近距离内射合集

New Mexico regulators on Thursday moved to unravel a $400 million stock sale that gave Blackstone Inc. a foothold in the state鈥檚 largest electric utility, ruling that the transaction should have gone through a review process it never received.

The three-member New Mexico Public Regulation Commission voted 2-1 on the order, siding with hearing examiners who recommended in early June that commissioners reverse the sale of 8 million shares of TXNM Energy Inc. stock to Blackstone. The sale gave the private equity firm a 7.59% stake in TXNM.

The companies must show within 45 days that they are complying with the order. The order includes $100,000 in fines against TXNM and $200,000 against Blackstone affiliates.

The vote is a major setback for Blackstone鈥檚 efforts to acquire TXNM, which is the parent company of Public Service Company of New Mexico. The commission did not ask Blackstone and TXNM to refile their acquisition application itself, as some parties had requested. 

Instead, the commission late Thursday published an order that alters the procedural schedule of the case, which was set to begin in mid-August.

New Energy Economy Executive Director Mariel Nanasi, an intervenor in the case, said the order cancels hearings tied to that schedule, meaning that the commission will likely not be able to decide on the case by the end of the year.

鈥淎nother huge victory today 鈥� and possibly the nail in the coffin鈥� for the deal, she said.

The hearing examiners in their June report said the transaction violated a law prohibiting utility mergers without prior approval from the PRC. TXNM and Blackstone argued the stock sale was not connected to the proposed $11.5 billion sale of the energy-holding company, which was filed with state regulators in August.

Neither Blackstone nor TXNM answered whether they would proceed with the acquisition or how they would unwind the stock transaction. Blackstone declined to comment. A TXNM spokesperson said the company is evaluating its options.

鈥淚t is important to us that our customers know that the stock issuance was completed in good faith, publicly disclosed well in advance and undertaken with no intent to circumvent any rules or regulatory requirements,鈥� TXNM spokesperson Lisa Goodman said.

In a statement, the commission said parties will have a chance to comment on the compliance filing before determining 鈥渢he appropriate procedural path for the acquisition case.鈥�

Regulatory compact 

Commissioners Pat O鈥機onnell and Gabriel Aguilera voted in favor of enforcing the hearing examiners鈥� recommended decision. 

Greg Nibert voted against the proposal, saying that requiring the companies to unwind the stock sale will harm TXNM鈥檚 finances 鈥� and by extension more than half a million ratepayers in the state.

But Nibert鈥檚 argument did not prevail.

鈥淵ou鈥檝e got to follow the law or else the regulatory compact doesn鈥檛 work,鈥� O鈥機onnell said.

Don Tarry, president and CEO of TXNM, in June testified to the commission that TXNM has already used the $400 million in proceeds from the stock sale. 

鈥淪pecifically, among other things, this funding was used to pay down TXNM debt (and) to provide equity contributions and term loans鈥� for PNM and Texas-New Mexico Power Co., Tarry said.  

Albuquerque nonprofit Prosperity Works filed a motion earlier this year saying the stock transaction violated New Mexico law, triggering a review of the issue by the commission. 

Steven Michel, a Santa Fe lawyer who represented the nonprofit before the commission, pointed to a $350 million termination fee baked into the agreement that requires Blackstone to pay TXNM that amount under certain circumstances.

鈥淭hey鈥檝e never not been able to raise capital,鈥� he said when asked about concerns that unwinding the sale will harm TXNM鈥檚 credit.

Dozens of protesters who oppose the proposed sale gathered outside the Roundhouse before the hearing began. The hearing had to be moved to a larger room inside the Roundhouse to accommodate the audience.

The commission chair asked the audience how many people supported the deal. Nobody raised their hands. 

鈥淓nsure that New Mexicans don鈥檛 have to pay money to these billionaires,鈥� Sadie G贸nzales Root told commissioners. 鈥淒on鈥檛 let the bad guys win.鈥�

The only support for the deal came from some elected officials. 

Rep. Meredith Dixon, an Albuquerque Democrat, said she supported the acquisition, calling it an 鈥渆conomic-development driver.鈥� 

鈥淭his investment creates the long-term stability needed to grow the company,鈥� Dixon said. 

Sen. Gabriel Ramos, a Republican from Silver City, said he supports the merger because Blackstone will provide money 鈥渢o stabilize our infrastructure.鈥�

Stephanie Telles, an Albuquerque city councilor, said she did not support the merger.
鈥淏efore the deal has even been approved, they鈥檝e already demonstrated a willingness to ignore the laws that govern them,鈥� she said.

Justin Horwath covers tech and energy for the Journal. You can reach him at jhorwath@abqjournal.com.