The parent company of New Mexico’s largest natural gas utility is set to be sold to a private equity firm in 2025, as announced by both parties on Monday.
Emera, a Canadian energy company, plans to sell New Mexico Gas Co. to Bernhard Capital Partners for $1.252 billion, which includes $500 million in debt. This proposed transaction is pending approval from the state’s utility regulators.
According to a news release, the sale is anticipated to be finalized by late 2025 “but will not close before September 30, 2025, unless otherwise authorized” by the New Mexico Public Regulation Commission.
Executives from Emera and Bernhard Capital Partners stated on Monday that they intend to jointly apply for the commission’s approval in the upcoming months.
Jeff Jenkins, founder of Bernhard Capital Partners, mentioned that his firm would “basically step right into Emera’s shoes,” assuring that New Mexico Gas Co. customers should not notice significant changes post-acquisition.
Bernhard Capital Partners, relatively new to the gas distribution sector, acquired its first gas utilities in 2023 from CenterPoint Energy, serving Mississippi and Louisiana, and from Entergy in Louisiana.
Jenkins emphasized, “Rates will stay the same, operations will stay the same, the management team will stay the same, and it will all be local,” and noted that the acquisition would create 70 new jobs within the company.
Bernhard Capital Partners has investments in 20 different companies nationwide. Recently, it acquired Albuquerque-based Strategic Management Solutions, which provides management and technical consulting services to nuclear programs, including Los Alamos National Laboratory.
“We like the regulated utility space, and it’s a long-term play,” Jenkins said. “We’re going to be a long holder in this particular investment.”
New Mexico Gas Co. recently received approval from the Public Regulation Commission for a rate hike, increasing monthly household bills by an average of $4.21 starting October 1. The utility also settled with environmental and consumer advocacy groups to eliminate additional credit card fees and higher monthly fees initially requested from regulators.
Earlier this year, the commission denied a request from New Mexico Gas Co. to build and operate a liquefied natural gas storage facility in Rio Rancho, which would have cost over $180 million.
Emera CEO Scott Balfour stated that selling New Mexico Gas Co. “strengthens Emera’s balance sheet, supports our ambitious capital plan, and reinforces our strategic decision to optimize our portfolio and reallocate capital to our highest growth markets to drive long-term value for our shareholders.”
Balfour noted that Emera had announced its plan to divest assets to shareholders in late 2023. With the sale of New Mexico Gas Co. and Emera’s interest in a Canadian electric transmission asset sold in June, the company will have achieved its goals.
New Mexico Gas Co. serves over 545,000 customers across the state. Emera acquired the company in 2016, along with two others in Florida, through the purchase of TECO Energy. Since then, New Mexico Gas Co. has expanded to serve approximately 30,000 additional customers.
Louisiana-based Bernhard Capital Partners describes itself as a “services and infrastructure-focused private equity management firm” managing over $4 billion in gross assets.
Typical another Billion Dollar Two Step.
This is not good for New Mexico Gas customers. The private equity firm is only doing this to make a profit for private owners. They will try to raise rates.
Jenkins emphasized, “Rates will stay the same, operations will stay the same, the management team will stay the same, and it will all be local,” and noted that the acquisition would create 70 new jobs within the company
Hmmm where have I heard that before? Oh yeah Obama with Obama care that nobody can afford give me a break. They need to be honest with the customers. Another takeover and dupe the New Mexican people.
Selling our gas to a private firm should have gone through a vote it seems. They do not realize they work for the people.
Well, they’re communist. They think they own everything and we’re just stupid wake up New Mexico get rid of these awful people. I don’t know what to do about the gas issue, but I have a strange feeling our Natural gas prices will go up big time.
As are the feelings of those who left a comment, I am right there with you. I have never yet seen a take over of a utility which did not cost the ratepayers more money. It may not happen immediately, but it will happen. A holding company is there to make profits for their shareholders and that will be shouldered by us ratepayers. I wish I was smart enough to build an owner/ratepayer utility in which it is owned by the ratepayer and is a limited profit company.
monopolies are supposed to be illegal for a reason. big investment firms have bought everything up. they are parasites.