Southern Company--AGL Resources combination enhances customer-focused business model
Communities will benefit from the combination of two leading utility companies with a shared focus on strengthening local economies and the environment.
Earlier today Southern Company (NYSE: SO) and AGL Resources (NYSE: GAS) announced that both companies' boards of directors approved a definitive merger agreement.
"The cornerstone strengths of these two companies are commitments to continuous improvement and providing customers with outstanding service and innovative energy solutions," said Southern Company Chairman, President and CEO Thomas A. Fanning. "With technological advances and customer preferences rapidly changing, the addition of AGL Resources should better position us to provide customers with clean, safe, reliable and affordable energy for decades to come."
AGL Resources Chairman and CEO John W. Somerhalder, II, stated, "We're very excited about the future possibilities this combination will bring for our customers, communities and employees. There is a common culture among our companies, including a shared commitment to world-class customer service.
"A hallmark of our companies is our commitment to the local communities we serve — from Naperville, Ill. to Atlanta to Miami — and we look forward to the combined company continuing that tradition."
Today, Southern Company is one of the largest consumers of natural gas in America. Nearly half of the electricity being generated for Southern Company's customers is from natural gas. Southern Company's full portfolio of energy resources also includes carbon-free nuclear, 21st century coal, one of America's largest renewable energy portfolios, and energy efficiency.
"Southern Company has been innovating around the full portfolio for decades," said Fanning. "And with the evolution of changing regulations and the technology revolution taking place in energy production, Southern Company and AGL Resources will be well-positioned to meet a future that needs more natural gas infrastructure for our customers' benefit."
When there was a need for new generation that runs 24 hours a day, seven days a week, the Southern Company system took the lead in developing two of the first new, zero-emission nuclear units in a generation.
As others discussed removing affordable and abundant coal from the nation's energy mix, the Southern Company system developed innovative technology to provide an environmentally responsible way forward for coal in America.
A natural extension of the company's commitment to finding real solutions for America's energy future is Southern Company's acquisition of AGL Resources to help address one of the key challenges facing natural gas – developing the infrastructure necessary to send the low-priced commodity to the areas where it is increasingly needed.
The addition of AGL Resources' network of natural gas assets and businesses will provide a broader, more robust platform for long-term success and increase opportunities to invest in future infrastructure and energy solutions.
For more information about how this agreement creates America's leading energy company, visit www.doingenergybetter.com.
