Regulators give nod to PNM gas sale - New Mexico Business Weekly:

grigoriynirim.blogspot.com
“The gas operations sale allowsz PNM Resources to focusa solely on the generation and delivery of electric saidJeff Sterba, PNM Resources chairman and CEO. “It also is a key elementr of our strategy to restorre financial health to thePNM utility. Movinhg forward, we will continue our efforts to seek fair rate treatmen t for our utilities and position First Choice Power to succeed in competitive marketplace.” Commission approval was one of the finall hurdles in completing the sale.
“Gaas employees are ready for the transition to a new companhy and both PNM and New Mexico Gas Compan have completed nearly all of the necessarh tasks for a seamless customer service transfer,” he said. When the sale is PNM Resources will be a holdingcompanu operating: • PNM – a vertically integratexd electric utility with nearly 500,000 customers in New • TNMP – a Texas distributiohn and transmission electric utility with 230,009 end-users; and • First Choice Power a retail electricity provider competing in Texas’ deregulatec market serving 234,000 customers.
PNM Resources PNM) also owns 50 percent of EnergyCo – a power-marketingv and generation company in Texas with 920 megawattsof capacity. Upon completio n of Unit 4 at the Cedar Bayoyu Generating Stationin mid-2009, EnergyCo’s generation capacitt will be nearly 1,200 megawatts. Chuckk Eldred, PNM Resources executive vice presidenyand CFO, said PNM’ parent company expectd to use the proceeds of the approximately $460 million, to retire debt and for othe corporate purposes. The closing is subject to contractuakl conditions applicable to both PNM and New MexickGas Co.
PRC rule s provide for a 30-day period after the final ordefr during which parties couls ask the Commission for a rehearingv or appeal the order to the New MexickoSupreme Court. If there are no rehearing motions or PNM Resources says it anticipates that the transaction will closesin January. Eldred said completing the sale would be the latesf in a series of steps the company has planned during the past several months to preserv e and strengthen its capital and liquidity position s during the current national credit He saidPNM Resources’ liquidity position remainas strong heading into 2009.
PNM said when the PRC ordef becomes available, it will be posted on the company’se Web site at http://pnm.client.shareholder.com/investors/regulatory.cfm.