Analysis of Actual Pipeline Expenditures

In the context of a regulatory investigation into the San Bruno pipeline incident, Brattle prepared an analysis of 12 years of actual spending on operating expenses and capital expenditures by Pacific Gas & Electric Company’s natural gas transmission and storage business relative to the levels of spending authorized in its approved revenue requirements. In our analysis, we found that the business’ actual expenditures equaled or exceeded the amounts contained in authorized revenue requirements for the periods at issue. Our report also explained the key methodological differences between our results and the results of an audit prepared for regulatory staff as well as the deficiencies in that audit. Brattle provided testimony on its analysis in the regulatory proceeding before the California Public Utilities Commission.