New Mexico PRC approves Emera’s $10.4 billion acquisition of TECO Energy

The New Mexico Public Regulation Commission (PRC) approved a final order on June 22 authorizing Emera, Inc., to acquire TECO Energy for $10.4 billion, with the understanding that Emera is to maintain development projects in the state.

The acquisition of TECO Energy will also indirectly result in the acquisition of the New Mexico Gas Company. The parties first negotiated the acquisition in September for a $10.4 billion all-cash deal. An unopposed stipulation agreement was filed with the PRC on April 13, and the commission reviewed the request to ensure that Emera would honor ongoing and proposed development projects to enhance energy accessibility for New Mexico residents.

Emera agreed to further develop energy accessibility in rural communities in the northern part of the state, while also better developing its pipeline on the southern U.S./Mexico border to improve energy exports to Mexico., while the New Mexico Gas Company said that it would refocus its energy on boosting energy storage and transmission lines.

“It allows decisions to be made locally by a board of directors,” PRC Commissioner Lynda Lovejoy said. “In addition, millions of dollars will be made available for matching funds that will help build-out and improve unserved and underserved areas.”

The acquisition is expected to be completed this month.