PUCT Settlement Clears Key Hurdle for Blackstone Infrastructure’s TXNM Energy Acquisition

Texas settlement narrows path for Blackstone Infrastructure’s TXNM Energy acquisition

The Public Utility Commission of Texas (PUCT) unanimously approves a settlement that clears a key regulatory hurdle for Blackstone Infrastructure’s proposed purchase of TXNM Energy, the commission says. The settlement, reached in December with PUCT staff, consumer advocates, cities served by TNMP, Walmart and industry groups, requires $45 million in rate credits, strengthened governance and local oversight, dividend limits, financial protections and ring‑fencing, workforce safeguards and a commitment to fund the company’s five‑year capital expenditure plan. The PUCT frames the measures as preserving local decision‑making while enabling capital investments to maintain and improve reliable service.

Federal review provisions are largely complete: the transaction clears the Federal Communications Commission and the Hart‑Scott‑Rodino waiting period has expired, and TXNM Energy shareholders previously approve the merger. Remaining regulatory approvals include the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission and state approval from the New Mexico Public Regulation Commission as they relate to Public Service Company of New Mexico, TXNM Energy’s New Mexico utility subsidiary. TXNM Energy, based in Albuquerque, delivers power to more than 800,000 customers across Texas and New Mexico through regulated utilities TNMP and PNM.

Market and industry analysts say the PUCT settlement materially reduces Texas regulatory risk for Blackstone Infrastructure and improves deal certainty, while embedding consumer and community protections that may limit some investor flexibility. The package of governance changes, dividend restrictions and explicit local controls signals a compromise between private equity capital deployment and state oversight, and positions the buyer to proceed with planned modernization and resilience investments subject to outstanding approvals.

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While the PUCT decision marks a significant step for the TXNM Energy deal, industry observers note that final federal and New Mexico approvals remain. Regulators’ insistence on customer protections and local oversight could serve as a template for future private equity bids for regulated utilities as the sector seeks outside capital for grid upgrades and resilience projects.