Blackstone Merger Position Statement
CVNM worked tirelessly to pass the Energy Transition Act in 2019, committing the state to 100% clean energy by 2045. This was a landmark policy when passed, and resulted in the shuttering of one of the dirtiest coal plants in the nation – San Juan Generating Station. Thanks to the passage of the ETA and subsequent policies that have incentivized the renewable energy economy, New Mexico is now a majority renewable energy state for the first time in our history. However, in May 2025, private equity firm Blackstone Infrastructure Partners announced a $11.5 billion deal to acquire the state’s largest utility, Public Service Company of New Mexico (PNM). CVNM is opposed to the Blackstone acquisition for the following reasons:
- Focus on Profits Over People: Private equity firms, like Blackstone, often prioritize short-term profits over the well-being of customers and the environment. When they take over companies, their main goal is to deliver returns for investors, which can lead to staff cuts, price hikes, and hasty decisions. For instance, private equity ownership in nursing homes has been linked to poorer patient outcomes.
- Fossil Fuel Investments: Blackstone will very likely invest more in fossil fuels, such as natural gas, to power data centers despite their claims of supporting renewable energy. In New Mexico, Blackstone company Tallgrass Energy promised investments in developing a “green hydrogen power ecosystem” but shifted to natural gas after project approval, leaving local communities blindsided.
- Conflict with New Mexico’s Goals: With plans to invest significantly in data centers and fossil fuel infrastructure, Blackstone’s growth strategy conflicts with New Mexico’s Energy Transition Act, which aims for 100% renewable energy by 2045.
- Targeting Public Utilities: The entry of private equity into the public utility sector began with BlackRock’s purchase of Allete (operating Minnesota Power) and has gained momentum as demand for energy rises, driven by data centers and artificial intelligence.
- Unethical Practices: Blackstone and its subsidiaries have a long history of practices that have resulted in lawsuit settlements and harm to people and communities. For example, they have faced serious accusations for improperly sharing questionably gained information with immigration authorities and allegations related to child labor in its acquired companies. They are the largest owner of single-family rental homes in the U.S., Blackstone has a troubling reputation for leaving properties in disrepair and unfairly evicting tenants, often with barely any notice.
In summary, CVNM believes that Blackstone’s involvement in New Mexico’s largest utility could threaten the state’s commitment to clean energy and the welfare of its residents.