Thursday, August 12, 2021Conflicting Rulings In Rael/AG/Avangrid Conflict Case As High Stakes Merger Enters Final Stage, Plus: Avangrid Analysis: Key Political Points Explored Avangrid is seeking to merge with PNM and Balderas has gone from opposing the merger to supporting it--after meeting several times about the matter with hired gun Rael. Now the NM Supreme Court's Disciplinary Board parts company with the PRC hearing officer and rules Rael does not have a conflict in dealing with Balderas, despite the many contracts Rael's firm has had with the AG's office. Responding to a complaint from New Energy Economy that opposes the marriage of the companies, the disciplinary board says: . . .We do not find a conflict of interest. Your allegation of favoritism consists of meetings between (Rael and Balderas) that preceded Mr. Balderas's change of position on the Avangrid/PNM merger; and the multiple awards of contracts to Mr. Rael's law firm for handling often complex litigation. We would not be able to prove that the meetings caused the shift; also, the contracts were awarded pursuant to requirements of the Procurement Code. Mr. Rael is an experienced attorney with many complicated cases on behalf of the State and otherwise. Neither of those two circumstances indicate misconduct. Second, Mr. Rael has no conflict of interest in representing the State in cases that do not present an adversity of interest and that are unrelated to his representation of Iberdrola.. The full ruling is here. AG Balderas says the ruling should cause the PRC hearing officer to reverse his ruling and let Rael--an old friend of Balderas'--to resume his gig with Iberdorala. That is unlikely to happen but it is a badly needed PR win for the AG who has been put on the defensive by progressive Dems for his pro-merger position. As for the merger, politically the pieces seem to be lining up but there are still plenty of rocks on the path. ANGLES ON AVANGRID  Joe Monahan, who writes a popular blog that is closely followed by New Mexico’s political and business class, told CTFN that the merger has the support of movers and shakers in the state despite a spate of negative news stories involving Avangrid and its corporate parent Iberdrola, S.A., of Spain. New Mexico regulators have been monitoring developments in the northeastern US, where several Avangrid utilities have been the subject of regulatory investigations and management audits, and have been penalized millions of dollars in fines and cost disallowances stemming from customer service issues. At least for now, those far-off troubles do not appear to have had a measurable impact on the PNM/Avangrid merger. Gov. Michelle Lujan Grisham, Attorney General Hector Balderas, and others appear to continue to support the merger. “They got the governor’s support, the legislature, all the leading establishment figures,” Monahan told CTFN, even though Avangrid is involved in a “mess” elsewhere. “I think the mess is being overlooked somewhat because everybody is already on board [with the merger],” he observed. “...The mood is, this is our pick, forget the reports about what happened in Maine or the allegations of bribery or whatever [in Spain].” Still, the steady drip-drip-drip of negative news has caught merger supporters off-guard. “I think it surprised a lot of people,” Monahan said. “But it hasn’t really broken the back of support among the political figures — the political and economic classes ... I think they just don’t see it as deal-breaking material.”
He also believes that the environmentalists’ support for the merger has come “at the expense” of the average ratepaying consumer. “There’s not much talk about what impact the merger is going to have on the consumer, on ratepayers,” he said. “We went through this with the Energy Transition Act — with, well, you know, don’t worry, your electric rates will go down. And that was hyperbole.” Monahan said while personal relationships help in New Mexico, you also must “follow the money.” The PRC has begun a final round of hearings on the proposed merger that will run until August 20 and are being streamed on YouTube. This is the home of New Mexico politics.
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