The Texas Public Utility Commission unanimously approved a settlement on February 6 2026 that allows Blackstone Infrastructure to acquire Texas‑New Mexico Power Company, the regulated subsidiary of TXNM Energy. The approval confirms the transaction is in the public interest and provides the regulatory green light for the pending deal, moving the acquisition closer to completion.
The settlement grants $45 million in rate credits to Texas customers and $175 million in benefits to New Mexico customers, including a $105 million residential rate credit over four years, $10 million for the PNM Good Neighbor Fund, and $35 million for economic development and workforce training. It also establishes governance and local oversight, dividend restrictions, financial protections, and workforce protections, and requires Blackstone to fund TXNM Energy’s five‑year capital expenditure plan of $8.6 billion through 2029.
The Texas approval satisfies one of several regulatory milestones. The Federal Communications Commission has cleared the transaction, the Hart‑Scott‑Rodino waiting period has expired, and the Federal Energy Regulatory Commission, Nuclear Regulatory Commission, and New Mexico Public Regulation Commission remain pending. The New Mexico commission’s public hearing was held on February 5 2026, and an evidentiary hearing is scheduled for May 2026.
TXNM Energy’s financial performance in the nine months ended September 30 2025 shows a decline in net earnings to $161.2 million from $226.4 million in the same period of 2024, while electric operating revenues rose to $1.63 billion from $1.49 billion. Blackstone’s $400 million private placement at $50 per share, announced in June 2025, supports the company’s growth plans and aligns with the $11.5 billion enterprise value of the acquisition announced on May 19 2025.
The settlement also reflects the broader regulatory context. A previous acquisition attempt by Avangrid in 2020 was rejected by New Mexico regulators in 2021 over rate‑increase concerns. The current deal, valued higher at $11.5 billion, is expected to enhance grid modernization, renewable integration, and system resiliency across Texas and New Mexico while preserving local control and workforce protections.
The transaction is expected to close in the second half of 2026, pending the remaining regulatory approvals. The settlement’s customer benefits and capital commitments position TXNM Energy to pursue its long‑term infrastructure strategy under Blackstone’s patient capital framework.
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