Chief executive of PNM parent company to transition roles following reports of Blackstone acquisition interest

The chief executive of Public Service Company of New Mexico’s parent company is transitioning into a new position amid speculation that a global private equity firm is considering acquiring the publicly traded company.

Pat Collawn, CEO of TXNM Energy Inc., will be replaced by Don Tarry, PNM’s current CEO and president, as the company’s chief executive. Tarry will start in the new role in July. He already serves as president and chief operating officer of TXNM Energy. Tarry will stay on as president and CEO of PNM, a spokesperson said.

Collawn’s exit as CEO comes two days after reports emerged that the global private equity firm Blackstone Inc. has interest in acquiring TXNM Energy, formerly known as PNM Resources Inc. Collawn, the current chair of TXNM Energy, will take on the role of executive chair as part of the transition.

It’s part of a “long-standing succession plan,” according to a news release from TXNM Energy. Collawn in the release touted Tarry’s knowledge in the utility world and his commitment to the New Mexico and Texas communities TXNM Energy serves.

“I have seen first-hand the growth and success his teams have accomplished for the benefit of our customers,” she said, “and know that he will continue this strong track record as he leads TXNM Energy into the future.”

Collawn has served as head of TXNM Energy since 2012. She initially joined the company in 2007, quickly advancing through different positions, from utilities president to president and chief operating officer, president and CEO, and then chair and CEO.

She’s overseen a drastically evolved energy climate, transitioning away from fossil fuel resources to renewable energy.

Renewable energy sources make up around 50% of PNM’s current resource portfolio, a spokesperson said. It’s an uptick since 2008 levels, when coal and natural gas made up 76% of the company’s energy sources.

Cheaper renewable costs and state laws helped spur the utility to increase its investments in clean energy sources. New Mexico’s Energy Transition Act, signed into law in 2019, requires PNM and other investor-owned utilities to fully decarbonize by 2045; PNM plans to achieve the standard by 2040.

Tarry last year publicly affirmed the company’s commitment to utilizing clean energy, despite losing out on a merger PNM sought with Avangrid, an energy company under giant Iberdrola with roots in the clean energy sector.

Another case currently before the state Public Regulation Commission, a Louisiana-based private equity firm looking to buy New Mexico Gas Co., has drawn controversy from advocates about whether acquisitions will result in more expensive bills for New Mexicans — though the companies in the case have denied that.

The climate may not stop PNM from seeking other offers, according to reports released in March. Most recently, global private equity firm Blackstone has come to the forefront as the likeliest potential buyer.

The leadership transition leaves Tarry at the helm to manage any future deals, which would still require approval from the PRC.