RE:RE:RE:Altagas should have strong 3rd Quarter As i mentioned for the utility business it is different from the midstream business.
The utilities do put extra charges on the energy consumed by the customer based on the cost of the energy delivered. They show up as transmission and other charges. These increase as a percentage of energy($) consumed increases. Hopefully the recent storm in D.C. does not damage their infrastructure.
My comments on the extra costs are based on the midstream portion. Gigajoule or BTU replacement costs for liquid extraction from Natural Gas goes up with current local NG prices increases. The cost of locally priced NG varies by jurisdiction and cannot be directly hedged. There are times when the cost of extraction exceeds the price of the liquids and the liquids are re-injected. It is a direct cost variable not in the midstream operators control. If liquids selling prices are long term hedged and the spread shrinks, the income shrinks. if liquid prices also increase then it is a wash.Thankfully propane prices in Asia and NA are rising.
Also currently AltaGas has very little NG production.