With SemStream Arizona Propane now owned by Alliant Gas, the Payson Town Council last week passed a resolution transferring a franchise agreement for propane distribution.
Alliant Gas and SemStream Arizona reached a deal in September last year and the Arizona Corporation Commission approved the sale in December.
SemStream ended up for sale after its parent company went bankrupt.
The sale has so far had no impact on customers or service, said Bill Webb, with JP Energy Partners, the parent company of Pinnacle Propane, which is the parent company of Alliant Gas.
Webb said Alliant is “very excited” to serve the community and build a working relationship with the town.
“We are very confident in what we try to bring to the table for you and the community and our community and our employees as part of Alliant Gas,” he said. “What we hope to be is a participant in the community and a solid member of this community.”
Councilor Ed Blair quickly asked if Alliant was planning to raise rates. SemStream already got a significant rate increase last year, approved by the corporation commission.
Webb said while the ACC regulates rates, Alliant would provide the “best rates that we can possibly provide for our community.”
“I will make a promise to you that we will do everything in our power to make sure we have the best rates for Payson, Arizona,” he said. “It is going to take some time ... but we are willing to make that commitment.”
Councilor Rick Croy asked if there would be discount or assistance programs for low-income residents, similar to APS.
Webb said the company will accommodate customers if they fall within ACC regulations.
Councilor Su Connell asked if Alliant had kept local SemStream employees.
Webb said they had and were excited about the talent.
“We are all about growth and we absolutely see the opportunity in Payson. There is a very long-term future in Payson and we want to be apart of that.”
Mayor Kenny Evans suggested Alliant Gas could support the community by helping purchase lights for the softball field at Payson High School.