Mar. 18—The state Supreme Court in a decision issued Monday has vacated a $10,000 fine imposed by former state regulators against Public Service Company of New Mexico and Connecticut-based Avangrid during a contentious proceeding on a proposed merger of the power companies.
The decision, issued by Chief Justice C. Shannon Bacon, cancels the New Mexico Public Regulation Commission's 2021 order rejecting the merger and sends the case back to a new panel of commissioners to address the "unreasonable and unlawful" fine.
Although Avangrid abandoned its yearslong effort to merge with PNM in January, PNM asked the state Supreme Court to consider one issue of the companies' pending appeal: a sanction and $10,000 fine the PRC levied against both utilities over Avangrid's alleged violations of rules for discovery, or evidence sharing, during the proceeding.
PNM spokesman Ray Sandoval wrote in an email Monday, "We believe the Court reached the correct decision."
Asked whether PNM sees an opportunity for a different outcome on any other aspect of the merger case, Sandoval wrote "no."
PNM argued in the appeal the commission's sanction and fine against the companies and their corporate affiliates were "overbroad," because only Avangrid had been found in violation of the discovery-related orders.
The commission found Avangrid produced incomplete information about its affiliates' past violations and fines. Former commissioners issued the $10,000 fine as part of an order rejecting the merger in December 2021.
The commission conceded in the appeal it "improperly expanded the sanction to parties beyond Avangrid," Bacon noted in the decision.
PNM did not pay any part of the $10,000 fine, Sandoval confirmed Monday.
Mariel Nanasi, executive director of the advocacy group New Energy Economy — a fierce critic of PNM that opposed the merger and the appeal — said the court correctly found the sanction should have been issued only against Avangrid.
She said in a statement Monday, "The finding that the merger was not in the public interest stands."
Nanasi said in an interview she expects current commissioners to issue an order with new wording to clarify the sanction and fine were levied against Avangrid.
"I do find it a little ironic," Nanasi said, "that now PNM doesn't want to be tainted by Avangrid's violations of law."