New Mexico Attorney General Raúl Torrez is once again flexing government power to interfere with private-sector investment—this time targeting the proposed sale of New Mexico Gas Company (NMGCO) to Bernhard Capital Partners, a private-equity firm seeking to purchase the utility for nearly $1.3 billion. Instead of welcoming capital that could modernize the state’s aging energy infrastructure, Torrez is urging the Public Regulation Commission (PRC) to either reject the sale outright or saddle it with a long list of regulatory conditions that would make any future investor think twice before doing business in New Mexico.
In a post-hearing brief filed this week, Torrez insisted the deal poses “real risks of higher rates, reduced transparency, and long-term financial instability,” claiming that regulators must deny the transaction unless it adopts sweeping state-directed mandates. His position mirrors a broader trend within New Mexico’s political leadership—treating private investment as suspect while expanding government control over utilities.
Torrez is calling for expansive new requirements: mandated low-income rate credits, PRC approval for utility asset sales, strict government oversight over internal IT and administrative systems, and the creation of a state-managed “severe weather reliability fund.” He frames these as consumer protections, though New Mexico’s heavily regulated utility environment has already produced high energy costs and slow modernization—problems unlikely to be solved by more bureaucracy.
Meanwhile, Bernhard Capital Partners has pledged more than $87 million in benefits for customers and communities, including $22 million in customer credits, millions in charitable investments, and funding for economic development and workforce initiatives. Rather than acknowledge these commitments, Torrez continues to portray the firm as a threat based largely on ideological opposition to private ownership.
Torrez’s intervention follows a familiar pattern. For years, progressive officials and advocacy groups have opposed private-sector involvement in New Mexico’s energy landscape, insisting that government supervision—despite its failures—is the only acceptable model. His latest filing shows no willingness to consider that private capital could improve service quality, infrastructure reliability, or economic development.
The PRC will now review filings from all parties before issuing a final decision. At stake is whether New Mexico moves toward modernization through private investment or remains locked in a stagnant, government-dominated system that has struggled to keep pace with regional energy needs. Torrez’s aggressive posture suggests he is more interested in expanding regulatory power than improving outcomes for the 549,000 customers who rely on the state’s largest natural gas provider.