Saturn Holdco Faces Call for Management Audit in NM Gas Co. Acquisition

Deal News | Dec 30, 2024 | EIN

New Energy Economy, a New Mexico-based consumer and environmental advocacy group, has filed a request with the New Mexico Public Regulation Commission (PRC) for a management audit of Bernhard Capital Partners, the parent company of Saturn Holdco, which is attempting to acquire New Mexico Gas Company from Emera. The advocacy group argues that a management audit is vital to evaluate the motives of the proposed purchaser, understanding the influence these motives might have on public and private interests, as well as their impact on operations, rates, and reliability of New Mexico Gas Company (NMGC). Bernhard Capital Partners had been connected to the Petra Nova carbon capture project in Texas, which had faced technical issues. New Energy Economy raises concerns regarding reduced regulatory filings post-merger and recalls a 2021 management audit request on Avangrid during its attempt to acquire the Public Service Company of New Mexico. Joint applicants argue against the audit, citing lack of regulatory authority from PRC over Bernhard Capital Partners and the lengthy process timeline as reasons for rejection. Approximately 20 residents have voiced opinions on the matter, either advocating for the audit or opposing the acquisition.

Sectors

Utility
Private Equity
Energy

Geography

United States – The acquisition of New Mexico Gas Company by Bernhard Capital Partners, through Saturn Holdco, involves entities operating within the United States, highlighting regional regulatory considerations.
New Mexico – The primary focus of the article is on the acquisition of New Mexico Gas Company, involving local regulatory agency actions and community reactions.

Industry

Utility – The article discusses the acquisition of a gas utility company, New Mexico Gas Company, highlighting the regulatory and operational implications involved.
Private Equity – Bernhard Capital Partners, a private equity firm, is the parent company involved in the acquisition attempt, highlighting the role of private equity in utility sector transactions.
Energy – References to carbon capture technologies and operations in the context of energy production underscore the article's relevance to the broader energy sector.

Financials

23 months – Estimated duration for conducting a management audit based on a previous example from New York.

Participants

Name	Role	Type	Description
New Energy Economy	Consumer and Environmental Advocacy Group	Charity	An advocacy group challenging the acquisition and requesting a management audit.
New Mexico Public Regulation Commission (PRC)	Regulatory Body	Government	The state regulator being asked to conduct a management audit on the acquiring firm.
Bernhard Capital Partners	Parent Company	Company	The private equity firm owning Saturn Holdco, proposed acquirer of NM Gas Co.
Saturn Holdco	Bidding Company	Company	The entity attempting to acquire New Mexico Gas Company.
Emera	Selling Company	Company	The parent company currently owning New Mexico Gas Company.
New Mexico Gas Company	Target Company	Company	The gas utility subject to acquisition.
Jeffrey Baudier	Senior Managing Director	Person	Senior Managing Director at Bernhard Capital Partners with previous involvement in the Petra Nova project.