The blockbuster $8 billion Southern Co. acquisition of AGL Resources, which would create an energy behemoth in Atlanta, still needs approval of a host of federal and state regulatory agencies. But it sounds like it will get a warm reception by Georgia regulators.
Several Georgia Public Service Commission members interviewed Monday indicated they are receptive to the deal. The five-member panel, all Republicans, will take up the merger in the weeks to come.
"I couldn't sleep last night because I was thinking about all this. But I couldn't come up with any negatives. The gas company will continue to operate as a regulated entity. And so will Southern Company," said Commissioner Stan Wise.
"If there's things I'm not seeing that are problems, they'll come out in the ensuing months," he added. "But it could help coordinate delivery of gas and electric. And they will benefit economic development. And we will continue to grow the gas network so parts of the state that don't have natural gas will benefit from it."
Commissioner Doug Everett had a very similar take. He called it a "win-win."
"I have thought about this ever since I heard about it over the weekend," said Everett. "And I have yet to come up with a negative - I'm looking for them - but everything I can think about it is on the positive side."
Commission Chairman Chuck Eaton told the AJC's Aaron Gould Sheinin that the deal makes business sense.
“Energy is becoming more and more dependent on natural gas,” Eaton said. “That’s a combination of low prices due to the shale gas out West and the fracking. We’re being heavily encouraged through Obama’s clean power plan to move off coal. Natural gas has become more important.”
And Tim Echols, another commissioner, said his first reaction is that the deal helps Georgia consumers.
"The commission will review the merger and I will be looking to see if it could potentially help provide additional natural gas infrastructure, economies of scale, more expertise to Georgia Power, and ultimately more customer choice,” he said.
Still, Echols said his primary concern is to “insure a robust, competitive marketplace that benefits ratepayers in both companies."
Which helps explain why Gov. Nathan Deal, in an interview Monday, said he expected the regulatory process in Georgia to go "smoothly." He endorsed the merger as a deal that will bring more stability to a volatile energy market.
"We certainly believe it's good for the state of Georgia and good for consumers. I think there will be an economy of scale achieved by this as you broaden the scope of energy alternatives available by any one company," Deal said. "We all know that we live in a very volatile energy environment nowadays as we see oil prices dip below $40 a barrel."
Critics, meanwhile, are mustering an opposition campaign. State Sen. Vincent Fort, D-Atlanta, said the merger is "not a good idea for the regular citizen."
"My fear is that as Southern Co. becomes larger and more powerful, the needs of consumers will become smaller," said Fort.
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