TXNM Energy Seeks Approval for Acquisition by Blackstone Infrastructure

TXNM Energy filed regulatory applications for approval of its proposed acquisition by Blackstone Infrastructure with the New Mexico Public Regulation Commission, Public Utility Commission of Texas, and Federal Energy Regulatory Commission. The review process is expected to take up to a year to complete. The filing demonstrates that the acquisition will not have an adverse effect on competition, rates, and regulation, and will not result in cross-subsidization.

TXNM Energy (NYSE: TXNM) has filed regulatory applications with the New Mexico Public Regulation Commission (NMPRC), Public Utility Commission of Texas (PUCT), and Federal Energy Regulatory Commission (FERC) for its proposed acquisition by Blackstone Infrastructure. The review process is expected to take up to a year to complete, with the NMPRC's review anticipated to take the longest timeframe.

The filings include significant customer benefits totaling $225 million, comprising $140 million in rate credits, $45 million for economic development, $25 million for innovative technologies, and $15 million for community support. The NMPRC application, which regulates TXNM Energy's wholly owned utility in New Mexico, includes unprecedented benefits for PNM customers and communities. The PUCT application, which regulates TXNM Energy's wholly owned transmission and distribution utility in Texas, also includes benefits for TNMP customers and communities. The FERC application demonstrates that the acquisition is consistent with the public interest, as it will not have an adverse effect on competition, rates, and regulation and will not result in any inappropriate cross-subsidization.

The NMPRC does not have a statutory timeframe for consideration of the application, while the PUCT and FERC have 180-day statutory timeframes. TXNM Energy anticipates that the review process will take up to a year to complete. The applications can be viewed on TXNM Energy's investor relations website [1].

TXNM Energy, an energy utility holding company based in Albuquerque, New Mexico, delivers energy to more than 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM. Blackstone Infrastructure is an active investor across energy, transportation, digital infrastructure, and water and waste infrastructure sectors. The proposed acquisition aims to apply a long-term buy-and-hold strategy to large-scale infrastructure assets with a focus on delivering stable, long-term capital appreciation together with a predictable annual cash flow yield [2].

References:
[1] https://www.txnmenergy.com/investors/rates-and-filings/pnm-nmprc-filings.aspx
[2] https://www.stocktitan.net/news/TXNM/txnm-energy-files-regulatory-0qucaln2xnbk.html