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TECO closes on purchase of New Mexico gas company

 
Published Sept. 3, 2014

Tampa-based TECO Energy on Tuesday completed a $950 mil­lion purchase of a New Mexico gas company, bolstering its customer base by more than 500,000 — or 50 percent.

TECO's acquisition of Albuquerque-based New Mexico Gas Intermediate is the largest purchase by the Tampa Bay area power company. TECO owns Tampa Electric, which provides power to 700,000 Tampa Bay area customers, and Peoples Gas, which serves 350,000 customers across Florida.

"Today is a special day for TECO Energy and New Mexico Gas Co.," said John Ramil, president and chief executive officer of TECO Energy. "Our teams have worked tirelessly for more than a year to make this acquisition happen, and we couldn't be more pleased to welcome New Mexico Gas Co. to the TECO family of companies."

Analysts have viewed TECO's purchase as a good move for a power company that operates in a market that increasingly lacks growth opportunities, though some initially questioned the sale price.

TECO bought New Mexico Gas from Continental Energy Systems LLC, a New York-based private holding company.

Last fall, TECO sold its investment in international power plant operations in Guatemala. TECO continues to operate a coal production division in Kentucky and Virginia, but does not have residential utility customers in those states.

TECO's stock was up 16 cents early Wednesday to $18 a share.

Contact Ivan Penn at ipenn@tampabay.com or (727) 892-2332. Follow @Consumers_Edge.