Leadership Shake-Up at TXNM Energy Amid Reports of Private Equity Firm Acquisition

Strategic Insights -

TXNM Energy, the parent company of Public Service Company of New Mexico, is undergoing a leadership change as CEO Pat Collawn transitions to executive chair, and Don Tarry takes over as president and CEO on July 1. This move comes amidst news reports that Blackstone Inc., the world's largest alternative asset manager, is in talks to acquire TXNM Energy. The leadership change is part of a "long-standing succession plan," according to the company. TXNM Energy is also facing a rate hike approved by the New Mexico Public Regulation Commission, which will be implemented in two phases, with the first phase taking place in July and the second in April 2026.

Key Takeaways:

  • Don Tarry will succeed Pat Collawn as president and CEO of TXNM Energy on July 1, marking a leadership change amidst reports of a potential acquisition by Blackstone Inc.
  • The transition is part of a "long-standing succession plan," according to the company, and Tarry has been with TXNM Energy since 1996, holding various senior leadership roles.
  • Tarry will oversee the implementation of a phased-in rate hike for PNM customers, which will increase the average monthly residential bill by $6.23 in both phases.
  • The rate hike will support investments in grid reliability, cybersecurity, and physical security enhancements, as well as infrastructure for renewable energy integration and advanced monitoring technologies.
  • TXNM Energy owns Public Service Company of New Mexico, which provides electricity to over 800,000 homes and businesses in New Mexico and Texas.
  • TXNM Energy has been exploring a potential sale of PNM after its long-sought merger with Avangrid fell apart in January 2024.
  • The company has a long history of supporting renewable energy, with PNM reaching 72% carbon-free generation capacity in 2024 under Collawn's leadership.
  • Blackstone's acquisition talks were first reported by Bloomberg News, and the company has over 12,500 real estate assets and more than 250 portfolio companies.
  • Mariel Nanasi, executive director of New Energy Economy, celebrated the end of the PNM-Avangrid merger in January 2024 and was not available for comment on the potential sale to Blackstone.

Statistics:

  • TXNM Energy owns Public Service Company of New Mexico, providing electricity to over 800,000 homes and businesses in New Mexico and Texas.
  • Pat Collawn has been with TXNM since June 2007, joining the firm as utilities president.
  • Don Tarry has been with TXNM Energy since 1996 and will oversee the implementation of the phased-in rate hike for PNM customers.
  • The rate hike will increase the average monthly residential bill by $6.23 in both phases.
  • TXNM Energy has a long history of supporting renewable energy, with PNM reaching 72% carbon-free generation capacity in 2024.
  • Blackstone's holdings include over 12,500 real estate assets and more than 250 portfolio companies.

Sources:

  • Bloomberg News
  • The New Mexican
  • TXNM Energy news release
  • Public Regulation Commission of New Mexico
  • New Energy Economy