Energy-holding company Emera will acquire TECO Energy, providing the Canada-based company with new growth areas in Florida and New Mexico to go along with its holdings in the northeastern United States.
The transaction will also establish Emera in the regulated natural gas local distribution business, which shares many of the key competencies of a regulated electric utility such as a safety culture, a customer service focus, asset management expertise and regulatory experience.
The deal, valued at about $6.5 billion will provide significant near-term capital and customer service investment opportunities, according to a statement by Emera.
Tampa Electric expects to invest more than $2 billion over the next five years on facilities and infrastructure to serve customers, including the completion of the Polk Power Station Units 2-5 combined-cycle conversion project.
Peoples Gas expects to invest about US$100 million annually to maintain and expand its system to serve its growing customer base and reliably provide service. New Mexico Gas Co. expects to invest about $60 million annually to support customer growth and improve reliability.
Additionally, Emera said it “fully supports TECO’s ongoing efforts to divest TECO Coal,” and expects TECO Coal to be divested at or prior to transaction close, which is expected to occur in mid-2016.