Sens. Sanders and Warren try to torpedo $11.5B investment in NM energy
A trio of far-left U.S. senators is sounding the alarm — again — this time over a major private-sector investment that would inject billions into New Mexico’s energy infrastructure. According to the Albuquerque Journal, which broke the story, Sens. Elizabeth Warren of Massachusetts, Bernie Sanders of Vermont, and Richard Blumenthal of Connecticut are urging federal scrutiny of Blackstone Infrastructure’s proposed $11.5 billion acquisition of TXNM Energy Inc., the parent company of PNM and Texas-New Mexico Power.
The letter, authored by longtime opponents of free-market energy investment, was sent to Blackstone CEO Stephen Schwarzman and accused the firm of trying to “profit from rising energy demands at the expense of consumers,” according to reporting by the Journal.
“Investors have typically viewed utility companies as reliable investments with a guaranteed rate of return,” the senators wrote. “But now, amidst rapidly rising energy use from (artificial intelligence) data centers and other strains on the grid, Wall Street investors and private equity firms appear to be taking advantage of utilities’ regulated-monopoly status to rake in excess profits.”
Despite the senators’ objections, the proposed acquisition would bring long-term private capital into a grid that many experts agree is overdue for modernization. TXNM Energy, currently a publicly traded company, would become privately held under the deal. PNM — which serves roughly 550,000 New Mexicans — is already facing mounting challenges due to rapid population growth, new housing, and the rising power demands of large-scale data centers.
A Blackstone spokesperson told the Journal that private ownership would allow for long-term investments in critical infrastructure “without the pressure of short-term quarterly metrics.” They emphasized that private capital has been supporting utility improvements for over two decades, and that any deal must pass rigorous state, local, and federal review processes proving tangible consumer benefits.
The senators demanded that Blackstone disclose whether rates would rise under its ownership or if job cuts would be made “to meet investor targets.” They cited a decade-old acquisition in Michigan that allegedly caused modest rate increases. Blackstone was asked to respond by December 18.
However, both PNM and Blackstone noted that rate-setting authority will remain solely with the New Mexico Public Regulation Commission — not private shareholders. The firm has pledged $105 million in rate credits over four years, which could reduce average residential bills by approximately 3.5%. Blackstone also committed to retaining the local workforce and keeping PNM’s headquarters in New Mexico.
PNM continues to pursue delayed infrastructure upgrades to meet demand. Just last week, the Bernalillo County Planning Commission approved key applications for its long-anticipated North Albuquerque Acres Substation — a project nearly eight years in the making.
Warren and Sanders also attempted to tie the acquisition to Blackstone’s ownership of QTS Realty Trust, a major data center operator. Their letter cited projections from the International Energy Agency suggesting global electricity demand could rise by 130% by 2030, much of it driven by data center operations.
New Mexico has already become a target for major tech-sector energy users. Among recent proposals:
- Project Jupiter in Doña Ana County, selected as a site in the $500 billion Stargate Project led by OpenAI and Oracle
- A proposed 8,400-acre facility by Zenith Volts Corp. in Chaves County
- A 3,500-acre data campus sought by New Era Energy & Digital Inc. in Lea County
Blackstone has rejected any connection between its data center investments and the TXNM acquisition. “There is absolutely no connection,” a spokesperson told the Journal, adding that the firm’s interest is based solely on its confidence in TXNM, its leadership, and the economic growth of New Mexico and Texas.
As New Mexico faces a growing energy crunch, the senators’ criticism reflects a broader ideological resistance to private capital playing a role in public utilities. While Blackstone proposes billions in upgrades and consumer savings, progressive lawmakers continue to vilify the very investment that could help modernize and stabilize the state’s power grid.
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