New Mexico utility regulators have ordered the state’s largest electric provider and a major private equity firm to reverse a $400 million stock deal, ruling that the transaction violated state law by proceeding without prior approval.
The New Mexico Public Regulation Commission voted 2-1 on Thursday, ordering PNM Resources’ parent company, TXNM Energy, and Blackstone Infrastructure to undo the year-old stock sale. The commission has also imposed fines totaling $300,000 on the parties for “deliberate disregard” of regulatory requirements.
Commissioner Greg Nibert cast the lone vote against the decision. He offered an alternate order that would have reduced the fines and allowed the $400 million to stay in effect, saying the law governing the deal is vague. Commissioner Gabriel Aguilera, however, disagreed. “There’s no confusion there,” Aguilera said. “To me, it’s clear.”
The decision stems from a 2025 deal in which Blackstone acquired a significant stake in TXNM Energy, part of a broader effort to own PNM, New Mexico’s dominant electric utility serving hundreds of thousands of residential and business clients. Regulators said the companies bypassed mandatory commission oversight for changes in control or substantial investments affecting the utility’s operations.
Prosperity Works, an Albuquerque anti-poverty nonprofit, and New Mexico Attorney General Raúl Torrez questioned the transaction in February, saying the deal violated the state’s Public Utilities Act. They argued the law requires the Public Regulation Commission to approve certain stock sales. They further argued that private equity involvement could put short-term profits over reliable service and affordable rates for New Mexico families and businesses already grappling with energy costs in a state dependent on traditional power sources.
Hearing examiners previously recommended reversing the sale, imposing maximum fines, and potentially requiring the companies to redo the entire acquisition process to ensure procedural integrity. The commission’s order directs PNM and Blackstone to submit a detailed report explaining how they will reverse the transaction and confirm that ratepayers will not bear the financial fallout.
A planned bigger acquisition of PNM by Blackstone remains under review, with hearings scheduled to begin in mid-August. Reversing the stock sale could complicate or delay those proceedings, according to regulatory filings.
At a hearing in April, representatives of PNM and TXNM defended the sale and denied wrongdoing. They said the transaction was intended to support utilities’ operations and did not affect the overall acquisition. Both companies are expected to comply with the order and assess their next steps, which could include appeals or adjustments to their plans.
The ruling underscores ongoing tensions in New Mexico over the future of its energy sector. As the state transitions its power generation mix — balancing traditional resources with renewable mandates — regulators face pressure to scrutinize deals that could shape costs and electricity reliability in the years to come.
Consumer advocates welcomed the decision as a victory for oversight. “This is a resounding victory for the rule of law,” Mariel Nanasi, executive director of New Energy Economy, a Santa Fe-based clean energy advocacy group, said in a statement. Nanasi and the organization frequently intervened in the case. But business interests warned that heavy-handed regulation might deter infusion of investment in the state’s aging utility infrastructure.
The decision highlights regulators’ authority to intervene in corporate deals involving essential services, even as private capital drives the energy transition.