Notice Of Application To Acquire A Controlling Interest In Gas Utility

The REGULATORY COMMISSION of ALASKA (Commission) gives notice that on June 15, 2015, the Alaska Industrial Development and Export Authority (AIDEA) filed an application to acquire 100 percent ownership interest in Fairbanks Natural Gas, LLC (FNG). FNG holds Certificate of Public Convenience and Necessity (Certificate) No. 514 and is authorized to provide natural gas distribution service in portions of Fairbanks, Alaska. Docket No. U-15-090 was opened to address this matter.

AIDEA has entered into a purchase and sale agreement to acquire all membership interests in Pentex Alaska Natural Gas Company, LLC, FNG’s current owner. AIDEA states that FNG’s customers will see no change in terms or conditions of service, as FNG will continue to operate under its current name with its existing personnel and equipment. After the acquisition, AIDEA intends to accelerate build-out to new customers, increase operating efficiencies and coordination, and to reduce rates. AIDEA also has plans to work with the Fairbanks North Star Borough, the City of Fairbanks, and the City of North Pole to transfer FNG to a coordinated Local Control Entity, which it asserts will bring additional benefits and efficiencies to existing and future customers. AIDEA believes that lower rates will encourage more customers to convert to natural gas, which, in turn, will improve air quality. 

FNG is subject to economic regulation by the Commission. Economic regulation means regulation of matters concerning a utility's rates and charges, quality of service, management practices, and customer complaints. Because AIDEA is a political subdivision of the state, it is exempt from economic regulation, in accordance with AS 42.05.711(b). If the application is approved, FNG will no longer be economically regulated. 

AIDEA requested expedited consideration of the application by October 15, 2015. 

No motion for waiver of filing requirements or petition for confidentiality was filed with the application. The Commission has not assessed the completeness of the application. The Commission may determine whether the application is complete by July 7, 2015. 

You may obtain more information about this filing from John Springstein, Executive Director for AIDEA, 813 West Northern Lights Boulevard, Anchorage, AK 99503; phone: (907) 771-3045. The complete filing is also available for inspection at the Commission's office at 701 West 8th Avenue, Suite 300, Anchorage, AK 99501; phone: (907) 276-6222; or at the Commission’s website at www.rca.alaska.gov by typing Docket “U-15-090” in the Find a Matter search box.

To comment on the application, please file your comments by 5:00 p.m., July 9, 2015, at the Commission’s address given above or via our website at:

https://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx



Please reference Docket U-15-090 and include a statement that you have filed a copy of the comments with AIDEA at the address given above. 

Individuals or groups of people with disabilities, who require special accommodations, auxiliary aids or service, or alternative communication formats, please contact Joyce McGowan at (907) 276-6222, toll-free at 1-800-390-2782, or TTY (907) 276-4533, or send a request via electronic mail to rca.mail@alaska.gov by July 2, 2015. 

DATED at Anchorage, Alaska, this 18th day of June, 2015.

REGULATORY COMMISSION OF ALASKA

Robert Pickett

Chairman