Deal Me In: The Exciting and Wacky World of Utility Mergers

With New Mexico officials reconsidering Avangrid’s (AGR) proposal to acquire PNM Resources (PNM), we wish to highlight some of the common risks associated with utility mergers and a brief history lesson. Most utility mergers get approved; however, there has been a significant increase in initial rejections by utility commissions, who increasingly appear to view this step as part of the process of negotiating a better deal for the state’s customers. The recent approval of Infrastructure Investment Fund’s acquisition of SJI got through on its first try before the New Jersey Board of Public Utilities, which is somewhat unique for modern merger times.