KOB.com Web Staff
Florida company TECO Energy has reached a settlement agreement in its quest to acquire New Mexico Gas Company.
NMGC customer rates will remain frozen for an additional six months – until the end of 2017 – under the agreement. In addition to extending the rate freeze, the settlement limits job reductions to 99 positions in the first three years.
"This agreement is a win-win-win – for New Mexico, for the customers of the New Mexico Gas Co. and for TECO Energy investors," said John Ramil, president and chief executive officer of TECO Energy. "We are pleased to be able to work together to provide certainty for customers. The settlement also keeps us on track for the transaction to be accretive a year after closing."
TECO Energy, NMGC and Continental Holdings, the gas company's current owner, have reached agreement with the New Mexico Industrial Energy Consumers, which represents large customers, and the New Mexico Attorney General's Office. Previously, TECO Energy settled with the U.S. Department of Energy. The staff of the New Mexico Public Regulation Commission does not oppose the settlement.
The PRC must decide whether the settlement is in the public interest and whether to approve the transaction. Its decision is expected in the next few months.
If approved, the sale is expected to close in the third quarter.