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Steve@lemmy.world

Steve

NM’s largest utility could be sold to Blackstone Infrastructure (nm.news)

submitted 5 days ago by Steve to c/abq@lemmy.world

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Kagi AI Summary:
New Mexico's largest electric utility, Public Service Company of New Mexico (PNM), is set to be acquired by Blackstone Infrastructure for approximately $11.5 billion. The acquisition includes TXNM Energy, PNM's parent company, and will involve assuming its net debt, excluding securitized debt related to past investments in the San Juan Generating Station. Approval from state regulators in New Mexico and Texas is required for the sale to proceed, with PNM planning to submit a merger application this fall. This is not TXNM Energy's first attempt to merge, as a previous plan with AVANGRID was rejected by the New Mexico Public Regulation Commission (PRC). The PRC process will allow stakeholders, including local governments and advocacy groups, to participate. Blackstone manages $60 billion in assets, including Invenergy Renewables, which is involved in the North Path Transmission Project in New Mexico. The acquisition aims to maintain PNM's headquarters in New Mexico and retain local management and employees. PNM expects that the financial backing from Blackstone will support its transition to carbon-free energy sources and meet growing electricity demands. The merger is anticipated to be finalized in the latter half of 2026. Both PNM and Blackstone express commitment to serving customers and supporting economic growth in New Mexico.

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[–] pdxfed@lemmy.world 2 points 5 days ago (1 children)

They are doing it because it's easy money and inelastic demand. Regulatory commissions have no teeth and are scared to turn down rate increases. VC's dream investment: stable, no competition and no one to tell you no on price increases.

[–] Steve 1 points 5 days ago (1 children)

Mostly true.
But the last price increase request was negotiated down to roughly half what PNM asked for.

Maybe the regulators got played. But they do have access to all the finances. They know exactly what PNMs expenses are, and how much the improvements will cost. I'm don't see a reason to think we're getting shafted. A reason other than it's a popular assumption to make.

But generally I agree. I don't see any reason to sell our electric to a financial conglomerate. Historically it's never worked out well for the company being bought, or their customers.

[–] pdxfed@lemmy.world 2 points 5 days ago* (last edited 5 days ago)

This is a really interesting article I read earlier this year that explains why and how the game is rigged. Not universal of course but largely, the shafting continues apace and is not accidental:

https://www.thebignewsletter.com/p/power-moves-how-electric-utility?publication_id=11524&post_id=156626374&isFreemail=true&r=184c9&triedRedirect=true