Public Service Company of New Mexico will provide $175 million in benefits to customers and the state as part of Blackstone Infrastructure’s acquisition of PNM’s parent company, TXNM Energy, according to an Aug. 25 regulatory filing.
The benefit package includes a $105 million acquisition rate credit, which would be the largest in state history, according to PNM’s filing with the New Mexico Public Regulation Commission (PRC). The credit would be paid to PNM customers over four years and would lower the average residential customer bill by 3.5%.
The filing includes a $25 million commitment to speed progress toward the state’s energy transition goals, including funding for new technologies.
Another $35 million would be used for economic development programs, such as job training in the utility industry. And $10 million, to be paid over 10 years, would go to the PNM Good Neighbor Fund for low-income customers.
By infusing funds into PNM, the acquisition would help it to thrive “in a rapidly changing energy environment,” PNM and Blackstone said in a press release.
“This transaction keeps PNM rooted in New Mexico while giving it the financial strength to transform our grid and harness the opportunities to benefit our customers and communities for decades to come,” PNM CEO Don Tarry said in a statement.
$11.5B Acquisition
TXNM Energy and Blackstone Infrastructure announced the proposed acquisition in May. In addition to PNM, TXNM owns Texas New Mexico Power, a transmission and distribution utility in Texas that serves about 280,000 customers.
Under terms of the $11.5 billion deal, Blackstone would pay $61.25/share in cash upon closing. The purchase would be funded through equity and assumption of existing debt.
The agreement, which is subject to regulatory approvals, is expected to close in the second half of 2026. TXNM shareholders will meet Aug. 28 to vote on the deal.
On Aug. 25, TXNM Energy filed applications for approval of the proposed acquisition with the New Mexico PRC, Public Utility Commission of Texas (PUCT) and FERC.
The filing with the PUCT details $50 million in benefits, including a $35 million rate credit paid over four years, $10 million in economic development over 10 years and $5 million in additional community support.
The FERC filing states that the acquisition would not raise rates charged to either wholesale power sales or transmission service customers.
FERC and the PUCT each have 180 days to consider the application. The New Mexico PRC doesn’t have any deadlines for its review, but TXNM expects the process to take about a year.
No Layoffs Planned
According to PNM’s filing with the PRC, PNM customers won’t pay any costs incurred by PNM or its affiliates related to the acquisition. PNM will remain under PRC jurisdiction, and PNM and TXNM headquarters will remain in New Mexico.
PNM said it won’t lay off employees or cut pay for at least three years after the deal closes. Blackstone Infrastructure has promised to hold TXNM Energy for at least 10 years.
In June, Blackstone Infrastructure completed the purchase of 8 million newly issued shares of TXNM Energy common stock at $50/share, for a total of $400 million, through a private placement agreement.
PNM previously had planned to be acquired by Avangrid. But after final approval for the deal got bogged down at the New Mexico Supreme Court, and the deadline to close the transaction was extended multiple times, Avangrid pulled out of the agreement in January 2024. (See Lights out for Avangrid’s PNM Acquisition.)
