Key Takeaways
- • New Mexico regulators voted 2-1 to void a $400 million stock transaction between PNM and Blackstone Infrastructure, finding the deal violated state law and declaring it "void and of no effect."
- • A hearing examiner rejected PNM's proposed $100 million rate increase (12%) and solar fee expansion, citing insufficient justification and lack of transparency in the utility's cost modeling and assumptions.
- • Blackstone's acquisition of PNM's parent company (TXNM Energy) remains paused following the regulatory commission's rejection of the stock sale, which was a key component of the private equity takeover announced in May 2025.
- • The regulatory commitment includes $105 million in rate credits to customers over four years, though opponents continue to challenge PNM's rate requests as inadequately justified and potentially harmful to residential consumers.
- • Opponents are now asking regulators to review whether PNM improperly waived a multimillion-dollar payout, escalating scrutiny of the utility's financial practices and regulatory compliance.
Summary
New Mexico utility regulators have intensified oversight of Public Service Co. of New Mexico (PNM), the state's largest electricity provider serving approximately 550,000 customers. The New Mexico Public Regulation Commission (PRC) voted 2-1 to void a $400 million stock transaction between PNM and private equity firm Blackstone Infrastructure, determining that the deal violated state law. This decision effectively halts Blackstone's acquisition of PNM's parent company, TXNM Energy, which was announced in May 2025 and remains subject to state and federal regulatory approvals.
Separately, Hearing Examiner Carolyn Glick recommended that state regulators reject PNM's proposed $100 million rate increase, which represented a 12% hike to customer bills. Glick found that PNM failed to sufficiently justify the rate increase and did not adequately disclose the assumptions and inputs underlying its cost modeling. According to her decision, "the modeling cannot be a black box: the assumption applied and inputs used must be disclosed to staff and intervenors so that they can determine the validity of the outputs." New Energy Economy, an advocacy group that intervened in the case, cited this language in celebrating the examiner's rejection of the proposal, emphasizing that "PNM is required under the law to provide a transparent basis for its figures to legitimate its rate hikes."
PNM also proposed adding a monthly fee for residential customers with solar panels, which the hearing examiner similarly rejected. The utility has indicated it will appeal the examiner's assessment, with a two-week filing window to present its case before the full PRC commission.
Opponents are now pressing regulators further by requesting a review of whether PNM improperly waived a multimillion-dollar payout, introducing additional concerns about the utility's financial conduct. New Mexico Attorney General Raúl Torrez has also engaged state regulators on the matter. The proposed Blackstone deal included a regulatory commitment of $105 million in rate credits to customers over four years, though the void determination has cast its implementation into question.
Separately, Hearing Examiner Carolyn Glick recommended that state regulators reject PNM's proposed $100 million rate increase, which represented a 12% hike to customer bills. Glick found that PNM failed to sufficiently justify the rate increase and did not adequately disclose the assumptions and inputs underlying its cost modeling. According to her decision, "the modeling cannot be a black box: the assumption applied and inputs used must be disclosed to staff and intervenors so that they can determine the validity of the outputs." New Energy Economy, an advocacy group that intervened in the case, cited this language in celebrating the examiner's rejection of the proposal, emphasizing that "PNM is required under the law to provide a transparent basis for its figures to legitimate its rate hikes."
PNM also proposed adding a monthly fee for residential customers with solar panels, which the hearing examiner similarly rejected. The utility has indicated it will appeal the examiner's assessment, with a two-week filing window to present its case before the full PRC commission.
Opponents are now pressing regulators further by requesting a review of whether PNM improperly waived a multimillion-dollar payout, introducing additional concerns about the utility's financial conduct. New Mexico Attorney General Raúl Torrez has also engaged state regulators on the matter. The proposed Blackstone deal included a regulatory commitment of $105 million in rate credits to customers over four years, though the void determination has cast its implementation into question.
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