Albuquerque, NM – Over 100 New Mexico residents voiced strong opposition to Blackstone’s proposed acquisition of Public Service Company of New Mexico (PNM) during a public comment session held Tuesday, February 17th at the University of New Mexico Student Union Building, according to reports from the Daily Lobo. The proposed $11.5 billion deal, announced last May, would transfer ownership of TXNM Energy, PNM’s parent company, to a Blackstone subsidiary.
The lengthy public comment period saw speaker after speaker express concerns ranging from the environmental impact of increased energy demands from AI data centers to the ethical implications of Blackstone CEO Stephen Schwarzman’s past associations. The New Mexico Public Regulation Commission (PRC) is currently reviewing the acquisition, which requires their approval, alongside federal and other state regulatory clearances.
Concerns Over Data Centers and Past Associations
Many speakers focused on Blackstone’s significant investments in artificial intelligence data centers and the potential strain these facilities could place on New Mexico’s resources, particularly water. Natalie Rojas, a PhD student at UNM, highlighted the environmental costs of AI, referencing concerns about water usage for AI-generated imagery and urging the PRC not to support a company linked to activities she described as exploitative. Rojas similarly pointed to the New Mexico House of Representatives’ unanimous approval of an investigation into Jeffrey Epstein’s Zorro Ranch property near Santa Fe, suggesting a connection to Schwarzman through a 2013 email listing him as a host at a New York City cocktail party alongside Epstein and other prominent figures, including former President Donald Trump and Harvey Weinstein.
The concerns raised extend beyond environmental issues and personal associations. Speakers criticized the broader practices of private equity firms, questioning their commitment to long-term public benefit compared to publicly held utilities. George Schroeder, a PNM customer, stated that residents are “being duped” by the proposed acquisition, according to the Daily Lobo.
Regulatory Landscape and Recent Developments
The acquisition process has been complex and drawn scrutiny from multiple regulatory bodies. The Federal Energy Regulatory Commission (FERC) authorized the application for TXNM Energy to be acquired by Blackstone Infrastructure on February 20, 2026, finding the transaction consistent with the public interest. FERC stated there was “no evidence that either state or federal regulation will be impaired by the proposed transaction” and that it anticipated no adverse effects on rates or competition. The Public Utility Commission of Texas (PUCT) also approved a settlement for the acquisition earlier this month.
However, the New Mexico PRC’s stance remains a critical hurdle. A key point of contention centers around a $400 million investment Blackstone made in TXNM shares through a private placement in June 2025, just a month after the acquisition was initially disclosed. New Energy Economy, a consumer advocacy group, argues this purchase occurred without the “prior express authorization” required by New Mexico statute governing utility acquisitions. Mariel Nanasi, senior attorney and executive director at New Energy Economy, described the transaction as “reckless disregard for New Mexico law and for the commission’s exclusive jurisdiction and authority,” as reported by the Prospect.
TXNM Energy shareholders overwhelmingly approved the merger in August 2025. The deal also requires approval from the Nuclear Regulatory Commission and the New Mexico PRC.
Blackstone’s Response and Ongoing Review
Blackstone has disputed the claims made by New Energy Economy, stating they “strongly disagree with the positions taken in the motion and will refute them in a formal response at the earliest opportunity,” according to the Prospect. The company maintains that the acquisition is in the best interests of customers and will support investments in New Mexico’s energy infrastructure.
The New Mexico PRC is currently reviewing staff and intervenor testimony, with direct testimony scheduled for March 25, 2026, according to filings on the TXNM Energy website. The commission’s decision will significantly impact the future of energy provision for over 800,000 customers in New Mexico and Texas.
The next step in the process is the PRC’s consideration of the submitted testimony and Blackstone’s formal response to the allegations raised by New Energy Economy. The commission’s ultimate decision will determine whether Blackstone can proceed with its acquisition of PNM and TXNM Energy, and will likely set a precedent for future utility acquisitions in the state.
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