On Monday, El Paso Electric‘s CEO Mary Kipp announced the purchase of El Paso Electric by Infrastructure Investments Fund (IIF), an investment vehicle advised by J.P. Morgan Investment Management Inc.
Via their social media channels, Kipp shared that “On June 3, 2019 we announced a significant, long-term investment in our service area. Infrastructure Investments Fund (IIF), an investment vehicle advised by J.P. Morgan Investment Management Inc., has agreed to acquire EPE.”
According to the Wall Street Journal, the deal is worth an estimated $2.79 billion dollars.
“As we look to the future and the long-term investment needed to meet the growing energy needs of our communities, this is a major step in EPE’s ongoing commitment to providing safe, clean, affordable and reliable energy to you, our customers,” Kipp went on to say.
Kipp’s statement shares that IIF is responsible for investing and growing the retirement funds of more than 40 million families, including 2 million people across Texas and New Mexico who will be invested in EPE.
“The IIF family of companies includes a number of other utilities. They are a leading investor in renewable energy and have a track record of delivering for the communities they partner with, Kipp’s statement continued. “Let me assure you that now and in the future, we will continue providing you with safe and reliable service. We also are committed to communicating with our customers, employees and communities with transparency and respect.”
The sale to IIF is subject to shareholder and regulatory approvals and other customary closing conditions; EPE officials add they expect to complete the closing in the first half of 2020.
EPE and IIF have agreed to a number of customer, employee and community commitments, which will take effect upon closing and include:
- Electric Bill Credit for Customers: EPE and IIF have committed to provide a credit on customer electric bills in the amount of $21 million over 36 months.
- Continuity of Local Workforce: IIF has made real commitments to ensure EPE’s workforce, including union and non-union employees and management, will remain in place.
- Community Contributions: EPE and IIF remain committed to $1.2 million in annual charitable contributions in our service area under the existing Community Partner Program, which provides employee engagement with and financial support to the many local organizations that positively impact the well-being of our communities.
- Community Economic Sustainability Fund: EPE and IIF commit to establishing a Community Economic Sustainability Fund to invest $100 million over 20 years to fund growth and economic development in our service area.
- Maintain Local Presence: EPE’s headquarters will remain in El Paso, Texas.
“This agreement will better position EPE to meet the future energy needs of our service area. The partnership with IIF will enhance our ability to fulfill commitments to you – our customers – and the communities we serve, including investment in more renewable energy resources, local generation and other infrastructure needs,” Kipp added.
As far as their local ties and community contributions, Eddie Gutierrez, Vice President of Communications, Customer and Community Engagement, explained what the sale would mean to their community partners.