US Sens. Bernie Sanders, Elizabeth Warren criticize Blackstone over proposed TXNM Energy purchase - Hannah Garcia, Albuquerque Journal
A group of progressive, East Coast U.S. senators is criticizing Blackstone Infrastructure’s proposed $11.5 billion acquisition of TXNM Energy Inc., saying the deal isn’t in the public’s best interest.
U.S. Sens. Elizabeth Warren, D-Mass., Bernie Sanders, D-Vt., and Richard Blumenthal, D-Conn., cited concerns regarding the private equity firm’s interest in purchasing publicly traded utility companies in a joint letter on Thursday to Blackstone CEO Stephen Schwarzman, claiming the acquisition allows the firm to “profit from rising energy demands at the expense of consumers.”
“Investors have typically viewed utility companies as reliable investments with a guaranteed rate of return,” read the letter from the three members of the Senate Banking, Housing, and Urban Affairs Committee. “But now, amidst rapidly rising energy use from (artificial intelligence) data centers and other strains on the grid, Wall Street investors and private equity firms appear to be taking advantage of utilities’ regulated-monopoly status to rake in excess profits.”
The proposed acquisition, filed in August with state regulators, would take TXNM Energy, one of the state’s only publicly traded companies, private. TXNM is the parent company of Texas-New Mexico Power Co. and Public Service Company of New Mexico, the state’s largest electricity provider.
Defending its proposed purchase of TXNM, a Blackstone spokesperson wrote to the Journal that long-term private capital enables utilities to invest in projects that can strengthen and decarbonize the grid.
These investments ensure that customers receive “reliable, affordable power — without the pressure of short-term quarterly metrics,” the spokesperson said. “Private investors have been investing in utilities for more than 20 years, and any transaction must undergo a robust regulatory process and demonstrate clear benefits to consumers to gain approval from local, state and federal regulators.”
The letter, in part, asked Blackstone if it plans to raise electricity prices for PNM and TNMP, and if it will reduce the workforce to meet “investor targets” if its purchase is approved by state regulators. The senators asked Blackstone to respond to their questions by Dec. 18.
The senators claimed other acquisitions, like Balfour Beatty Infrastructure Partners’ 2014 takeover of Upper Peninsula Power Co., increased customers’ electricity bills. That deal raised bills by nine cents more compared to the average rate of other investor-owned utilities in the Michigan area, the senators’ letter said.
A PNM spokesperson said electricity rates would continue to be set by the New Mexico Public Regulation Commission. Blackstone did, however, say it would include $105 million in rate credits over four years, which could lower the average residential customer bill by 3.5%. The private equity firm also said it would retain PNM’s local workforce and keep the utility’s headquarters in the state.
PNM, which serves roughly 550,000 customers, is no stranger to power strains when it comes to growing communities and data center development.
Last week, the Bernalillo County Planning Commission approved applications on a special use permit and sector plan amendment for PNM’s North Albuquerque Acres Substation Project. The utility has been working to build the infrastructure, used as a means to deliver power to surrounding neighborhoods, for nearly eight years as the area continues to grow.
But the letter also touched on Blackstone’s data center business, which operates under the banner QTS Realty Trust. “Blackstone is seeking to buy the utility companies that power (data centers) — raising additional affordability concerns for consumers.” The letter cited an International Energy Agency report claiming electricity demand worldwide will increase by 130% by 2030, in large part due to the power that data centers require.
Like other parts of the U.S., New Mexico is seeing a demand for data centers — and an interest from large companies.
A Doña Ana County data center campus, under the name Project Jupiter, was named one of five sites in the $500 billion Stargate Project in September, led by OpenAI and Oracle.
At least two other companies have eyed New Mexico to house data center operations, including Wyoming-based Zenith Volts Corp., with an 8,400-acre site in Chaves County, and Texas-based New Era Energy & Digital Inc., which wants to put a 3,500-acre campus in Lea County.
Asked in August about the relationship between Blackstone’s data center business and its planned purchase of TXNM, a spokesperson said there “is absolutely no connection” and that its “proposed investment in TXNM Energy is solely because of our conviction in the company, its management and the future growth of the economies of New Mexico and Texas.”
New Mexico Department of Health announces recommendations for Hepatitis B vaccinations amid change in Federal policy - Daniel Montano, KUNM
The New Mexico Department of Health announced monday hat it “continues to strongly recommend” hepatitis B vaccinations for all newborns.
DOH officials say because the state updated protocols surrounding vaccine recommendations, the announcement means the hepatitis B vaccine will still be covered by most insurance including Medicaid.
NMDOH Chief Medical Officer, Dr. Miranda Durham, says for decades the hepatitis B vaccine has been proven safe and effective at protecting children from infections, especially in settings like day care and schools where others may not know they are infected.
DOH officials say their recommendations are in line with other professional organizations like the American Academy of Pediatrics, the president of which called the recommendation by the Centers for Disease Control and Prevention “irresponsible and purposefully misleading.”
Since 1991, when the vaccine was recommended for all newborns, DOH says infections have decreased in children and teens by 99%.
The CDC’s Advisory Committee on Immunization Practices has been in the spotlight as Health Secretary Robert F. Kennedy Jr. removed and replaced all previous members, installing people with a history of vaccine skepticism.
In response the State of New Mexico issued new pharmacy protocols, which allowed pharmacists to use guidance from other bodies like the New Mexico Department of Health.
University of New Mexico heads to first Bowl game against Minnesota - Mark Haslett, KUNM
This year’s University of New Mexico football team recorded quite a few “first time in a long time” achievements. On Sunday, UNM continued the pattern by earning its first berth in an out-of-state bowl game since 2004.
The Lobos (9-3, 6-2 in Mountain West Conference play) will face the University of Minnesota (7-5, 5-4 in the Big Ten Conference) in the Rate Bowl on Dec. 26. Hosted at Chase Field in Phoenix, the game will kick off at 2:30 p.m.
UNM’s winning record ensured the team a bowl invitation of some sort. But many observers had the Lobos once again playing on their own field in the New Mexico Bowl, which has been played annually at University Stadium since 2006. The Lobos have been participants in the New Mexico Bowl four times, most recently in 2016. But teams weren’t lining up to play UNM.
“People didn’t want to come play us in our home stadium,” Lobos Head Coach Jason Eck told the Albuquerque Journal.
Meanwhile, the Rate Bowl, formerly known as the Copper Bowl, was looking for a qualified participant. The game typically features teams from the Big Ten and Big XII conferences. The Big Ten’s Minnesota accepted an invitation. But the preferred Big XII representatives, Iowa State and Kansas State, both declined invitations due to end-of-season coaching changes. The Lobos, happy to play a bowl game against a team from a Power Five conference, agreed to fill the void.
“Thank you to those players at Iowa State,” Eck said. “I hope they have a great Christmas at home — (thanks) for opting out and giving us an opportunity to get in this game.”
UNM and Minnesota have never met on the football field. Minnesota will be making its fifth consecutive bowl-game appearance. The Gophers have enjoyed plenty of postseason success in recent years. Since 2015, Minnesota owns an 8-0 record in bowl games.
New Mexico’s last bowl game appearance was in 2016, a 23-20 victory over UT-San Antonio in the New Mexico Bowl. UNM’s last out-of-state bowl game appearance was a 34-19 loss to Navy in the Emerald Bowl in 2004.
Startup with hopes to build outer space power grid names Albuquerque as HQ - Joshua Bowling, Source New Mexico
A startup that seeks to build the first-ever power grid in outer space has selected Albuquerque as its headquarters, the state Economic Development Department announced Monday.
Mantis Space, a Georgia-founded company backed by venture capital, plans to build orbital infrastructure capable of powering satellites and lunar operations, according to a news release. The new Albuquerque headquarters and research and development facilities are expected to generate as much as $480 million in economic impact over the next 10 years, the release said. Company officials expect to create more than 200 jobs with average annual salaries of more than $180,000.
Company officials say they chose Albuquerque after a national search and weighed factors such as quality of life, access to talent and available economic incentives. The state is awarding the company $2.5 million under the Local Economic Development Act and Albuquerque is awarding it $500,000.
“Albuquerque exceeded nearly all our criteria for our highly competitive selection and offered an extremely competitive package that was ultimately the key,” Mantis Space CEO Eric Truitt said in a statement. “We look forward to working together to make New Mexico a national leader in both space and advanced energy innovation.”
The state Economic Development Department in a release said orbital infrastructure is expected to pave the way for “off-planet data centers and manufacturing.”
High-tech projects have increasingly announced plans to open in New Mexico. In September, local officials approved plans for Project Jupiter, a campus of data centers planned to support the tech giants OpenAI and Oracle. That same month, Pacific Fusion, a California-based fusion energy company, announced plans to build a $1 billion research and manufacturing campus in Albuquerque. And in November, a California-based hypersonic missile company announced plans to open a 1,000-acre manufacturing plant in Sandoval County.
The state Economic Development Department in early December released a 158-page report that calls for further growth in science and technology fields including quantum systems, advanced energy and aerospace.
“New Mexico is rapidly becoming an anchor for our nation’s most advanced industries, as today’s exciting announcement demonstrates,” New Mexico Gov. Michelle Lujan Grisham said in a statement. “With our world-class research institutions, unmatched talent, and growing network of innovative companies, our state is literally shaping the future.”