Atlanta-based AGL Resources and Naperville, IL-based Nicor Inc. received approval of their merger from the Illinois Commerce Commission (ICC) last Wednesday, the final regulatory nod needed to create a natural gas distribution behemoth operating in seven states.

“We will review the ICC’s final order and plan to close the transaction in a timely manner,” said AGL Resources President John W. Somerhalder II. “We don’t have a date yet” for closure, said AGL Resources spokeswoman Tami Gerke.

The marriage, which was first announced a year ago, creates a holding company with seven regulated gas distribution companies serving 4.5 million customers in Illinois, Georgia, New Jersey, Virginia, Florida, Tennessee and Maryland and with a rate base of $3.8 billion (see NGI, Dec. 13, 2010). The combined company will be the nation’s largest gas-only distributor based on customer count.

The enterprise value of Nicor’s merger with AGL was estimated at $3.1 billion, including equity of $2.4 billion. The combined company has an enterprise value of $8.6 billion. Corporate headquarters will be in Atlanta with gas distribution headquarters in Naperville.

The combination would create a company with:

The merged company will be known as AGL Resources. Somerhalder will be chairman, president and CEO. The AGL Resources board will include four directors from Nicor.

AGL Resources serves 2.3 million customers in six states. AGL Resources utilities are Atlanta Gas Light, Chattanooga Gas, Elizabethtown Gas, Elkton Gas, Florida City Gas and Virginia Natural Gas. In October 2009 Georgia regulators approved a 10-year, $400 million infrastructure upgrade program for Atlanta Gas Light.

AGL Resources also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout North America. As an 85% owner in the SouthStar partnership, AGL markets gas to consumers in Georgia under the Georgia Natural Gas brand. The company owns and operates two high-deliverability gas storage facilities: Jefferson Island Storage & Hub near the Henry Hub in Louisiana and Golden Triangle Storage in Texas.

Nicor Inc.’s primary business is Nicor Gas, one of the nation’s largest gas distribution companies. Nicor also owns Central Valley Gas Storage, which is developing a market-area storage facility in the Sacramento River valley of north-central California (see NGI, Oct. 25, 2010). Additionally, the company’s Nicor Enerchange LLC consists of Nicor Enerchange Trading and Nicor Enerchange Hub Administration. Nicor Enerchange Trading is a gas marketing company that provides commodity-based services in the wholesale and commercial/industrial gas markets. Nicor Enerchange Hub Administration manages the Chicago Hub for Nicor Gas and offers its marketing and service administration expertise to other asset owners.

©Copyright 2011Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.