PNM files application to be bought by Blackstone
By Hamilton Kahn
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NEW MEXICO (KOAT) — It won’t happen until the state and federal governments give it the stamp of approval. If they do, electric utility PNM will be bought by Blackstone, one of the world’s largest investment firms, for $11.5 billion,
TXNM, PNM’s parent company, on Monday filed an application for the sale to the New Mexico Regulatory Commission. It also began its own sales pitch to the public by detailing the terms of the sale.
“The benefits in this filing are unprecedented and underscore Blackstone’s Infrastructure’s commitment to PNM and New Mexico,” PNM president Don Tarry said in a news release. “This transaction keeps PNM rooted in New Mexico while giving it the financial strength to transform our grid and harness the opportunities to benefit our customers and communities for decades to come.”
Included in the deal are a $105 million “acquisition rate credit,” which they say would lower the average residential bill by 3.5%. PNM would continue to be locally managed and honor union contracts and the new owners would also invest in clean energy, the local workforce, and financial aid for low income customers.
Sean Klimczak, global head of Blackstone Infrastructure, said its “patient capital” investment approach is designed to provide companies with the resources they need.
“This is exactly the opportunity we see in PNM as it works to maximize New Mexico’s unique potential to serve growing energy demands with carbon-free energy,” Klimczak said.
Under the terms of the deal, Blackstone Infrastructure is committed to own TXNM for a minimum of 10 years.
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