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AltaGas sells Enstar to another Canadian utility, TriSummit
Kristen Nelson Petroleum News
AltaGas Ltd. has sold its Alaska utilities to TriSummit Utilities Inc., the companies said May 26. The Alaska assets include 100% interest in Enstar Natural Gas and the Alaska Pipeline Co. and its 65% indirect interest in Cook Inlet Natural Gas Storage Alaska. AltaGas said Enstar and CINGSA “will continue to operate as standalone utilities and remain headquartered in Alaska” with Enstar employees becoming TriSummit employees on closing of the sale.
Enstar has some 150,000 customers.
TriSummit said the purchase is the company’s first move into the United States. Its existing utilities are in Canada, with rate-regulated distribution and transmission assets in Alberta, British Columbia and Nova Scotia. The company also owns 33.33% equity interest in the utility delivering natural gas in Inuvik, Northwest Territories, and Renewable Energy, including the Bear Mountain Wind Park, and has approximately 10% indirect interest in the Northwest Hydro Facilities.
Apex Utilities Inc. in Alberta serves some 81,900 customers, primarily residential and small commercial consumers in smaller population centers or rural areas in Alberta.
TriSummit owns Pacific Northern Gas, PNG, in the west central portion of northern British Columbia. A wholly owned subsidiary of PNG owns and operates distribution in northeastern British Columbia.
TriSummit said PNG serves some 42,300 customers, approximately 87% of which are residential.
The transition TriSummit said Enstar will continue to operate as a standalone utility, “preserving its corporate identity and providing the same safe, reliable and affordable service to its customers.” TriSummit said it will retain Enstar’s “dedicated employees and hire new Alaska employees to perform certain functions currently performed out of State.”
Jared Green, TriSummit’s president and CEO, is a former president of Enstar, named to that position in 2014.
He said the companies have similar dedication and culture. Enstar’s “solid track record” makes the company “an excellent fit for our company,” he said.
Green said TriSummit’s top priority to a smooth transition, maintaining Enstar’s strong relationships in its communities and to support Enstar in continuing to provide safe, reliable and affordable service.”
TriSummit said the acquisition “significantly enhances TriSummit’s position as a premier growing North American utility and renewable energy company.”
AltaGas said that following its divestiture of the Alaska utilities its remaining utilities will be concentrated in the Eastern U.S., including Maryland, Virginia, Michigan and the District of Columbia.
- KRISTEN NELSON
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