Pipeline Cost of Service and Ratemaking
We have extensive experience with pipeline cost of service and ratemaking matters. In the context of rate proceedings, Brattle consultants have performed and evaluated cost of service and rate design studies concerning the transportation rates of both natural gas pipelines—including El Paso Natural Gas, Southern Natural Gas, Tennessee Gas Pipeline, TransCanada Pipeline, Florida Gas Transmission, Iroquois Gas Transmission, SoCalGas, Pacific Gas & Electric, British Gas, and Texas Eastern Transmission—and oil pipelines, including Enbridge’s Mainline, Colonial Pipeline, Seaway Pipeline, SFPP, Buckeye, Enterprise TEPPCO, and Mid-America Pipeline.
In pipeline rate cases, Brattle experts have provided testimony regarding rate base derivation, capital structure and allowed return, operations and maintenance expense levels (including corporate overhead cost), and test period billing determinants. We have also analyzed and testified on issues including cost allocation (e.g., between non-jurisdictional and non-jurisdictional services and among distinct regulated pipeline systems), amortization of deferred costs (such as deferred taxes and decommissioning costs), recovery of product loss costs, expense versus capitalization decisions, and changes in economic circumstances underlying oil pipeline rates treated as “grandfathered” pursuant to the Energy Policy Act of 1992. The outcomes of these cases has resulted in billions of dollars of value to firms on whose behalf Brattle experts provided testimony.