AltaGas wins state approval for sale of Alaska utility
North American infrastructure company AltaGas, based in Calgary, said December 22 it had received approval from the Regulatory Commission of Alaska (RCA) of its application to sell its Alaskan Utilities subsidiary to Alaska Utilities Holdings, a subsidiary of Alberta-based TriSummit Utilities.
TriSummit owns BC natural gas distributor Pacific Northern Gas, Alberta gas distributor APEX Utilities and Eastward Energy, a gas distribution utility in Nova Scotia. It also owns wind power and hydroelectric facilities in BC.
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The transaction, announced in May 2022, provides for the sale of Alaskan Utilities for about C$1.1bn (US$800mn), subject to customary closing conditions, including state regulatory approvals. The RCA was the last remaining material regulatory closing condition, and the transaction is expected to close in Q1 2023.
The sale includes AltaGas’s 100% interest in ENSTAR Natural Gas, the largest local gas distribution company in Alaska, with about 150,000 customers; the Alaska Pipeline Company, which operates transmission and distribution pipelines for ENSTAR; AltaGas’s indirect 65% interest in Cook Inlet Natural Gas Storage Alaska (CINGSA).
Both ENSTAR and CINGSA will continue to operate as stand-alone utilities, headquartered in Alaska. ENSTAR employees will join TriSummit on closing of the transaction.