NEW MEXICANS SHOULD NOT BE LIMITED TO A CHOICE BETWEEN TWO EXPLOITATIVE CORPORATIONS FOR ENERGY

Some have written to us with concerns about the Blackstone proposal to acquire PNM and whether Avangrid would have been preferable, but we maintain our conviction that New Mexico dodged a bullet when the PRC voted unanimously to reject their buyout of PNM. Shortly after Avangrid's failed bid to takeover PNM it's parent company, Spanish energy conglomerate Iberdrola, decided to acquire all the shares in the company and take it private. (Avangrid to Delist from New York Stock Exchange as Iberdrola Completes Full Takeover)

Meanwhile the news from states where the now privately owned and operated company still controls public utilities has not improved. For example:

1. May 20th, 2025 - New York State audit suggests Avangrid/NYSEG’s practices result in higher costs, worse service quality for customers - "New York State Electric & Gas Corporation (NYSEG) along with Rochester Gas and Electric Corporation (RG&E), both owned by Avangrid, were found to have possibly violated several regulations or orders from the New York State Public Service Commission regarding costs, customer service, electric quality, and more, according to a release from the Commission."

   
   

2. Jan 20th, 2025 - Eversource and Avangrid file court injunction against PURA -

   Eversource and Avangrid, Connecticut’s two largest utility providers, filed for an injunction against the Public Utilities Regulatory Authority (PURA) in Superior Court, requesting the court put an end to PURA’s “improper procedures,” that “harm the plaintiff’s constitutional rights and interests,” according to the court complaint...In an emailed statement PURA Director of Communications Taren O’Connor said the legal filing was a “clearly timed distraction by the utilities to thwart the renomination of the very commissioners who regulate them.”

   
   

3. January, 2024 - As Rate Case Approached, Avangrid’s CEO Tried to Improperly Influence CT’s Utility Regulator, Documents Allege - "Pedro Azagra Blazquez, the CEO of Avangrid, made “thinly veiled” threats that unfavorable decisions by Connecticut’s Public Utility Regulatory Authority (PURA), under its Chair Marissa Gillett, would lead the company to reduce investment in the state, according to a letter memorializing the meeting written by PURA’s General Counsel, Scott Muska. At the same time, Azagra Blazquez seemed to have extended to Gillett a vague offer of future career opportunities."

New Mexican's should not be forced to choose between two exploitative corporations for essential public services that would be better owned and regulated by and for the public. Private profit should not be the priority.

The people would be better served if the state purchased a majority stake in PNM and governed the utility for the benefit of the people instead of private equity shareholders.

What will we be scrutinizing in the Blackstone deal? We don't know about the specifics yet, because the application has not yet been filed at the PRC, but we have our eyes peeled for:

• Potential for negative impacts on ratepayers and service reliability due to ruthless cost cutting and the "profit at all costs" mentality typical of private equity firms.

• Potential for negative impacts on workers due to the record of abusive labor practices rampant in companies owned by private equities generally, and the history of labor violations at Blackstone owned companies specifically.

• Potential for increased rates because of the risk of affiliate transactions - Through affiliate transactions with companies also owned by Blackstone, like Tallgrass or Invenergy, the company could make more profit off of ratepayers by rigging RFP's to favor businesses they own, resulting in negative impacts on both energy prices for ratepayers and the climate.

• Impacts on the environment - Blackstone proudly advertises that it is investing heavily in data centers and artificial intelligence, an industry that is having devastating impacts on the environment as it expands internationally. In Texas more than 100 gas plants have been proposed, primarily to power data centers. That is the equivalent of 30 coal fired power plants. And the water consumption of such data centers is a well known issue, with one Meta data center in New Mexico using at least 59 million gallons of water annually, and another two buildings recently approved. 

Blackstone has never privatized a public utility, but it owns minority stakes in two utilities. What did it do at those utilities? FirstEnergy abandons interim clean energy goals to address climate change - and in Indiana NIPSCO, a utility with 20% Blackstone ownership, projects a roughly 30% increase in emissions from new gas plants it is building to meet data center demand.

New Energy Economy does not oppose mutually beneficial economic opportunities that create wealth for the people, not just outside investors and shareholders. New Mexico has enormous natural resources, especially solar and wind, and those resources should be utilized for the benefit of New Mexicans, not for the super exploitation of private equity and multi-national corporations bent on "economic development" at any cost, and a profit maximizing approach that harms our land, water, air and climate.