Sheila Mendez Harnesses IT Transformation at TXNM Energy

As CIO with twenty-six years of institutional knowledge at TXNM Energy, Sheila Mendez supports a culture of innovation in the ever-evolving energy sector

Sheila Mendez, VP and CIO, TXNM Energy

(Photo courtesy of Sheila Mendez)

BY FRANNIE SPROULS, HISPANIC EXECUTIVE

Sheila Mendez is not only an IT expert but also a TXNM Energy expert.

The vice president and chief information officer has been with the organization for twenty-six years, having started with the company when it was known as PNM Resources. She helped transition all IT services when TXNM Energy sold its gas operations to New Mexico Gas Company, and led the high-profile, $21 million program for the company to enter the Western Energy Imbalance Market.

Today, she’s focused on M&A activities from an IT perspective, and Mendez credits her two years in operations for broadening her experience prior to taking on her current role as CIO.

“Stepping into utility operations has enriched my perspective and equipped me with a holistic view of our business,” she explains. “These insights have been instrumental in shaping my leadership approach, ensuring that we continue to drive operational efficiency and strategic resilience at TXNM Energy.”

Mendez spoke with Hispanic Executive, detailing how TXNM Energy is harnessing generative artificial intelligence (AI) to maintain grid integrity, the importance of fostering a culture of innovation, and advice she has for the next generation of Latina leaders in tech.

After twenty-six years at TXNM Energy, how have you seen the role of IT evolve in shaping both internal operations and energy resilience strategies?

Over the past twenty-six years at TXNM Energy, I have seen the transformative evolution of the role of IT, including convergence with operations technology, which has significantly impacted both internal operations and our energy resilience strategies. This evolution has been driven by technological advancements, changing business needs, and the increasing importance of sustainability, reliability, and resilience.

Initially, IT functions were primarily focused on supporting basic business needs, such as automation, data management, and communication systems. However, as technology advanced, IT [has played] a crucial role in digital transformation initiatives, leveraging technologies like cloud computing, big data, artificial intelligence, and machine learning to drive innovation and improve decision-making. IT has become an integral part of strategic planning and operational optimization.

In essence, IT has transitioned from a supporting role to a pivotal force driving both operational efficiency and strategic resilience, ensuring that TXNM Energy continues to protect our critical infrastructure and enhance customer experience in the ever-evolving energy sector.

“IT has transitioned from a supporting role to a pivotal force driving both operational efficiency and strategic resilience, ensuring that TXNM Energy continues to protect our critical infrastructure and enhance customer experience in the ever-evolving energy sector.”

Sheila Mendez

How are you leveraging generative AI and cyber resilience practices to protect your workforce and enhance grid reliability?

At TXNM Energy, we are actively harnessing the power of generative AI to bolster our workforce and maintain the integrity of our grid systems. Generative AI will allow us to predict and preempt potential disruptions in the energy supply by analyzing data and identifying patterns indicative of future issues. As we continue our AI maturity and use machine learning algorithms, we can optimize energy distribution, ensuring consistency and reliability even during peak demand periods.

Cyber resilience practices form a cornerstone of our strategy to protect our infrastructure and workforce. We have advanced threat detection systems that continuously monitor and safeguard against cyberattacks. Our teams are trained to respond swiftly and effectively to any breaches, minimizing downtime and preserving the security of our operations. Additionally, regular cybersecurity drills (like GridEx or CISA tabletops), advanced social engineering training to enforce our “Human Firewall,” and rapidly patching our end points ensure that our defenses remain robust against evolving threats.

Through these innovative approaches, we not only enhance grid reliability but also create a secure and supportive environment for our employees, fostering a culture of resilience and proactive problem-solving.

You’ve placed a strong emphasis on training and promoting internal talent. How do you build a culture that supports innovation and leadership development within IT?

At TXNM Energy, fostering a culture of innovation and leadership development within IT starts with our commitment to continuous learning and professional growth. We provide our employees with access to training programs and resources that empower them to develop their technical skills and leadership capabilities. By encouraging a mindset of curiosity and discovery, we enable our IT teams to stay ahead of industry trends and drive transformative solutions.

Mentorship and collaboration are also key components in building this culture. We pair seasoned experts with emerging talent, creating opportunities for knowledge-sharing and mutual growth. This approach not only helps individuals expand their skill sets but also strengthens the team as a whole, fostering a supportive environment where innovative ideas can thrive.

Furthermore, we recognize and celebrate achievements, both big and small, to motivate our workforce and reinforce the importance of continuous improvement and innovation. By cultivating an atmosphere that values creativity, initiative, and resilience, we ensure that our IT department remains a dynamic and influential force within our organization.

“By encouraging a mindset of curiosity and discovery, we enable our IT teams to stay ahead of industry trends and drive transformative solutions.”

Sheila Mendez

Stepping into operations for two years outside your IT background, what were some of the biggest insights you gained, and how has it shaped your leadership today?

Stepping into utility operations outside my IT background for two years provided me with invaluable insights that have profoundly shaped my leadership role today. Managing teams responsible for substation, transmission, and distribution line projects, as well as capital investments in New Mexico, offered a comprehensive understanding of our core business needs, which has been instrumental in my professional development.

This experience allowed me to see firsthand the complexities involved in managing large-scale infrastructure projects and the challenges of maintaining and upgrading our grid systems. These insights have been crucial in my current role, where I continue to leverage technology solutions to address operational challenges and enhance efficiency, reliability, and customer experience. It has reinforced my belief in fostering a culture that values creativity, initiative, and continuous improvement while highlighting the need for robust cyber resilience practices.

What advice would you give to the next generation of Latina leaders looking to make their mark in tech?

To the next generation of Latina leaders looking to make their mark in tech, I would offer the following advice:

Embrace your unique perspective and heritage, as they are powerful assets that can drive innovation and diversity in the tech industry. Never underestimate the value that your background brings to the table and how it can influence creative problem-solving and decision-making processes. Build your leadership brand that aligns with your values and strengths, leaving a positive legacy for others to follow.

Tech is a rapidly evolving field, and staying current with the latest trends and advancements will position you at the forefront of the industry. Invest in continuous learning and seek out opportunities to expand your knowledge and skill set. Mentorship and sponsorship are crucial elements of career growth. Find mentors who can guide you in your career and sponsors who can open opportunities and promote your work to others.

Cultivate resilience and a growth mindset. The tech industry can be challenging, and setbacks are part of the journey. Learn from failures, adapt to new situations, and maintain a positive outlook. Advocate for yourself and others, champion diversity within your organization, and create environments where everyone can thrive. By lifting each other up, we can collectively drive progress and innovation.

Hispanicexecutive.com