TXNM Energy seeks OK from state regulators for $11.5B Blackstone takeover

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TXNM Energy (NYSE:TXNM [https://seekingalpha.com/symbol/TXNM]) has filed applications for approval [https://www.utilitydive.com/news/txnm-energy-blackstone-prc-texas-puc/758591/] of its proposed $11.5B acquisition by Blackstone (NYSE:BX [https://seekingalpha.com/symbol/BX]) with the New Mexico Public Regulation Commission, Public Utility Commission of Texas, and Federal Energy Regulatory Commission, UtilityDive.com reported Tuesday.

New Mexico utility officials said the deal would strengthen TXNM's (TNXM) financial ability to navigate growing demand and the energy transition, telling regulators the deal would provide $175M in benefits for customers and communities, including a $105M rate credit paid over four years, that would lower the average residential customer bill by 3.5%, according to UtilityDive.com.

In testimony included in the company's PRC filing, President and CEO Don Tarry said increased equity financing requirements are "more challenging for smaller utilities," and the company "does not have the size or market presence to take full advantage of opportunities that are developing regionally and nationally for new loads and for transmission development that can support customer growth and participation in regional markets."

Critics warned of potential rate increases, and New Energy Economy's Mariel Nanasi said Blackstone (NYSE:BX [https://seekingalpha.com/symbol/BX]) "has a long track record of putting profits above people."

MORE ON BLACKSTONE AND TXNM ENERGY

* Blackstone: Irresistible Long-Term Value [https://seekingalpha.com/article/4805512-blackstone-irresistible-long-term-value]
* Blackstone: The Gold Standard In Alternative Assets (Rating Downgrade) [https://seekingalpha.com/article/4805067-blackstone-gold-standard-in-alternative-assets]
* Blackstone Buying TXNM Energy: Arbitrage Opportunity And Risks [https://seekingalpha.com/article/4790563-blackstone-buying-txnm-energy-arbitrage-opportunity-and-risks]