TECO Energy seeks acquisition approval from New Mexico regulators
Decision on acquiring New Mexico Gas Co. is expected by early 2014
TAMPA, July 9, 2013
TECO Energy, Inc. today filed its application with the New Mexico Public Regulation Commission (PRC) for approval of its acquisition of New Mexico Gas Co.
The application – filed jointly with New Mexico Gas Co. and its parent company, Continental Energy Systems LLC –was submitted in Santa Fe and included more than 100 pages of testimony and exhibits. A decision by the PRC is expected by early 2014.
In May, TECO Energy entered into a definitive stock purchase agreement with Continental Energy Systems to acquire New Mexico Gas Co. for a purchase price of $950 million, subject to customary closing adjustments. The transaction is expected to close in the first quarter of 2014, pending approval from state and federal regulators.
New Mexico Gas Co. serves approximately 509,000 customers throughout New Mexico. Upon closing of the transaction, TECO Energy subsidiaries would serve more than 1.5 million regulated electric and gas utility customers in Florida and New Mexico.
TECO Energy Inc. (NYSE: TE) is an energy-related holding company. Its principal subsidiary, Tampa Electric Company , is a regulated utility in Florida with both electric and gas divisions ( Tampa Electric and Peoples Gas System ). Tampa Electric serves more than 687,000 customers in West Central Florida, and Peoples Gas serves more than 345,000 customers in most of Florida’s major metropolitan areas and beyond. Its other major subsidiary, TECO Coal, owns and operates coal-production facilities in Kentucky and Virginia.