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Gas industry

Southern Co. Decides Against Entering Competitive Gas Market

Strategic Insights

— 1 min read

Southern Co. has decided not to sell natural gas to homes and businesses in its home state when the industry first opens to competition this fall, citing concerns about getting into a new business. The utility holding company will not meet the July 15 deadline for seeking certification from the Public Service Commission, a move that has surprised many industry insiders. Meanwhile, 12 companies have filed applications to sell gas to the 1.4 million homes and businesses now served by Atlanta Gas Light Co., which will become a distributor of natural gas under a new state law.

Key Takeaways:

  • Southern Co. has decided not to enter the competitive gas market in Georgia, citing concerns about getting into a new business.
  • The company will not meet the July 15 deadline for seeking certification from the Public Service Commission.
  • 12 companies have filed applications to sell gas to the 1.4 million homes and businesses now served by Atlanta Gas Light Co.
  • Atlanta Gas Light Services, the marketing affiliate of Atlanta Gas Light Co., is changing its name to comply with a PSC order.
  • SCANA Corp. of South Carolina and Shell Oil Co. of Texas are among the companies that have filed applications to compete in the market.
  • Enron Corp., a major national energy marketing company, is continuing to evaluate the market but has expressed caution about new retail markets.
  • The Public Service Commission will consider applications within 90 days and will judge applicants mainly on financial wherewithal to deliver services.

Statistics:

  • 12 companies have filed applications to sell gas to the 1.4 million homes and businesses now served by Atlanta Gas Light Co.
  • 90 days is the timeframe within which the Public Service Commission will consider applications.
  • July 15 is the deadline for companies to apply for certification.
  • August 1 is the deadline for potential entrants to file papers and be certified in time for the market opening on November 1.

Sources:

  • Southern Co. Spokesman Tal Wright
  • Atlanta Gas Light Co. Services (formerly Atlanta Gas Light Services)
  • AGL Resources Inc.
  • SCANA Corp. of South Carolina
  • Shell Oil Co. of Texas
  • Enron Corp.
  • Public Service Commission (PSC) Spokesman Shawn Davis
  • Walter M. Higgins, chief executive of AGL Resources
  • A.W. "Bill" Dahlberg, CEO of Southern Co.

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