use the SAC006 code of 'RRR006' for the credit, but is willing to discuss
with PUCT Staff and other stakeholders other potential approaches