Enbridge Gas outlines Phase 2 rate-case drivers and conservation-tariff accounting at Utah PSC technical conference

Enbridge Gas told Utah Public Service Commission staff and stakeholders at a technical conference that the company’s Phase 2 general rate case request is driven primarily by a $51,000,000 increase in rate base, a proposed rise in allowed return on equity from 9.6% to 10.6% (about $22,000,000), a $20,000,000 increase tied to depreciation, and a change in capital structure from about 51% to 53% equity (about $6,000,000).

The company’s presenter described the revenue requirement as “the whole pie,” meaning the total dollar amount the utility says it needs to recover, and said cost‑of‑service studies then allocate that total to customer classes. “When we’re looking at revenue requirement, it is every cost to run the utility,” the Enbridge presenter said, listing mains, service lines, meters, vehicles, buildings and salaries as examples.

Why it matters: the allocation and rate design choices determine which customer classes absorb those increases and how much of the recovery is fixed (basic service fees) versus volumetric (per‑dekatherm charges). Stakeholders at the conference focused heavily on two linked issues: (1) how the company allocates specific mains and large assets across classes and (2) how the Conservation Enabling Tariff (CET) and weather normalization affect collections and future rates.

Cost allocation and NGV discussion Enbridge explained that mains are split into small‑diameter mains, large‑diameter mains (8 inches and above, not high pressure) and feeder lines (8 inches and above, steel, high pressure). The company said allocators vary by asset: small mains use a customer/plant allocator, large mains lean on throughput, and feeder lines are allocated by a 60/40 blend of design‑day and throughput. The presenter pointed listeners to exhibit 5.14u and exhibit 5.02 in the filed model for line‑by‑line…