Federal Energy Regulatory Commission Green‑lights Blackstone’s $11.5 B Acquisition of TXNM Energy

The Federal Energy Regulatory Commission (FERC) has formally approved the sale of TXNM Energy to Blackstone Infrastructure, sealing a deal valued at $11.5 billion, including debt. The commission’s order, released on February 20, 2026, found the transaction “consistent with the public interest” and concluded that neither state nor federal regulation would be impaired. FERC explicitly rejected concerns that the deal could depress rates or hurt competition, citing adequate state ring‑fencing safeguards in New Mexico and Texas.

Why the Approval Matters

TXNM Energy, a subsidiary of PNM Resources, serves the entire New Mexico electric market. Blackstone’s purchase represents the largest private‑equity‑backed buyout of a U.S. utility in recent memory. The approval eliminates the last regulatory hurdle, allowing the transaction to close imminently. The deal’s size—$11.5 billion—places Blackstone among the top investors in the utility sector, while the commission’s endorsement signals confidence in the transaction’s compliance with federal law.

FERC’s Key Arguments

  • No Regulatory Impairment – FERC found no evidence that state or federal regulation would be weakened by the sale.
  • No Rate Impact – The commission determined the transaction would not adversely affect utility rates.
  • Competition Unaffected – FERC concluded that horizontal and vertical competition would remain intact.
  • State Protections Adequate – Existing ring‑fencing measures in New Mexico and Texas were deemed sufficient to safeguard consumer interests.

These points counter the arguments raised by the New Mexico Attorney General, who has questioned the legality of the transaction and alleged potential violations of state law. FERC’s ruling effectively neutralizes the AG’s objections by affirming the transaction’s compliance with federal statutes and antitrust provisions.

Market Reaction

Shares of TXNM Energy closed at $59.05 on February 19, 2026, following a 52‑week high of $59.52 earlier that month. The market’s reaction has been muted, reflecting the expectation of a smooth completion. Analysts note that the company’s price‑earnings ratio of 32.3 remains high, but the influx of capital and potential for accelerated renewable‑energy investments could justify the premium.

Forward Look

Blackstone’s acquisition could unlock significant investment in renewable infrastructure across New Mexico, a claim PNM has highlighted to assuage public concern. Whether the deal delivers on this promise will depend on how the new ownership balances profit motives with regulatory obligations. Investors, regulators, and consumers alike will watch closely to see if the projected benefits materialize without compromising service quality or affordability.