- TriSummit Utilities Inc. has entered into a definitive agreement with a subsidiary of AltaGas Ltd. (ALA) to acquire utilities in Alaska for approximately C$1 billion
- These include 100 per cent of ENSTAR Natural Gas Company and the Alaska Pipeline Company, the Norstar Pipeline Company, and a 65 per cent interest in CINGSA
- The transaction will enhance TriSummit’s position as a premier, growing North American utility and renewable energy company
- TSU is a Canadian company with natural gas distribution utilities and renewable power generation assets
- ENSTAR is a regulated public utility that delivers natural gas to customers in Anchorage
- AltaGas Ltd. (ALA) opened trading at $29.45
TriSummit Utilities has signed an agreement with a subsidiary of AltaGas Limited (ALA) to acquire utilities in Alaska for approximately C$1 billion.
These utilities include 100 percent of ENSTAR Natural Gas Company and the Alaska Pipeline Company, the Norstar Pipeline Company, Inc., and a 65 percent indirect interest in Cook Inlet Natural Gas Storage Alaska (CINGSA), LLC.
“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,” stated Jared Green, President and CEO of TriSummit.
“We believe that TriSummit will be an excellent steward to the Alaskan Utilities stakeholders in the next chapter of its corporate life, along with the continued direction from the highly capable Alaskan senior leadership team and the dedicated employees that will be joining TriSummit post-closing,” noted Randy Crawford, President and Chief Executive Officer of AltaGas.
The transaction will significantly enhance TriSummit’s position as a premier, growing North American utility and renewable energy company.
ENSTAR is the largest gas utility in the state of Alaska, servicing approximately 60 percent of the State’s population, with 3,626 miles of transmission and distribution pipeline. CINGSA, located in Kenai, is the only commercial, fully contracted, state regulated gas storage facility in Alaska.
All together, ENSTAR and its 65 percent interest in CINGSA had 2021 average rate base of approximately US$350 million.
The transaction is expected to significantly increase TriSummit’s scale, growing TSU’s consolidated rate base by approximately 40 percent to C$1.5 billion, and more than doubling its customer base. The transaction will also provide greater geographical and business diversification.
After the close of the transaction, TriSummit will operate in four distinct regulatory jurisdictions, three in Canada and one in the United States.
Despite the transaction, ENSTAR will still have its headquarters in Anchorage and will continue to operate as a standalone utility in Alaska. Its current management team and employees will remain in place.
TSU is a Canadian company with natural gas distribution utilities and renewable power generation assets.
ENSTAR is a regulated public utility that delivers natural gas to more than 150,000 residential, commercial, and industrial customers in and around the Anchorage and Cook Inlet area.
AltaGas Ltd. (ALA) opened trading at $29.45.
