J.P. Morgan’s proposed $4.3 billion purchase of El Paso Electric cleared a major regulatory hurdle Thursday when the Texas Public Utility Commission approved a modified stipulated settlement (49849).

Commission staff suggested a revision to the order to ensure that no more than two disinterested directors — those board members without direct or indirect financial interest in the transaction — will have their terms expire in the same year as part of the PUC’s ring-fencing measures.

Staff were to file the final order within the next few days.

“Congratulations,” PUC Chair DeAnn Walker told the parties after the commission’s approval.

J.P. Morgan’s Infrastructure Investments Fund (IIF), Sun Jupiter Holdings and EPE reached an agreement in December with PUC staff, the Office of Public Utility Counsel, the city of El Paso, and various consumer and labor groups. (See Parties to EPE Acquisition Reach Settlement Agreement.)

The Rate 41 Group, a coalition of school districts and other public entities, withdrew an earlier motion for continuance on Jan. 3 and indicated it wouldn’t oppose the settlement.

The transaction must still be approved by FERC, the Nuclear Regulatory Commission and the New Mexico Public Regulation Commission, which held a hearing Thursday on a settlement agreement between IIF, EPE and eight intervenors.

PRC Hearing Examiner Carolyn Glick will finalize her recommendations and forward them to the full commission for its final ruling, spokesman Deswood Tome said. “The hearing examiner did not specify a time of when her recommendation will be concluded,” Tome said.

The PRC’s website has been offline since a Jan. 9 ransomware attack. (See Ransomware Attack Hits New Mexico Commission.)

— Tom Kleckner