New Mexico’s largest electric provider, private equity firm propose revised merger terms

The parent company of New Mexico’s largest electric provider and the private equity firm looking to acquire it on Tuesday asked state regulators to approve a revised merger application that company officials say would help the company invest in New Mexico’s aging electric grid and give customers direct rebates.

The draft application, which would require New Mexico Public Regulation Commission approval, says the companies would issue $220 million in direct customer rate credits. In a statement, PNM’s parent company, TXNM Energy Inc., and private equity firm Blackstone Infrastructure noted that amount is more than double the amount of rate credits proposed in their initial merger application.

The proposed revisions also include $40 million for workforce and economic development initiatives; $25 million for virtual infrastructure upgrades; and $15 million for PNM’s Good Neighbor Fund, which provides bill payment assistance to low-income households.

It also includes commitments to keep PNM’s New Mexico headquarters and to keep in-state leadership and management officials.

“Our focus has been and will continue to be on serving our customers with safe, reliable, affordable energy,” Don Tarry, PNM and TXNM president and CEO, said in a statement. “These enhanced commitments put real dollars back in customers’ pockets, protect the people who do this work every day and keep PNM locally managed and locally rooted — while giving us the capital to build the grid New Mexico needs.”

PNM, private equity firm extend merger deadline to mid-2027 after regulators deem stock sale illegal

The proposal comes amid legal and public pushback to the proposed merger, and follows regulators’ finding earlier this summer that the two companies violated state law by conducting a $400 million stock sale in 2025 without first gaining PRC approval. 

Regulators ordered the two sides to reverse the sale.

After paying back Blackstone, TXNM announced it intended to once again sell $400 million worth of company stock. The pending private equity takeover’s opponents called on state leaders to buy the shares and give the state government more control over its largest electric company. Gov. Michelle Lujan Grisham, however, has consistently opposed that proposal.

The revised application announcement also comes less than a week after New Mexico Attorney General Raúl Torrez sent a letter to Tarry alleging that numerous customers have complained about the company’s practice of issuing expensive monthly bills based on “estimated” electricity consumption, rather than a meter reading.