Illinois Commerce Commission approves merger between Southern Company and AGL Resources
The Illinois Commerce Commission (ICC) unanimously approved a merger on Tuesday between Southern Company and AGL Resources, Inc., the parent company of Nicor Gas, which has more than two million customers in the state of Illinois.
“The merger approval comes with stringent conditions to secure employment levels for more than 2,000 Illinois workers and to provide stability for consumers.” ICC Chairman Brien Sheahan said. “The commission and staff will closely monitor and enforce of the implementation of the merger to ensure it provides efficient, reliable and safe service to Nicor’s two million Illinois customers.”
AGL acquired Nicor Gas in 2012. The ICC approved the merger with several strict regulations to protect Illinois workers and customers, including requiring AGL to honor existing union contracts and keep 2,070 full-time equivalent employees in the state of Illinois for at least three years. Nicor is to maintain employment levels for at least two years in the departments of locating services, the transmission integrity management program, corrosion control, and the distribution integrity management program.
The approval also requires all financial savings at Nicor as a result of the merger to be returned to Illinois customers. The utility must also meet all compliance standards at the state and federal level, and was ordered to discontinue use of the name “Nicor” no later than December 31, 2017, due to a conflict with Prairie Point Energy, doing business as Nicor Advanced Energy, LLC, and Nicor Solutions.
