ATLANTA Southern Company Gas, LLC today received certification from the Georgia Public Service Commission to enter the retail gas market. The PSC approval cleared the way for Southern Company (NYSE: SO) to acquire NewPowers Georgia customers.
As a result, Southern Company closed on the purchase today, paying approximately
$60 million for NewPowers customer contract, customer care and billing systems, risk management system, accounts receivable and Georgia natural gas inventory. Southern Company Gas will provide natural gas in Georgia to approximately 215,000 residential and small commercial customers, which is a 15 percent share of the market.
This is a logical acquisition for us because it fits our strategic plan to offer energy-related products and services to the customers we know best, said Allen Franklin, chairman, president and CEO of Southern Company. Our goal now is to assure our new customers and the Georgia Public Service Commission that we can execute a seamless transition of the business -- quickly and efficiently.
Southern Company Gas will honor the contractual terms and conditions of NewPower with respect to all assigned fixed rate contracts for current customers. Upon renewal for new customers, Southern Company Gas will offer a new contract reflective of the current market conditions.
For customer inquiries, the new Southern Company Gas toll-free number is 1-866-SOCO-GAS (1-866-762-6427) or customers may visit the Southern Company Gas Web site at www.southerncompanygas.com.
As with other gas marketers in Georgia, Atlanta Gas Light will continue to read meters and perform reconnect/disconnect work.
On June 11, NewPower filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U. S. Bankruptcy Court for the Northern District of Georgia. Last week the bankruptcy court gave Southern Company approval to acquire NewPowers Georgia assets, contingent upon the PSC certification of Southern Company Gas as a gas marketer.
With 4 million customers and nearly 37,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE: SO) is the premier super-regional energy company in the Southeast and a leading U.S. producer of electricity. Southern Company owns electric utilities in four states, a fast-growing competitive generation company and an energy services business, a competitive retail natural gas business, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and retail electric prices that are 15 percent below the national average. Southern Company has been named No. 1 on Fortune magazines 2002 Americas Most Admired Companies list in the Electric and Gas Utility industry. Southern Company has more than 500,000 shareholders, making its common stock one of the most widely held in the United States.