Emera To Acquire Utilities With Customer Choice Programs

Emera Inc. and TECO Energy, Inc. announced a definitive agreement for Emera to acquire TECO Energy under an all-cash deal pursuant to which Energy shareholders will receive $27.55 per common share, a 48 percent premium based on TECO Energy’s unaffected closing stock price on July 15, 2015 (the last trading day prior to news reports regarding TECO Energy’s strategic review) and 25 percent above TECO Energy’s unaffected 52-week high.

This represents an aggregate purchase price of approximately $10.4 billion including assumption of approximately $3.9 billion of debt.

TECO's New Mexico Gas Company, which serves 509,000 natural gas customers, offers a customer choice program for all customer classes, including residential customers.

TECO Energy's Peoples Gas System, Florida's largest natural gas distributor serving more than 345,000 customers, also offers a customer choice program open to all customer classes (residential customers must use 2,000 therms or more annually).

Among other utilities, Emera owns Bangor Hydro-Electric and Maine Public Service, which offer electric choice programs. Emera also owns several unregulated generating plants and energy marketer Emera Energy

Upon closing, Emera will have more than 2.4 million electric and gas customers and approximately $20 billion in assets, making it a top 20 North American regulated utility.

TECO Energy, Tampa Electric, Peoples Gas and New Mexico Gas Co. will maintain existing corporate headquarters in Tampa and Albuquerque