#United States #Texas #TXNM Energy #TNMP #Blackstone Infrastructure

Blackstone Infrastructure's Acquisition of TXNM Energy: What You Need to Know

On December 15, 2025, the Texas-New Mexico Power Company (TNMP), which operates as the Texas utility subsidiary of TXNM Energy (NYSE: TXNM), reached an important agreement with Blackstone Infrastructure. This unanimous settlement was regarding the acquisition of all outstanding common stock of TXNM Energy, setting a precedent in Texas' utility landscape. The settlement now awaits approval from the Public Utility Commission of Texas (PUCT).

Key Components of the Settlement

The terms of this agreement highlight critical aspects that prioritize customer benefits and local governance, including:

1. Financial Benefits to Customers: TNMP will extend a generous $45.5 million rate credit to its customer base, distributed across 48 months after the acquisition is finalized. This initiative demonstrates TNMP's commitment to providing tangible value to the communities it serves.

2. Robust Governance Framework: The settlement specifies that TNMP will uphold a Board of Directors comprising seven members, which will include three independent directors along with TNMP’s President and CEO. This governing body retains the authority over pivotal decisions, encompassing capital expenditures, dividend policies, and officer appointments, thereby ensuring decisions align with the best interests of TNMP and its customers.

3. Financial Safeguards: In a move to ensure the financial integrity of TNMP, stringent protections will be integrated. These measures include prohibiting acquisition-related debt and establishing strict guidelines on dividend payments. Additionally, any intercompany financial arrangements will be closely monitored.

4. Local Control and Workforce Stability: TNMP is committed to maintaining its headquarters within Texas, ensuring local management continues to handle day-to-day operations. Furthermore, for a period of three years post-acquisition, TNMP will refrain from implementing involuntary workforce reductions or cutting wages and benefits unless under specified conditions, thus honoring existing labor agreements.

5. Customer and Regulatory Assurances: The agreement emphasizes that TNMP will not seek to recover any costs associated with the transaction from its customers. The company will maintain compliance with PUCT regulations and adhere to established standards of conduct, ensuring transparency and accountability.

6. Investment in Texas Communities: TNMP pledges to uphold its five-year capital spending framework through 2029, which demonstrates ongoing investment in infrastructure and reliability for its Texas customer base.

Stakeholder Involvement

The parties involved in this settlement included various stakeholders, such as the PUCT’s staff, representatives from the Texas Industrial Energy Consumers, the Office of Public Utility Counsel, and cities served by TNMP, along with notable companies like Walmart Inc. and the Texas Energy Association for Marketers. Importantly, Valero Refining-Texas L.P. expressed no opposition to the settlement.

Next Steps

As the acquisition awaits the PUCT's approval, the scheduled hearings originally planned for December 15, 2025, have been canceled. Interested parties can find additional details and documents related to the application on the TXNM Energy website.

About TXNM Energy

TXNM Energy, based in Albuquerque, New Mexico, is an energy holding company that supplies energy to over 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM. For further information, visit www.TXNMEnergy.com.

The developments surrounding this acquisition highlight a significant stride in Texas' energy sector, focusing on customer benefit, governance, and local investment. As this settlement moves towards official approval, the implications for customers and the broader community will undoubtedly be a topic of interest for stakeholders across the region.