Scana Energy announced a definitive agreement Thursday to acquire Energy America LLC’s 50,000 customers in the Georgia for an undisclosed amount. With this transaction, Scana’s total customer base will increase to more than 450,000 in Georgia, which represents about 30% of the 1.5 million customers in the state’s natural gas market.

Energy America, Centrica’s Stamford, CT-based retail marketer, announced in October that it would exit the Georgia market (see Daily GPI, Oct. 10). Besides its 360,000-plus unregulated customers in Georgia, Scana’s regulated division also serves more than 43,000 low-income and high credit risk customers there. The transaction, subject to regulatory approval, is expected to close by March.

“We are very pleased to have been the successful bidder for Energy America’s natural gas customers in Georgia,” said Kevin Marsh, Scana’s CFO. He said that based on a closing date of March 1, 2004, the transaction will be “financially break-even” next year and accretive to earnings on an annual basis after that. “Although the total purchase price was not disclosed, it is not material to Scana’s overall financial position.”

George Devlin, general manager of the Scana Corp. subsidiary, said he expects a smooth, uninterrupted transition for all Energy America customers once the transaction is finalized. “From a customer service perspective, we will work to ensure that these customers receive the same high quality service that our current customers in Georgia have come to expect from us. This transaction underscores our long-term commitment to this market.”

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