BCUC rules out oral hearing on Terasen deal
By Scott Simpson
Vancouver Sun
Tuesday, October 25, 2005
Utilities commission is satisfied with written submissions
The B.C. Utilities Commission announced Monday that there will be no oral hearing on the proposed $6.9-billion sale of Terasen Inc. to Texas-based Kinder Morgan Inc.
BCUC commission secretary Robert Pellatt said in a letter to Kinder Morgan that hearings proceed to an oral stage "only when the commission panel has questions arising from written submissions."
The BCUC was deluged with a record volume of correspondence, more than 6,000 letters, in connection with the sale. Many of those letters came from Terasen Gas residential customers who objected to an American company taking ownership of the province's largest gas utility.
Vancouver-based Terasen, like Kinder Morgan, is a publicly traded company. Kinder Morgan made an unsolicited offer for Terasen in August at a 19-per-cent premium to recent share value.
Terasen shareholders voted overwhelmingly last week to accept that offer.
Pellatt said the BCUC is satisfied with written correspondence on the transaction and expects to issue a final decision on Nov. 10.
"The commission has an established practice of proceeding with an oral phase only when the commission panel has questions arising from written submissions," Pellatt said, adding that in this instance the panel "does not have any questions" arising from the proceeding.
"Further, given the extensive submissions and comments received in the written process ... the commission panel considers the record is closed for this proceeding."
Terasen public affairs director Cam Avery said the commission was "able to enjoy a huge, huge amount of information."
Avery added that concerns expressed by many correspondents were "beyond the purview of the commission."
"Canada's energy export policy is just not part of the BCUC's deliberations," Avery said.
Pending approvals from the BCUC, and from Industry Canada, the Kinder Morgan purchase could be wrapped up by Nov. 30.
Avery said Terasen's customers won't notice a difference: Terasen Gas will still be the name of the company on monthly gas bills, and rates cannot rise as a result of the deal.
"You will see no effect on your gas bill as a result of this transaction. Gas rates are reviewed quarterly by the B.C. Utilities Commission and have been for years. This transaction will have no effect on people's gas bills," Avery said.
"It will still be a Terasen Gas billing, same people hooking up the meters, same people reading the meters, same people buying the gas for them. Nothing is going to change here."
© The Vancouver Sun 2005
Posted by Arthur Caldicott on 25 Oct 2005