AGL Resources' Acquisition of Virginia Natural Gas Receives Approval From Virginia Commission
AGL Resources Inc.
"We anticipate closing the transaction prior to the end of the fourth quarter of this calendar year, before the start of the winter heating season," said AGL Resources President and Chief Executive Officer Walter M. Higgins. "The quick action on this application reflects the efficiency of the Commission's professional staff."
AGL Resources entered into a definitive agreement to acquire Virginia Natural Gas from Dominion Resources on May 8, 2000. The pending acquisition would boost AGL's base of customers to nearly 1.8 million, making it the second largest natural gas-only distributor in the United States. "As we learn more about VNG's employees, customers, and the communities served by VNG, we have even more confidence that this acquisition is the right fit for both VNG and AGL," Higgins said.
Today's order grants the necessary authority from the Commonwealth of Virginia's regulatory agency for AGL Resources to complete the acquisition. Other pending regulatory applications include: approval of AGLR's acquisition of VNG by the Securities and Exchange Commission; approval of Dominion's disposition of VNG by the Federal Trade Commission; and the VSCC's approval of the filings pursuant to the Virginia Affiliates Act.
AGL Resources expects to receive the remaining required regulatory approvals in time to permit closing the transaction ahead of the schedule originally announced. Upon consummation of the acquisition, AGL Resources will be a registered public utility holding company, subject to regulation by the Securities and Exchange Commission pursuant to the Public Utility Holding Company Act of 1935.
AGL Resources Inc. is a regional energy holding company with operations in the Southeast. Atlanta Gas Light Company, the largest natural gas distributor in the Southeast and the company's primary subsidiary, provides delivery service to more than 1.5 million customers in Georgia and full natural gas service in the Chattanooga area of Tennessee. Although natural gas distribution is AGL Resources' core business, it also is engaged in other energy-related businesses, including retail energy marketing, customer care services for energy marketers, and wholesale and retail propane sales. The company's address on the Worldwide Web is http://www.aglresources.com/
This press release contains forward-looking statements. AGL Resources wishes to caution readers that the assumptions, which form the basis for the forward-looking statements, include many factors that are beyond AGL Resources' ability to control or estimate precisely. Those factors include, but are not limited to, the following: changes in estimated transaction and transition costs; changes in the price and demand for natural gas; the impact of changes in state and federal legislation and regulation on the company and the natural gas industry; the effects of competition, particularly in markets where prices and providers historically have been regulated; financial market conditions; and other risks described in our documents on file with the Securities and Exchange Commission.
SOURCE: AGL Resources Inc.
Contact: financial community, Joseph P. Heffron, Manager, Investor