20240724Final_Order_No_36273.pdf

Office of the Secretary
Service Date
July 24,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF INTERMOUNTAIN ) CASE NO. INT-G-24-02
GAS COMPANY'S PETITION TO )
TERMINATE THE SETTLEMENT )
AGREEMENT IN CASE NO. INT G-22-01 ) ORDER NO. 36273
On April 19,2024,Intermountain Gas Company("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 Case No. INT-G-22-01 are waived
("Petition"). The Company requested its Petition be processed by Modified Procedure.
On May 16, 2024, the Commission issued a Notice of Petition and Notice of Modified
Procedure establishing public comment and Company reply deadlines. Order No. 36181. Staff
filed the Affidavit of Maria Barratt-Riley and comments to which the Company replied in support.
No other comments were filed.
Having reviewed the record in this case,we now issue this Order granting the relief sought
by the Company.
BACKGROUND
In early 2022, the Commission received a complaint from a person employed by the
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 impose
penalties on the Company for the maximum amount allowed by Idaho Code for the reported safety
violations.
The Company and Staff reached a settlement to resolve the potential penalties requested
by Staff. The agreement contemplated 11 action items the Company must complete to manage 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 of the service orders completed by qualified individuals. The Settlement was approved by
the Commission on August 5, 2022, in Order No. 35492.1
1 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.
ORDER NO. 36273 1

THE PETITION
The Company represents it completed each of the action items required under the
Settlement. The Company represents it 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 to terminate the Settlement. The Company also
requests the Commission confirm that proposed penalties from Case No. INT-G-22-01 were
permanently waived.
The Settlement allows for termination in one of three ways: (1) completion of the action
items and final approval by the Commission of a completion report or similar document agreed to
by the Staff and the Company; (2)upon stipulation of the Staff and the Company approved by the
Commission; or(3) upon approval by the Commission of a petition filed by the Company.
STAFF COMMENTS
Staff filed comments and believed the Company complied with the terms of the Settlement
and therefore agreed the Settlement should be terminated and the proposed penalties waived. Staff
described the Company's reports and its efforts to comply with the action items required by the
Settlement. Staff noted the Company completed each action item before the required dates.
Regarding the quarterly reports, Staff indicated the Company filed ten total and the past six
reported no covered tasks completed by non-qualified technicians. Staff believed the Company
demonstrated that in complying with the action items it increased supervision and control over the
work that was being completed by individuals working on its system.
COMMISSION FINDINGS AND DECISION
The Company is a natural gas corporation and public utility. See Idaho Code §§ 61-116, -
117, and -129. The Commission has jurisdiction over the Company and the issues in this case
under Title 61 of the Idaho Code, including Idaho Code §§ 61-501 and 302.
We have reviewed the record and hereby acknowledge that the Company has met the
requirements of the Settlement.We appreciate the efforts taken by Staff and the Company to ensure
the serious safety issues reported were addressed constructively. We are confident the steps the
Company took to complete the action items in the Settlement will facilitate better safety practices
for the Company going forward. Utilities regulated by this Commission are required to provide
safe and adequate service. Idaho Code § 61-302. While compliance with the minimum safety
ORDER NO. 36273 2

standards may meet the requirements set forth by the Idaho legislature,we encourage the Company
to seek to be an industry leader in safety practices, even upon termination of the Settlement. The
provision of safe utility services, whether it be water, electricity, or gas, is paramount to healthy
and productive communities served by utilities in Idaho. We remind the Company that our safety
inspectors will continue to routinely inspect the Company's safety practices within our jurisdiction.
Finally, the Company requested confirmation that the penalties proposed by Staff in Case
No. INT-G-22-01 are permanently waived. While no penalties were ever assessed due to the
Settlement being entered, we confirm that the proposed penalties stemming from the Company's
lack of oversight which led to Staff filing Case No. INT-G-22-01 have not been, and will not be,
imposed because of the Company's satisfaction of the action items required by the Settlement.
ORDER
IT IS HEREBY ORDERED that the Settlement is terminated and any proposed penalties
contemplated by it shall not be imposed.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. Idaho Code §§ 61-626.
ORDER NO. 36273 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 241h day of
July 2024.
ERIC ANDERSON, PRESIDENT
611HNAMMOND JR., COMMISSIONER
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DWARD LOD 'E, bMMISSIONER
ATTEST:
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Commission Secretary
I I:\Legal\GAS\INT-G-24-02\orders\INTG2402_final_dh.docx
ORDER NO. 36273 4