AVANGRID Has Completed the Review of Its Gas Storage Business

ORANGE, Conn.–(BUSINESS WIRE)–AVANGRID, Inc. (NYSE:AGR) has completed the strategic review of its
Enstor Gas Storage businesses, including the trading business, and has
concluded that it will move forward with a plan to sell the businesses.

Additionally, as a result of the enactment of tax reform legislation
signed into law on Dec. 22, 2017, AVANGRID expects to recognize a
one-time gain related to the re-measurement of deferred taxes primarily
in the Renewables business, and modest going-forward financial benefit
under U.S. generally accepted accounting principles, due to a
combination of factors.

The tax reform act results in a lower federal corporate tax rate of 21%,
which we expect will generally benefit our non-regulated businesses. The
act preserves interest deductibility for utilities, and the proposed cap
for non-utilities is not expected to materially impact the AVANGRID
non-regulated businesses because of our low leverage levels. Finally,
while the introduction of a Base Erosion Anti-Abuse Tax (BEAT) could
impact the availability of Tax equity generally, the full impact of this
measure cannot be determined at this time. AVANGRID is not reliant on
tax-equity funding to support its growth initiatives, but it may be used
when it is determined to be appropriate for the company. We believe that
our scale, experience, and successful track record of delivering high
quality renewables projects will enable us to continue to access to this
market as it adapts and develops. Importantly, the tax credits
supporting renewables remain in place and are unchanged from the
phase-down previously established in 2015.

AVANGRID expects the one-time gain associated with the implementation of
the legislation to be offset by the accounting adjustments primarily
related to the resolution of the status of the Enstor Gas Storage
businesses. The full financial impacts and any necessary accounting
adjustments for these items remain under review and assessment, are
subject to change, and will be updated and communicated at the time of
our fourth quarter earnings results that will be issued during the month
of February 2018.

Forward Looking Statements: This press release contains a number
of forward-looking statements. Forward-looking statements may be
identified by the use of forward-looking terms such as “may,” “will,”
“should,” “can,” “expects,” “future,” “would,” “could,” “predicts,”
“believes,” “anticipates,” “intends,” “plans,” “estimates,” “projects,”
“assumes,” “guides,” “targets,” “forecasts,” “is confident that” and
“seeks” or the negative of such terms or other variations on such terms
or comparable terminology. Such forward-looking statements include, but
are not limited to, statements about our plans, objectives and
intentions, outlooks or expectations for earnings, revenues, expenses or
other future financial or business performance, strategies or
expectations, or the impact of legal or regulatory matters on business,
results of operations or financial condition of the business and other
statements that are not historical facts. Such statements are based upon
the current beliefs and expectations of our management and are subject
to significant risks and uncertainties that could cause actual outcomes
and results to differ materially. Important factors that could cause
actual results to differ materially from those indicated by such
forward-looking statements include, without limitation: our future
financial performance, anticipated liquidity and capital expenditures;
actions or inactions of local, state or federal regulatory agencies;
success in retaining or recruiting, our officers, key employees or
directors; changes in levels or timing of capital expenditures; adverse
developments in general market, business, economic, labor, regulatory
and political conditions; fluctuations in weather patterns;
technological developments; the impact of any cyber-breaches, grid
disturbances, acts of war or terrorism or natural disasters; the impact
of any change to applicable laws and regulations affecting operations,
including those relating to environmental and climate change, taxes,
price controls, regulatory approvals and permitting; and other presently
unknown or unforeseen factors.

Additional risks and uncertainties are set forth under the “Risk
Factors” in our Annual Report on Form 10-K for the year ended December
31, 2016 and our Quarterly Report on Form 10-Q for the nine months ended
September 30, 2017, which are on file with the Securities and Exchange
Commission. Should one or more of these risks or uncertainties
materialize, or should any of the underlying assumptions prove
incorrect, actual results may vary in material respects from those
expressed or implied by these forward-looking statements. You should not
place undue reliance on these forward-looking statements. We do not
undertake any obligation to update or revise any forward-looking
statements to reflect events or circumstances after the date of this
press release, whether as a result of new information, future events or
otherwise, except as may be required under applicable securities laws.

About AVANGRID: AVANGRID, Inc. (NYSE: AGR) is a diversified
energy and utility company with more than $32 billion in assets and
operations in 27 states. The company owns regulated utilities and
electricity generation assets through two primary lines of business,
Avangrid Networks and Avangrid Renewables. Avangrid Networks is
comprised of eight electric and natural gas utilities, serving
approximately 3.2 million customers in New York and New England.
Avangrid Renewables operates more than 6 gigawatts of owned and
controlled renewable generation capacity, primarily through wind and
solar, in 22 states across the United States. AVANGRID employs
approximately 6,800 people. For more information, visit www.avangrid.com.

Contacts

AVANGRID, Inc.
Media:
Michael A. West, Jr., 203-499-3858
[email protected]
or
Investor
Relations:
Patricia Cosgel, 203-499-2624
[email protected]