USA, New Mexico: For the second time in five years, New Mexico’s biggest utility is facing a proposed buyout. TXNM Energy, formerly known as PNM Resources, has asked the state’s Public Regulation Commission to approve an $11.5 B acquisition by Blackstone, the world’s largest private equity firm.
The utility serves nearly 550,000 customers in New Mexico and more than 280,000 in Texas. Company leaders say the deal would give them the financial backing needed to meet growing demand and achieve New Mexico’s target of 100 % carbon-free energy by 2040.
PNM President and CEO Don Tarry called the benefits “unprecedented,” arguing that the utility lacks the size to compete regionally without a strong partner. Blackstone, meanwhile, says it is offering “patient capital” to help TXNM expand transmission and carbon-free power.
But opposition is already mounting. Advocacy groups including New Energy Economy and the Center for Biological Diversity argue the deal will hurt customers. “Public utilities are supposed to serve the people, not pad the pockets of Wall Street giants,” said Lavran Johnson of the Center.
Critics warn that the proposed rate credit equates to only about $3.50 a month for the average household, without any rate freeze to protect customers. They fear higher bills and greater financial risk if the takeover goes ahead.
The commission’s decision could shape the state’s energy future and determine who ultimately benefits from New Mexico’s transition to clean energy.
Source: Utility Dive
