Public Service Company of New Mexico (PNM) will acquire Western Resources’ electric utility operations (its KPL division and KGE subsidiary) and will both become subsidiaries of a new holding company, to be named later, while Western Resources’ non-utility assets will be reorganized into Westar Industries. The new holding company will serve more than a million retail electric customers and 400,000 retail gas customers in New Mexico and Kansas, and it will have a generating capacity of more than 7,000 megawatts. It will have a total enterprise value of about $6.5 billion ($2.6 billion in equity and $3.9 billion in debt and preferred stock) and is anticipated to be a leading energy supplier for the Western and Midwestern wholesale markets. The CEO of PNM expressed his confidence that the new company will be able to provide stable rates, excellent customer service support, and innovations in products and services.
Based on a report from ElectricNet
