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.
Those asshats don’t represent the people of New Mexico – not that the New Mexico representatives & senators do, either.
maybe sanders and warren are correct. does anyone really think the new owners of PNM are going to lower our rates ? I dont. they will charge more, especially if they push the green agenda MLG demands. we are played like pawns for corporate profits.
They don’t represent anyone but themselves. Certainly not their own constituents. It’s called CONgress for a reason.
Kudos Cesar, privatizing public utilities into private ownership is certainly no guarantee of cheaper rates! while the PRC would remain in place, at least for a while, they are political appointees (by the governor, no less). How easy is it to bribe public officials today? Blackrock is an international corporation that really only cares about profits. It is owned and managed by the usual suspects deemed by some as ” international Hyenas “. NM would be wise to look at every aspect of this proposal before taking the bait and regretting it later. remember it is always the taxpayer that is left holding the bag!!!
I don’t care for those Government thugs but I also don’t trust such a large corporation getting involved without some Very LONGTERM Guarantees in Writing.
New Mexico will never meet the energy requirements for a 130% increase that is noted in the article. The green energy scams we paid for can’t. Our little governor and her green weenies will never allow coal, nuclear or new gas plants and we don’t have the water unless we tell TX to pound sand and eradicate the salt cedars, Russian olives and junipers from our rivers and streams.
Warren and Sanders are guilty of over reach. And over rich.
Major shareholders of Blackstone: Vanguard, BlackRock, AIG, Capital World Investors, State Street Corporation, Morgan Stanley, JPMorgan Chase. Does anyone really think rates will go down? PNM has had two increases this year.
Good for the Communist Senators! I literally do not agree with anything they say or do, except this. Blackstone is interested in one thing, profit!
If anyone thinks that a Blackstone acquisition will result in anything but higher fees, has another thought coming.
The last time bad guys tried to acquire PNM, the PRC members were elected and we were able to get them to defeat the acquisition. This time, the PRC is appointed and owned by Gov. MLG. Anyone want to bet that MLG doesn’t favor Blackstone?
I work for a firm acquired by private equity. Bottom line – all they want is profit growth. Every investment will be paid for by the customer and capitalized on at the same time. Rates will continue to rise on every person and business until they find the threshold they can hold that rate at for a multitude of years.
Not Surprised.
Guess we should cancel all business since they are all concerned with making profits . . .