RCA approves ownership changes

In an Aug. 14 decision the Regulatory Commission of Alaska approved the acquisition by AltaGas Ltd. and AltaGas Utility Holdings (U.S.) LLC of a controlling interest in Enstar Natural Gas Co., a division of Semco Energy Inc. and Alaska Pipeline Co., a wholly owned subsidiary of Semco.

A Feb. 1 agreement provided for acquisition by AltaGas U.S. of 100 percent of the outstanding shares of common stock of Semco Holding, which holds 100 percent of the outstanding shares of Semco, with AltaGas U.S. replacing Continental Energy Systems LLC as owner of Semco Holding and through Semco controlling Enstar and Alaska Pipeline Co.

In comments on the proposed sale the Municipality of Anchorage, doing business as Municipal Light & Power, told the commission that it is critical that an entity owning Enstar demonstrate willingness to commit resources necessary to meet the challenges of supplying and transporting natural in Southcentral Alaska and said the commission should require applicants to file five-year capital improvement plans for Enstar and commit to providing support to Enstar to participated with other utilities in coordinated gas supply planning efforts.

AltaGas told the commission it was fully aware of the challenges described in ML&P’s comments and was willing to work cooperatively with Southcentral utilities to overcome those challenges, but said submission of a five-year plan at this stage was not practical. It said that upon approval of the sale it would see to it that Enstar and Alaska Pipeline Co. “continue to contribute their fair share to those important efforts.”

AltaGas Ltd. is a Canadian company headquartered in Calgary, Alberta, common stock and preferred shares traded on the Toronto Stock Exchange. Through subsidiaries it provides retail natural gas service to some 115,000 customers in Alberta, British Columbia, Nova Scotia and the Northwest Territories.

AltaGas U.S. is a Delaware limited liability company formed in January for the purpose of holding AltaGas Ltd. utility investments in the U.S. and is wholly owned by AltaGas Ltd. The commission also approved acquisition by AltaGas of a controlling interest in Cook Inlet Natural Gas Storage Alaska LLC. Semco controls 65 percent of CINGSA through an indirect subsidiary.

—Kristen Nelson