In early 2008, PNM Resources had announced that its New Mexico utility, PNM, planned to sell the gas operations as part of several initiatives designed to concentrate investments on electric operations and improve the utility's financial position. Jeff Sterba, PNM Resources chairman and CEO, said: "The gas operations sale allows PNM Resources to focus solely on the generation and delivery of electric service. It also is a key element of our strategy to restore financial health to the PNM utility. Moving forward, we will continue our efforts to seek fair rate treatment for our utilities and position First Choice Power to succeed in Texas's competitive marketplace." When the sale is complete, PNM Resources will be a holding company operating PNM, a vertically integrated electric utility with nearly 500,000 customers in New Mexico; TNMP, a Texas-based distribution and transmission electric utility with 230,000 end-users; and First Choice Power, a retail electricity provider competing in Texas's deregulated market serving 234,000 customers. PNM Resources also owns 50% of EnergyCo, a power-marketing and generation company in Texas with 920MW of capacity. Chuck Eldred, PNM Resources executive vice president and CFO, said that PNM Resources expects to use the proceeds of the transaction, approximately $460 million, to retire debt and for other corporate purposes. He said the necessary steps have been taken for the closing of the transaction in early 2009. The closing does remain subject to contractual conditions applicable to both PNM and the New Mexico Gas Company.