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Commission hears split views on natural‑gas vehicle subsidy as company defends legacy stations
Summary
Enbridge says NGV stations remain consistent with Utah law and generate ~70% of class revenue; Division and OCS recommend phasing out or reallocating the subsidy amid declining light‑vehicle usage and tighter fleet demand.
SALT LAKE CITY — Company and intervenor witnesses offered sharply different views of Enbridge Gas Utah’s proposal to keep a subsidy for the natural‑gas vehicle (NGV) customer class.
Jordan Stevenson, Enbridge’s manager of regulation, told the commission the company’s legacy NGV stations (last added in 2012) meet the conditions of Utah Code § 54‑4‑13.4: the projects were prudently incurred, have not exceeded the statute’s $5 million annual spending cap, and remain in service. Stevenson said NGV stations still serve fleets and some heavy vehicles and that the company is evaluating options, including an RFP to sell stations that was later set aside because of contractual and market hurdles.
Division and Office of Consumer Services witnesses urged a different path. Annette Orton (DPU) summarized the Division’s position that the NGV program now relies heavily on ratepayer support while NMV volumes and retail model availability have declined; she recommended phasing out the subsidy by the next general rate case or increasing NGV rates to eliminate the subsidy. OCS witness James Daniel echoed concerns about cost responsibility and urged evaluation of options such as sale of assets as part of a transition.
Stevenson acknowledged that Enbridge’s own data showed fewer than about 2,200 NGV vehicles registered in the state, that much of current station demand derives from fleets (airport shuttles, school districts, UPS/FedEx and municipal fleets), and that the company’s filings show NGV station customers currently cover roughly 70% of the class revenue requirement — the remainder is made up from cross‑class support. When pressed, Stevenson declined to commit to removing the subsidy by the next rate case and said the statutory safeguards (including a 50% revenue threshold) provide a check on continued subsidization.
The commission did not resolve the issue at hearing. Parties were asked to identify negotiated or settled items and to provide a matrix to the Commission to assist drafting. The NGV subsidy remains a contested element to be decided in the Commission’s order.
