NM PRC Upholds the Law in Blackstone-PNM Stock Transaction
The New Mexico Public Regulation Commission has sent an important message to PNM, Blackstone and utility customers across our state: The laws designed to protect New Mexicans must be followed.
In a 2-1 vote, the Commission adopted the Hearing Examiners’ central finding that Blackstone and PNM violated New Mexico law when they completed a $400 million stock transaction without first obtaining required PRC approval.
The Commission ordered the unlawful transaction to be unwound and imposed $300,000 in penalties. Importantly, commissioners made clear that the costs associated with unwinding the transaction should fall on shareholders — not PNM customers.
For Prosperity Works, which has actively participated in the proceeding and filed in opposition to the proposed Blackstone acquisition, the decision represents an important affirmation of the protections New Mexico has put in place for utility customers.
The rules exist to protect New Mexicans
Prosperity Works’ involvement in this case is rooted in a simple principle: Decisions that could affect the affordability and future of an essential service must be made transparently and in the public interest.
The issue before the Commission was whether Blackstone and PNM could complete a major stock transaction before receiving the regulatory approval required by New Mexico law. The Commission’s answer was clear: They could not.
New Mexico’s utility ownership laws exist because decisions about who owns and controls essential infrastructure can have lasting consequences for customer bills, reliability, investment and the direction of our energy system.
Public oversight is especially important when a transaction could place critical infrastructure under the control of a large private equity firm.
The same rules should apply to everyone
The Commission did not create a new requirement. It enforced requirements that were already part of New Mexico law.
Whether an investor is local or international, small or enormous, publicly traded or backed by one of the world’s largest private equity firms, the obligation is the same: Follow New Mexico law.
Prosperity Works believes consistent enforcement is essential to maintaining public confidence in the regulatory process. Oversight only works when the rules are enforced.
The merger still requires careful scrutiny
The Commission’s decision neither approves nor dismisses the proposed Blackstone acquisition of PNM. The merger case remains pending.
That distinction is important.
This decision answered one significant question about compliance with New Mexico law. Another remains: Would this acquisition actually benefit New Mexico and the people who depend on PNM?
In its opposition and filings before the PRC, Prosperity Works has raised concerns about what private equity ownership could mean for affordability, accountability, long-term utility planning and New Mexico customers.
Private equity firms are structured to generate returns for investors. PNM, meanwhile, provides an essential service with obligations to New Mexico communities that extend decades into the future. The Commission’s continuing public-interest review must carefully consider how those interests would coexist under Blackstone ownership and whether New Mexicans would be adequately protected.
Utility ownership shapes New Mexico’s future
The stakes go beyond this particular transaction.
New Mexico is making long-term decisions about generation, transmission, grid infrastructure, affordability and clean energy investments. Who owns and controls our utilities can influence those decisions for decades.
That is why Prosperity Works has continued to participate in this proceeding and advocate for strong public oversight. New Mexicans deserve transparency about who will control essential infrastructure, what incentives will guide their decisions and what protections will ensure customers remain a priority.
The PRC made the right decision by enforcing New Mexico law, requiring the unlawful stock transaction to be unwound and protecting ratepayers from bearing the costs.
But enforcing the law is not the end of the conversation.
Prosperity Works will continue advocating for New Mexico families as the Commission considers the larger question still before it: whether the proposed Blackstone acquisition of PNM truly serves the public interest.
