August 31, 2015 | By Barbara Vergetis Lundin

The boards of directors of both Southern Company and AGL Resources have approved a definitive merger agreement to create one of the leading electric and gas utility company in the United States.

Thomas Fanning

The merger will create the second largest utility company in the U.S. by customer base with 11 regulated electric and natural gas distribution companies providing service to approximately nine million customers with a projected regulated rate base of approximately $50 billion; operations of nearly 200,000 miles of electric transmission and distribution lines and more than 80,000 miles of gas pipelines; and generating capacity of approximately 46,000 MW.

Southern Company says this is a natural extension of the company's commitment to addressing 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.

 

Today, Southern Company is one of the largest consumers of natural gas in America. In fact, nearly half of the electricity being generated for Southern Company's customers is from natural gas.

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.

"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."

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.

In fact, as other companies discussed removing coal from the nation's energy mix, the Southern Company system developed innovative technology to provide an environmentally responsible way forward for coal.

"Southern Company has been innovating around the full portfolio for decades. 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," Fanning said.

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