Distributor

Shareholders of AGL Resources and Nicor Inc. have approved a merger that would create the nation’s largest gas-only distributor with a rate base of $3.8 billion that encompasses seven regulated gas distribution companies serving 4.5 million customers in Illinois, Georgia, New Jersey, Virginia, Florida, Tennessee and Maryland. The merger was announced in December (see NGI, Dec. 13, 2010). Nicor would merge with an AGL subsidiary in a deal with an enterprise value of $3.1 billion, including equity of $2.4 billion. Corporate headquarters would be in Atlanta with gas distribution headquarters in Naperville, IL. The merger must still be approved by the Illinois Commerce Commission, which regulates Nicor and establishes rates. The deal is expected to close by the end of the year.

A medium-size natural gas utility and a small propane distributor received approval from the Arizona Corporation Commission (ACC) Tuesday to implement separate purchased gas adjustor (PGA) credits for their customers. UniSource Energy Corp.’s UNS Gas utility and Semstream Propane will be allowed to adjust rates depending on the swings in the wholesale costs of their respective fuels.

Sixteen distributor customers of Tennessee Gas Pipeline and FPL Energy have petitioned FERC to set appropriate gas quality standards before approving the pipeline’s request to add a 500 MMcf/d connection to regasified liquefied natural gas (LNG) supplies to its system. The group objected to the filing of the interconnection application under the Commission’s fast-track prior notice procedures (CP08-400).

Sixteen distributor customers of Tennessee Gas Pipeline and FPL Energy have petitioned FERC to set appropriate gas quality standards before approving the pipeline’s request to add a 500 MMcf/d connection to regasified liquefied natural gas (LNG) supplies to its system. The group objected to the filing of the interconnection application under the Commission’s fast-track prior notice procedures (CP08-400).

Portland, OR-based Northwest Natural Gas Co., the largest natural gas-only distributor in the region, said it passed a significant milestone Tuesday in its effort to reduce its greenhouse gas (GHG) footprint by encouraging its 600,000 customers to move to electronic, or paperless, billing systems. More than 10% now have chosen that path.

FERC last Wednesday approved a settlement agreement requiring Maine distributor Bangor Gas Co. LLC to pay a civil penalty of $1 million for violations of the agency’s “shipper-must-have-title” requirements. This marked the first time that FERC has exercised its enhanced penalty authority under the Energy Policy Act of 2005 (EPAct) for natural gas violations.

FERC Wednesday approved a settlement agreement requiring Maine distributor Bangor Gas Co. LLC to pay a civil penalty of $1 million for violations of the agency’s “shipper-must-have-title” requirements. This marked the first time that FERC has exercised its enhanced penalty authority under the Energy Policy Act of 2005 (EPAct) for natural gas violations.

A municipal gas distributor group has called on FERC to disregard the “extra-record fusillade” from interstate pipelines seeking to persuade the agency to overturn a controversial decision recommending a significantly lower return on equity (ROE) for Kern River Gas Transmission, a ruling that pipes fear could signal a trend.

A municipal gas distributor group has called on FERC to disregard the “extra-record fusillade” from interstate pipelines seeking to persuade the agency to overturn a controversial decision recommending a significantly lower return on equity (ROE) for Kern River Gas Transmission, a ruling that pipes fear could point to a trend.