| | SURPRISE: BLACKSTONE & PNM'S COMPLIANCE FILING DOES NOT COMPLY WITH THE LAW NEW MEXICANS WILL NOT BE SILENCED | | Dear Friend, First important developments on Project Jupiter. On Monday the Hearing Examiner confirmed that the Air Permit proceeding is not concerned with Oracle and OpenAI's poor decision to begin construction before an air permit is issued, or with their financial losses related to that decision. Over the objection of Project Jupiter and Jennifer Bradfute's "emergency," the order to begin the public hearing on October 19th stands, and the right of intervenors to ask discovery questions remains. Yesterday we submitted our first tranche of questions for YGI Infrastructure and Bloom Energy, focusing on a key legal question: is the project proposed likely to be completed within a reasonable time (20.2.7.208.G NMAC). Unlikely, given the lack of approval for a methane pipeline (Thank you State Land Commissioner!), and a worldwide shortage of scandum, a key component of the Bloom Energy fuel cells planned to fuel the data center. Those realities have not stopped Oracle and OpenAI from plowing ahead, yesterday showing up at the Doña Ana County Commission meeting with a busload of uniformed workers to speak for the project and private security hired by Oracle to protect the executive who showed up to belatedly answer questions about how many jobs have so far actually been created. Out of 3000 workers at the construction site, just 300 were hired from within Doña Ana County. | | | | The Commissioners, already under fire for operating in secrecy and approving the project without understanding the full implications, tried to limit public comment, ultimately resulting in an uproar from residents who were being silenced. Four people were arrested and a security guard was caught on film twice throwing one of them to the ground. New Mexicans fighting for their future will not be silenced! | | | | MORE EVIDENCE? YESTERDAY, FOR MORE THAN SIX HOURS, NEW MEXICANS ALSO SHOWED UP TO SPEAK ABOUT BLACKSTONE AND PNM, WHOSE NEW "COMPLIANCE" FILING ONCE AGAIN FLAUNTS NEW MEXICO LAW The Compliance Report filed on Monday reveals that TXNM, PNM's parent company, did not simply comply with the Commission's directive to unwind the unlawful $400 million PIPE transaction related to the merger. The Order required them to demonstrate how they had complied with the legally mandated consequence of their unlawful Financing Transaction: that it be made "void and of no effect." Instead of limiting themselves to unwinding the unlawful issuance of stock, Joint Applicants used the compliance process to fundamentally renegotiate and modify the underlying merger agreement itself. Most notably, the parties executed a new Waiver and Letter Agreement that substantially altered their contractual rights and obligations. They extended the contractual deadline for closing the merger from its prior expiration date until May 31, 2027, providing Blackstone and TXNM with many additional months to pursue regulatory approval. They also agreed to reduce Blackstone's potential termination fee from $350 million to $175 million, inexplicably reducing an amount that would ultimately benefit PNM ratepayers. In addition, they executed broad mutual waivers of potential liabilities arising from the unlawful PIPE transaction and entered into new consent agreements governing future financing, capital expenditures, dividends, and other corporate actions pending consummation of the merger. Why would a corporation waive their legal rights and offer up substantial financial benefits? What did TXNM get for these concessions? Or more pointedly, what will TXNM executives stand to gain by keeping the merger alive? Was it a conflict of interest for the senior management to decide to continue the merger, agreeing to reduce the $350M termination fee, because they personally stand to gain between $45 and $60million if the merger is consummated? How does that decision benefit ratepayers? Did they even do a financial analysis to determine whether to move forward under the agreed changes? All of these questions must be answered. Perhaps the most remarkable part of the "compliance" filing is that Blackstone still wants to keep approximately $13.3 million in dividends from a stock purchase the Commission declared unlawful and "void and of no effect." Instead of returning those profits, Joint Applicants now claim the dividends should simply be treated as if they were interest on a loan. The PRC said that the transaction was "void and of no effect." That means the unlawful transaction should have no legal consequences and no financial rewards. The benchmark is not whether Blackstone received $13.3 million instead of the $25 million it claims it might have earned under a hypothetical loan. The benchmark is zero. A party should not profit from a transaction the Commission has declared unlawful. Calling dividends "interest" after the fact does not unwind the violation—it simply attempts to rewrite history while allowing Blackstone to keep millions earned from an illegal stock acquisition. They don't get to profit off of their unlawful transaction. Period. Meanwhile Blackstone and PNM continue to organize union reps to speak for the deal, claiming Blackstone will benefit workers in New Mexico, a farce when you look at the impact of inevitable rate increases on working people across the state and the abysmal labor record of Blackstone. Since when is the billionaire oligarchy on the side of working people? On that note, watch this epic public comment from Jonathan of Youth United for Climate Crisis Action. He was one of the many New Mexicans who showed up to say NO to Blackstone for more than six hours yesterday. | |  | | | | | THE PRC WILL DECIDE ABOUT PRIVATE EQUITY BCP'S BUYOUT OF NM GAS COMPANY TOMORROW Tomorrow at 10:00AM at the Roundhouse (Room 307) the PRC will decide whether to approve the Bernhard Capital Partners (BCP) buyout of NM Gas Company. This decision will be made after unanimous agreement from intervenors that the deal does not prove a net public benefit to ratepayers, a flawed hearing in which testimony critical of BCP was barred, and a Recommended Decision from the Hearing Examiners in which they publicly recommended approval of the deal while privately cautioning the PRC that if the private equity shareholders investing in the deal remain unknown, it will compromise the PRC's regulatory oversight capabilities. New Energy Economy is calling on the Commission to reject BCP's application, but if they decide to allow it they should require the following conditions: - Increase the rate credit for customers to equal the amount of profit the shareholders stand to make when the deal closes - about $100 million - which would come in the form of credits on each customers bill.
- Extend the rate freeze - the time frame in which the company cannot apply for a rate increase - until December 2027. Right now it is extended only until September of this year!
- Require an alternatives analysis for the billing system that BCP wants to use in New Mexico - it is the same billing system that caused total chaos and bills from 300 to 1000% higher than usual for customers in Louisiana when BCP bought the gas utility there last year.
- Require a majority independent board. Requiring a majority of disinterested and independent Board members will reduce risks to ratepayers.
The PRC will now call public comment in the order sign-up was received, so if you want to speak email [email protected] today! So sorry for the late notice. | | | SIGN THE PETITION: NEW MEXICO HAS AN ALTERNATIVE TO BLACKSTONE YUCCA is circulating a Petition to New Mexico's Elected Leaders and the State Investment Council to Invest in New Mexico's Energy Future
Join them in calling on our state leaders to seize this historic opportunity to invest in our energy future. Instead of selling our utility to Blackstone and sending our money to wealthy private equity shareholders, New Mexico can invest in PNM and keep our energy and our money here at home. We urge Governor Michelle Lujan Grisham, Democratic Gov. nominee Deb Haaland, the New Mexico Legislature, the New Mexico State Investment Council, the State Investment Officer, and TXNM Energy to work together to: - Replace Blackstone's unlawful $400 million investment with a $400 million investment by the New Mexico State Investment Council in PNM's parent company, TXNM Energy.
- Maintain the same ownership structure and labor contracts while giving New Mexico a say in our energy future and generating strong, long-term returns for New Mexico's permanent funds.
- Secure the right for New Mexico to nominate two independent directors to the TXNM Energy Board of Directors as part of this investment, ensuring New Mexico has a stronger voice in decisions that shape our energy future and keeping more of the financial benefits here at home.
- Build a future in which New Mexico has a greater stake, a stronger voice, and a more secure future in the infrastructure that powers our lives.
| | | | | | | | | | | | | | New Energy Economy
422 Old Santa Fe Trail, | Santa Fe, New Mexico 87501
[email protected]| 505-989-7262 | | | | | | | | | |
