TXNM Energy: Update Into Show Cause Hearings This Week

Research evidence excerpt

TXNM Energy: Update Into Show Cause Hearings This Week

le statutes, and recommended that the

commission void the $400mn stock transaction. In addition, the examiner recommended

financial penalties for both TXNM and Blackstone, and called for the withdrawal and refiling of

the joint application without the disputed equity component. Technically, the Hearing Examiner

recommended refiling in summary but did not explicitly state it in the order, so it is possible this

could move forward without refiling. That said, there was additional commentary in docket that

noted many parties see re-filing as a cleaner path. TXNM and Blackstone defended the

transaction in May hearings, with management indicating that forcing an unwind could

negatively affect future investment and signal a more challenging regulatory environment.

Intervenor New Energy Economy supported the examiner’s position, emphasizing adherence to

statutory requirements. The parties will still have an opportunity to engage with the

commission as it evaluates the recommendation.

What Is Next for TXNM in the Process: Given TXNM’s prior failed sale to Avangrid and the

current proposal with Blackstone, the Hearing Examiner’s recommendation represents a

meaningful overhang. While unfavorable, TXNM has formally responded, and the process now

moves through exceptions review before the general counsel prepares a recommended order

for commission vote. Following the vote, statutory timelines will govern the final decision. New

Mexico remains the final regulatory hurdle; notably, TXNM received approval from the PUCT on

February 6, reflecting the more constructive regulatory framework in Texas relative to New

Mexico. This divergence underscores the differing risk profiles across TXNM’s jurisdictions.