Out of the ruins of Enron

The money is soon to be on the way from Texas and the gas will soon flow to a new master.

Terasen gas shareholders approved a deal with Kinder Morgan of Texas for the sale of the profitable BC gas supplier and its pipelines. By 96%, the Terasen shareholders shook off any ideas of keeping one of British Columbia's most successful and profitable companies in BC or Canadian hands.

A few of the shareholders apparently questioned the need to bring in a White Knight from the States, one which some fear may turn into more of a Trojan Horse. Others were looking at more bottom line issues, like losing out on a tax break by turning the company over to an American firm.

Some voiced concerns about Kinder Morgans' record over the years since it was formed out of the entrails of Enron, a situation that is explained in great detail by the Tyee.

The deal between Kinder Morgan and Terasen seemed to be a fast tracked adventure from the very get go, the management at Terasen seemed to be completely smitten by the folks at Kinder Morgan. So much so that they didn't' seem to entertain many other offers, not that there seemed to be many other offers on the table for the company. A strange situation for a company that effectively has doubled its stock value in the three years and sits on a commodity that seems to raise it's consumption cost to the consumer at the whim of winds in the Gulf of Texas.

One would think that a company with that much upside would have found considerable interest within Canada, but no, it seems that no one with deep enough pockets could come forward to challenge the Kinder Morgan bid. Instead another Canadian energy company slips from the grasp of the nation where the gas sits.

The process now moves on to the regulatory phase, with the British Columbia Utilities Commission set to decide if it will approve the sale on November 10th. Having already been approved by those overseeing the Canada Competition Act, the BCUC approval is expected to be a simple matter of filing the right papers and making sure the right keys go to the right managers. There are still rumblings that an outcry may overturn the sale, but time is running short for those that wish to scupper the deal.

The process will then finalize on November 30th with the company that once was known as BC Gas merged into the Kinder Morgan family. If they pass this one last regulatory hurdle, it will be interesting to see if Kinder Morgan are kinder and gentler to the consumers of BC gas.