Private equity firm Blackstone reached an agreement Monday to purchase TXNM Energy, in an $11.5 billion deal that reinforces investors’ enthusiasm for utilities as electricity demand rises.

The move will help TXNM — the parent company of New Mexico’s largest utility — achieve “scale” while maintaining stability for its current customers, CEO Pat Collawn said in a call with investors on Monday. The deal with Blackstone Infrastructure, the firm’s North American infrastructure arm, is expected to be completed in the second half of 2026.

Blackstone will also invest $400 million through stock purchases in the interim to support growth in TXNM and its two subsidiaries in New Mexico and Texas, PNM and TNMP.

“PNM has done an excellent job of transitioning its generation portfolio to clean energy and supporting the communities it serves,” Sean Klimczak, Blackstone’s global head of infrastructure, said in a statement. “We will utilize our long-term investment approach to support PNM’s economic development efforts during New Mexico’s sustainable generation transition.”