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"

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 Avangrid Company').

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

Docket 51547