By Tom Kleckner
El Paso Electric and the investment funds seeking to buy the utility have reached a settlement with most of the parties with an interest in the transaction, they told Texas regulators on Wednesday.
EPE, Sun Jupiter Holdings and Infrastructure Investments Fund (IIF) US Holding 2 said that the agreement’s “negotiated resolution” is in the public interest, will conserve the parties’ and the public’s resources, and eliminate controversy (49849).
The Public Utility Commission of Texas had set a Dec. 17 deadline to finalize a stipulated agreement but granted an extension to noon Wednesday. (See “Commission Denies Extension Request in EPE Acquisition,” Texas PUC Briefs: Dec. 13, 2019.)
Parties to the agreement include the city of El Paso, PUC staff, the state’s Office of Public Utility Counsel, and several consumer and labor groups. The El Paso City Council approved the agreement on Tuesday, although it is still pondering EPE’s municipalization.
The signatories agreed that the transaction will not result in a transfer of jobs outside of Texas, adversely affect customers’ and employees’ health and safety, or result in degraded service.
Administrative Law Judge Hunter Burkhalter directed the two remaining intervenors not party to the settlement — a local activist who once served on EPE’s board and a group consisting mostly of local school districts — to respond by Dec. 30 as to whether they want to proceed with a scheduled Jan. 7-8 hearing on the sale. He warned that if the hearing goes forward, the PUC will rule on the stipulation, not the original application. The PUC had rescheduled the hearing from November to January in order to allow intervenors time to reach a unanimous agreement. (See Parties Near Agreement on El Paso Electric Purchase.)
EPE, Sun Jupiter and IIF, which is advised by J.P. Morgan, announced their proposed $4.3 billion purchase of the utility in June. The sale must be approved by the PUC, FERC and other regulators before becoming final.
