Texas Utility Regulators Approve Blackstone's $11.5B Utility Acquisition
Key Highlights
- Regulatory approvals from the Texas PUCT, FCC, and shareholder consent pave the way for Blackstone's long-term investment in utility infrastructure.
- The deal supports anticipated growth in U.S. electricity demand driven by technological advancements and increased electrification across sectors.
- Blackstone emphasizes its focus on community engagement, governance, and sustainable infrastructure development in its utility investments.
The infrastructure investment wing of private equity giant Blackstone gained another key Texas regulatory approval in its bid to acquire the parent company of electric utilities in that state and New Mexico.
The Public Utility Commission of Texas (PUCT) has approved a unanimous settlement filed in the application by Texas-New Mexico Power Company (TNMP) for TXNM Energy, the parent company of TNMP, to be acquired by Blackstone Infrastructure.
The acquisition bid, valued at about $11.5 billion, was announced in May 2025. Blackstone’s statement at the time said the deal would provide long-term infrastructure investment in the buildout of the Texas-New Mexico Power and Public Service Co. of New Mexico (PNM) utility grids. Overall, TNMP provides electricity for close to 800,000 customers.
Terms of the settlement approved by the PUCT include $45 million in rate credits to customers, strong governance and local oversight, dividend restrictions, financial protections and ring-fencing, local control and workforce protections, customer and regulatory protections, a commitment to fund the company's 5-year capital expenditure plans, and commitments to Texas communities.
“We are long-term investors who back industry-leading companies using our perpetual capital to support economic development,” Sean Klimczak, Global Head of Blackstone Infrastructure, said in a statement when the acquisition was first announced. “We are focused on being great long-term partners to the communities in which we invest, and we look forward to having the opportunity to engage in meaningful dialogue about how we can create win-win, growth-oriented investments across both states.”
Research analyzed by consulting firm ICF predicts that U.S. electricity demand will grow 25% by 2030 and 78% by 2050. These forecasted increases will likely be driven by artificial intelligence training models, cloud-based data and center and industrial computing, as well as automation and electrification in many sectors.
The settlement was reached with the staff of the Public Utility Commission of Texas, Texas Industrial Energy Consumers, Office of Public Utility Counsel, Cities served by TNMP, Walmart and Texas Energy Association for Marketers in December. The acquisition has received federal regulatory approval from the Federal Communications Commission (FCC), and the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has expired. TXNM Energy shareholders also approved the merger in August 2025.
The merger requires federal approval from the Federal Energy Regulatory Commission (FERC) and the Nuclear Regulatory Commission, along with state approval from the New Mexico Public Regulation Commission (NMPRC) as it relates to Public Service Company of New Mexico (PNM), the New Mexico utility subsidiary of TXNM Energy.