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Gas companies press PURA to reverse parts of rate cuts, seek tens of millions
Summary
Connecticut Natural Gas and Southern Connecticut Gas told PURA they seek to restore portions of previously disallowed revenue — asking millions in adjustments for ROE, capital and depreciation among other items — while offering reconciliations and reporting as safeguards.
Counsel for Connecticut Natural Gas and Southern Connecticut Gas argued on May 4 that the remand proceeding should correct elements of PURA’s earlier decisions and restore revenue components the companies say the underlying orders improperly reduced.
Brendan Vaughn, appearing for the utilities, summarized the companies’ statement of issues and attachments and asked PURA to consider six core claims on remand: removal of a return‑on‑equity penalty tied to underutilized mains, reassessment of the authorized ROE, recognition of capital that moved from rate‑year plans into plant‑in‑service, treatment of fixed‑cost investment tax credits (FCIC), revised depreciation (net‑salvage) calculations, and a DIM (distribution integrity management) cap. Vaughn said the companies’ attachments recalculated revenue requirements and that the resulting proposals would, he argued, “strike an appropriate balance” to restore financial stability while accepting many downward adjustments the commission previously made.
Vaughn quantified the company positions for illustrative purposes: Connecticut Natural Gas seeks roughly a $6.234 million upward adjustment relative to prior rates, and Southern Connecticut Gas seeks about $19.01 million (figures reflect the companies’ presentations and illustrative spreadsheets). He also disputed a penalty tied to underutilized plant and asked PURA to revisit whether prudence review had properly been performed in the underlying case.
Company witnesses and experts were available to answer detailed questions on capital additions, depreciation and tax accounting; PURA ruled, however, that parties must confine their filings to the admitted record (the panel sustained the OC’s objection to new evidence), and the companies were directed to proceed under that constraint and brief the disputed legal and factual issues by May 15.
