Emera (TSX:EMA) and TECO Energy (NYSE:TE) have filed an unopposed stipulation agreement with the New Mexico Public Regulation Commission (NMPRC) outlining a settlement reached with intervening parties for Emera’s proposed acquisition of TECO and the indirect acquisition of New Mexico Gas Co.
In the stipulation, the parties state that they believe the settlement is in the public interest and have recommended approval to the NMPRC.
Amongst other elements, the stipulation lays out a number of Emera’s commitments including to honor the commitments made by TECO in the 2014 acquisition case, invest in the expansion of the natural gas system to underserved communities and the Mexican border, and provide resources to support certain economic growth projects and programs.
The settlement is another key milestone toward approval of Emera’s acquisition of TECO. The acquisition received TECO Energy shareholder approval in December 2015, approval from the Federal Energy Regulatory Commission (FERC) in January 2016, the expiration of Hart-Scott-Rodino waiting period in February 2016 and Committee on Foreign Investment in the United States (CFIUS) clearance in March 2016.
The closing of the acquisition remains subject to certain other regulatory and government approvals, including approval by the NMPRC and the satisfaction of customary closing conditions. The TECO Energy acquisition remains on track to close in mid-2016.
The stipulation is subject to review and approval by the NMPRC. The NMPRC hearing to consider the acquisition is scheduled to begin on May 23.
The stipulation filed with the NMPRC can be found at www.nmgco.com/regulatory_filings.aspx.
The document (Case No. 15-00327-UT) can also be found on the NMPRC’s website at www.nmprc.state.nm.us.