Common Ground Community Trust

HEARING EXAMINERS FIND BLACKSTONE AND TXNM VIOLATED NEW MEXICO LAW; RECOMMEND UNDOING $400M STOCK DEAL

Breaking: PRC Hearing Examiners have concluded that Blackstone and TXNM violated New Mexico law by completing a $400 million stock transaction without obtaining the approval required under the Public Utility Act.

The Recommended Decision finds the transaction was undertaken for the purpose of Blackstone’s proposed acquisition of TXNM, required prior Commission authorization, and is therefore “void and of no effect.” The Hearing Examiners recommend that the transaction be unwound, that New Mexico ratepayers be held harmless from all resulting costs, and that the maximum statutory penalties be imposed on TXNM, Troy TopCo, and Troy ParentCo.

Perhaps most significant, the Hearing Examiners suggest Blackstone and TXNM withdraw the pending merger application and, if they choose to proceed, file a new application reflecting the consequences of the unlawful transaction.

For months, opponents of the buyout argued that New Mexico’s utility laws are not optional. Today’s Recommended Decision is a major validation of that position.

The final decision now rests with the New Mexico Public Regulation Commission.



Source: Hearing Examiners’ Recommended Decision and New Energy Economy announcement.

New Mexico regulatory staff finds $400M stock sale between PNM, private equity violated state law • Source New Mexico New Mexico Public Regulation Commission hearing examiners found that a stock sale between PNM and a private equity firm broke state law.