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Title: Value Of And Requirements For The Success Of A Strategic Alliance In A Natural Gas Utility
Author: Jim Sanders,Padma Tata,
Source: American Gas Association 2007
Year Published: 2007
Abstract: This paper discusses the motivation for creating and the evolution of the Strategic Distribution Alliance at Enbridge Gas Distribution Inc. (Toronto, Ontario). The introduction of Performance-Based Regulation in the late 1990s at Enbridge Gas Distribution Inc., and the anticipation of Comprehensive Performance- Based Regulation motivated the organization to find and implement additional measures to manage costs. In 2003, Enbridge Gas Distribution Inc. formed a strategic alliance with two construction and two service contractors, an expedient to achieve operational efficiencies. Now in year four of five, the alliance has encountered several challenges, learned many lessons, and achieved great benefits - these are all presented in this paper. The important factors for the success of an alliance are also discussed. The purpose of this paper is to illustrate that, if managed correctly, there is value in forming an alliance for a natural gas utility.

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