20240626Staff Comments.pdf

RECEIVED
Wednesday, June 26, 2024 9.47:55 AM
IDAHO PUBLIC
UTILITIES COMMISSION
DAYN HARDIE
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 9917
Street Address for Express Mail:
11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A
BOISE, ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF INTERMOUNTAIN )
GAS COMPANY'S PETITION TO ) CASE NO. INT-G-24-02
TERMINATE THE SETTLEMENT )
AGREEMENT IN CASE NO. INT-G-22-01 )
COMMENTS OF THE
COMMISSION STAFF
COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission, by and
through its Attorney of record, Dayn Hardie, Deputy Attorney General, submits the following
comments.
BACKGROUND
In early 2022, the Commission received a complaint from a person previously employed
by Intermountain Gas Company("Company") who claimed he had performed tasks he was
unqualified for. Later investigation and self-reporting by the Company uncovered that almost
1,900 work orders were issued and performed by unqualified operators. Staff filed a complaint
asking the Commission to issue penalties against the Company for the maximum amount
allowed by Idaho Code § 61-712A for the reported safety violations.
The Company and Staff reached a settlement to resolve the potential penalties requested
by Staff. The Settlement was approved by the Commission on August 5, 2022, in Order No.
STAFF COMMENTS 1 JUNE 26, 2024

35492.1 The Settlement proposed 11 Action Items the Company must complete to curb the
safety concerns raised by Staff, with each item being designed to help the Company increase
supervision and control over personnel ("Settlement"). The Settlement also required quarterly
audits and accompanying reports of the service orders completed by qualified individuals.
On April 19, 2024, the Company petitioned the Commission to: (1) Fully terminate the
settlement entered between it and Commission Staff("Staff'); and (2) Acknowledge that the
proposed penalties held in abeyance in that Case are waived ("Petition"). The Company
requested its Petition be processed by Modified Procedure.
The Company represents that it completed each of the Action Items required under the
Settlement and has audited its implementation and provided the corresponding reports to Staff
since the Settlement was approved in August 2022. The Company reports that it met the
Settlement's requirement to complete at least two consecutive quarters of zero safety violations
reported prior to seeking termination of the Settlement.
STAFF ANALYSIS
Staff reviewed the Company's Application, the Settlement, quarterly audit reports, and
Commission witness Maria Barratt-Riley's Affidavit. Staff believes the Company has complied
with the terms of the Settlement and recommends the Commission terminate the Settlement and
waive the proposed penalties.
Overview of the Settlement
The Settlement provided the Company with I I Action Items to complete before the
Settlement could be terminated and the fees waived. These Action Items were designed to
increase supervision and control over the qualification of Service Technicians and Service
Technician Apprentices. The 11 Actions Items the Company was required to comply with and
meet were: (1) evaluate and decide which department will be responsible for Operator
Qualifications; (2) align the requirements of each Covered Task to coincide with Service
Technician and Service Technician Apprentice work orders and conduct and file quarterly audits;
(3)update, maintain, and provide annual training to Company supervisors, focusing on Covered
'No penalties were imposed by the Commission in Case No.INT-G-22-01,but the Settlement contemplated abeyance
of penalties advocated for by Staff while the terms of the Settlement were operative.
STAFF COMMENTS 2 JUNE 26, 2024

Tasks; (4) further define "Expired" and establish procedures for supervisors to follow if a
Company employee has expired qualifications; (5) establish an annual Operator Qualification
and OPS procedure calendar for supervisor reference and support; (6) establish a firm deadline
for Performance Evaluations to be completed once Computer Based Training/Classroom training
has been completed; (7) pursue additional hierarchical review of Operator Qualifications; (8)
develop and review Energy WorldNet Computer Based Training modules and incorporate with
MDU Utilities Group trainings modeled after OPS Procedures; (9)review MDU Utilities Group
training for newly hired Employees who perform Covered Tasks; (10)review and re-write OPS
800 - Operator Qualification Plan to incorporate the above recommendations; and(11) training
provided will identify the avenues for reporting concerns regarding operator qualifications.
The Settlement contemplated termination occurring in one of three ways: (1) completion
of all Action Items and final approval by the Commission; (2)upon stipulation of Staff and the
Company approved by the Commission; or(3)upon approval by the Commission of a petition
filed by the Company.
Compliance with Settlement Agreement
In compliance with Settlement Action Item No. 2, the Company submitted the results of
ten quarterly audits. Between June 23, 2021, and June 30, 2022, the Company found that there
were 592 work orders completed by non-qualified Service Technicians. Between July 1, 2022,
and September 30, 2022, there were initially 48 work orders reported completed by non-qualified
Service Technicians. However, the Company followed up with an email on November 4, 2022,
stating that it had incorrectly identified 29 work orders, with only 19 work orders actually
completed by non-qualified Service Technicians. For six consecutive quarters from October
2022 through March 2024, the Company reported zero work orders completed by non-qualified
Service Technicians.
As shown in Barratt-Riley's Affidavit, the Commission's Pipeline Safety Staff reviewed
the quarterly reports and performed audits in the field. The field audits confirmed Covered
Tasks were being completed with qualified Service Technicians. During the associated
timeframe of the Settlement, Pipeline Safety Staff did not find any instances of non-qualified
personnel performing Covered Tasks. Additionally in 2023, Pipeline Safety Staff attended two
STAFF COMMENTS 3 JUNE 26, 2024

Operational Qualification trainings held by the Company in Boise and Pocatello, in which there
were no violations.
The Company also complied with the other ten Action Items. In 2022, the Company sent
letters to the Commission showing it had completed these Action Items. The Company provided
the reports confirming completion of the Action Items on or before the required deadlines
anticipated in the Settlement. These reports showed that the Company updated their processes to
align with the Action Items and increased supervision and control over the qualifications of
Service Technicians and Service Technician Apprentices.
The Company submitted reports for more than two consecutive quarters with zero
violations related to the qualifications of Service Technicians and completed the 11 Action Items
from the Settlement; therefore, Staff recommends the Commission terminate the Settlement and
waive any proposed penalties on the Company.
STAFF RECOMMENDATION
Staff recommends the Commission issue an Order to terminate the Settlement and waive
the proposed penalties.
Respectfully submitted this 26th day of June 2024.
w
ayn Hard'
Deputy Attorney General
Technical Staff. Kimberly Loskot
Laura Conilogue
I:\Utility\UMISC\COMMENTS\INT-G-24-02 Comments.docx
STAFF COMMENTS 4 JUNE 26, 2024

CERTIFICATE OF SERVICE
II,,�,j
I HEREBY CERTIFY THAT I HAVE THIS )-�!! DAY OF JUNE 2024,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF , IN CASE
NO. INT-G-24-02, BY E-MAILING A COPY THEREOF, TO THE FOLLOWING:
LORI BLATTNER PRESTON N CARTER
DIR—REGULATORY AFFAIRS GIVENS PURSLEY LLP
INTERMOUNTAIN GAS CO 601 W BANNOCK ST
PO BOX 7608 BOISE ID 83702
BOISE ID 83707 E-MAIL: prestoncarter(a givenspursle com
E-MAIL: lori.blattnerkint ag s.com stephaniewk ig venspursle .com
PATRICIA JORDAN
CERTIFICATE OF SERVICE