We Uncovered Blackstone's Scheme To Keep Utility Bills High

Quick Overview

Blackstone's acquisition of PNM Resources, parent company of New Mexico's largest electric utility, is facing scrutiny from activists and former regulators who question whether the deal, which prioritizes private equity profit over public interest, will lead to higher utility costs and reduced service quality for New Mexico ratepayers.

Key Points: Blackstone Infrastructure plans to acquire TXNM Energy (parent of PNM) in a $11.5 billion deal, planning to use state permanent funds for the purchase. Former New Mexico PRC Chair Stephen Fischmann believes the deal is designed to benefit activist investors by securing higher returns, not ratepayer interests. Nearly 40% of PNM's customers in New Mexico live below the poverty line, making ratepayer protection from increased costs a critical concern. Activists like Jonathan Juarez and the group Youth United For Climate Crisis Action are actively resisting the deal, citing concerns over corporate control and environmental impact (like Project Jupiter data centers). Mariel Nanasi of New Energy Economy notes that the application is unusually secretive and that the PRC's core mission is to protect ratepayers, questioning if they can approve a deal prioritizing profit maximization. The acquisition is facing environmental concerns, including opposition to uranium mining and data centers, which activists argue are being pushed by corporate interests. The New Mexico Public Regulation Commission (PRC) must evaluate the deal based on six factors, including benefits to utility customers and quality of service, which opponents argue will be diminished.

Context: This video investigates the proposed acquisition of PNM Resources, the parent company of Public Service Company of New Mexico (PNM), by Blackstone Infrastructure. The deal, valued at $11.5 billion, involves using New Mexico's state permanent funds to buy a majority stake in the utility. Activists and former regulators express deep concern that this move, driven by private equity's profit motive, will negatively impact the state's 800,000 utility customers, many of whom already live below the poverty line.