TNP Enterprises Provides Energy Needs

Trimaran’s initial private equity fund spearheaded by the now private LBO of TNP Enterprises, Inc. (“TNP”), had the distinction of being the first leveraged buyout of an incorporated, electric utility owned by investors. TNP oversaw Texas-New Mexico Power Company (“TNMP”) and First Choice Power, Inc. (“First Choice”), which jointly served as a cohesive electric utility for New Mexico and Texas.

TNMP generated, purchased, transmitted, and distributed electricity to hundreds of thousands of residential and commercial customers across numerous communities of medium and large size in Texas and New Mexico. TNP One, whose parent company was TNMP until being sold in October 2002, was generation powered by 300 megawatts and fueled by lignite which provided about 21% of TNMP’s retail energy needs.

TNMP had the responsibility of delivering electricity that customers bought via the Texas Electric Choice program and also had the responsibility of servicing connections and re-connections based on the needs of retail providers. Furthermore, it ran the pole and wire construction and maintenance needed for customers to get electricity.

Following the sale of TNP One, TNMP purchased its retail energy requirement from several non-affiliated suppliers, most of them being purchased via firm contracts. TNMP’s transmission and distribution facilities are mostly made of overhead and underground lines, substations, transformers, and meters.

Trimaran Capital Partners ended its TNP investment following the PNM Resources Inc. acquisition. PNM owns Public Service Company of New Mexico.