Will natural gas prices rise in Southcentral Alaska if regulators approve a $1.1 billion deal that includes the sale of Enstar Natural Gas Co. to a Canadian firm?

Probably not, because prices generally don't change as a result of an acquisition, said Ann Wilde, commission section manager for the Regulatory Commission of Alaska.

"Just because a different company owns a utility doesn't mean it costs more to run the utility," she said.

And before prices can change, a request from Enstar would have to follow the usual rate-case review, including a chance for public comment and approval by the five-member commission, said Wilde.

The question stems from a Wednesday announcement by AltaGas, a gas processor and pipeline operator based in Calgary, Alberta, that it purchased Enstar's parent company, Semco Energy. Semco is owned by Continental Energy Systems. Both companies are based in Michigan.

The deal must first be approved by the RCA, as well as regulators in Michigan, where Semco Energy owns another gas distribution utility, this one serving about 285,000 customers.

The regulatory process will likely take about six months, AltaGas said in a press release. 

Nothing at Enstar will change if the deal is approved, including the company's name or its management team, said John Sims, Enstar spokesman in Anchorage.

"It's going to be seamless," said Sims.

Remaining on board will be Colleen Starring, Enstar president, as well as the company's 180 or so employees, the majority of which are unionized, Sims said.     

"They're honoring all collective bargaining agreements," Sims said of AltaGas.

Enstar's service area extends from the Matanuska Valley to the Kenai Peninsula, with about 414 miles of natural gas transmission lines and 2,800 miles of natural gas distribution mains in the Anchorage and Cook Inlet area, the AltaGas release noted.

The issue of natural gas prices is a huge one as Southcentral residents endure one of the coldest winters in years and some household heating bills approach $300 or more. Natural gas prices in the region jumped substantially about five years ago as world energy prices surged, angering many of Enstar's 130,000 customers.

But the cost of natural gas fell slightly last spring, as result of a gas-cost adjustment that's related to the long-term contracts Enstar has with gas producers. Gas bills are expected to fall again on April 1 for that same reason, in part thanks to increased gas availability stemming from a rise in production in the Cook Inlet basin.

Those prices are based on long-term contracts, which will remain in place if the acquisition goes through.  

"Gas supply contracts won't change as a reflection of this transaction," Sims said, providing price stability for customers.

Also, natural gas customers, as part of their bill, pay rates that help Enstar recoup its costs: a transportation fee and a fixed-customer charge. Those can't change for at least two years because Enstar's next rate-review before the state regulatory commission can't be held until 2014, Sims said.

Stability in rates was just one of Enstar's attractive features that led AltaGas to purchase the company, Sims said.

Officials with AltaGas could not be reached for comment Wednesday evening.

In the written statement, AltaGas said the purchase offers "extensive" growth opportunities and will help it become a leading North American energy infrastructure company. AltaGas will assume $355 million in debt as part of the deal.