Frequently Asked Questions

Q: When was the transaction announced?

A: On August 24, 2015, Southern Company and AGL Resources announced that they will combine to create a leading U.S. electric and gas utility company. Pursuant to the agreement, AGL Resources will become a new wholly owned subsidiary of Southern Company in a transaction with an enterprise value of approximately $12 billion, including a total equity value of approximately $8 billion.

Q: Why did Southern Company decide to combine with AGL Resources?

  • For investors it will create a unique platform that is well-positioned to compete for growth across the energy value chain;
  • For customers it will strengthen reliability and improve current and future energy infrastructure development; and
  • For communities it will provide for the expansion of the companies' customer-focused business models.

Q: How will this impact the service Southern Company's and AGL Resources' utility customers receive?

A: Initially, customers will not experience any changes to customer service or account information. Post-closing, we expect services to improve. Both companies remain committed to providing the families and businesses these utilities serve with excellent customer service.

Q: What impact will this agreement have on customers' electric or gas rates?

A: This transaction will not increase electric or gas rates of any of the utilities of either Southern Company or AGL Resources system.

Q: How will Southern Company finance the transaction?

A: Southern Company's plans are to initially finance the acquisition with a combination of debt and equity.

Q: Will there be layoffs as a result of this merger?

A: We anticipate maintaining current job levels during this transaction. At closing, AGL Resources will become a stand-alone subsidiary of Southern Company. As with all of its companies, Southern Company will always seek efficiencies for the benefit of its customers. This transaction also creates a bigger platform for growth that provides opportunities for all employees of the Southern Company system.

Q: Will Southern Company and AGL Resources both maintain their corporate headquarters in Atlanta?

A: Yes. When the transaction is complete, AGL Resources will become an operating subsidiary company consistent with Southern Company's other subsidiaries, Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Southern Power, and will have its own corporate headquarters.

Q: Will there be any management changes at Southern Company or AGL Resources? Who will lead AGL Resources?

A: At closing, AGL Resources will become an operating subsidiary company consistent with Southern Company's other subsidiaries and maintain its own management team. A large part of the value associated with AGL Resources is the depth and quality of this team.

Q: What approvals are needed? When do you expect to close?

A: Completion of the transaction is conditioned upon, among other things, the approval of the AGL Resources' shareholders and certain state utility and other regulatory commissions.

The transaction is also subject to the notification and clearance and reporting requirements under the Hart–Scott–Rodino Antitrust Improvements Act of 1976.

The companies expect to complete the transaction in the second half of 2016.