Environmental Advocates Challenge Blackstone’s Energy Acquisition
A major battle is brewing over Blackstone’s attempt to acquire control of New Mexico’s largest public utility, the Public Service Company of New Mexico. The Center for Biological Diversity, a national environmental organization, has formally urged the Federal Energy Regulatory Commission (FERC) to reject the private equity giant’s application.
The Center’s filing warns that the takeover could shift a public utility’s mission away from serving residents toward generating corporate profits. The Public Service Company of New Mexico is a subsidiary of American Electric Power (AEP), the same parent company that owns Public Service Company of Oklahoma—a key energy provider across Oklahoma.
“Public utilities should serve the public interest, not vulture capitalists like Blackstone,” said Lavran Johnson, an Albuquerque-based attorney with the Center. Johnson argued that the proposal represents “a dangerous step toward privatizing essential infrastructure for short-term financial gain.”
Concerns About Ratepayer Impact and Energy Demand Growth
If approved by FERC and New Mexico utility regulators, the acquisition would give Blackstone control over much of the state’s energy grid. Critics say that would allow the firm to leverage ratepayer-funded assets to support its growing portfolio of data centers—a sector experiencing explosive growth due to artificial intelligence.
“New Mexicans shouldn’t be forced to subsidize the energy-thirsty AI bubble by turning our public utility over to a private equity firm,” Johnson continued.
The Center for Biological Diversity argues that Blackstone’s AI and data center investments are fueling rising national electricity demand, prompting new fossil fuel generation projects that worsen the climate crisis.
AI Expansion and Climate Implications
Across the United States, AI-driven data centers are straining the grid. The need for constant, high-power operations drives utilities to build more natural gas and coal generation capacity, even as renewable projects struggle to keep pace.
“Private equity firms like Blackstone are buying up public utilities and data centers to cash in on AI growth,” said Jean Su, director of the Center’s energy justice program. “These data centers saddle families with higher power bills while worsening pollution and draining water resources.”
Su added that FERC should not rubber-stamp deals that hand essential public functions to companies focused on short-term profit. “Our energy system exists to serve the public good—not to fuel Wall Street speculation,” she said.
Regulatory Review and Upcoming Hearing
In addition to its federal filing, the Center for Biological Diversity has lodged an objection with the New Mexico Public Regulation Commission (PRC). That agency has scheduled an evidentiary hearing for May 2026, setting the stage for an extended legal and political showdown.
If both FERC and the PRC approve Blackstone’s plan, the firm could gain unprecedented influence over New Mexico’s power supply, pricing, and infrastructure investment decisions.
For Oklahoma and other states served by AEP subsidiaries, the outcome could signal how private equity ownership may reshape regional energy systems, grid reliability, and consumer costs.
