SouthStar Energy Services LLC Formed to Offer Energy Products and Services in the Southeast

AGL Resources Inc., Piedmont Natural Gas Company, Inc., and Dynegy Inc. have formed SouthStar Energy Services LLC to provide a combination of unregulated energy products and services to industrial, commercial, and residential customers in the Southeast. The new company will offer natural gas, electricity, fuel oil, and propane, along with related retail services, and will initially target industrial and commercial customers. Residential and small business energy services will be available in Georgia as that market opens to competition in November 1998, with expansion to other states as their markets open to competition.

Key Takeaways:

• SouthStar Energy Services LLC is a joint venture between AGL Resources Inc., Piedmont Natural Gas Company, Inc., and Dynegy Inc. to provide energy products and services in the Southeast.
• The company will offer a range of energy products and services, including natural gas, electricity, fuel oil, and propane, with related retail services.
• Initially, the company will target industrial and commercial customers, with residential and small business energy services available in Georgia starting in November 1998.
• The partnership aims to capitalize on the changing energy market in the Southeast, driven by deregulation of the natural gas and electric industries.
• The company will leverage the strengths of each partner, with AGL Resources bringing its expertise in natural gas distribution, Piedmont Natural Gas Company contributing its market knowledge and innovation in propane services, and Dynegy Inc. providing its strength as a wholesale provider of energy and risk management services.

Statistics:

• Over 1.4 million customers will be served by Atlanta Gas Light Company, the largest natural gas distribution company in the Southeast.
• Piedmont Natural Gas Company, Inc. serves over 620,000 residential, commercial, and industrial customers in North Carolina, South Carolina, and Tennessee.
• Dynegy, Inc. is one of the leading marketers of energy products, with sales of over 48,000 customers throughout the Southeast.
• SouthStar Energy Services LLC will expand its residential and small business services to other states as their markets open to competition.

Sources:

• AGL Resources Inc.
• Piedmont Natural Gas Company, Inc.
• Dynegy Inc.
• SouthStar Energy Services LLC
• Atlanta Gas Light Company
• Piedmont Natural Gas Company
• Dynegy, Inc.
• Natural gas distribution company in the Southeast
• Residence and small business energy services in Georgia
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