Notice of Utility Tariff Filing
The REGULATORY COMMISSION OF ALASKA (Commission) gives notice that ENSTAR Natural Gas Company (ENSTAR) filed TA325-4, seeking Commission approval of the Fourth Amendment to its Gas Sale and Purchase Agreement (GSA) between Alaska Pipeline Company (APLC) and Furie Operating Alaska, LLC (Furie). The Third Amendment to the GSA was filed as TA316-4 and approved in Letter Order No. L2000142. 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 Fourth Amendment, ENSTAR will have the right of first refusal for any daily volumes of Gas available for sale by Furie in excess of the Firm Daily Contract Quantity, including commitments pursuant to Section 2.2, as amended by the Third Amendment. The Parties shall coordinate daily regarding availability and agreed to pricing of Optional Right of First Refusal Gas (O-ROFR), as documented on a Discretionary Gas Sales Form. ENSTAR is under no obligation to purchase O-ROFR Gas.
The Fourth Amendment adds a new pricing section for O-ROFR Gas and sets the floor and ceiling prices for this additional gas. This pricing structure will allow ENSTAR to purchase this optional gas at a more favorable price compared to other currently available gas purchase options. The table below is an amendment to Article 3 of the GSA, and contains the amended and restated Price and Cost Allocation of the GSA.
| Volumes | Cost per Mcf |
| Contract Year beginning April 1, 2021 | Contract Year beginning April 1, 2022 |
| Firm Gas | $6.71 | $6.85 |
| ROFR Gas | $6.71 | $6.85 |
| Discretionary Gas | Not to exceed $9.85 | Not to exceed $10.05 |
| O-ROFR Gas | Not to Exceed $9.85 Not less than $7.00 | Not to Exceed $10.05 Not less than $7.00 |
Under the Fourth Amendment in exchange for Furie’s promise to utilize encumbered funds that otherwise would have securitized the Letter of Credit, ENSTAR proposes to excuse Furie from its previous obligation to maintain a Letter of Credit for its benefit. Furie hereby promises ENSTAR that it will utilize encumbered funds that otherwise would have securitized the Letter of Credit solely and exclusively for the following items: (a) finalization of the Water System described above, and (b) additional construction, installation, and operations necessary for Furie to enhance production, and (c) a promise to grant ENSTAR the O-ROFR set forth in Section 2.2(a). Beginning with approval of the Fourth Amendment and continuing for a period of 2 years, Furie will provide a quarterly status report of the progress of its work under subsections (a) and (b) above by the 15th Day of the month following the quarter end, and will verify that the encumbered funds were used solely and exclusively for such work.
Finally, under the Fourth Amendment to the GSA, except as specifically modified by this Fourth Amendment, the remaining terms of the GSA shall remain in full force and effect and shall apply to this Fourth Amendment as if the provisions of this Fourth Amendment were part of the GSA.
This notice does 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 Chelsea N. Guintu, Supervisor of Rates and Regulatory Affairs for ENSTAR, at P. O. Box 190288, Anchorage, AK 99519-0288; phone: (907) 334-7620. 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 “TA325-4” in the Find a Matter search box.
To comment on this filing, please file your comments by 5:00 p.m., May 19, 2021, at the Commission address given above or via our website at:
https://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx
Please reference TA325-4 and include a statement that you have filed a copy of the comments with ENSTAR at its address given above. Individuals or groups of people with disabilities, who require special accommodations, auxiliary aids or service, or alternative communication formats, please contact Valerie Fletcher-Mitchell at (907) 276-6222, toll-free at 1-800-390-2782, or TTY/Alaska Relay: 7-1-1 or 1-800-770-8937, or send a request via electronic mail to rca.mail@alaska.gov by May 12, 2021.
DATED at Anchorage, Alaska, this 19th day of April 2021.
REGULATORY COMMISSION OF ALASKA
Julie C. Vogler
Finance Section Manager