Regulatory Commission of Alaska

RCA RELEASED ITS ORDER ON DOCKET U-08-58, ENSTAR'S GAS SUPPLY AGREEMENTS WITH MARATHON OIL COMPANY AND CONOCO-PHILLIPS

Anchorage, Alaska - On October 31, 2008, the Regulatory Commission of Alaska (RCA) released an order in Docket U-08-58. This docket was opened by the RCA to investigate two gas sales agreements (GSAs) filed by ENSTAR on April 11, 2008.  The GSAs are with Marathon Oil Company and Conoco-Phillips. The GSAs provide for gas deliveries beginning in January 2009 and continuing through December 31, 2013.  The commission held a two-week evidentiary hearing in August 2008 and has since deliberated on whether to approve the GSAs as submitted. In its Order U-08-58(8) released October 31, the commission approved ENSTAR’s GSAs provided that ENSTAR files amendments that incorporate the Marathon Oil GSA price cap and Conoco-Phillips GSA price cap, as described in the order.  ENSTAR has until December 1, 2008, to file amendments to the GSAs.

In a separate matter, ENSTAR filed a tariff advice filing (TA172-4) seeking its annual Gas Cost Adjustment (GCA).  The GCA tracks market prices in approved natural gas contracts and adjusts rates periodically to reflect those changes.  Last year, the commission approved ENSTAR's GCA that resulted in a 2 percent decrease in Southcentral’s natural gas rates.  ENSTAR does not earn any profit on the gas it transports.  A copy of ENSTAR’s GCA filing may be downloaded from this link, or enter “TA172-4” in the Find a Matter search box from our website.  The GCA calculation will be reviewed for compliance with the state regulations found in 3 AAC 52.505, Adjustment Clause for Gas Utilities.

The GCA request is separate from the utility’s approved GSAs with Marathon Oil Company and Conoco‑Phillips; however, the GCA revision includes Weighted Average Cost of Gas under approved legacy contracts and the two new GSAs as submitted in Docket U-08-58.

The five-member commission is a state agency in charge of regulating utilities in Alaska. It is the commission’s responsibility to ensure regulated companies provide safe and reliable utility service to customers at reasonable rates, terms and conditions (Alaska Statute 42.05.431).  

To review the commission’s Order U-08-58(8) and the accompanying Appendices A through E, please visit this link, or enter “U-08-058” in the Find a Matter search box from our website.