Utah regulators hear settlement to extend Enbridge natural gas service to Fairfield; Division supports stipulation

The Utah Public Service Commission heard arguments on Enbridge Gas Utah's settlement stipulation to extend natural gas service to the rural community of Fairfield in docket 25-057-20. Company witnesses outlined the project and a design change, while the Division of Public Utilities said it now supports the stipulation after negotiations and will recommend approval to the commission.

The settlement, summarized in testimony by Jordan Parks, senior regulatory adviser for Enbridge, authorizes construction of the proposed facilities and provides that expansion costs will be recovered through Enbridge's rural expansion rate adjustment tracker (tariff section 9.02). Parks said a typical residential customer using 70 decatherms a year would eventually see roughly a $0.54 increase (about 0.08%) once the company seeks rate recovery. "In this docket, Enbridge Gas seeks commission approval to extend natural gas service to the rural community of Fairfield," Parks said, urging the commission to approve the settlement stipulation.

The stipulation includes procedural and compliance terms: Enbridge will file finalized permits and any franchise agreement with the commission; seek commission approval before including any costs that exceed the estimates in the tracker; and coordinate with Fairfield and Utah County to ensure appliance inspections occur before meters are set. The company also agreed to meet with the Division before filing future rural expansion applications and to begin filing an annual report in 2027, due each March 1, with five years of rural expansion project data including sign-ups, meters set, cost per connection, and cumulative costs.

A notable engineering change is in paragraph 14 of the stipulation: instead of the originally proposed 8-inch main, the parties agreed Enbridge will install a 6-inch pipe along Highway 73 with a 4-inch redundant line connecting the existing 8-inch pipe on Pole Canyon Boulevard. Parks told the Presiding Officer that the change "will not increase the cost," and the company said it will seek recovery only for actual incurred costs. Parks also said the company will file any permits and the franchise agreement with the commission once finalized.

Kelly O'Connor, a utility analyst for the Utah Division of Public Utilities, testified the Division originally filed testimony recommending denial of the application as filed on 12/02/2025 because of concerns about the project's design and scope. After settlement negotiations, the Division concluded the stipulation satisfies relevant statutory and rule requirements and now supports approval. "The division concludes that this settlement stipulation is sufficient to meet the statutory and commission rule requirements," O'Connor said, and recommended approval to allow Enbridge to extend service to Fairfield as "just and reasonable in result and in the public interest."

Procedurally, the Presiding Officer admitted the company's application, Jordan Parks' testimony and exhibits and the Division's direct testimony and exhibits into the record. No surrebuttal testimony had been filed. The company indicated it is prepared to begin construction upon commission approval; no formal vote was recorded at the hearing. The Presiding Officer noted the statutory decision deadline of 2026-03-18 and said an appropriate order will be issued in due course.

The hearing record includes prefiled testimony from engineering and operations witnesses who are available to testify if the commission requests further clarification, and Mayor Holly McKinney of Fairfield participated virtually and filed supporting testimony. The Division's commitment to annual reporting and pre-filing consultations with the Division are intended to provide additional oversight and information for future rural expansion proposals.

The commission adjourned the hearing and will issue its order on the settlement stipulation within the applicable statutory timeframe.