Six Out of Seven Government Approvals Have Been Obtained

AVANGRID, Inc. (NYSE: AGR), a leading sustainable energy company, announced today that it has received Nuclear Regulatory Commission (NRC) approval for its proposed PNM Resources, Inc. (NYSE: PNMR) merger. NRC approval represents the sixth governmental approval. The only remaining approval is from the New Mexico Public Regulation Commission (NMPRC). The other governmental entities that have approved the merger are:

• Hart-Scott-Rodino Antitrust Clearance – January 20, 2021
• Committee on Foreign Investment – February 1, 2021
• Federal Communications Commission – March 10, 2021
• Federal Energy Regulatory Commission – April 20, 2021
• Public Utility Commission of Texas – May 13, 2021

“This merger brings many benefits to customers and communities in New Mexico and we are encouraged by the continued approvals,” said Dennis V. Arriola, CEO of AVANGRID. “We look forward to working with PNM and the people of New Mexico to spur economic growth and accelerate the clean energy transformation.”

To date, a majority of the parties (thirteen in total) that have intervened in the NMPRC proceeding have either signed or are seeking to add their signatures to the stipulation filed to resolve the issues in the NMPRC proceeding. The customer benefits in the stipulation include:

• $50 million in customer rate credits over three years;
• $6 million in COVID arrearages relief for customers;
• $15 million for low-income customer energy-efficiency assistance; and
• $2 million to bring electricity to low-income, remote customers.

The stipulation includes additional economic development for New Mexico:

• 150 new full-time jobs over three years that will remain no less than five years thereafter;
• $7.5 million in additional economic development funds;
• $12.5 million in economic development contributions to community groups in the Four Corners region over five years ($2.5 million/year);
• Improvements to the energy transition displaced worker assistance fund relating to the closure of the San Juan Generating Station; and
• Free access to streetlighting poles for local governments for wireless internet access for 3 years.

The NMPRC hearing examiner is expected to hold a conference among parties on May 28.

About AVANGRID: AVANGRID, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $38 billion in assets and operations in 24 U.S. states, AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs approximately 7,000 people and has been recognized by Forbes and Just Capital as one of the 2021 JUST 100 companies – a list of America’s best corporate citizens – and was ranked number one within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2021 for the third consecutive year by the Ethisphere Institute. For more information, visit www.avangrid.com.

Forward-Looking Statements

Certain statements made in this press release for AVANGRID that relate to future events or expectations, developments, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. All statements contained in this Press Release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as “may,” “will,” “would,” “can,” “expect(s),” “intend(s),” “anticipate(s),” “estimate(s),” “believe(s),” “future,” “could,” “should,” “plan(s),” “aim(s),” “assume(s)”, “project(s)”, “target(s)”), “forecast(s)”, “seek(s)” and or the negative of such terms or other variations on such terms, comparable terminology or similar expressions. These forward-looking statements generally include statements regarding the potential transaction between AVANGRID and PNM Resources, including any statements regarding the expected timetable for completing the potential merger, the ability to complete the potential merger, the expected benefits of the potential merger, projected financial information, future opportunities, and any other statements regarding AVANGRID’s and PNM Resources’ future expectations, beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events or performance. Readers are cautioned that all forward-looking statements are based upon current reasonable beliefs, expectations and assumptions. AVANGRID assumes any obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, AVANGRID cautions readers not to place undue reliance on these statements.

AVANGRID’s business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond its control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see AVANGRID’s Form 10-K and Form 10-Q filings and the information filed on Avangrid’s Forms 8-K with the Securities and Exchange Commission (the “SEC”) as well as its subsequent SEC filings, and the risks and uncertainties related to the proposed merger with PNM Resources, including, but not limited to: the expected timing and likelihood of completion of the pending merger, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending merger that could reduce anticipated benefits or cause the parties to abandon the transaction, the failure by AVANGRID to obtain the necessary financing arrangement set forth in commitment letter received in connection with the Merger, the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, the risk that the parties may not be able to satisfy the conditions to the proposed Merger in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed Merger, and the risk that the proposed transaction and its announcement could have an adverse effect on the ability of PNM Resources to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally. Other unpredictable or unknown factors not discussed in this communication could also have material adverse effects on forward looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

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