AGL Resources, Piedmont Agree on Price for AGL's Purchase of Piedmont's Stake in Retail Supplier SouthStar

Piedmont Natural Gas and a subsidiary of AGL Resources have reached an agreed purchase price for the acquisition of Piedmont's entire interest in SouthStar Energy Services LLC by the AGL Resources subsidiary

Currently, Piedmont owns 15% of SouthStar, with AGL Resources ultimately owning 85%. EnergyChoiceMatters.com previously reported that AGL Resources had elected to purchase Piedmont's entire interest in SouthStar Energy Services LLC, upon the consummation of various transactions under Piedmont's previously reported acquisition by Duke Energy, with the acquisition price, based on fair market value, to be determined at a later date

Specifically, Piedmont and AGL's Georgia Natural Gas Company subsidiary have now agreed that Georgia Natural Gas Company will pay $160 million cash for Piedmont's 15% interest in SouthStar, subject to the consummation of Piedmont's merger with Duke Energy.

The companies entered a letter agreement that also provides for non-solicitation of certain SouthStar employees by Piedmont for 30 months following the purchase, Piedmont's release of its option under a prior agreement to purchase the C&I customer retail business, and a non-compete by Piedmont, covering the entire states of Georgia and Illinois, and the following utilities in Ohio: Vectren Energy, Dominion East Ohio, and Columbia Gas Ohio.