PSC approves Southern Co. as newest gas marketer

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Posted 6:05AM on Saturday, July 20, 2002

ATLANTA - Southern Co. was approved as Georgia's newest natural gas marketer Friday, with state regulators lauding the regional electric giant as a vital boon to the much-maligned deregulated gas industry. The Public Service Commission voted unanimously to allow the transfer of 210,000 customers from New Power Co. which had been the fourth-largest marketer in Georgia's natural gas market to Southern Co. Gas LLC, a new subsidiary of Atlanta-based Southern Co. The switch becomes effective Aug. 1. ``I'm excited they're in the marketplace,'' Commissioner Stan Wise said. The vote occurred after brief discussion about rival gas marketers' concerns that Southern Co. would unfairly subsidize its newest gas venture, most likely by allowing Georgia Power to offer low-cost meter reading. ``The (PSC) staff bears a lot of responsibility and we bear a lot of responsibility'' for oversight, Commissioner Bobby Baker said. Southern Gas will be required to file quarterly financial reports detailing how it has separated its business from other Southern Co. operations. ``The assumption up front by other marketers is that this is going to happen. Well, it's not happened yet,'' commission chairman David Burgess said in response to Baker's concerns. The company will have 30 full-time employees; others will work on a contract basis or bill their time to the gas operation, Southern spokesman Todd Terrell said. New Power and its New York-based parent, NewPower Holdings Inc., a spinoff of failed Enron Corp., declared bankruptcy on June 11. Southern agreed to pay $60 million for the accounts, gas inventory and accounts receivables. Southern Co. is the parent of Georgia Power and four other Southeastern electric utilities. It will enter the gas business for the first time with a 15 percent market share. The venture also will be the company's first into a deregulated energy market. Southern Co. shares fell $1.10, or 4.3 percent, to close at $23.89 Friday on the New York Stock Exchange.