Blackstone’s track record is why PRC should reject takeover
The following op-ed by PESP Senior Research Coordinator Nichole Heil published in June in the Albuquerque Journal:
New Mexico is among the states most exposed to private equity ownership across essential sectors. Regulators should think carefully before allowing Wall Street firms even deeper control over critical infrastructure.
The New Mexico Public Regulation Commission is considering whether to approve private equity giant Blackstone’s proposed takeover of TXNM Energy, parent company of Public Service Company of New Mexico. Supporters promise investment and modernization. But as ratepayers and workers see what’s happening at private equity-owned utilities in other states, the PRC should ask: will New Mexicans be put first under new ownership of an out-of-state Wall Street firm?
As an expert who studies private equity ownership of essential services like utilities, I believe the answer is clear. To protect New Mexicans amid a worsening affordability crisis, the commission should reject the deal.
Blackstone isn’t new to the utility game. It already owns a roughly 20% stake in Northern Indiana Public Service Company, or NIPSCO, which serves more than 1.4 million electric and gas customers. PNM believes Blackstone’s investment experience in NIPSCO will “benefit our customers,” according to the utility’s application to be acquired by the investment firm. Since Blackstone’s 2024 investment, NIPSCO customers have faced some of the steepest utility bill increases in Indiana, drawing public backlash and regulatory scrutiny. According to the Energy and Policy Institute, nearly 20% of NIPSCO customer bills go to profit, ranking it 12th nationally among major utilities for the share of bills going to profit.
Minnesota offers another warning. During the 2025 review of private equity firm BlackRock’s takeover of Minnesota Power, the administrative law judge warned that private-equity-style return expectations could create pressure for higher utility rates, especially given consumers’ inability to turn to competitors should the utility raise prices.
New Mexicans should also be concerned about Blackstone’s involvement in the massively unpopular data center buildout occurring across the country. Blackstone owns QTS, a major data center developer. In Indiana, QTS proposed major data centers in NIPSCO territory before withdrawing after public opposition, in part over conflict of interest concerns. In Georgia, residents near a QTS data center later discovered the facility had consumed nearly 30 million gallons of water through improperly tracked hookups. Should Blackstone acquire PNM, will QTS attempt to build more data centers in New Mexico?
This acquisition poses serious concerns for New Mexican workers, too. While Blackstone and supporters of the PNM deal have emphasized commitments to union jobs and local workers, Blackstone’s broader labor record deserves scrutiny. PESP’s Private Equity Labor Scorecard gave Blackstone an F, citing wage-and-hour violations, OSHA violations, layoffs and other labor concerns across its portfolio of companies.
Blackstone has also faced criticism over anti-union tactics. At Blackstone-owned Great Wolf Lodge locations, the company hired anti-union consultants during organizing campaigns in 2024.
One of the most troubling examples involved Blackstone-owned Packers Sanitation. Federal investigators found more than 100 children working hazardous jobs cleaning dangerous meat-processing equipment at company facilities, resulting in a massive scandal for the company and its private equity owners.
Blackstone’s spotty labor record has extended to utilities, too. Blackstone has pointed to Indiana’s NIPSCO as evidence of its utility expertise in the PNM proceeding. If NIPSCO proves Blackstone’s utility expertise, regulators should examine what unionized workers have experienced there: NIPSCO recently locked out roughly 1,600 union workers for an entire month.
The commission’s job is not to protect Blackstone’s investment thesis. It is to protect New Mexicans who rely on PNM for affordable, reliable service and fair treatment of the workers who keep the system running.
The PRC should stand up for New Mexicans over Wall Street profits and reject Blackstone’s takeover of PNM.