STUDY STATE PURCHASE OF UTILITIES

SM009

SENATE MEMORIAL 9

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

INTRODUCED BY

Harold Pope and Patricia Roybal Caballero

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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