|
RCA approves Enstar ownership change
Canadian company TriSummit Utilities can now proceed to acquire interests in Enstar, Alaska Pipeline Co. and CINGSA in Q1 2023
Alan Bailey for Petroleum News
In a Dec. 21 order the Regulatory Commission of Alaska approved the transfer of ownership of Enstar Natural Gas Co. and Alaska Pipeline Co., and a 65% controlling interest in Cook Inlet Natural Gas Storage Alaska, from Canadian company, AltaGas Ltd., to another Canadian company, TriSummit Utilities Inc. The regulatory approval will enable the ownership transfer to proceed. TriSummit has indicated that it anticipates the transfer to be completed by the end of the first quarter of 2023.
Enstar supplies natural gas to customers in Southcentral Alaska. Alaska Pipeline Co. operates the gas transmission pipeline system in the Cook Inlet region. And CINGSA provides gas storage services, primarily for gas and electricity utilities in Southcentral Alaska.
Enstar, Alaska Pipeline Co. and CINGSA are all public utilities, regulated by RCA.
Appropriate experience The Alaska utilities had told the commission that TriSummit Utilities is a utility and renewable power company with extensive experience of operating utilities in in extreme cold weather environments in remote regions. The company is indirectly owned by two of Canada’s largest pension investment managers.
In its order, RCA said that it has concluded that the three utilities have demonstrated that, under their new ownership arrangements, they will have “sufficient organization, financial backing, technical facilities and equipment, operations expertise and managerial and administrative experience to support a finding of fitness, willingness and ability to provide public utility service.”
An around $800 million transaction According to the TriSummit website, the purchase is a cash transaction valued at around US$800 million. The purchase will more than double the company’s customer base.
“The dedication and culture of Enstar, which is very similar to TriSummit’s, has provided them with a solid track record and makes this an excellent fit for our company,” said Jared Green, president and CEO of TriSummit. “Our top priority is to ensure a very smooth transition, maintaining the strong relationships Enstar has in its communities, and to fully support Enstar as they continue to provide customers with safe, reliable and affordable service.” Green was president of Enstar and CINGSA from 2014 to 2017.
TriSummit says that “Enstar will maintain its existing headquarters in Anchorage and will continue to operate as a standalone utility in Alaska. Its current management team and employees will remain in place.”
Vital services Natural gas supplies are vital to Southcentral Alaska for the heating of buildings and the generation of electricity. Enstar purchases gas from Cook Inlet gas producers and ships the gas to its customers through the Alaska Pipeline Co. transmission pipelines and through local distribution pipelines. Enstar also stores gas in the CINGSA facility to supplement gas supplies during periods of high gas demand.
| 