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Texas, NM regulators delay hearings on El Paso deal as parties seek settlement from SNL Energy Finance Daily Texas, NM regulators delay hearings on El Paso deal as parties seek settlementByline: Fotios Tsarouhis El Paso Electric Co. and its proposed buyer, IIF US Holdings 2 LP, or IIF 2, announced Nov. 21 an agreement in principle with the Public Utility Commission of Texas' staff and most intervenors regarding the proposed acquisition. IIF 2 is a fund advised by J.P. Morgan Investment Management Inc., a subsidiary of JPMorgan Chase & Co. The PUCT delayed a hearing on the proposed transaction that had been scheduled to run from Nov. 20 to Nov 22 as the parties attempt to reach a unanimous settlement, according to the statement. An update will be provided at the PUCT's regularly scheduled meeting on Dec. 13. "We appreciate the constructive dialogue we have had with the PUCT Staff and intervenors," El Paso Electric and the proposed buyer, identified as IIF in the news release, said. "This agreement in principle is an important milestone toward completing IIF's acquisition of [El Paso Electric] and demonstrates our shared belief that this transaction creates meaningful benefits for [El Paso Electric] and [El Paso Electric]'s communities, customers, and employees." The New Mexico Public Regulation Commission has also suspended certain procedural deadlines in its review of the deal so that all parties can pursue settlement discussions. The deal, which EPE and IIF 2 plan to close in the first half of 2020, was agreed to on June 1 and publicly announced two days later. However, PUCT staff testified on Nov. 5 that the structure of the deal would reduce the level of operational authority over the utility that its board and management currently possess. On Nov. 14, the Texas Office of Public Utility Counsel also came out against the deal in its current form, saying the acquisition would result in increased financial risk for the target. |
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