PNM Resources : Notice of Filing Stipulation

BEFORE THE NEW MEXICO PUBLIC REGULATION COMMISSION

IN THE MATTER OF THE JOINT APPLICATION	)
OF AVANGRID, INC., AVANGRID NETWORKS,	)
INC., NM GREEN HOLDINGS, INC., PUBLIC	)
SERVICE COMPANY OF NEW MEXICO AND PNM )
RESOURCES, INC., FOR APPROVAL OF THE	)
MERGER OF NM GREEN HOLDINGS, INC. WITH	)	Case No. 20-00222-UT
PNM RESOURCES, INC.; APPROVAL OF A	)
GENERAL DIVERSIFICATION PLAN; AND ALL	)
OTHER AUTHORIZATIONS AND APPROVALS	)
REQUIRED TO CONSUMMATE AND IMPLEMENT )
THIS TRANSACTION	)
	)
AVANGRID, INC., AVANGRID NETWORKS, INC.,	)
NM GREEN HOLDINGS, INC., PUBLIC SERVICE	)
COMPANY OF NEW MEXICO AND PNM	)
RESOURCES, INC.,	)
	)
JOINT APPLICANTS.	)
	)

NOTICE OF FILING STIPULATION

Public Service Company of New Mexico ("PNM"), in accordance with 1.2.2.20 NMAC, hereby gives notice of the filing of a Stipulation entered into between PNM, PNM Resources, Inc., Avangrid, Inc., Avangrid Networks, Inc., NM Green Holdings, Inc., the Attorney General of the State of New Mexico, Western Resource Advocates, the International Brotherhood of Electrical Workers Local 611, Dine Citizens Against Ruining Our Environment, Nava Education Project, San Juan Citizens Alliance, To Nizhoni Ani, the Coalition for Clean Affordable Energy, Interwest Energy Alliance, Walmart, Inc., and Onward Energy Holdings, LLC resolving the substantive issues in this proceeding among these parties. The signed Stipulation among the stipulating parties is attached hereto as Exhibit 1. A comparison of this Initial Regulatory Commitments to the Amended Regulatory Commitments in redline is included in Exhibit 2.

Respectfully submitted this 7th day of May, 2021.

PUBLIC SERVICE COMPANY OF NEW MEXICO AND

PNM RESOURCES, INC.

By:	/s/Stacey Goodwin
	Patrick V. Apodaca
	Senior Vice President and General Counsel
	PNM Resources, Inc.
	Stacey Goodwin, Associate General Counsel
	PNM Services Company
	Corporate Headquarters- Legal Department
	Albuquerque, New Mexico 87158-0805
	Telephone: [phone]
	Fax: [phone]
	[e-mail]
	[e-mail]
	Richard L. Alvidrez
	Miller Stratvert P.A.
	500 Marquette NW, Suite 1100
	P.O. Box 25687
	Albuquerque, New Mexico 87125
	Telephone: [phone]
	[e-mail]

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EXHIBIT 1

BEFORE THE NEW MEXICO PUBLIC REGULATION COMMISSION

IN THE MATTER OF THE JOINT APPLICATION	)
OF AVANGRID, INC., AVANGRID NETWORKS,	)
INC., NM GREEN HOLDINGS, INC., PUBLIC	)
SERVICE COMPANY OF NEW MEXICO AND PNM )
RESOURCES, INC., FOR APPROVAL OF THE	)
MERGER OF NM GREEN HOLDINGS, INC. WITH	)	Case No. 20-00222-UT
PNM RESOURCES, INC.; APPROVAL OF A	)
GENERAL DIVERSIFICATION PLAN; AND ALL	)
OTHER AUTHORIZATIONS AND APPROVALS	)
REQUIRED TO CONSUMMATE AND IMPLEMENT )
THIS TRANSACTION	)
	)
AVANGRID, INC., AVANGRID NETWORKS, INC.,	)
NM GREEN HOLDINGS, INC., PUBLIC SERVICE	)
COMPANY OF NEW MEXICO AND PNM	)
RESOURCES, INC.,	)
	)
JOINT APPLICANTS.	)
	)

STIPULATION

Public Service Company of New Mexico ("PNM"), PNM Resources, Inc. ("PNMR"), Avangrid, Inc. ("Avangrid"), Avangrid Networks, Inc. ("Networks"), NM Green Holdings, Inc. ("NM Green"),1 the Office of the Attorney General of the State of New Mexico, Western Resource Advocates, International Brotherhood of Electrical Workers Local 611, Dine Citizens Against Ruining Our Environment, Nava Education Project, San Juan Citizens Alliance, To Nizhoni Ani, the Coalition for Clean Affordable Energy, Interwest Energy Alliance, Walmart, Inc., and Onward Energy Holdings, LLC (collectively, the "Signatories", each a "Signatory"), and subject to the approval of by the New Mexico Public Regulation Commission ("NMPRC" or the "Commission"), through their undersigned authorized representatives, have reached agreement on

1 PNM, PNMR, Avangrid, Networks, and NM Green are collectively referred to as "Join Applicants."

substantive issues that would cause them to support the proposed merger. The Signatories agree and stipulate as follows:

INTRODUCTION

1. 1. In the Joint Application filed on November 23, 2020, Joint Applicants requested the Commission approve: (1) the merger of NM Green with and into PNMR, under NMSA 1978, Sections 62-6-12 and 62-6-13, following which PNMR will be the surviving corporation and will be a wholly-owned subsidiary of Avangrid ("Merger"); (2) Avangrid's transfer of 100% ownership in PNMR to Networks subsequent to the Merger (together with the Merger, the "Proposed Transaction"); (3) PNM's 2021 General Diversification Plan ("2021 GDP"), which replaces any previous diversification plans and is filed in connection with the Class II transaction contemplated by the Proposed Transaction pursuant to 17.6.450 NMAC ("Rule 450"); and (4) such other and further approvals, consents, authorizations, and relief that may be required under the New Mexico Public Utility Act (the "PUA"), including a limited variance to information required to be provided by Rule 450.10(B)(1) and Rule 450.13(A)(2), to consummate and implement the Proposed Transaction.
2. Staff and Intervenors filed direct testimony on April 2, 2021, raising various concerns and objections to the Joint Application.
3. On April 21, 2021, certain of the Signatories entered into an Initial Stipulation.
4. On April 23, 2021, certain of the Signatories entered into the Amended Stipulation, which replaced in whole the Initial Stipulation.
5. On April 25, 2021, the Hearing Examiner entered his Order Vacating Prehearing Conference and Procedural Schedule and Providing for Settlement Discussions, ordering the Joint

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Applicants to meet with all parties to this proceeding to discuss and negotiate in good faith a potential stipulation.

1. Through the meetings ordered by the Hearing Examiner, and through continued negotiations, the Signatories were able to arrive at this Stipulation, which replaces both the Initial Stipulation and Amended Stipulation. The Signatories believe the Stipulation: a) is fair, just and reasonable; b) meets the statutory test for approval pursuant to Sections 62-6-12 and 62-6-13 that the proposed merger of NM Green with PNMR, and the subsequent transfer of PNMR's stock to Networks, is neither unlawful nor inconsistent with the public interest; and, c) meets the requirements of Rule 450.10, including that the level of investment appears reasonable and that PNM's ability to provide reasonable and proper utility service at fair, just and reasonable rates will not be adversely and materially affected by the merger of NM Green with PNMR or the transfer of PNMR's stock to Networks.
2. The agreements set forth in this Stipulation reflect good faith negotiations, with reasonable "give and take" on issues by the Signatories and result in a bargained-for resolution to this proceeding.
3. Through this Stipulation, the Signatories intend to resolve all issues they have raised in this proceeding and agree that the Commission should approve the Proposed Transaction, PNM's proposed 2021 GDP and associated Class II transaction, and the variance to Rule

450.10(B)(1) and Rule 450.13(A)(2).

STIPULATION

1. The Signatories agree that the Joint Application should be approved, and all approvals and authorizations sought by Joint Applicants should be granted.

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