Texas-New Mexico Power Company (TNMP), the Texas utility subsidiary of TXNM Energy, and Blackstone Infrastructure have reached a unanimous settlement with parties involved in TNMP's application before the Public Utility Commission of Texas (PUCT) related to Blackstone's proposed acquisition of TXNM Energy.
Under the agreement, TNMP will provide a direct financial benefit to customers through $45.5 million rate credit, which will be distributed over 48 months following the transaction's closing.
The settlement also establishes governance protections, including a seven-member TNMP Board of Directors with three disinterested directors and representation from TNMP leadership. The Board will retain authority over key matters such as dividend policy, capital expenditures, and executive appointments.
Financial safeguards outlined in the settlement include prohibitions on acquisition-related debt, limits on dividend payments, and restrictions on intercompany financial arrangements. Dividend payments will also be subject to credit ratings and financial health requirements, while director compensation will remain independent of performance.
The agreement further ensures local control and workforce protections. TNMP will keep its headquarters in Texas within its service territory, maintain day-to-day operations under its current management, and refrain from involuntary workforce reductions or cuts to wages and benefits for at least three years following the transaction's closing, except for cause or performance-related reasons.
Customer and regulatory protections are also included. TNMP will not seek recovery of acquisition-related costs or goodwill through consumer rates and will continue to operate under PUCT Jurisdiction while complying with all affiliate standards and codes of conduct.
Parties to the settlement include the Staff of Public Utility counsel, cities served by TNMP, Walmart, and the Texas Energy Association for Marketers.
PUCT hearings were previously scheduled to begin on December 15, 2025, but were canceled as a result of the settlement.
Final approval now rests with the commission, and the settlement remains subject to approval by the PUCT.
