PNM Sale to Blackstone: New Mexico Residents Voice Debate | Next Hearing Tuesday

New Mexico residents are weighing in on the proposed $11.5 billion sale of Public Service Company of New Mexico (PNM) and its parent company, TXNM Energy, to Blackstone Infrastructure, a deal that promises potential rate cuts but has sparked debate over the future of the state’s energy landscape.

A virtual hearing held yesterday, following an in-person session last week, allowed residents to voice their opinions to the New Mexico Public Regulation Commission (PRC). The proposed acquisition, filed last year, aims to deliver an average of $3.51 in monthly savings to households through rate credits totaling $105 million over four years, according to PNM.

Supporters of the deal emphasize the capital infusion Blackstone would bring to PNM. Del Esparza, a board member of the Greater Albuquerque Chamber of Commerce, argued that “At its core, this partnership delivers what our utility needs the most, and that’s capital.” This sentiment suggests a belief that Blackstone’s investment will bolster PNM’s ability to meet future energy demands and infrastructure needs.

However, the proposed sale faces significant opposition from those concerned about the influence of a large, private equity firm on a vital public service. Armon Alex, a resident of Corpus Christi, Texas, voiced a common concern, stating, “Decisions are made in Manhattan board rooms by people who will never breathe the air or drink the water affected by them.” This highlights fears that decisions impacting New Mexico’s energy future will be made by individuals disconnected from the local community and its specific needs.

The PRC is carefully considering these diverse perspectives. Yesterday’s hearing prioritized those who were unable to speak during last week’s in-person session, ensuring a broader range of voices were heard. Another public comment hearing is scheduled for Tuesday in Albuquerque, though the specific location remains to be determined.

The proposed acquisition comes after a previous merger attempt between PNM and Avangrid was rejected by state regulators in late 2021. The PRC determined that while the Avangrid deal benefited PNM shareholders, it did not provide sufficient benefits to the public. This past rejection underscores the PRC’s commitment to prioritizing the interests of New Mexico residents in any potential utility acquisition.

PNM CEO Don Tarry has described Blackstone as “patient capital,” suggesting the firm will provide long-term support for the utility’s capital needs. However, concerns remain about Blackstone’s broader business practices and its potential impact on New Mexico’s energy policies. Blackstone’s record in New Mexico includes investments in hydrogen projects and a past dispute with the state treasurer over child labor practices, adding layers of complexity to the debate.

The deal also coincides with ongoing discussions about the future of energy in New Mexico, including the development of hydrogen power and the need for significant infrastructure investments. The outcome of the PRC’s review will likely have a lasting impact on the state’s energy sector and the rates paid by New Mexico residents.

The PRC’s decision is expected in the coming months. The commission will weigh the potential benefits of the deal – including rate credits and increased capital investment – against the concerns raised by residents and advocacy groups. The future of PNM, and New Mexico’s energy landscape, hangs in the balance.