近距离内射合集

Public Service Company of New Mexico, the state鈥檚 largest utility, and Blackstone Infrastructure, the company looking to purchase PNM, more than doubled the amount of rate credits they will provide to ratepayers if the deal closes. 

The proposed $11.5 billion merger between the state鈥檚 largest electric utility and a unit of one of the world鈥檚 largest private equity firms, Blackstone Inc., faced a setback in July. Members of the Public Regulation Commission ordered the two companies to unwind a $400 million sale of TXNM Energy stock to Blackstone affiliates, saying the transaction violated a state law prohibiting utility mergers without prior regulatory approval. That stock transaction gave Blackstone a 7.59% stake in TXNM, the parent company of PNM.

The companies went back to the drawing board on the deal. On Tuesday, PNM and Blackstone filed a request to amend their application with the PRC. A draft of the new application offers ratepayers $220 million in credits to their utility bills. The original application offered $105 million in such credits. 

In addition to the $220 million in rate credits, the companies are offering an additional $80 million in benefits. That includes $40 million for workforce development and economic development initiatives for job training, scholarships, apprenticeships and other programs; $25 million in technology to develop virtual power plants, which are networks of connected devices such as solar panels and smart meters that act in concert to efficiently deliver power; and $15 million to PNM鈥檚 Good Neighbor Fund, which provides assistance to low-income ratepayers. 

At public hearings about the merger, some New Mexicans characterized in public comments such community benefits packages as payoffs to sweeten the deals, making it more likely regulators will approve them. Asked about that contention, PNM and TXNM President and CEO Don Tarry said, 鈥淲e just wanted to make a very compelling application that when reasonable people look at it, they go 鈥楾his makes sense, and it鈥檚 in the interests of the consumers here and it鈥檚 in the interests of the state 鈥� 鈥欌��

He said the benefits are both near and long term.

鈥淟ook at the Good Neighbor Fund; it鈥檚 about helping people for 10 years and increasing that,鈥� Tarry said. 鈥淟ook at the education and apprenticeship programs; it鈥檚 about improving and creating skill sets that we can drive economic development with. You look at the economic development; it鈥檚 about creating jobs and bringing businesses here.鈥�

Utility companies are not legally required to attach community benefits packages to such deals, a Blackstone spokesperson said. In fact, utility regulators are unclear about what type of benefits utility mergers should offer ratepayers. In late August, PRC regulators asked the New Mexico Supreme court in a filing what standard the PRC should use to review such benefits.

Utilities offer the benefits to show how a merger would serve the public interest. For prior mergers, the PRC has maintained that utility mergers should provide ratepayers with a 鈥渘et benefit鈥� and utilities began offering multimillion community benefits packages.

But commissioners questioned whether the 鈥渘et benefit鈥� standard is simply a PRC rule, or whether it is grounded in state law, when they approved the purchase of New Mexico Gas Co. by private equity firm Bernhard Capital Partners in July. That deal included $22.4 million in rate credits to be distributed among the gas company鈥檚 553,000 customers, $15 million in economic development and workforce initiatives and $7 million to a bill-assistance program. 

At the July meeting, Commissioner Greg Nibert asserted that the 鈥渘et benefit鈥� standard is not state law. Rather, he said, state law provides that utility merger requests should only be rejected if they violate any laws. That standard would provide a continuation of service, rather than a net benefit.

The Supreme Court has not publicly released any guidance on the issue.

Justin Horwath covers tech and energy for the Journal. He can be reached at jhorwath@abqjournal.com.