Mediation planned on Enstar tariff changes

Enstar Natural Gas Co. stirred resistance with certain tariff revisions it proposed recently.

Now the various parties intend to take the matter to nonbinding mediation.

Enstar is the natural gas utility in Anchorage. It asked the Regulatory Commission of Alaska to approve tariff revisions that could impact direct gas marketers who would use Enstar’s distribution system.

One of Enstar’s proposed changes would require commercial customers to provide a year’s notice when switching to or from an alternative gas supplier. Enstar says the notice is necessary to deal with the disruptive “coming and going” of customers.

Customers returning abruptly to Enstar could face higher gas prices under the tariff revisions.

Critics argue Enstar’s proposals are an attempt to frustrate competition. Enstar representatives counter that direct gas marketers are “revenue neutral” for the utility.

On March 6, the parties in the matter (RCA docket No. U-14-010) filed a stipulation saying they had agreed to engage in nonbinding mediation.

“Pursuant to the schedule agreed to by the parties, mediation is scheduled for June 11-12,” the stipulation said.

The stipulation asked the commission to appoint Blythe Marston as mediator.

The parties include Enstar, the state attorney general, Aurora Gas LLC, Cook Inlet Energy LLC, Homer Electric Association and Matanuska Electric Association.

—Wesley Loy