Blackstone Acquisition Moves Forward, Regulators Set to Decide PNM Sale

Regulators in Texas paused hearings on Blackstone Infrastructure’s proposed $11.5 billion purchase of TXNM Energy after the utility’s Texas arm reached a settlement with a range of local stakeholders. Texas-New Mexico Power Co. agreed on terms with Walmart Inc., staff at the Public Utility Commission of Texas, Texas Industrial Energy Consumers, the Office of Public Utility Counsel, the Texas Energy Association for Marketers and the cities it serves. The agreement led to the cancellation of hearings scheduled for December 15, and a TXNM spokesperson said Texas regulators could issue a final decision as early as next month.

The acquisition has proceeded through a series of filings since August, when TXNM and Blackstone applied to state and federal regulators. On December 15 the companies also filed with the Federal Trade Commission and the U.S. Department of Justice, and they still must file with the Federal Communications Commission and the Nuclear Regulatory Commission. The transaction has not yet received regulatory approvals, but the settlement with Texas parties makes approval from the Public Utility Commission of Texas a likely early milestone.

Under the Texas settlement, Texas-New Mexico Power would provide nearly $46 million in customer rate credits over four years for its Texas customers, would not reduce wages or implement workforce reductions, and would “not seek recovery of transaction-related goodwill or acquisition costs in customer rates.” Texas-New Mexico Power serves roughly 260,000 customers in Texas. By contrast TXNM’s New Mexico utility, Public Service Company of New Mexico, serves more than 550,000 customers, including residents of Valencia County.

For local consumers and government officials the ownership shift raises key questions. Private equity ownership can change capital plans, debt structures and incentives for cost recovery. Lawmakers and consumer advocates have pushed back. U.S. Senators Elizabeth Warren, Bernie Sanders and Richard Blumenthal recently urged caution, arguing the deal may not be in the public interest. Regulators in New Mexico previously rejected a proposed merger five years ago between TXNM and Avangrid on the grounds that harms could outweigh benefits, a precedent that signals close scrutiny ahead.

Next steps for Valencia County residents include monitoring New Mexico regulatory proceedings, any commitments Blackstone or PNM make specific to New Mexico customers and the timing of federal agency reviews. The outcome will determine whether the transfer of ownership brings new investment and stability, or new costs and changes in how utilities are managed at the local level.