NJ Board of Public Utilities Approves Merger of Southern Company and AGL Resources
On Jun 30, 2016
The New Jersey Board of Public Utilities (Board) today approved a merger between Southern Company and AGL Resources, the parent company of Elizabethtown Gas. As a result of the board’s approval, a typical residential customer of Elizabethtown Gas will receive a $42 credit on an upcoming bill statement.
“The board is satisfied that this merger will provide many benefits to customers of Elizabethtown Gas, while protecting current employees and maintaining the current level of community support,” said Richard S. Mroz, president of the New Jersey Board of Public Utilities. “Furthermore, Southern Company will continue making investments in infrastructure projects to ensure safe, reliable and affordable gas service.”
As part of the Board approved stipulated settlement:
Elizabethtown will provide a direct rate credit to all its customers totaling $17.5 million dollars.
Elizabethtown will file its next base rate case no later than September 1, 2016, and will file a further base rate case no later than three years after the completion of the 2016 Rate Case.
Southern Company will maintain a minimum of 300 employees in New Jersey to support Elizabethtown’s operations five years.
Southern Company will honor all existing collective bargaining agreements in effect at the time of the closing of the merger.
Elizabethtown’s operations centers, call centers, walk-in-payment centers and headquarters will be maintained for at least five years following the merger closing.
Southern Company will provide Elizabethtown with the resources necessary to invest in capital and infrastructure projects that ensure the company continues to provide safe, reliable, and adequate utility service.
Elizabethtown will maintain its current level of community support contributions of $190,000 per year for a period of five years following the merger.
In October 2015, both Southern Company and AGL Resources filed a joint petition with the Board requesting approval of a planned merger. Elizabethtown Gas provides service to approximately 285,000 customers through 22 miles of transmission pipeline and approximately 3,200 miles of distribution pipeline.