Colorado Natural Gas, Inc. Submits Quarterly Financial Information and Bad Debt Expense Data Amid COVID-19 Disruptions

Strategic Insights -

Colorado Natural Gas, Inc. ("CNG" or "the Company") has submitted its 2020 Quarter 1, Quarter 2, and Quarter 3 information, as required in Proceeding 20V-0159EG, Decision No. R20-0664-I, to the Colorado Public Utility Commission. The submission includes bad debt expense data and the effects of COVID-19 on the company's financial operations. Key takeaways from the submitted data highlight the challenges faced by CNG in managing bad debt expenses during the pandemic.

Key Takeaways:

  • Bad debt expense for 2020 was $88,925, with an average of $7,733 per month for 2017-2019 and $69,600 for 2020. This represents a significant increase in bad debt expense, with a 41,088 increment in June 2020 due to the recording of final billed write-offs affected by COVID-19 regulations.
  • Incremental bad debt amounts into a regulatory asset have not been recorded by CNG as of November 16, 2020, indicating ongoing financial strain.
  • Total bad debt expense for 2019 was $36,893, with an average of $7,733 per month for 2017-2019.
  • CNG collected late and disconnection fees totaling $2,021 for the month of October 2020, with a breakdown by account class showing $774 for CO Transportation Interruptible and $2,247 for CO Residential, among others.

Statistics:

  • Total bad debt expense for 2020 was $88,925.
  • Incremental bad debt amounts for 2020 were $41,088 in June.
  • Average bad debt expense per month for 2017-2019 was $7,733.
  • Town bad debt expense for 2019 was $36,893.
  • Total late and disconnection fees collected for October 2020 were $2,021.
  • Bad debt expense for 2018 was ($23,052).

Sources:

  • Colorado PUC E-Filings System
  • Proceeding No. 20V-0159EG
  • Decision No. R20-0664-I
  • Colorado Natural Gas - Bad Debt Expense PERC 904
  • Colorado Natural Gas, Inc.'s Q 1, Q 2, and Q 3 information submitted to the Colorado Public Utility Commission.