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Enbridge cites supply-chain pressures and timing of customer contributions for 2023 capital overrun
Summary
At a Utah PSC technical conference, Enbridge staff said 2023 actual capital expenditures were 112.58% of budget due to higher contractor and material costs, weather delays, a high water table, restricted construction windows, and timing mismatches on customer contributions; fleet and meter inventory timing also contributed.
Enbridge staff told the Utah Public Service Commission that several operational and timing factors combined to push the utility’s 2023 capital expenditures above budget, producing a 112.58% variance in that year.
The company said contractor and material costs ran higher than expected, noting that inflation in 2023 reached roughly 7% at some points and that unusually cold weather in late 2022 pushed work into spring 2023. A high water table and city-imposed restrictions on construction zones and hours increased mobilization and permit costs, the company said.
Why it matters: higher-than-expected capital spend changes year-to-year net additions and can affect revenue requirement modeling used to set customer…
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