Edited extract from the news release:
The natural gas distribution business of Terasen, referred to as Terasen Gas, is one of the largest natural gas distribution utilities in Canada. Terasen Gas is the principal natural gas distribution utility in British Columbia, serving approximately 900,000 customers or 95% of natural gas customers in the province. Terasen Gas owns and operates 44,100 kilometres of natural gas distribution pipelines and 4,300 kilometres of natural gas transmission pipelines. Its service territory includes the populous lower mainland, Vancouver Island, and the southern interior of the province. As of September 30, 2006, Terasen Gas had an aggregate of $3.6 billion of assets, an aggregate rate base approaching $3.0 billion and approximately 1,200 employees. The company is regulated by the British Columbia Utilities Commission."These are high-quality utility assets located in a region with strong economic growth," says Stan Marshall, left, president and chief executive officer, Fortis Inc. "Through our FortisBC electric utility operations, we are very familiar with the regulatory environment and energy markets in British Columbia."
"Our expansion into the natural gas distribution business adds a third business segment and doubles the regulated rate base of Fortis to approximately $6.0 billion. The acquisition is expected to be immediately accretive to earnings per common share," explains Marshall.
