IGU Board Authorizes General Manager to enter Memorandum of Understanding with AIDEA for the Acquisition of Pentex Alaska and the Financing and Integration of FNSB Natural Gas Utilities
Fairbanks, AK – At its Special Board Meeting this evening, Tuesday, January 10, 2017, the Board of Directors of the Interior Gas Utility (IGU) took action to enter into a non-binding Memorandum of Understanding (MOU) with the Alaska Industrial Development and Export Authority (AIDEA) for the Acquisition of Pentex Natural Gas Company (Pentex) and to move forward on the preparation of definitive agreements for the financing of the integration and development of a consolidated natural gas utility to serve the Fairbanks North Star Borough (FNSB).
Consistent with the mission of the IGU, advancement of the MOU paves the way for unification of the FNSB’s two natural gas distribution utilities, the IGU and Fairbanks Natural Gas (FNG), and the deployment of IEP funds toward eventual achievement of the shared IGU and Interior Energy Project (IEP goal “to provide low-cost, clean-burning, natural gas to the most people in the Fairbanks North Star Borough as soon as possible”.
Action now moves to the AIDEA Board, which will consider the MOU along with its own resolution at a Board meeting scheduled for Wednesday, January 11, 2017.
An Overview of the MOU and the system it is intended to create, as well as copies of the approved amended MOU and approved Resolution 2017-01, are Appended.
To view Resolution 2017-01, or find additional information regarding the MOU, please visit the IGU Website at www.interiorgas.com.