American Gas - June 2014 - (Page 14)

state watch alabama Spinoff St. Louis group buys Alagasco BIRMInGHAM -Laclede Group has agreed to buy Energen's Alabama Gas Corp. (Alagasco) for $1.34 billion, as Energen looks to strengthen its focus on oil and natural gas exploration and production. Energen Chairman and CEO James McManus said in a conference call with analysts that bidding for Alagasco-Alabama's largest natural gas utility-was "highly competitive," and that Laclede was "culturally a perfect fit" with Alagasco, with a similar focus on customer service and community involvement. McManus said he was confident that the deal would be well-received by Alabama regulators. The deal, which is expected to close this year, would add 422,000 Alabama customers to Laclede's 1.13 million-customer base, located throughout Missouri. Laclede is based in St. Louis. The transaction "allows Energen to clarify its corporate structure by becoming a pure exploration and production company, a trend being rewarded by the financial markets," McManus said in a statement. Earlier this year, ONEOK spun off its natural gas distribution businesses from its natural gas gathering, transport, and processing business. In December, EQT completed the transfer of Equitable Gas Co. to Peoples Natural Gas so that it could focus on production, gathering, and transmission. -Jennifer Pilla Taylor connecTicUT A new low-interest loan program will make it easier for Connecticut residential customers to switch to natural gas. Financing Furnaces Utilities sponsor low-interest loans for gas heating systems HARTFORD, CT -With a plan to convert 280,000 Connecticut homes and businesses to natural gas over the next 10 years now approved, five of the state's gas and electric utilities have launched a new joint program with a major lender 14 AmericAn GAs june 2014 to offer low-interest financing to consumers to help them switch to gas-based heating systems. The Energize Connecticut Heating Loan program will offer loans of up to $15,000 at 2.99 percent, with terms of three to 10 years, to consumers that switch to more efficient boilers, furnaces,and heat pumps. To qualify, residential customers must be current for the past six months of their electric bills, and the new equipment or conversion must meet Energy Star or higher ratings. Up to 90 percent of the cost of heating system equipment and installation may be financed, depending on projected energy savings. Payments on the loans will be made through customers' existing electric bills. AFC First Financial Corp., an Allentown, Pa.based lender, finances the loan program, which is being offered by Connecticut Light & Power and Yankee Gas, both part of Northeast Utilities in Hartford; and United Illuminating, Southern Connecticut Gas, and Connecticut Natural Gas, all part of UIL Holdings in New Haven. AFC offers similar programs in Pennsylvania, Ohio, Illinois, Maine, Virginia, and Kentucky. The framework for the new Connecticut financing program was built through Public Act 13-247, which calls for utilities to promote greater adoption of energy-saving measures in support of Gov. Dannel Malloy's Comprehensive Energy Strategy. "With the recent approval by state regulators of a statewide natural gas expansion plan, we have seen a lot of interest from potential customers who are interested in converting to natural gas," Mitch Gross, a spokesman for Connecticut Light & Power and Yankee Gas, told American Gas. "This new loan program gives all customers an attractive way to finance upgrades to their heating systems." The program is being promoted on social media via the Yankee Gas and Energize CT Facebook and Twitter sites, Gross added. Energize Connecticut is an initiative of state agencies and local utilities dedicated to empowering residents to make smart energy choices. To meet growing demand for natural gas in the state, three of the nation's leading distributors-Tennessee Gas, Algonquin Gas, and Iroquois Gas Transmission-have announced plans to conduct pipeline expansions at a total investment of $2.2 billion by November 2016. -Gary James

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American Gas - June 2014