PNM acquisition secures benefits for New Mexico’s clean energy future

New Mexico’s energy future is at a crossroads. At a time when increasing energy demands on an aging electric grid are coupled with changing federal energy policies, PNM has secured the financial backing to ensure New Mexico can continue to move forward with reliable, affordable, clean energy.

TXNM Energy, the parent company of PNM, reached an agreement approved by shareholders last year for Blackstone Infrastructure to make a long-term investment in New Mexico’s energy transition through the acquisition of the company’s publicly traded shares. 

The agreement explicitly states that PNM will remain locally managed and operated, with additional safeguards and benefits for PNM customers, employees and communities. 

Some may assume that if the shareholders want to sell their stock, the transaction should be straightforward. However, regulated utilities operate differently from most industries. Nearly every aspect of PNM’s business is overseen by regulators: The energy PNM generates or purchases is regulated. The poles and wires that deliver that energy are regulated. Customer rates are regulated. Even the profits are regulated – with any excess returned to customers. 

This model has served New Mexico well. While the headlines report soaring energy costs in other states, PNM’s bills remain lower than the national average. At the same time, PNM has been a leader in the clean energy transition, delivering 80% carbon-free energy to its customers in 2025. 

“Our approach to balancing reliability, affordability and clean energy has helped New Mexico transition its energy portfolio across the state and provide cost benefits to our customers, and we want to keep that momentum going,” said Don Tarry, CEO of PNM. “The opportunities to invest in our infrastructure today will allow us to keep realizing these customer benefits for decades to come.” 

After the acquisition, PNM will continue to be fully regulated by the New Mexico Public Regulation Commission (PRC), maintaining the current model. 

The agreement requires Commission review and approval to ensure it provides a clear benefit to customers. PNM and Blackstone Infrastructure spent months engaging with individuals and groups across the state before developing a set of commitments that offer strong protections and address the key issues facing PNM customers and communities. These commitments are far greater than those included in previous utility transactions in New Mexico.

“Our intent goes far beyond the approval of the transaction; we are making a long-term commitment to New Mexico,” said Sean Klimczak, Global Head of Blackstone Infrastructure. “When you’re an infrastructure fund investing in a regulated utility, your success completely depends on the long-term success of the communities you’re supporting, and New Mexico is poised to succeed.”

If the acquisition is approved, the benefits and protections for New Mexico include:

• A combined $169 million back to customers — $105 million returned directly as bill credits, plus another $64 million saved by delaying a planned rate increase;

• $10 million to the PNM Good Neighbor Fund, tripling annual support for low-income bill assistance;

• $35 million for economic development and workforce training; 

• $25 million for clean technology investments at no cost to customers;

• Continued regulation by the PRC;

• Commitments to keep PNM’s leadership and employees in place, including union workers. 

Nearly all public concerns raised before the Commission during this session are addressed by the customer protections inherent in New Mexico’s regulated utility model. Other concerns have been addressed through the additional protections included in the transaction terms described above.

Customer advocacy and environmental groups are playing an active role in the Commission’s review process. PNM and Blackstone Infrastructure will continue meeting with these groups to answer questions and address concerns. The Commission will hear the case in May.