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Acquisition of El Paso Electric

By: Alfredo Medrano III
Picture
Brief Background of El Paso Electric:
       El Paso Electric Company was formed in 1901 and is a private entity in which a municipal or government entity is not in control of the corporation.  El Paso Electric Company is a private corporation which is owned by shareholders and its electric utility services span to cities such as Van Horn, Texas and as far west as Hatch, New Mexico. Spanning across state lines and multiple jurisdictions, this private corporation is classified as a regulated monopoly. Things such as a high cost of capital and high barriers of entry make integration into the market difficult to say the least. As a result, there is ultimately one entity or corporation that is able to provide these goods or services to the consumers who need them. In this case, El Paso Electric is a monopoly that is regulated by an agency or government entity that overlooks and sets certain constraints and rates to keep them in line. In order for El Paso Electric to change rates they must go through regulators; either in the state of Texas, New Mexico and some cases the Federal Energy Regulatory Commission to prevent things such as price discrimination. Also, since El Paso Electric is a publicly traded company on the New York Stock Exchange, they are regulated by The United States Securities and Exchange Commission.

Acquisition of El Paso Electric:
      The Infrastructure Investments Fund that is advised by JPMorgan is an entity that purchased the publicly traded stock of El Paso Electric Company for $4.3 billion to become the single owner of the company. The only thing that will change is "the ownership in terms of the company in The United States Securities and Exchange Commission" says Adrain J. Rodriguez, the Interim Chief Executive Officer of El Paso Electric. The regulatory bodies and agencies of Texas and New Mexico still regulate how much El Paso Electric can charge and bill consumers, and as well as the utility rates. There will be no relocation of the headquarters of El Paso Electric; which is a special case some electric companies do not have the luxury of experiencing. In other words, the 1,100 employees of El Paso Electric will be able to stay with their families, friends and loved ones in El Paso, Texas. In the contract it is also discussed that "The Infrastructure Investment Fund has included in their offer a $100 million economic development fund, $21 million in customers credits over the next 3 years, and the tentative matching of charitable contributions to non-profit organizations and universities for $1.2 million a year for the next 3 years" says Rodriguez. As the progression of the regulatory process begins, these aspects of the acquisition will be part of the regulatory requirements that will and must be approved by the regulators. 

Regional Identity Fall 2019
Regional Identity Collection
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  Border Proud
  • Home Page
  • What is Border Proud?
  • Regional Identity Spring 2022
    • Post Pandemic Consumer Spending
    • Income Inequalities
    • Globalization
  • Regional Identity Fall 2021
    • Editor Selects
    • Economic models, GDP and the Quality of Life: A Commentary
    • NFTs and Crypto Assets
    • Amazon Distribution Center and its Economic Impact on the City of El Paso
    • The Holiday tale of Inflation, supply chain, and the Omicron variant
    • Coronavirus and the Economy
  • Regional Identity Spring 2021
    • Incorporation of Sustainability in the Business World
    • Financial Markets in the United States
    • Are Hospitals Spending Smart?
    • What Vaccines Could Mean for Air Travel
    • Let’s Talk About Inflation during the COVID-19 Pandemic
    • Regional Organization Collaborates with Border Proud Students
  • Regional Identity Fall 2020
    • Voter Behavior During COVID-19
    • The Economic Impact of Restricted Borders in the U.S.
    • Rising Cost of Healthcare due to COVID-19
    • COVID: Consumer Behavior and Its Consequences
    • COVID-19 and Its Effect on the Gender Pay Gap
    • Amazon in the Borderplex Tristate 2021
    • Navigating the Election During COVID-19
  • Regional Identity Collection
    • RI - Fall 2019 >
      • Nobel Laureates Use Economics to Study Global Poverty Crisis
      • Acquisition of El Paso Electric
      • Effect on Retail Sales Post Walmart Shooting
      • Sun Country Montessori: Serving El Paso’s Children
      • Downtown El Paso: Construction Underway!
    • RI- Spring 2019 >
      • Starting a Company in 3 Days
    • RI - Spring 2017 >
      • The Cannabis Market in El Paso
      • A Gateway Opportunity: The Housing Authority
    • RI - Fall 2016 >
      • Border Crossing Visionary Meeting
      • Casas por Cristo
      • Go 10
      • The Reynolds Home
    • RI - April 2016 >
      • Argentina Anew
      • Dave & Buster's
      • The Economics of Coffee Shops
      • What a Hotel can do for a Community
      • Peso Devaluation
    • RI - February 2016 >
      • Bear Market: OIL
      • Carlos Bakery
      • Hispanic Enrollment Increases
      • Kopi Coffee
      • Toll Lanes
    • RI - Fall 2015 >
      • Blake’s Lotaburger
      • Creating a Successful Business
      • Man with a Vision
      • Mount Cristo Rey
      • The Missing 43
  • About Us
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  • Home Page
  • What is Border Proud?
  • Regional Identity Spring 2022
    • Post Pandemic Consumer Spending
    • Income Inequalities
    • Globalization
  • Regional Identity Fall 2021
    • Editor Selects
    • Economic models, GDP and the Quality of Life: A Commentary
    • NFTs and Crypto Assets
    • Amazon Distribution Center and its Economic Impact on the City of El Paso
    • The Holiday tale of Inflation, supply chain, and the Omicron variant
    • Coronavirus and the Economy
  • Regional Identity Spring 2021
    • Incorporation of Sustainability in the Business World
    • Financial Markets in the United States
    • Are Hospitals Spending Smart?
    • What Vaccines Could Mean for Air Travel
    • Let’s Talk About Inflation during the COVID-19 Pandemic
    • Regional Organization Collaborates with Border Proud Students
  • Regional Identity Fall 2020
    • Voter Behavior During COVID-19
    • The Economic Impact of Restricted Borders in the U.S.
    • Rising Cost of Healthcare due to COVID-19
    • COVID: Consumer Behavior and Its Consequences
    • COVID-19 and Its Effect on the Gender Pay Gap
    • Amazon in the Borderplex Tristate 2021
    • Navigating the Election During COVID-19
  • Regional Identity Collection
    • RI - Fall 2019 >
      • Nobel Laureates Use Economics to Study Global Poverty Crisis
      • Acquisition of El Paso Electric
      • Effect on Retail Sales Post Walmart Shooting
      • Sun Country Montessori: Serving El Paso’s Children
      • Downtown El Paso: Construction Underway!
    • RI- Spring 2019 >
      • Starting a Company in 3 Days
    • RI - Spring 2017 >
      • The Cannabis Market in El Paso
      • A Gateway Opportunity: The Housing Authority
    • RI - Fall 2016 >
      • Border Crossing Visionary Meeting
      • Casas por Cristo
      • Go 10
      • The Reynolds Home
    • RI - April 2016 >
      • Argentina Anew
      • Dave & Buster's
      • The Economics of Coffee Shops
      • What a Hotel can do for a Community
      • Peso Devaluation
    • RI - February 2016 >
      • Bear Market: OIL
      • Carlos Bakery
      • Hispanic Enrollment Increases
      • Kopi Coffee
      • Toll Lanes
    • RI - Fall 2015 >
      • Blake’s Lotaburger
      • Creating a Successful Business
      • Man with a Vision
      • Mount Cristo Rey
      • The Missing 43
  • About Us
  • Events
  • Contact
  • Blog