Ownership change triggers RCA filings

Petroleum News

Following a May announcement that Enstar Natural Gas has been sold to TriSummit Utilities (see story in June 5 issue of Petroleum News), the Regulatory Commission of Alaska has received applications for its approval of the change.

Transfer of certificates of public convenience and necessity require RCA approval and there are three in this transaction, that for Enstar Natural Gas and separate certificates for Alaska Pipeline and for the 65% indirect controlling interest in Cook Inlet Natural Gas Storage. The companies said in in their joint application that the remaining indirect owners of CINGSA, Berkshire Hathaway Inc. and Cook Inlet Region Inc., are not changing as a result of the transition.

The application said the proposed transaction requires a corporate restructuring of Enstar, because it is not a separate corporate entity under the previous ownership, but a division of a company and TriSummit is only acquiring Enstar.

The application says TriSummit “is a utility and renewable power company that has extensive experience operating utilities in extreme cold weather environments across Canada, all areas with remote, challenging terrain and winter conditions” which are akin to those in Enstar’s and CINGSA’s service areas.

The companies also said the TriSummit senior management team has significant operational experience and expertise and note that TriSummit’s President and CEO Jared Green was president of Enstar and CINGSA from 2014 to 2017.

TriSummit is committed, the companies said, to maintaining local management and operation, and “expects to bring utility support functions previously performed out of state back to Alaska within the first year of ownership.” These functions include “full-time employees in finance, information technology, procurement, legal services and human resources,” the companies said.

RCA said it will determine whether the applications are complete by July 18.

The commission said applicants have requested confidential treatment for portions of the proposed transaction and sales agreement and comments on that request are being accepted through July 21.

- Petroleum News