Technically, the proposed $11.5 billion acquisition is of TNMP Energy — Texas New Mexico Power’s parent company — and it still requires Public Utility Commission approval.
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After multiple weeks of settlement discussions, PUC staff, cities, and other intervening parties entered into a Settlement Agreement relating to the proposed acquisition of Texas New Mexico Power by New York-based Blackstone Infrastructure.
TNMP is a distribution utility that serves more than 270,000 homes and businesses in Texas. The proposed application, filed at the PUC, as announced in August by both companies.
Technically, the proposed $11.5 billion acquisition is of TNMP Energy — Texas New Mexico Power’s parent company — and it still requires Public Utility Commission approval. Barring unforeseen delays, the acquisition should be complete during the second half of 2026.
In the interim, Blackstone Infrastructure plans to invest $400 million in TXNM by buying 8 million newly issued shares at $50 apiece in support of TXNM’s growth plans, the companies said.
Under the proposed settlement, TNMP will provide a rate credit of $45.5 million to be paid over 48 months; has agreed to provisions relating to the composition of TNMP’s board of directors; agreed to dividend restrictions including limitations based on TNMP’s credit rating; agreed to provisions relating to capital and operations and maintenance budgets; and agreed to ring-fencing provisions. Texas-New Mexico Power will remain based in Texas under the deal, and the company is expected to retain its local management and employees.
The settlement can be found on the PUC Interchange in Docket No. 58536.
Blackstone Infrastructure, with $60 billion of assets under management, focuses on investing in North American infrastructure platforms. The companies said Blackstone Infrastructure will fund the purchase price entirely with equity and doesn’t plan to increase TXNM’s debt load.
Besides serving Texas customers, Texas New Mexico Power also serves about 500,000 homes and businesses in New Mexico.
Blackstone’s agreement to buy TXNM comes after the failure of a $4.3 billion deal to acquire the company in 2020 by Avangrid, the U.S. renewables unit of Spain’s Iberdrola. New Mexico regulators rejected that deal, citing customer service complaints and reliability problems in other states where Avangrid operates. Both companies appealed the decision, but Avangrid ultimately walked away from the deal in 2023.