Powering New Mexico: How TXNM Energy Became a Quiet Clean Energy Champion
TXNM Energy, Inc. (formerly PNM Resources) has long been a cornerstone of New Mexico’s energy landscape.
Founded in 1917, the company’s roots trace back to the creation of the Public Service Company of New Mexico (PNM), which initially focused on providing electricity to the state’s rapidly growing population. Over the decades, it expanded its footprint, serving not just Albuquerque but large swaths of New Mexico. It wasn’t glamorous—just steady, reliable utility work, with traditional energy sources like coal and natural gas dominating.
But around 2005, TXNM Energy made a pivotal shift. Recognizing the future was in renewables, the company became one of the first utilities in the U.S. to significantly reduce its reliance on coal and invest in wind and solar projects. By 2020, it had invested heavily in renewable energy and energy storage, pledging to cut carbon emissions by 80% by 2040.
Today, TXNM Energy’s generation mix is significantly more carbon-free, with 72% of its capacity coming from renewable and low-carbon sources. Its renewable power portfolio includes a mix of wind, solar, and geothermal energy, alongside traditional energy sources like natural gas, coal, and nuclear. The company continues to expand its renewable footprint and is pushing ahead with the integration of large-scale solar and wind projects to meet long-term sustainability goals.
In 2020, TXNM Energy diversified by acquiring Texas-based FirstChoice Power, allowing it to enter the competitive retail market while expanding its renewable energy initiatives. Additionally, the company has worked closely with the New Mexico Renewable Energy Transmission Authority (RETA), securing financing for large-scale renewable projects and advancing transmission infrastructure to link New Mexico’s vast wind resources to the wider Southwest grid.
Looking ahead, TXNM Energy is on track to achieve 100% carbon-free electricity by 2040 . As part of its long-term plans, the company has issued a Request for Proposals (RFP) for at least 900 megawatts of new energy resources to come online between 2029 and 2032, replacing the capacity from its Four Corners Power Plant, which it plans to exit by 2031.
Recently, TXNM Energy has been exploring a potential sale after receiving takeover interest from private equity firm KKR & Co. The company has been working with an adviser to consider its options, reflecting its strong position in the clean energy sector and its appeal to investors looking to capitalize on the energy transition.
TXNM Energy isn’t just an electricity provider—it’s a leader in the clean energy transition. Under the leadership of CEO Patricia Collawn, the company has shifted from traditional power generation to becoming a force for clean energy innovation in the region.
TXNM Energy may not have the scale or visibility of national giants, but it’s a symbol of how small, regionally focused utilities can punch above their weight in the clean energy era. Its success lies not in flashy growth, but in pragmatic transformation —a blueprint for utilities nationwide as they navigate the shift to renewable, distributed energy.
