BCUC Approves Terasen Sale

Thursday, November 10, 2005 05:30 PM

Texas based Kinder Morgan, has been given a "conditional" ok to buy Terasen Gas.

It is a conditional sale, because it only deals with the financial part of the $7billion dollar sale. The BC Utilities Commission says other matters like trade disputes, taxes, foreign ownership or employment impact don't fall under it's umbrella.

The next step takes the sale to the Federal level, where the deal goes under the microscope of a federal review as called for under the Investment Canada Act. It has to be proven that the sale of Terasen will be a benefit to Canada.

Terasen reps have already said one of the plusses about the sale is that it will be a boost to the Canada Pension Plan.

Terasen Inc. President and CEO John Reid says “We are pleased with the Commission’s decision and we remain confident that combining the assets, skills and people of Terasen with Kinder Morgan will provide long-term value and economic benefits to Canadians,”

Reid adds,"There will be no change of service levels for Terasen Gas customers as a result of this acquisition. Natural gas consumers in BC will continue to be served by a first-class utility committed to public and employees safety and meeting the energy needs of its customers.”

The sale generated lots of activity from public discussions to letter writing campaigns, in fact, the BC Utilities Commission received about 8,000 letters on the sale.

Terasen shareholders voted 95.6 per cent in favour of the sale October 18.

Terasen expects the sale to be complete by the end of this month.

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Posted on Thursday, November 10, 2005 05:30 PM in News by 250 News

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Comments

Posted by: Opatcho on November 11 2005 2:37 PM

After the rememberance day cermony we should have one for the death of Canadian corporations.
If the Federal approval is the same procedure as the Provincial, a rubber stamp, we dont have much hope of the deal being rejected on the federal level. The BCUC can reject the deal on the grounds that if its detremental to the Province it can be rejected. Now tell me why would the Feds care about a BC corporation being sold.
As we sang O'Canada at the cenothph today I couldnt help but wonder how long will there be wonderful Canada as many of us who knew it during the wars that we were involved. I guess we wiil wate for the next crisis before we relize where we are heading.
God bless my home and native land

Posted by: Palopu on November 11 2005 3:15 PM

No big suprises here. The BCUC did exactly what most of us who were against this sale thought they would do. It will no doubt be the same for the Federal Government.

There was no mention of Terasen Gas being sold to an American Co. when we had the referendum on whether on not to borrow the money to loan to Terasen on the lease back arrangement. It now appears that Kinder Morgan wanted these options bought up before the sale would go through. I wonder how many people in the KNOW knew about this sale but said nothing during the referendum.

Those people who couldnt get to the polls fast enough to support the referendum can now wonder if they were hood winked by some of the local politicians and by Terasen Gas.

Had we excersied our option to take over the infrastructure, we would have had some control over our gas costs, as it is now we have none.

For those people who voted yes in the referendum all I can say is **Have a nice day**

It seems that our Canadian Politicians are only good at making bad decisions.

Posted by: Mike on November 12 2005 12:00 AM

I suspect Colin KInsley will soon be working for Kinder Morgan.

Mike

Posted by: Mike on November 12 2005 12:01 AM

I just have to share this definition:
Democracy:
A form of government by the people in which everybody knows how things should be handled except those elected to do the job.

Posted by: Chester on November 12 2005 9:59 AM

I was wondering who should have the most input into the sale of Terasen? The Public or the Owners and Shareholders of the company?

In my limited understanding of the specifics of this deal, I can't comment on whether it's a good deal or not. (for the Shareholders)

But, when 95.6% of the Shareholders vote in favour of the sale, who else should have a right to have a say?

Every business is in business to provide a product or service that someone else is willing to pay for. Of course, the other motivation is to make a return on your investment. So, what's wrong with the stakeholders selling their stake in a gas company to make themselves a profit?

I really wouldn't want the public to determine whether or not I was able to sell my business.

After all, I put up the money, I put up the risk, I put up the sweat equity. And, I will determine when I want to sell, for how much and to whom. Chester

Posted by: Palopu on November 12 2005 11:03 AM

When Terasen gas was originally B.C. Gas it was owned by the B.C. Government. It was then privitized with the proviso that no one group of shareholders could own more than (I beleive) 20%. The liberals removed this restriction, which allowed Teresan to be sold to Kinder Morgan, an American Conglomerate, who if it could not own the Company outright, would have no interest in it. Terasen as a Canadian owned company made millions of dollars for share holders, and their was no real need to sell it except **Greed**. The issue here is that their were restrictions in place to ensure this Company stayed in Cdn Hands and it was removed.

Although Teresan delivers gas only and charges for this delivery, it passes through the cost of the gas to consumers.

As a matter of interest Terasen buys its gas from CEG Inc. in Calgary, which is owned by Canadian Semonile Gas Inc. which is a wholly owned subsidiary of SemGroup LP of Tulsa Oklahoma. How hard will Terasen work to get us the best buy for our gas.??

We should have exercised out option and purchased the infrastructure for Terasen Gas in Prince George and bought the gas ourselves. This would have given us more control over costs.

However that option was lost in the referendum.