RCA sets Enstar contracts July hearing

In April the Regulatory Commission of Alaska asked for comments on gas sales agreements between Enstar, the natural gas distribution company for Southcentral Alaska, and ConocoPhillips Alaska and Marathon Oil Co. Comments, due May 9, were received from consumer Louis Howard; Chugach Electric Association; Matanuska Electric Association; Marathon; Fairbanks Natural Gas; and Golden Valley Electric Association.

RCA said May 13 that based on its analysis and the comments, there are “serious and substantial issues of fact and questions of policy that may require a public hearing.”

The commission set a schedule, including a public hearing July 28.

Petitions to intervene in the proceeding are due May 21.

RCA is also inviting the Alaska Attorney General to participate.

The commission is required to issue a decision within 270 days of a complete filing, a deadline of Jan. 6, 2009. RCA said Enstar has asked for a decision by Oct. 31. The gas supply contracts are set to go into effect Jan. 1, 2009, and are conditioned on regulatory approval by Oct. 31.

RCA said its procedural framework is established so that it may be able to reach a final decision by Oct. 31. “All participants in this docket will be expected to adjust their schedules and priorities to adhere to the procedural schedule, and to cooperate to allow this docket to be handled expeditiously,” the commission said in its order.

In addition to meeting Enstar’s unfilled gas needs beginning in January, the contracts are part of a larger agreement the State of Alaska struck with ConocoPhillips and Marathon to support the companies’ request to the U.S. Department of Energy for an extension of their natural gas export license for the Nikiski liquefied natural gas facility. ConocoPhillips and Marathon agreed to negotiate new gas supply agreements with Enstar as part of their deal with the state.

—Kristen Nelson