By Valerie Espinoza

New Mexicans deserve energy companies that are reliable, transparent, and accountable to the public—not private-equity firms that play shell games with our essential services. That’s why the proposed buyout of New Mexico Gas Company (NMGC) by Bernhard Capital Partners (BCP) should be rejected. Its set for hearing on Nov. 3.

Under New Mexico law, the Public Regulation Commission (PRC) must approve a utility transfer only if it is “consistent with the public interest.” That legal standard exists to protect ratepayers from unnecessary risk. The evidence shows that this deal fails that test —spectacularly.

BCP is a private equity firm with no experience operating a monopoly, regulated gas utility. This alone should stop the deal cold. Running a utility that serves more than 550,000 customers is not like flipping a company for profit; it’s a long-term public trust.

Worse, the little operating experience BCP does have raises red flags about its competence and priorities. One of BCP’s portfolio companies, National Water Infrastructure, was cited by Louisiana environmental regulators for violations that endangered public health at a wastewater facility. The Louisiana Department of Environmental Quality found that the company “failed to properly operate and maintain the treatment facility.” Inspectors even found feces and bloodworms in the receiving stream, noting that the contamination indicated stagnant water “commonly associated with sanitary waste.”

BCP tries to excuse this by claiming it buys “distressed” companies. But records show BCP acquired National Water Infrastructure in 2020—and was still negotiating settlements for those same problems four years later, in 2024. If a company can’t fix a public-health hazard after four years, what does that say about its seriousness in protecting customers?

The same pattern—inexperience, opacity, and opportunism—appears to run throughout BCP’s record. It’s a “build-as-you-go” operation with a questionable balance sheet and limited technical expertise. BCP’s recently acquired utilities in Louisiana are still in the startup phase, struggling with billing confusion, customer complaints, and integration problems. New Mexico should not be their next experiment.

BCP claims it will bring “operational expertise,” yet simultaneously promises not to interfere in NMGC’s day-to-day operations. Those claims can’t both be true. Of course, investors want control—that is the whole point of private equity investment – to “streamline” companies so that their balance sheets look good and they can be sold at a profit.

What are ratepayers being offered in exchange for this risk? $3.39 a month for one year. That’s the rate credit on offer.

It’s pocket change, especially when compared with a promise by BCP to later recoup $45 million from customers for upgraded information technology (“IT”), an unproven need. That $45 million anticipated rate increase for IT is not based on a cost-effective comparatives analysis, which must be produced, to determine if BCP’s investment is prudent compared to other investments. BCP’s rate credit is not a benefit —it’s a tiny offset against a future significant rate hike for an unjustified expenditure.

Contrast this with NMGC’s current owner, Emera, a seasoned utility company that has delivered stable, affordable service for years. By every measure, Emera has operated responsibly (even when Texas failed to deliver gas during Storm Uri in 2021, and 246 people died there, primarily from hypothermia, the Emera-owned NMGC kept us warm), with trained staff, solid finances, and regulatory compliance. There’s no public interest served by trading a capable, experienced operator for a speculative investment fund.

At its core, this buyout isn’t about improving service—it’s about extracting wealth from New Mexico. Private equity investors like BCP are simply not worth the significant risks: inability to properly maintain and operate facilities, managerial inexperience, and siphoning profits from New Mexico families. Ratepayers will shoulder the risk; private investors will pocket the gains.

The PRC’s duty is clear: protect the public interest. That means rejecting BCP’s application and keeping New Mexico’s energy system in responsible hands. Our families, our businesses, and our economy depend on it.