20240802Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER ANDERSON
COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM: CURTIS THADEN
DAYN HARDIE,DEPUTY ATTORNEY GENERAL
DATE: AUGUST 6, 2024
RE: REVISION TO INTERMOUNTAIN GAS COMPANY RATE SCHEDULE
FT (FRANCHISE FEE/TAX ADJUSTMENT)WITH THE CITY OF
ABERDEEN AND THE CITY OF MURTAUGH: TARIFF ADVICE NO.
INT-TAG-24-01.
On July 12, 2024, Intermountain Gas Company ("Company") submitted Tariff Advice
No. INT-TAG-24-01 to revise Rate Schedule FT (Franchise Fee/Tax Adjustment), Sheet No. 15,
to reflect a new ordinance number for the City of Aberdeen and the City of Murtaugh.
On July 25, 2024, the Company replaced the July 12, 2024, filing in its entirety, revising
the requested effective date from August 1, 2024, to September 1, 2024, to comply with
Procedural Rule 134. IDAPA 31.01.01.125.
For the City of Aberdeen, the existing three (3)percent franchise fee remains unchanged.
The new agreement will remain in effect for ten(10) years from the requested effective date,
unless amended in the manner set forth in Ordinance No. 351. Included with the filing is (1)
Ordinance No. 351, which sets forth the City of Aberdeen Franchise Agreement with the
Company; and(2) the proposed revision to Sheet No. 15.
The proposed franchise fee agreement was approved by the City of Aberdeen on June 16,
2024, as authorized by Ordinance No. 351. The agreement was accepted by the Company on
July 1, 2024. Intermountain Gas requests an effective date of September 1, 20024.
For the City of Murtaugh, the existing three (3)percent franchise fee remains unchanged.
The new agreement will remain in effect for twenty(20) years from the requested effective date,
DECISION MEMORANDUM - 1 - AUGUST 6, 2024

unless amended in the manner set forth in Ordinance No. 24-02. Included with the filing is (1)
Ordinance No. 24-02, which sets forth the City of Murtaugh Franchise Agreement with the
Company; and (2) the proposed revision to Sheet No. 15.
The proposed franchise fee agreement was approved by the City of Murtaugh on June 11,
2024, as authorized by Ordinance No. 24-02. The agreement was accepted by the Company on
July 12, 2024. Intermountain Gas requests an effective date of September 1, 20024.
BACKGROUND
Idaho Code § 50-329A(a) allows cities to establish franchise fees assessed upon a public
service provider up to 1% of the provider's gross revenue in that city without the consent of the
public service provider or the approval of a majority of voters of the city voting on the proposal
at an election. Under Idaho Code § 50-329A(a) franchise fees up to 3% are allowed with either
the consent of the public service provider or the approval of a majority of voters of the city
voting on the question at an election.
STAFF RECOMMENDATION
Staff has reviewed the proposed tariff change, the franchise agreements, and the franchise
fee requirements of Idaho Code § 50-329A(a). Staff recommends that the Commission accept
the Company's proposed revision to Rate Schedule FT (Franchise Fee/Tax Adjustment), Sheet
No. 15 as filed, effective date of September 1, 2024.
COMMISSION DECISION
Does the Commission wish to accept Intermountain Gas Company's proposed revision to
Rate Schedule FT (Franchise Fee/Tax Adjustment), Sheet No. 15, as filed, effective September
1, 2024?
14v�
Curtis Thaden
Commission Staff
1:\Utility\UDMEMOS\INT-TAG-24-01 Decision Memo.docx
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