Piedmont Natural Gas Co. of Charlotte, NC; AGL Resources ofAtlanta; Atmos Energy Corp. of Dallas; and Teco Energy of Tampa,FL; are forming a joint venture to combine their propaneoperations.

The combined entity, to be named US Propane LP, will be amongthe 10 largest propane retailers in the nation with nearly 200,000customers. Focused on the Southeast, US Propane will haveoperations in Alabama, Florida, Georgia, Kentucky, North Carolina,South Carolina and Tennessee. The transaction is subject toregulatory approval for one of the companies and other customaryconditions. The companies expect the deal to close by May 1.

“Combining the propane assets of these four companies creates apowerhouse in the propane industry that maximizes the value of ourpropane assets,” said John H. Maxheim, Piedmont CEO.

“This union allows Peoples Gas Co. and the other participatingcompanies to improve their regional competitiveness and targetgrowing to be one of the top retail propane providers in thecountry,” said TECO Energy CEO Robert Fagan. “It’s a majoropportunity for each of us to fully realize the potential of ourpropane businesses.”

A nationwide search for a CEO to establish US Propane and leadits growth is under way. The company has tentatively selectedNashville, TN, as its headquarters.

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