El Paso Electric Files a Joint Stipulation in the Four Corners Abandonment/Sale
February 04 2016 - 11:55AM
Business Wire
NMPRC Case No.
15-00109-UT
On February 2, 2016, El Paso Electric Company (EPE) (NYSE: EE)
filed a joint stipulation with the New Mexico Public Regulation
Commission (NMPRC or Commission) reflecting a settlement agreement
between Commission Utility Division Staff (Staff), EPE and the New
Mexico Attorney General (NMAG) proposing approval of abandonment
and sale of its seven percent minority ownership interest in Four
Corners Units 4 and 5 and common facilities to Arizona Public
Service Company (APS). The joint parties agree that the sale of
Four Corners is in the public interest and will provide net
benefits to customers and the public. EPE will meet with all
parties to the proceeding to discuss this proposed resolution.
The Company filed its application with the NMPRC on April 27,
2015 requesting all necessary approvals in order to withdraw as a
participant in the plant and to sell its seven percent ownership
interest to APS. The case is scheduled to go to hearing on February
16 -18, 2016, with a final order expected in the first half of
2016. The hearing is expected to address the proposed joint
stipulation and resolve matters related to the sale, including the
rate treatment for estimated decommissioning and mine reclamation
costs, certain lease payments as well as certain unfunded employee
benefits costs. No significant gain or loss is expected to be
realized upon closing. The Federal Energy Regulatory Commission has
authorized the proposed transaction request. EPE expects the sale
to close in the summer of 2016.
“We are pleased with the progress that has been made towards
reaching a settlement in this case with those parties who represent
the public interest as well as the interests of the Company’s
residential and commercial customers in New Mexico,” said Mary
Kipp, El Paso Electric CEO. “El Paso Electric has been working
towards becoming a coal-free utility by diversifying its generation
portfolio and investing in local generation resources. We will
continue to provide clean, safe, reliable and cost-effective energy
to our customers.”
El Paso Electric is a regional electric utility providing
generation, transmission and distribution service to approximately
400,000 retail and wholesale customers in a 10,000 square mile area
of the Rio Grande valley in west Texas and southern New Mexico. El
Paso Electric has a net dependable generating capability of 2,010
MW.
Safe Harbor
This news release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor
provisions within the meaning of Section 27A of the Securities Act
of 1933, as amended (the “Securities Act”), and Section 21E of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”).
The statements in this news release that are not historical
statements, including statements regarding the expected effect of
the settlement agreement on EPE’s earnings and the expected timing
of the case’s resolution, are forward-looking statements within the
meaning of the federal securities laws. This information often
involves risks and uncertainties that could cause actual results to
differ materially from such forward-looking statements. Factors
that could cause or contribute to such differences include, but are
not limited to, the failure to obtain NMPRC approval; the ability
of other parties to contest the joint stipulation; uncertainties
and instability in the general economy and the resulting impact on
EPE's sales and profitability; and other factors detailed by EPE in
its public filings with the Securities and Exchange Commission.
EPE's filings are available from the Securities and Exchange
Commission or may be obtained through EPE's website,
http://www.epelectric.com. Although El Paso Electric believes that
the expectations reflected in such forward-looking statements are
reasonable, no assurances can be given that these expectations will
prove to be correct. Any such forward-looking statement is
qualified by reference to these risks and factors. EPE cautions
that these risks and factors are not exclusive. EPE does not
undertake to update any forward-looking statement that may be made
from time to time by or on behalf of EPE except as required by
law.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160204006234/en/
El Paso Electric CompanyPublic Relations:Eddie Gutierrez,
915-543-5763eduardo.gutierrez@epelectric.comorInvestor
Relations:Lisa Budtke,
915-543-5947lisa.budtke@epelectric.comorRichard Gonzalez,
915-543-2236richard.gonzalez@epelectric.com
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