Under the terms of the deal, South Jersey will acquire the assets of New Jersey-based Elizabethtown Gas and Maryland-based Elkton Gas from Southern Company Gas subsidiary Pivotal Utility.
Southern Company chairman, president and CEO Thomas Fanning said: "In addition to maximizing value for Southern Company shareholders, the transaction is beneficial to our company and aligns with our overall business strategy to drive growth and prosperity."
South Jersey expects the deal to position it as the second largest natural gas provider in New Jersey.
South Jersey Industries president and CEO Michael Renna said: “Importantly, this deal is entirely consistent with our core strategy and allows us to leverage our combined scale, talent and culture to accelerate growth and drive shareholder value while maintaining a strong balance sheet.
“Elizabethtown Gas, Elkton Gas and SJI are deeply tied to the communities we serve and we look forward to building upon those relationships.”
The deal, which is expected to be completed by third quarter 2018, is subject to approvals by the New Jersey Board of Public Utilities and the Maryland Public Service Commission. It is also subject to limited approvals by the Federal Energy Regulatory Commission and the Federal Communications Commission.
South Jersey will continue to provide service in compliance with the New Jersey Board of Public Utilities (NJBPU) and Maryland Public Service Commission (MPSC) approved tariff rates for the Elizabethtown Gas and Elkton Gas customers.
Image: The Southern Company Gas head quarters. Photo: courtesy of Southern Company.
