SENATE MEMORIAL 9

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Harold Pope

 

 

 

 

 

A MEMORIAL

REQUESTING THE LEGISLATIVE FINANCE COMMITTEE TO STUDY THE PUBLIC BENEFIT OF ONE OR MORE STATE INVESTMENT FUNDS PURCHASING AN EQUITY INTEREST IN CERTAIN UTILITIES AND TO REPORT ITS FINDINGS PRIOR TO THE FIFTY-EIGHTH LEGISLATURE.

 

     WHEREAS, private equity firms are currently seeking approval from the public regulation commission to acquire the New Mexico gas company and TXNM energy, inc., the parent company of the public service company of New Mexico; and

     WHEREAS, the public regulation commission is currently evaluating those approval requests, but there is no statutory deadline by which a decision must be made; and

     WHEREAS, the utilities sought to be acquired by the private equity firms provide essential services to New Mexico residents, collect billions of dollars of revenues from New Mexico residents and have a significant impact on New Mexico's economy, as well as the health and well-being of its residents; and

     WHEREAS, New Mexico currently has a number of funds that invest money for the purpose of benefiting New Mexico and its residents; and

     WHEREAS, if a state investment fund purchased an equity interest in the utilities, the state could be provided with the same low-risk, high returns on investment in the form of dividends, profits and growth that the utilities' current shareholders have received; and

      WHEREAS, New Mexico is currently over-reliant on uncertain and volatile oil and gas royalties and revenues to pay the expenses of government and benefit New Mexicans; and

     WHEREAS, New Mexico could benefit from a more diverse and

reliable source of revenues than it currently has; and

     WHEREAS, New Mexico and its residents could benefit financially from the state purchasing a substantial share of the equity of the utilities that private equity firms are currently seeking to acquire; and

     WHEREAS, an additional benefit to the state from purchasing a substantial share of the equity of the utilities would be an increased opportunity to promote and influence business policies and practices that better serve and protect the interest of New Mexico residents; and

     WHEREAS, allowing private equity firms to acquire the utilities may preclude New Mexico's ability to acquire a potentially beneficial ownership interest in the utilities;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the staff of the legislative finance committee be requested to conduct a study, in consultation with experts from state agencies, including the public regulation commission, New Mexico finance authority, attorney general, state investment council and economic development department, to determine the public, ratepayer, environmental and economic costs and benefits to New Mexico of one or more state investment funds purchasing equity interests of various amounts in the New Mexico gas company and TXNM energy, inc., the parent company of the public service company of New Mexico, and the specific procedures, disclosures and actions needed for a state investment fund to accomplish such a purchase; and

     BE IT FURTHER RESOLVED that the staff of the legislative finance committee be requested to periodically report to the committee on the progress of the study and to present a final report with recommendations to the committee by December 1, 2026; and

     BE IT FURTHER RESOLVED that the public regulation commission be requested to refrain from approving any private equity acquisition of the New Mexico gas company and TXNM energy, inc., the parent company of the public service company of New Mexico, until the studies requested in this memorial have been completed and submitted to the legislative finance committee, but in no event prior to the conclusion of the first session of the fifty-eighth legislature; and

     BE IT FURTHER RESOLVED that copies of this memorial be

transmitted to the legislative finance committee, the public regulation commission, the New Mexico finance authority, the attorney general, the state investment council and the economic development department.

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