TECO Energy Inc., New Mexico Gas Company and its parent company, Continental Energy Systems LLC on Tuesday filed a joint application with the New Mexico Public Regulation Commission for approval of TECO’s acquisition of the gas company.
TECO Energy announced in May it has entered into a definitive stock purchase agreement with Continental Energy Systems to acquire NMGC for $950 million.
This filing begins the regulatory process that is expected to take until the first quarter of 2014.
The Gas Company, in a news release, said it is not requesting any change in rates, rules, forms or other tariffs as a result of this transaction.
“TECO is a strong, investment grade company. I am optimistic about their reputation as responsible, experienced and prudent owners of regulated utilities in Florida. TECO has a long-term ownership plan in place and views NMGC as an excellent growth platform for its utility businesses,” said NMGC President Annette Gardiner said in a statement.
New Mexico Gas Co. serves approximately 509,000 natural gas customers throughout New Mexico. Upon closing, TECO Energy subsidiaries would serve more than 1.5 million regulated electric and gas utility customers in Florida and New Mexico.