Blackstone Seeks Approval for $11.5B Acquisition of TXNM Energy

TXNM Energy has filed applications with state and federal regulators to approve its $11.5B acquisition by Blackstone. The proposed deal requires approval from the New Mexico Public Regulation Commission, Public Utility Commission of Texas, and Federal Energy Regulatory Commission. TXNM Energy seeks to complete the acquisition, which would be one of the largest in the energy industry.

TXNM Energy, a leading energy utility holding company based in Albuquerque, New Mexico, has filed applications with state and federal regulators to seek approval for its proposed acquisition by Blackstone Infrastructure. The deal, valued at $11.5 billion, is one of the largest in the energy industry and requires approval from the New Mexico Public Regulation Commission (NMPRC), Public Utility Commission of Texas (PUCT), and Federal Energy Regulatory Commission (FERC).

The NMPRC regulates PNM, TXNM Energy's wholly owned utility in New Mexico that delivers electricity to approximately 550,000 customers. The filing includes unprecedented benefits for PNM customers and communities, including a $105 million rate credit paid over four years, $10 million contribution to the PNM Good Neighbor Fund paid over 10 years, $35 million in economic development funding, and $25 million for innovative technologies to support New Mexico's carbon-free energy transition. The review process by the NMPRC is expected to take up to a year to complete [1].

The PUCT regulates TNMP, TXNM Energy's wholly owned transmission and distribution utility in Texas that delivers electricity to approximately 280,000 customers. The filing includes benefits for TNMP customers and communities, such as a $35 million rate credit paid over four years, $10 million in economic development funding paid over 10 years to support workforce development, and $5 million in additional community support paid over 10 years to enhance charitable giving. The PUCT has a 180-day statutory timeframe for consideration of the application [1].

FERC regulates PNM's wholesale electricity and transmission services. The filing demonstrates that the acquisition is consistent with the public interest because it will not have an adverse effect on competition, rates, and regulation and will not result in any inappropriate cross-subsidization. The FERC also has a 180-day statutory timeframe for consideration of the application [1].

The proposed acquisition aims to strengthen TXNM Energy's financial ability to navigate growing demand and the energy transition. If approved, the deal would provide $175 million in benefits to New Mexico customers, including a $105 million rate credit that will lower the average residential customer bill by 3.5% [2].

The application can be viewed at TXNM Energy's website. TXNM Energy and Blackstone Infrastructure seek to complete the acquisition, which could have significant implications for the energy sector. The regulatory approval process is ongoing, with a timeline of up to a year for the NMPRC and 180 days for the PUCT and FERC [1].

References:

[1] https://www.prnewswire.com/news-releases/txnm-energy-files-regulatory-applications-302537768.html
[2] https://www.utilitydive.com/news/txnm-energy-blackstone-prc-texas-puc/758591/