An Introduction to TNP Enterprises

Trimaran’s first private equity fund led by the soon to be private LBO of TNP Enterprises, Inc. (“TNP”), which was the first leveraged buyout of an integrated electric utility that was also investor-owned. TNP was the parent company of Texas New Mexico Power Company (“TNMP”) and First Choice Power, Inc. (“First Choice”), which collectively functioned as a unified electric utility in the states of Texas and New Mexico. 

TNMP was responsible for the generation, purchasing, transmission, and distribution of electricity to hundreds of thousands of residential and commercial customers across more than eighty small to mid-sized communities in Texas and New Mexico. TNP One, which was owned by TNMP until its sale in October 2002, was a 300 megawatt, generation plant fueled by lignite which provided roughly 21% of TNMP’s retail energy requirements.

TNMP was responsible for delivering electricity that customers purchased through the Texas Electric Choice program and was ably responsible for servicing connections and re-connections as requested by retail providers. It also oversaw the construction and maintenance of the poles and wires required for customers to receive electricity.

After the sale of TNP One, TNMP bought its retail energy requirement from a multitude of non-affiliated suppliers, considerably all of which are purchased via firm contracts. TNMP’s transmission and distribution facilities are comprised largely of overhead and underground lines, substations, transformers, and meters.

Trimaran Capital Partners ended its investment in TNP after PNM Resources Inc. acquired the company. PNM is the parent company of Public Service Company of New Mexico.