NM regulators review Blackstone's $400M TXNM stock buy
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- New Mexico Public Regulation Commission is scrutinizing a $400 million stock purchase in which a Blackstone affiliate acquired 8 million newly issued TXNM Energy shares in June 2025, fueling calls from the state attorney general and consumer advocates to reject the broader deal.
- Blackstone's $11.5 billion acquisition of TXNM Energy — the parent of Public Service Co. of New Mexico — has cleared the Federal Energy Regulatory Commission, the Federal Communications Commission, and Texas utility regulators, but still requires NM PRC sign-off and Nuclear Regulatory Commission approval.
- The PRC's revised procedural order, issued May 8, sets a public evidentiary hearing for Aug. 17 on whether the stock issuance required prior commission approval and whether it was properly disclosed as part of the acquisition.
- Blackstone and TXNM argue in briefing materials that the stock sale fell outside the statute governing utility acquisitions and was completed 'with no intent to circumvent any rules or regulations'; SEC filings show Blackstone agreed to vote the shares in favor of the merger.
- Albuquerque-based Prosperity Works filed a motion in February prompting a show-cause order, while the New Mexico Attorney General's office and Santa Fe-based New Energy Economy argue the acquisition should be denied if the violation is confirmed.
- Consultant Arif Gasilov said the dispute could set precedent for how much leverage state regulators retain over utility acquisitions, noting the New Mexico statute deems unauthorized transactions 'void and of no effect' and that regulators previously rejected Avangrid's 2021 bid to acquire PNM.
- The proposed acquisition includes roughly $35 million in customer rate credits over four years, $10 million for economic development, and $5 million for community support over 10 years, and is targeted to close in the second half of 2026.
Why it matters: If NM regulators rule the $400 million share issuance violated state law, the transaction is 'void and of no effect' — potentially derailing Blackstone's $11.5 billion deal and setting precedent for how much financial leverage a buyer can take in a utility before regulatory review. The commission's 2021 rejection of Avangrid's PNM bid shows it has previously used that power.
