Notice of Utility Tariff Filing
The REGULATORY COMMISSION OF ALASKA (Commission) gives notice that ENSTAR Natural Gas Company (ENSTAR) filed TA295-4 seeking Commission approval of a new Gas Sale and Purchase Agreement (GSA) between Alaska Pipeline Company (APLC) and AIX Energy, LLC (AIX). APLC is the sister company of ENSTAR and owns the natural gas transmission pipeline that delivers gas to ENSTAR’s service area. Historically, the Commission has regulated ENSTAR and APLC as a single entity.
Under the proposed GSA, AIX will deliver a firm contract quantity of approximately 3.9 Bcf of natural gas from July 1, 2018 to March 31, 2021, with the potential for an additional 0.7 Bcf during the final year of the contract. The firm Annual Contract Quantity (ACQ) is as follows:
| Contract Year | Dates | Approximate Volume, Bcf |
| 1 | 7/1/18 through 3/31/19 | 1.370 |
| 2 | 4/1/19 through 3/31/20 | 1.464 |
| 3 | 4/1/20 through 3/31/21 | 1.095 – 1.825 |
| Total | 3.929 – 4.659 |
AIX’s firm ACQ equates to approximately five percent of ENSTAR’s customers’ needs in each year of the contract. Gas under the AIX GSA will be delivered at a continuous rate according to the schedule below.
| Contract Year | Dates | Continuous Rate, MMcfpd |
| 1 | 7/1/18 through 3/31/19 | 5 |
| 2 | 4/1/19 through 3/31/20 | 4 |
| 3 | 4/1/20 through 3/31/21 | 3-5 |
To allow ENSTAR further flexibility to align its purchases with demand, the GSA provides two mechanisms to adjust the Firm ACQ. Section 2.4 of the proposed GSA allows ENSTAR to deliver a Minor Adjustment Notice to AIX on or before October 1 of any contract year, automatically increasing or decreasing the Firm ACQ that ENSTAR purchases by up to five percent in the following year for reasons attributable to weather variability, customer conservation, or usage changes. Section 2.5 allows ENSTAR to request variations in excess of five percent, for AIX to consider in good faith and for the parties to negotiate, if necessary. Finally, the GSA provides a Market Out provision that permits ENSTAR to reduce the Firm ACQ without penalty in the event customers initiate gas sales service with a third party and a Market Return provision to increase the Firm ACQ if those customers return at a future date.
Pricing under the proposed GSA depends on the contract year. The price of gas for the term of the proposed GSA is as follows:
| Contract Year | Dates | Firm Gas ($/Mcf) |
| 1 | 7/1/18 through 3/31/19 | $6.35 |
| 2 | 4/1/19 through 3/31/20 | $6.44 |
| 3 | 4/1/20 through 3/31/21 | $6.54 |
This notice may not contain all requested revisions and the Commission may approve a rate or classification which varies from that proposed. You may obtain more information about this filing by contacting Dan Dieckgraeff, Director of Rates and Regulatory Affairs for ENSTAR, at P. O. Box 190288, Anchorage, AK 99519-0288; phone:
(907) 376-7979. The complete filing is also available for inspection at the Commission's office at 701 West Eighth Avenue, Suite 300, Anchorage, AK 99501; phone: (907) 276-6222 or may be viewed at the Commission’s website at http://rca.alaska.gov by typing “TA295-4” in the Find a Matter search box.
To comment on this filing, please file your comments by 5:00 p.m., September 25, 2017, at the Commission address given above or via our website at:
https://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx
Please reference TA295-4 and include a statement that you have filed a copy of the comments with ENSTAR at its address given above or by email at Dan.Dieckgraeff@ENSTARnaturalgas.com. 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 September 18, 2017.
DATED at Anchorage, Alaska, this 25th day of August, 2017.
REGULATORY COMMISSION OF ALASKA
Julie C. Vogler
Finance Section Manager