Hearing Examiners Order at 5PM Yesterday: Blackstone Acquisition of PNM on HOLD until compliance with unwinding of illegal stock purchase determined.

Yesterday the PRC issued an order affirming the findings of the Hearing Examiners in the Blackstone/TXNM acquisition case: Blackstone and TXNM intentionally and knowingly violated NMSA § 62-6-12, completing a $400 million stock transaction without first obtaining the approval required by the Public Utility Act. Just before 5PM yesterday the Hearing Examiners issued an order granting a Joint Motion we filed in June asking that any hearing on the merits of the merger must be postponed.

The Hearing Examiners agreed with our analysis and ordered an indefinite hold on the merger application until it is clear how Blackstone and TXNM will unwind their illegal stock transaction and demonstrate how they will hold ratepayers harmless for any consequences of their actions.

What does this mean for the Blackstone/PNM merger?

• The merger case is now on hold until Blackstone and TXNM unwind the illegal stock transaction, participate in a compliance proceeding (in approximately 45 days), and all parties then have 30 days to review, respond, and challenge whether the companies actually complied and kept ratepayers harmless.
  

• That means the acquisition case can't even begin moving forward again until September, and only then can the process of developing expert testimony, hearings, briefing, and a final Commission decision on the merits of the acquisition resume.
  

• The current merger agreement expires in December 2026. Given yesterday's order and the remaining regulatory process, it is highly unlikely that the acquisition could conclude before the December deadline. Even if the companies agreed to further extend the deadline to March 2027, as written in the contract, the timing could be challenging.
  

• Yesterday's victory didn't just prove Blackstone broke the law. It fundamentally changed the timeline of the merger and put the proposed acquisition in jeopardy. Congratulations to the people of New Mexico!

  
  

The acquisition case may eventually proceed, but in the meantime facts on the ground continue to change. Investors in Blackstone private equity funds are already skittish and Blackstone stock has lost 22.68% in the last 6 months. Yesterday Blackstone pulled out of a $3.5 billion dollar data center project in Virginia after three years struggling to gain regulatory permissions, with analysts predicting that the AI bubble will soon burst.

We can't predict what will happen, but we know that New Mexico can choose a different path. We can become investors in our own energy future by buying PNM shares and gaining a controlling interest to ensure that the company prioritizes New Mexicans over private equity profiteers.