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07/06/2021

AVANGRID Negotiates Rate Relief and Stability For Its Customers

AVANGRID Negotiates Rate Relief and Stability For Its Customers

ORANGE, Conn. -- July 6, 2021 – AVANGRID, Inc. (NYSE:AGR), a leading sustainable energy company, recently announced that United Illuminating (UI), which provides electricity to more than 340,000 customers in Connecticut, recently completed a settlement agreement with state officials that will lower customer bills and provide long-term rate stability. The company worked closely with the Connecticut Attorney General and the Governor on the $46.5 million package, which, when coupled with lower supply costs, will lower a typical UI customer’s electric rate by 5.2 percent beginning July 1. This will help to alleviate the financial burden caused by higher electric bills during the peak summer season.

“At AVANGRID, we always look for opportunities to provide benefits and positive outcomes for our customers, and this is a great example of that.  As we seek approval for our merger with PNM Resources, we want customers in New Mexico to understand the kind of company we are,” said Dennis V. Arriola, AVANGRID CEO. “Coming out of the pandemic and with predictions that this summer could be one of the hottest on record, we knew we had to do something to help alleviate the financial burden for our customers. We appreciate the leadership of the Attorney General and Governor for being proactive and helping us reach the settlement. It couldn’t have come at a better time for customers.”

The settlement includes a $5 million voluntary contribution from UI and accelerates the return of $41.55 million of accumulated savings from federal tax cuts ahead of what would have otherwise been required. In addition, UI agreed to reduce its rates to reflect the lower federal tax rate, and to freeze its base distribution rates until at least May 2023—an agreement that will save customers a projected $20 million in addition to the $46.5 million relief from the accumulated tax savings and UI’s voluntary contribution.

If the PNM Resources/AVANGRID merger is approved, there will be $73 million in ratepayer benefits including:

  • $50 million in rate credits to PNM’s customers over a 3-year period after closing;
  • $6 million for residential customer arrearages forgiveness within 90 days of closing;
  • $2 million for providing electricity to new customers in remote areas; and
  • $15 million for low-income energy efficiency.

AVANGRID has a demonstrated history of working in partnership with elected officials and government entities to develop programs to assist customers. In October, two AVANGRID companies in New York, NYSEG and RG&E, reached an agreement with the New York Public Service Commission to provide assistance to customers impacted by the COVID-19 pandemic. That agreement included a $30 million COVID relief fund for financially stressed residential and small business customers, credits to offset 70 to 90 percent of rate increases for low-income customers, $2.5 billion of investment to replace aging electric infrastructure and at least 500 new full-time employees including storm response workers.

“As the people of New Mexico look at AVANGRID, I hope they see that we are a company that seeks innovative ways to support our communities and our customers,” Arriola added. “We look forward to working with the various communities in the PNM service area and bringing our culture of innovation and focus on clean energy, customers and community to New Mexico.”

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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.

About Avangrid

About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $44 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: networks and renewables. Through its networks business, Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewables business, Avangrid owns and operates a portfolio of renewable energy generation facilities across the United States. Avangrid employs approximately 8,000 people and has been recognized by JUST Capital in 2021, 2022, 2023 and 2024 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2024, Avangrid ranked first among utilities and 12 overall. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2024 for the sixth consecutive year by the Ethisphere Institute. Avangrid is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit www.avangrid.com.

 

About Iberdrola: Iberdrola is one of the world's biggest energy companies and a leader in renewables, spearheading the energy transition to a low carbon economy. The group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola’s main markets include Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others.

With a workforce of nearly 40,000 and assets in excess of €141.7 billion, across the world, Iberdrola helps to support 400,000 jobs across its supply chain, with annual procurement of €12.2 billion. A benchmark in the fight against climate change, Iberdrola has invested more than €130 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles.

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