The conservation group Center for Biological Diversity is asking the Federal Energy Regulatory Commission to take another look at a $400 million stock sale between New Mexico’s largest utility and a private equity firm looking to acquire it, following the news that state regulators have opened an investigation into whether that sale violated state law.
Jean Su, director of the Center for Biological Diversity’s energy justice program, in a Monday filing argued that federal regulators ought to re-examine the sale because of “an important development” in the New Mexico Public Regulation Commission’s case regarding the merger.
TXNM Energy Inc., which owns PNM, and private equity firm Blackstone Infrastructure announced an $11.5 billion acquisition requiring regulatory approval in May of 2025. In a recent filing, the New Mexico Department of Justice argued that TXNM transferred $400 million worth of stocks to a Blackstone affiliate last June. NMDOJ’s filing raised questions about whether the stock transfer violated the state Public Utilities Act, which charges the PRC with overseeing stock sales.
PRC officials subsequently opened an investigation and gave PNM and Blackstone officials until April 6 to provide evidence that the stock sale did not violate state law. Both sides have long denied any wrongdoing.
The pending question of whether the stock sale required PRC approval raises the question of whether it also required the Federal Energy Regulatory approval, the Center for Biological Diversity’s appeal argues.
“It’s troubling that Blackstone has apparently skirted federal and state regulations to fast-track its takeover of New Mexico’s largest public utility,” Su said in a statement. “We hope FERC will revisit its decision and force the private equity firm to comply with the law. The commission shouldn’t allow Blackstone to jeopardize critical services New Mexico’s ratepayers depend on under any circumstances, and especially not to increase corporate profits.”
The federal commission in late February authorized the proposed acquisition as “consistent with the public interest,” and wrote that it found “no evidence that either state or federal regulation will be impaired by the proposed transaction.”
A statement provided to Source NM and attributed to both Blackstone and PNM said the Center for Biological Diversity’s appeal is an “attempt to revive arguments already rejected” by the federal commission and maintained that “meritless arguments about the stock acquisition should be rejected in the hearing process.”
FERC, the statement continued, issued “a well-reasoned order approving the transaction last month and nothing in the Center’s request for rehearing changes the FERC’s analysis.”
