Enbridge Pursues Aggressive Rate Adjustments Across Northeast Gas Portfolio
The company filed significant Section 4 rate cases for its Algonquin and Maritimes subsidiaries while securing a settlement for Texas Eastern.
Enbridge (ENB) pushed for substantial tariff adjustments across its interstate gas pipeline subsidiaries during the 2024 report year. The company utilized a mix of general Section 4 rate cases and uncontested settlements to recalibrate revenue streams for its assets in the Northeast and Mid-Atlantic regions, including Algonquin Gas Transmission, LLC (CT, MA, NJ, NY, RI), Maritimes & Northeast Pipeline, L.L.C. (MA, NH, ME), and Texas Eastern Transmission, LP (Multi-state).
Rate activity was most aggressive at Algonquin, which filed a general Section 4 rate case (Docket RP24-781) on May 30, 2024. The company established interim rates effective December 1, 2024, which represented an approximate 46% increase in the AFT-1 Reservation Rate. Maritimes also filed a Section 4 rate case (Docket RP24-780) on May 30, 2024. While initial motion rates suggested a 31% increase, the company later established interim settlement rates effective January 1, 2025, which reflected an 8% decrease.
In other regions, Texas Eastern received FERC approval for an uncontested rate settlement on July 31, 2024. These tariff records became effective October 1, 2024, though the company is required to submit a subsequent filing by January 1, 2026. Meanwhile, East Tennessee Natural Gas, LLC (TN, VA, NC, GA) continued to operate under a 2021 Settlement and Agreement (Docket RP20-980) that provides an annual revenue increase of approximately $10 million. East Tennessee must file a new Section 4 rate case with rates effective no later than April 1, 2026.
Operational focus shifted toward balance sheet optimization as several subsidiaries sought to remove Accumulated Deferred Income Tax (ADIT) balances. East Tennessee, Maritimes, Texas Eastern, and Big Sandy Pipeline, LLC (KY) all intended to remove balances recorded in Accounts 190, 281, 282, and 283, as well as excess ADIT, following a revised FERC Policy Statement in Docket PL17-1-001.
Maritimes faced specific regulatory and accounting headwinds during the period. The subsidiary remained subject to an ongoing FERC audit (Docket FA19-9-000) that commenced in March 2019 to evaluate Form 2 reporting, accounting practices, and tariff compliance. Additionally, Maritimes reported significant gas imbalances as of December 31, 2024, with miscellaneous current assets of $65.2 million compared to $8.2 million at the end of 2023, alongside liabilities of $58.4 million.
Enbridge now manages a diverse geographic footprint ranging from the Canadian border in Maine to the Gulf Coast and the Midwest. The forward path for the portfolio is defined by the resolution of the Algonquin and Maritimes rate cases and the upcoming 2026 filing requirements for both East Tennessee and Texas Eastern.