By Hannah Grover
The parent company of New Mexico’s largest electric utility announced on Monday that it has reached an agreement to be acquired by Blackstone Infrastructure.
Under the agreement, Blackstone will acquire TXNM Energy, which owns the Public Service Company of New Mexico, for about $11.5 billion. Under the agreement, Blackstone will acquire TXNM Energy’s net debt, with the exclusion of securitized debt.
The securitized debt includes low-interest bonds PNM used to refinance past investments into the now-shuttered San Juan Generating Station as part of the Energy Transition Act. The Energy Transition Act allows utilities to use securitized bonds when closing qualifying coal-fired power plants. Some of the funds from the securitization were set aside to assist the impacted workers and communities.
State regulators in both New Mexico and Texas will need to approve the sale for it to go through.
PNM spokesman Jeff Buell told NM Political Report in an email that the utility plans to file the merger application with the New Mexico Public Regulation Commission this fall.
This is not the first time TXNM Energy has courted buyers. In 2020, the company announced plans to merge with the utility giant AVANGRID, but that ultimately fell through after the PRC denied the terms of the merger agreement.
The PRC process will give stakeholders, including local governments and advocacy groups, a chance to intervene.
Blackstone Infrastructure manages $60 billion of assets, including Invenergy Renewables. If that name sounds familiar to New Mexicans, it’s because Invenergy is behind the North Path Transmission Project, which could result in a 400-mile transmission line moving electricity from northeastern New Mexico to the Four Corners region. Invenergy entered into a joint development agreement with the New Mexico Renewable Energy Transmission Authority in 2023 to develop the transmission line.
According to PNM, the acquisition will keep the utility headquartered in New Mexico and Blackstone has agreed to retain local management and employees.
PNM states the acquisition will provide the financial strength needed as the utility transitions to carbon-free sources of generation and works to meet growing electricity demands.
“This agreement will provide the financial resources necessary to thrive in this rapidly changing energy environment,” PNM President and CEO Don Tarry said in a statement. “Our focus has been and will continue to be on serving our customers with safe, reliable energy. This investment will help us meet the considerable growth in demand while supporting the transition to a clean energy future and unlocking New Mexico’s potential for economic growth.”
PNM and Blackstone hope the merger will be finalized during the second half of 2026.
“PNM has done an excellent job of transitioning its generation portfolio to clean energy and supporting the communities it serves,” Sean Klimczak, Blackstone’s Global Head of Infrastructure, said in a statement. “We will utilize our long-term investment approach to support PNM’s economic development efforts during New Mexico’s sustainable generation transition. We share PNM’s deep commitment to the customers and communities they serve and we look forward to meaningfully engaging with PNM’s stakeholders.”