PNM, Blackstone execs defend stock sale before New Mexico regulators

The New Mexico Public Regulation Commission (PRC) is deliberating the legality of a $400 million stock purchase by Blackstone Infrastructure from TXNM Energy Inc., the parent company of Public Service Company of New Mexico (PNM). This transaction, which made a Blackstone subsidiary a 7.6% shareholder in TXNM, occurred without prior express approval from commissioners, a requirement under the state's Public Utility Act for certain stock dealings. During an hours-long virtual hearing, attorneys and executives from Blackstone and TXNM argued that the stock purchase did not violate state law, or, if it did, the commission should still allow the stock deal and the broader acquisition of PNM to proceed. PNM CEO Don Tarry acknowledged that seeking prior approval "would have been beneficial" in hindsight given the regulatory scrutiny. However, several advocacy groups, including Singing Resistance Albuquerque and Prosperity Works, along with the state Department of Justice, have urged regulators to declare the stock purchase "void and of no effect." Steve Michel, representing Prosperity Works, argued that if the stock purchase is unlawful, the entire acquisition application should be denied, and any associated harms should be borne by the companies, not ratepayers. Concurrently, about 100 people protested outside PNM's headquarters in Albuquerque, expressing "ratepayer-focused" concerns. Organizer Gabriella Gonzalez highlighted fears that Blackstone's investments in data centers could lead to customers footing the bill for data center development in New Mexico, in addition to concerns about executive "golden parachutes" and general private equity buyout risks. Regulatory staff are expected to issue findings, with commissioners then voting on potential consequences.