AGL Resources and Nicor Gas filed an application with the Commission for approval of their proposed merger. By the terms of the filing the merger will be structured as follows: "AGL Resources agreed to acquire all the outstanding shares of Nicor Inc. in exchange for a combination of cash and AGL Resources stock. That transaction will occur through a merger between Nicor Inc. and a subsidiary of AGL Resources, whereby ultimately Nicor Gas will become a wholly-owned subsidiary of AGL Resources. Upon completion of the Merger, we will begin the process of integrating the two companies along their segment lines (utility operations, non-regulated businesses and corporate)." Both companies noted their support for retail customer choice in the merger application. Specifically, "Nicor Gas and AGL Resources both support customer choice and believe that competition brings new and innovative products to the marketplace. This is evident by the variety of commodity products offered since the program's inception. Not only do gas suppliers offer fixed price per therm products, they also offer variable priced products, combination packages of fixed and variable prices, a fixed bill amount, as well as "green energy" options."

The companies are not seeking an increase in Nicor's rates as a condition of the merger. They requested expedited approval of the merger from the Commission by October 1, 2011. The full text of the Proposed Merger Application is available from NEM headquarters.

The Commission reports that customer participation in gas choice in the state reached an all-time high since the program's inception in 2001-02. Gas customer choice is available at Consumers Energy, MichCon, MGU, and SEMCO. "In December 2010, the number of gas choice customers reached 445,071. The number of gas choice customers has risen steadily each month since October 2009, when 377,955 customers were enrolled in gas choice programs. December 2010 gas volumes also set a record, with 78.275 billion cubic feet (Bcf) in annualized sales reported statewide. Gas volumes have risen almost every month since November 2009."

The Commission approved a proposal by NFG to revise its method of settling imbalances by changing from its current rollover method and using a cash-out methodology instead. Subject to initial comments received, NFG modified its proposal to clarify when and how the tiered penalty mechanism would be applied and to use tolerance bands within which imbalances would be cashed out at market price. NFG also retained the right to utilize the rollover method under certain circumstances. The Commission noted that, "NFG proposes to further clarify the issue of how the tiers would be applied and the type of circumstances that would lead the Company to rollover imbalances by including additional language in an update of its Gas Transportation Operating Procedures (GTOP) manual. Staff and marketers will have thirty days to review that language before it becomes effective, during which time any clarifications or modifications can be made. The Company will send modified GTOP language to its system marketers and other impacted customers." NFG's revised tariff is authorized to become effective February 1, 2011. The full text of the Order is available on the NEM Website.