Private Equity's Ruthless Takeover of Public Power: Blackstone's PNM Deal

Blackstone's Proposed Takeover of PNM

• ✊ Hundreds of protesters gathered in Santa Fe to oppose Blackstone Infrastructure's proposed $11.5 billion acquisition of PNM, New Mexico's largest electric utility.
• 🎯 Executives from Blackstone, a private equity giant, stand to gain millions, while many New Mexico residents, particularly those in poverty, could be negatively impacted.
• 💡 The deal, which would also affect TNMP in Texas, requires approval from the state's Public Regulation Commission (PRC), which is now appointed by the governor, raising concerns about accountability.

Concerns Over Private Equity Ownership

• 📉 Private equity's primary goal is maximizing profit for investors, which critics argue is fundamentally at odds with operating a public utility in the public interest.
• 🔒 A significant portion of the application documents have been sealed, leading to accusations of secrecy and a lack of transparency for intervenors and the public.
• ⚠️ Experts suggest that private equity ownership can lead to a starvation of funds for the utility if other portfolio companies offer better returns, and utilities may be pressured for additional payments rather than focusing on service quality.

Data Centers and Rising Costs

• 🏢 Blackstone owns QTS, the world's largest data center operator, and its interest in PNM is seen as a strategic move to leverage the utility for the expansion of data centers.
• 📈 The increasing demand from data centers is expected to put upward pressure on utility prices, potentially making it unaffordable for many New Mexicans to keep their lights on.
• 💰 Critics argue that Blackstone plans to pass on the costs associated with data centers to ratepayers, further exacerbating financial burdens on consumers.

Alternatives and Public Opposition

• 💡 An alternative proposed by former PRC insider Stephen Fishmann is for the state of New Mexico to buy a majority stake in PNM using its substantial state funds, allowing for public interest-driven board appointments.
• 🚫 Organizers and community advocates, like Youth United for Climate Crisis Action (YUCCA), are mobilizing to resist the takeover, emphasizing that New Mexicans will not be a resource colony for corporations.
• 🗣️ Despite concerns, many lawmakers and officials declined to be interviewed, highlighting a perceived lack of robust opposition to such deals, which are framed as a conflict between billionaires and the people.

The Fight for Public Power

• ⚡ The core mission of the PRC is to ensure fair, just, and reasonable rates for consumers, a goal that critics believe is jeopardized by a private equity firm focused solely on profit maximization.
• ✊ New Mexicans are committed to resisting the corporate takeover, advocating for an environmentally sound, affordable, and democratic energy system over a disempowering corporate acquisition of essential utilities.
• 📢 Organizers urge public participation, emphasizing that collective action and continued resistance are crucial to defending communities and ensuring utilities serve the public trust, not just speculative investment.