TECO Energy Reaches Settlement On New Mexico Gas Acquisition

(RTTNews) - TECO Energy Inc. (TE) said Wednesday that New Mexico Gas Co. customer rates will remain frozen for an additional six months - until the end of 2017 - under a settlement agreement TECO Energy has reached on its pending acquisition of the Albuquerque-based company.

In addition to extending the rate freeze, the settlement limits job reductions to 99 positions in the first three years.

TECO Energy, New Mexico Gas Co. 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, which represents the public. Previously, TECO Energy had settled with the U.S. Department of Energy. The staff of the New Mexico Public Regulation Commission does not oppose the settlement.

The New Mexico Public Regulation Commission must decide whether the settlement is in the public interest and whether to approve the deal. Its decision is expected in the next few months.

If approved, the sale is expected to close in the third quarter.