Gas sales agreements proposed by Enstar Natural Gas Company with ConocoPhillips and Marathon Oil

In this proceeding before the Regulatory Commission of Alaska, Enstar Natural Gas Company, a gas distribution company, proposed two new supply agreements that would set its prices for gas supply in Cook Inlet based on levels in the Lower 48 states. Econ One was retained by Chugach Electric Association, an intervenor in the proceeding, to review and comment on Enstar’s economic justifications regarding the reasonableness of its pricing provisions. Jeff Leitzinger offered both prepared and direct testimony before the Commission stating that the pricing provisions in the two agreements (1) would reverse the long-standing price advantage enjoyed by Cook Inlet gas users relative to gas consumers in the Lower 48 states and (2) were not supported with any reasonable economic justifications for doing so.