New Mexico regulators order PNM and Blackstone to undo $400M deal
State regulators in New Mexico ruled a stock deal between PNM and private equity firm Blackstone broke state law. The decision directs the companies to unwind their four hundred million dollar transaction.
The ruling followed a 2-to-1 vote on Thursday by the Public Regulation Commission. The commission stated the companies failed to seek required approval before buying the stock.
PNM customers filled the hearing room to oppose a merger involving parent company TXNM Energy and Blackstone Infrastructure. Many attendees told commissioners the stock purchase should be voided.
“PNM has deprived the commission of an ability to look at whether those funds were used prudently,” said Gabriel Aguilera, Commissioner, NMPRC.
The regulatory ruling does not impact the broader acquisition plans. It does not affect utility customers. Some state lawmakers spoke in favor of the overall acquisition.
“The acquisition will provide the financial resources necessary in a rapidly changing environment,” said Rep. Meredith Dixon (D-Albuquerque).
Another lawmaker also supported the proposed utility buyout.
“The infrastructure in the state of New Mexico, especially in my district, is really suffering, and I don’t believe that PNM on its own will be able to stabilize and make sure that we improve that infrastructure on their own,” Senator Gabriel Ramos (R-Silver City).
Community organizers praised the commission order during the meeting.
“Today was definitely a victory for New Mexicans. It is sending a message that no one, no matter the size of your pockets, is above the law,” said Jonathan Juárez, a PNM customer and organizer with Youth United for Climate Crisis Action (YUCCA).
Both firms must submit a compliance report within 30 days. The filing must detail plans to void the deal. The commission will then determine the next steps for the case.
Eric Chaves with PNM Corporate Communications issued a written statement about the decision.
“TXNM Energy is reviewing the final order on the stock transaction and will evaluate the options and next steps within the established regulatory and legal framework. Our priority continues to be delivering safe, reliable, and affordable power to the communities we serve while ensuring that our actions align with New Mexico’s regulatory requirements. It is important to us that our customers know that the stock issuance was completed in good faith, publicly disclosed well in advance and undertaken with no intent to circumvent any rules or regulatory requirements.”
The Public Regulation Commission oversees public utilities across New Mexico. The agency reviews major financing and ownership changes to protect utility ratepayers. Regulators hold public hearings before issuing formal orders on corporate utility transactions.
The companies must now complete their formal compliance filing. Regulators will review that plan.
