Yankee Gas asks PURA to correct depreciation and gross‑earnings tax math errors it says understate revenue requirement
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Summary
In oral argument on Jan. 27, counsel for Yankee Gas (doing business as Eversource) asked the Public Utilities Regulatory Authority to correct two computation errors in its Nov. 2025 final rate decision — a depreciation composite‑rate mismatch and a gross‑earnings tax (GET) allocation — which the company says together reduce its allowed revenue by several million dollars.
Yankee Gas Services Company, doing business as Eversource Energy, told the Public Utilities Regulatory Authority on Jan. 27 that the agency’s November 2025 final decision contains two mathematical errors that, if corrected, would increase the utility’s approved depreciation and gross‑earnings tax (GET) allowances.
Attorney Vincent Pace and revenue director Garrett Murray said PURA used a composite depreciation rate based on December 31, 2023 plant proportions but applied that composite to plant balances approved as of May 31, 2025. “The authority’s final decision results in approximately, $2,500,000 deficiency in the company's approved revenue requirements,” Murray told commissioners, and the company submitted calculations showing a May‑2025 composite depreciation rate of about 3.02777% (vs. a 2.95% composite based on 2023 proportions) that would raise depreciation from roughly $92.6 million to about $95.1 million.
On GET, Yankee argued the final order applied a single distribution GET composite rate to both distribution revenues and purchase‑gas adjustment (PGA) revenues. Murray said detailed workpapers support a PGA GET dollar amount of about $13.3 million and that applying distinct effective GET rates to PGA revenues (not the distribution GET composite) avoids an artificial overstated credit to distribution customers and an apparent under‑collection. He estimated the final decision’s treatment understates PGA GET by about $1.687 million.
PURA commissioners questioned whether the discrepancies created permanent under‑recovery, the accepted role of composite rates in rate‑making, and whether particular witnesses recommended the 2023 composite. Yankee said a matching principle governs depreciation — if plant balances are approved as of May 31, 2025, any composite rate used for ratemaking must reflect the same date’s proportional balances. On GET, Yankee pointed staff and commissioners to exhibits in the company’s cost‑of‑service schedules and said the detailed e‑schedules show the PGA and distribution GET should be computed separately.
OCC and the attorney general said they had not briefed the GET calculation in detail for reconsideration but told commissioners they would not oppose correcting pure arithmetic mistakes. Both urged caution and noted PURA retains discretion over methodology; the AG said PURA’s adopted depreciation rate reflected expert testimony and was reasonable. PURA said it will not issue a ruling today on the motion but will provide a written ruling after the 7‑day filing period for objections and responses closes.
The authority allowed counsel to use slides and company subject‑matter experts briefly demonstrated the computations on the record. Commissioners signaled follow‑up questions and parties were invited to file briefs and written objections before the statutory reconsideration timetable concludes.