The New Mexico Attorney General, Raúl Torrez, has voiced opposition to the proposed sale of New Mexico Gas Company (NMGCO) to Saturn Utilities Holdco and Bernhard Capital Partners (BCP). The New Mexico Department of Justice (NMDOJ) filed a post-hearing brief with the Public Regulation Commission (PRC), highlighting concerns about the transaction. Representing over 549,000 customer meters and 1.3 million residents, mostly residential and small business consumers, Torrez advises the PRC to reject the deal unless robust protections are established.
Attorney General Torrez said, "This filing outlines our position and our responsibility to protect New Mexico ratepayers." He warned that the acquisition could lead to increased rates, reduced transparency, and financial instability for customers statewide. The NMDOJ's brief identifies several risks related to BCP’s ownership structure.
The brief notes affordability risks due to BCP's short-term investment approach and reliance on private debt, which may pressure rate hikes. It also mentions BCP's plan to create a new regulatory asset for administrative and IT services costs that would burden New Mexican families and businesses.
Concerns about transparency arise from BCP’s complex corporate structure and past attempts to limit information access during regulatory proceedings. Unlike NMGCO’s current parent company Emera, BCP is not subject to the same disclosure requirements, complicating oversight by state regulators.
Accountability issues are also highlighted as BCP’s network of funds and holding companies might shield it from responsibility while limiting regulators' ability to ensure compliance. If the PRC proceeds with approval, NMDOJ suggests imposing strict conditions such as substantial rate credits for low-income customers, restrictions on key utility asset sales without PRC approval, transparent cost analyses before adopting new IT or shared service platforms, and economic development funds for severe weather reliability.
The PRC will review all submissions before making a final decision on the acquisition. The NMDOJ remains committed to representing residential and small business consumers throughout these proceedings.
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