Hearings are in progress in New Mexico before the state’s Public Regulation Commission for the proposed sale of New Mexico Gas Co. to a Louisiana-based private equity firm. Bernhard Capital Partners proposed the $1.25 billion takeover of the state’s largest natural gas utility from Canadian firm Emera, the current owner of New Mexico Gas that said last year it “no longer wishes to own the utility,” according to Santa Fe New Mexican. NMGC serves more than 500,000 customers.
Officials from the companies, residents, industry representatives and others are providing testimony. Albuquerque Journal said energy advocacy groups and the state’s Department of Justice requested dismissal of the proposed sale. Jeff Baudier, Bernhard’s senior managing director, said the firm invests in infrastructure and owns companies that provide services to major projects, including utilities.
According to the Journal, NMGC customer Michael Policastro said Bernhard has limited experience in managing a regulated utility. “I see no clear benefit to New Mexico customers from this proposed sale,” he said.
Bernhard said it will retain all 800 employees, guaranteed no rate increases before 2028, and promised to maintain the utility’s headquarters and call center in New Mexico. New Mexico Oil and Gas Association also spoke in favor of the sale, according to the New Mexican. And the Greater Albuquerque Chamber of Commerce reportedly supports the sale. Terri Cole, president and CEO of the chamber, said Oct. 28, “New Mexico Gas Co. has been a trusted provider for decades, and we believe this proposed acquisition will strengthen that foundation for the future.”
New Mexican said another private equity firm, Blackstone, proposed last year to acquire Public Service Co. of New Mexico (PNM), the state’s largest electricity provider with 550,000 residential and business customers in a $11.5 billion deal also awaiting approval.
Leave a Reply