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Major Parties In TNMP-Blackstone Acquisition Case Reach Settlement, Including Retail-Related Terms
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Several major parties in a Texas PUC proceeding which is reviewing a proposed merger under which Texas-New Mexico Power Company would become an indirect subsidiary of Troy ParentCo LLC (Troy) and Blackstone Infrastructure (see background here) have reached a settlement agreement under which the merger would be approved
Settling parties include TNMP, Troy, PUC Staff, Office of Public Utility Counsel, Texas Industrial Energy Consumers, Cities served by TNMP, Walmart, and the Texas Energy Association for Marketers. A caption described the settlement as "unanimous" though not all parties were signatories (Valero Refining-Texas L.P. does not oppose the stipulation).
With respect to retail market and affiliate issues, the settlement provides that if a "controlled affiliate" of Blackstone Infrastructure seeks certification from the PUC to become an Option 1 retail electric provider, TNMP will provide notice of that certification docket to the parties in the merger case.
The settlement does not bar Blackstone Infrastructure or affiliates from owning an Option 1 REP.
The settlement does not require Blackstone Infrastructure or affiliates to sell ownership in any REP which would become an affiliate of TNMP upon completion of the merger. As previously reported, as a result of the proposed TNMP-Troy merger, Option 2 retail electric providers Lancium REP I, LLC and Lancium QSE I LLC would become competitive affiliates of TNMP, due to Blackstone's investment and stake in Lancium LLC.
The settlement does provide that TNMP, "may not provide any affiliated Large Load (as defined by ERCOT) any preference over a non-affiliated Large Load. Transactions between TNMP and affiliated Large Loads shall be at arm’s length, except that transactions governed by tariffs shall be in accordance with the applicable tariffs."
Additionally, the settlement includes the following provision concerning TNMP's name and logo:
Separate Name and Logo: TNMP will maintain an identity, name, and logo that is separate and distinct from the identity, name, and logos associated with Blackstone and any current or former Texas competitive affiliate of TNMP; provided, that the Blackstone name and logo can be added to the TNMP name and logo for branding purposes but that if the Blackstone name or logo is added to the TNMP name and logo, no competitive affiliate with operations in Texas will use the Blackstone or TNMP name, logo, or other brand-identifying features (or any combination thereof) for branding purposes. TNMP will not engage in joint marketing, advertising or promotional activities with any affiliate data center developer or competitive affiliate of TNMP (including retail electric providers, aggregators, and wholesale generation companies) operating in Texas in a manner that is inconsistent with the Public Utility Regulatory Act and the Commission’s rules.
The stipulation also provides that no member of the TNMP Board may be an employee or board member of a competitive affiliate or have direct responsibility for management or strategy of a competitive affiliate
Under the settlement, TNMP will provide a direct financial benefit to customers in the form of a rate credit of $45.5 million to be paid over 48 months following the closing of the acquisition. The settlement was not explicit as to the mechanism for this credit (i.e required to be passed through by the customer's REP), or on timing (aligned with the date for other rate changes, etc)
Docket 58536
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December 11, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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