A trio of far-left U.S. senators is sounding the alarm — again — this time over a major private-sector investment that would bring billions into New Mexico’s energy infrastructure. 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 Democratic senators — all well-known critics of free-market energy policy — sent a letter to Blackstone CEO Stephen Schwarzman blasting the deal as harmful to consumers and accusing the firm of trying to “profit from rising energy demands at the expense of consumers.”
“Investors have typically viewed utility companies as reliable investments with a guaranteed rate of return,” they 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.”
The senators are objecting to the acquisition even though it would bring long-term private capital into the grid — capital the utilities say is urgently needed. Warren, Sanders, and Blumenthal argue the transaction “isn’t in the public’s best interest,” despite offering no alternative plan to improve infrastructure or meet surging energy demand.
TXNM, currently publicly traded, would become privately held under the proposal. PNM serves about 550,000 New Mexicans and is already dealing with the strains of rapid growth, new housing developments, and the power demands of emerging data center projects.
Blackstone pushed back strongly on the senators’ claims. A company spokesperson said private ownership would allow utilities to make long-term investments that strengthen and modernize the grid — without being hamstrung by Wall Street’s short-term quarterly reporting cycle.
These investments, the spokesperson said, provide “reliable, affordable power — without the pressure of short-term quarterly metrics.” They emphasized that private capital has supported utilities “for more than 20 years,” and that any acquisition must pass rigorous local, state, and federal regulatory review demonstrating “clear benefits to consumers.”
The senators demanded Blackstone disclose whether electricity prices would rise under its ownership and whether staffing cuts would occur “to meet investor targets.” They cited a decade-old acquisition in Michigan, claiming that customer bills rose afterward by a few cents. They requested a response from Blackstone by December 18.
But Blackstone and PNM both noted that rate-setting authority will remain entirely in the hands of the New Mexico Public Regulation Commission — not investors, and not Blackstone. The firm has also pledged $105 million in rate credits over four years, estimating the average customer could see bill reductions of roughly 3.5%. Blackstone also committed to retaining PNM’s workforce and keeping the utility’s headquarters in-state.
Meanwhile, PNM continues to push long-delayed infrastructure projects to keep up with demand. Just last week, the Bernalillo County Planning Commission approved key applications for the long-awaited North Albuquerque Acres Substation — a project PNM has been working to advance for nearly eight years.
Warren and Sanders also attempted to tie Blackstone’s broader investments to the TXNM acquisition, pointing to the company’s QTS Realty Trust data center operations and citing concerns about increasing global electricity demand. Their letter referenced an International Energy Agency projection that worldwide power use could increase by 130% by 2030 due to data center growth.
New Mexico has already become a magnet for major tech-sector energy users, with multiple large-scale data center proposals emerging. Among them:
• Project Jupiter in Doña Ana County, recently named one of five sites in the $500 billion Stargate Project led by OpenAI and Oracle.
• An 8,400-acre facility proposed by Zenith Volts Corp. in Chaves County.
• A 3,500-acre campus sought by New Era Energy & Digital Inc. in Lea County.
Blackstone has rejected accusations that its utility acquisition is tied to its data center interests. Asked about the connection, a spokesperson said there is “absolutely no connection” and that the investment is driven solely by confidence in TXNM and “the future growth of the economies of New Mexico and Texas.”
As New Mexico grapples with rising energy needs — and a state government increasingly skeptical of private enterprise — the senators’ letter reflects broader ideological opposition to free-market investment in public utilities. While Blackstone proposes billions in upgrades and rate credits, progressive senators instead continue their campaign against private capital in the energy sector.