Southern, AGL file merger application in Maryland

Southern (NYSE:SO) and AGL Resources (NYSE:GAS) said Nov. 3 that they have made a joint filing with the Maryland Public Service Commission asking the PSC to approve the companies proposed merger.

AGL Resources is the parent company of Elkton Gas, a regulated utility providing natural gas distribution services to approximately 6,000 customers in Elkton, Md.

In August, Southern announced that it had agreed to acquire AGL Resources in a deal estimated at $12bn. In its latest quarterly earnings report, Southern said that it has already filed approval applications in Illinois, New Jersey and Virginia. No filing has been made yet in Georgia, Southern said recently.

The companies expect to complete the transaction in the second half of 2016.

AGL is an Atlanta-based energy services holding company with operations in natural gas distribution, retail operations, wholesale services and midstream operations. AGL Resources serves approximately 4.5 million utility customers through its regulated distribution subsidiaries in seven states.

AGL is also a stakeholder in the proposed Atlantic Coast Pipeline.

Southern is increasingly becoming one of the biggest users of natural gas in the country. Natural gas accounted for 45% of Southern’s energy mix in the third quarter, compared to 42% in 3Q 2014.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.