PNM Assets ticks increased after New Mexico regulator sends candidates to governor

PNM Assets (NYSE:PNM) ticked up 0.3% after New Mexico’s utilities regulator despatched nominees for the fee to the governor.

The New Mexico Public Regulation Fee held a gathering earlier Friday the place a number of potential commissioners for the company have been anticipated to despatched to the state’s governor to determine if they are going to be elected to the regulator.

The transfer is seen as essential for PNM Assets (PNM) as the brand new commissioners could also be extra favorable to the utility’s sale to Avangrid (NYSE:AGR), which was rejected late final yr in a 5-0 vote by a special set of commissioners who have been elected to the regulator. Some consider that the appointed regulators could also be extra more likely to rule to approve a PNM/AGR deal.

In January, PNM and Avangrid appealed the choice to the New Mexico Supreme Courtroom and the businesses prolonged the tip date of their merger settlement. Avangrid has mentioned it expects the PNM deal to shut by mid 2023.

The PNM/AGR scenario could also be completely different as a result of as of Jan. 1 the New Mexico Public Regulation Fee will transfer from the present 5-person elected physique to a 3-person governor appointed fee, Wells Fargo famous in January.

In October Wells Fargo downgraded PNM (PNM) to equal weight, saying {that a} a “win-win” state of affairs with or and not using a potential $50.30/share sale to Avangrid (AGR) seems to have “vanished.” He argued that PNM’s standalone worth is now under $45/share.

Avangrid (AGR) is scheduled to current on the Wells Fargo Annual Midstream & Utilities Symposium on Thursday.