TXNM Energy Files Regulatory Applications

Rhea-AI Summary

TXNM Energy (NYSE: TXNM) has filed regulatory applications with three agencies for its proposed acquisition by Blackstone Infrastructure. The company submitted applications to the New Mexico Public Regulation Commission (NMPRC), Public Utility Commission of Texas (PUCT), and Federal Energy Regulatory Commission (FERC).

The applications include significant customer benefits totaling $225 million, including: $140 million in rate credits, $45 million for economic development, $25 million for innovative technologies, and $15 million for community support. The review process is expected to take up to a year for NMPRC, while PUCT and FERC have 180-day statutory timeframes.

Positive

• None.

Negative

• Extended regulatory review period of up to one year for NMPRC approval
• Multiple regulatory approvals required (NMPRC, PUCT, FERC) which could delay completion

Insights

M&A Regulatory Specialist

TXNM's regulatory filings for Blackstone acquisition include $225M in customer benefits while awaiting multi-agency approvals.

TXNM Energy has formally initiated the regulatory approval process for its proposed acquisition by Blackstone Infrastructure, filing applications with three key regulatory bodies that oversee its utility operations. The company has structured substantial customer benefit packages to facilitate approval, demonstrating strategic foresight in navigating the complex regulatory landscape.

The New Mexico filing includes $175 million in total commitments, featuring a $105 million rate credit spread over four years and $35 million for economic development. In Texas, where the review timeline is more defined at 180 days, TXNM has proposed $50 million in benefits, including a $35 million rate credit. These substantial financial commitments indicate the acquisition's complexity and the company's determination to secure regulatory approval.

The regulatory approval timeline varies significantly by jurisdiction - up to one year for New Mexico versus 180 days for Texas and FERC reviews. This creates a structured but potentially lengthy pathway to closing the transaction. The comprehensive customer benefit packages suggest the company anticipates regulatory scrutiny and has proactively addressed potential concerns about the transition from public ownership to infrastructure fund control.

The filings emphasize "strong governance and oversight provisions" alongside financial benefits, indicating awareness of regulatory concerns around infrastructure privatization. The structured approach across multiple jurisdictions demonstrates sophisticated regulatory navigation for this complex transaction.

ALBUQUERQUE, N.M., Aug. 25, 2025 /PRNewswire/ -- Today, TXNM Energy (NYSE: TXNM) filed applications for approval of its proposed acquisition by Blackstone Infrastructure with the New Mexico Public Regulation Commission (NMPRC), Public Utility Commission of Texas (PUCT) and Federal Energy Regulatory Commission (FERC).

NMPRC Application
The NMPRC regulates PNM, TXNM Energy's wholly owned utility in New Mexico that delivers electricity to approximately 550,000 customers.

In addition to strong governance and oversight provisions, the filing includes unprecedented benefits for PNM customers and communities, including $105 million rate credit paid over four years, $10 million contribution to the PNM Good Neighbor Fund paid over 10 years, $35 million in economic development funding and $25 million of innovative technologies to support New Mexico's carbon-free energy transition. The filing also continues PNM's strong community involvement and charitable giving.

The NMPRC does not have a statutory timeframe for consideration of the application. TXNM Energy anticipates that the review process will take up to a year to complete. The application can be viewed at https://www.txnmenergy.com/investors/rates-and-filings/pnm-nmprc-filings.aspx.

PUCT Application
The PUCT regulates TNMP, TXNM Energy's wholly owned transmission and distribution utility in Texas that delivers electricity to approximately 280,000 customers.

In addition to strong governance and oversight provisions, the filing includes benefits for TNMP customers and communities, including a $35 million rate credit paid over four years, $10 million in economic development funding paid over 10 years to support workforce development and $5 million in additional community support paid over 10 years to enhance charitable giving.

The PUCT has a 180-day statutory timeframe for consideration of the application. The application can be viewed at https://www.txnmenergy.com/investors/rates-and-filings/tnmp-puct-filings.aspx.

FERC Application
FERC regulates PNM's wholesale electricity and transmission services. The filing demonstrates that the acquisition is consistent with the public interest because it will not have an adverse effect on competition, rates, and regulation and will not result in any inappropriate cross-subsidization.

The FERC has a 180-day statutory timeframe for consideration of the application. The application can be viewed at https://www.txnmenergy.com/investors/rates-and-filings/ferc-filings.aspx. 

About TXNM Energy:
TXNM Energy (NYSE: TXNM), an energy utility holding company based in Albuquerque, New Mexico, delivers energy to more than 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM. For more information, visit the company's website at www.TXNMEnergy.com. 

Contacts:
Analysts	Media
Lisa Goodman	Corporate Communications
(505) 241-2160	(505) 241-2743

About Blackstone Infrastructure:
Blackstone Infrastructure is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors. We seek to apply a long-term buy-and-hold strategy to large-scale infrastructure assets with a focus on delivering stable, long-term capital appreciation together with a predictable annual cash flow yield. Our approach to infrastructure investing is one that focuses on responsible stewardship and stakeholder engagement to create value for our investors and the communities we serve. 

Contact
Paula Chirhart
Paula.Chirhart@Blackstone.com
347-463-5453

FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. Forward-looking statements may be identified by the use of forward-looking terms such as "may," "will," "should," "can," "expects," "believes," "anticipates," "intends," "plans," "estimates," "projects," "assumes," "guides," "targets," "forecasts," "is confident that" and "seeks" or the negative of such terms or other variations on such terms or comparable terminology. These forward-looking statements generally include statements regarding the proposed merger, including any statements regarding the expected timetable for completing the proposed transaction, the ability to complete the merger, the expected benefits of the merger, projected financial information, future opportunities, and any other statements regarding TXNM's and Blackstone Infrastructure's future expectations, beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events or performance. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. TXNM's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond its control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. In addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statements include, among others, the following:

• the failure of Blackstone Infrastructure to obtain any equity, debt or other financing necessary to complete the merger;
• the expected timing and likelihood of completion of the pending merger, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending merger that could reduce anticipated benefits or cause the parties to abandon the transaction;
• the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, including in circumstances requiring TXNM to pay a termination fee;
• the possibility that TXNM's shareholders may not approve the merger agreement;
• the risk that the parties may not be able to satisfy the conditions to the proposed merger in a timely manner or at all;
• the receipt of an unsolicited offer from another party to acquire our assets or capital stock that could interfere with the merger;
• •the outcome of any legal proceedings, regulatory proceedings or enforcement matters that may be instituted relating to the merger;
• risks related to disruption of management time from ongoing business operations due to the proposed merger;
• the risk that the proposed transaction and its announcement could have an adverse effect on the ability of TXNM to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally;
• the announcement and pendency of the merger, during which TXNM is subject to certain operating restrictions, could have an adverse effect on TXNM's businesses, results of operations, financial condition or cash flows;
• the costs incurred to consummate the merger;
• the risk that the price of TXNM's common stock may fluctuate during the pendency of the proposed transaction and may decline significantly if the proposed transaction is not completed; and
• other risks detailed in TXNM's filings with the SEC, including its most recent Form 10-K for the fiscal year ended December 31, 2024, and in subsequently filed Forms 10-Q and 8-K, the Proxy Statement and in any other documents filed by TXNM with the SEC after the date thereof.

Any such forward-looking statement is qualified by reference to these risks and factors. TXNM cautions against putting undue reliance on forward-looking statements or projecting any future results based on such statements. Forward-looking statements speak only as of the date of the particular statement, and TXNM does not undertake to update any forward-looking statement contained herein.

Additional Information about the Proposed Transaction and Where to Find It
In connection with the proposed transaction between TXNM and affiliates of Blackstone Infrastructure, TXNM filed the Proxy Statement with the SEC. The Proxy Statement has been delivered to shareholders of TXNM entitled to vote at the Special Meeting. INVESTORS AND SECURITY HOLDERS OF TXNM ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) FILED BY TXNM WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT TXNM AND THE PROPOSED TRANSACTION. You may obtain copies of all documents filed with the SEC regarding the proposed transaction, free of charge, at the SEC's website (www.sec.gov). You may also obtain these documents, free of charge, from TXNM's website (https://www.txnmenergy.com/) under the tab "Investor" and then under the heading "SEC Filings."

Participants in the Solicitation
TXNM and its directors, executive officers and certain other members of management and employees may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction under the rules of the SEC. Information about TXNM' directors and executive officers is set forth in the Proxy Statement, TXNM's definitive proxy statement for its 2025 Annual Meeting of Shareholders, which was filed with the SEC on April 1, 2025, TXNM's Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 28, 2025, and other documents subsequently filed by TXNM with the SEC. These documents can be obtained free of charge from the sources indicated above.

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SOURCE TXNM Energy, Inc.

FAQ

What is the total value of benefits proposed in TXNM Energy's regulatory applications?

TXNM Energy's applications include $225 million in total benefits, comprising rate credits, economic development funding, innovative technologies, and community support initiatives.

How long will the TXNM Energy acquisition regulatory review process take?

The review process varies by agency: up to one year for NMPRC review, while both PUCT and FERC have 180-day statutory timeframes.

What rate credits are being offered to TXNM Energy customers under the acquisition proposal?

PNM customers will receive $105 million in rate credits over four years, while TNMP customers will receive $35 million in rate credits over four years.

How many customers does TXNM Energy serve through its utilities?

TXNM Energy serves approximately 550,000 customers through PNM in New Mexico and 280,000 customers through TNMP in Texas.

What economic development commitments is TXNM Energy making as part of the acquisition?

TXNM Energy is committing $45 million total for economic development, including $35 million in New Mexico and $10 million in Texas for workforce development over 10 years.