Description
The Citizens Utility Board (CUB) of Minnesota wanted to assess the level of capital expenditures being made by the state's three largest natural gas distribution companies, including analysis of how a continuation of the accelerated pace of investment might affect residential customer bills in the future.
Service Provided
DHInfrastructure reviewed 10 years of historical capital investment by the gas companies and projected future levels of investment (through 2040) based on the historical trend and the companies' investment goals presented to shareholders. We developed revenue requirements for each company and projected typical monthly residential bills in each year. We also assessed a scenario under which, in order to meet Minnesota's climate goals, the heating sector is largely electrified, leading to a declining customer base and even higher bills for customers unable to switch away from natural gas heating.