20240827Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: ADAM TRIPLETT
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 27, 2024
SUBJECT: IN THE MATTER OF QUESTAR GAS COMPANY AND ENBRIDGE
QUAIL HOLDINGS' JOINT APPLICATION FOR APPROVAL OF THE
PROPOSED SALE OF FALL WEST HOLDCO, LLC TO ENBRIDGE
QUAIL HOLDINGS, LLC; CASE NO. QST-G-23-01.
On June 6, 2024, the Idaho Public Utilities Commission ("IPUC") issued an order finding
that the acquisition of Questar Gas Company ("Questar") by Enbridge Quail Holdings, LLC was
fair,just, and reasonable. See Order No. 36204. Additionally, the Commission (1) determined it
was in the public interest to execute an updated Contract for Regulatory Services ("CRS") under
Idaho Code § 61-505 with the Utah Public Service Commission ("UPSC") so that entity could set
rates and charges for Questar's Idaho customers; and(2)authorized the IPUC President to execute
and updated CRS on behalf of the IPUC.
On August 20, 2024, counsel for the IPUC received a copy of the updated CRS executed
by the UPSC chairman. See Exhibit #1. However, although that executed document is similar to
the one the IPUC previously authorized its President to sign,the UPSC made a few non-substantive
revisions.Accordingly, if the IPUC wishes to execute the version of the updated CRS executed by
the UPSC chairman, the IPUC must authorize its President to do so on its behalf.
Additionally, if the IPUC does approve the updated CRS executed by the UPSC chairman,
there will be no additional business to conduct in this proceeding as no party sought
reconsideration of Order No. 36204.Accordingly, the IPUC can order the closure of this docket.
DECISION MEMORANDUM 1

COMMISSION DECISION
Does the Commission wish to (1) authorize the IPUC President to sign the updated CRS
executed by the UPSC chairman and attached to this decision memorandum as Exhibit No. 1; and
(2) close this docket?
Adam Triplett
Deputy Attorney General
I:\Legal\GAS\QST-G-23-01\tnemos\QSTG2301_dec4_at.docx
DECISION MEMORANDUM 2

Exhibit #1
Case No. QST-G-23-01
August 27, 2024, Decision Memorandum

CONTRACT FOR REGULATORY SERVICES
This contract is entered into by and between the IDAHO PUBLIC UTILITIES
COMMISSION (hereinafter IPUC), whose principal office is located atl1331 W. Chinden Blvd.
Building 8, Suite 201-A, Boise, ID 83704, telephone [phone], and the UTAH PUBLIC
SERVICE COMMISSION (hereinafter UPSC), whose principal office is located at 160 East 300
South, Salt Lake City, Utah 84111,telephone [phone].
WHEREAS, IPUC has the power and authority pursuant to Idaho Code § 61-505(2) to
"contract with the regulatory agencies of neighboring states to . . . set rates and charges for
customers in Idaho located in or near border communities served by utilities principally located
in"neighboring states, and,
WHEREAS, Questar Gas Company ("Questar"), an indirect wholly owned subsidiary of
Enbridge Inc., a Canadian corporation, whose principal office is located at 333 South State
Street, Salt Lake City, Utah 84111, serves natural gas customers in Utah, Wyoming, and Idaho,
and,
WHEREAS, Questar is a public utility regulated by UPSC, and,
WHEREAS, IPUC has found that the provision of utility service to customers in Franklin
County by Questar is in the public interest and has issued Certificate of Public Convenience and
Necessity No. 315 to Questar, and,
WHEREAS, the IPUC and UPSC previously entered into a contract for regulatory
services dated August 1990 and March 2016,and,
WHEREAS, the IPUC shall maintain its pipeline safety supervision over Questar's
facilities located in Idaho,and,
WHEREAS, IPUC has found that it is impractical or not in the public interest to conduct
regulatory proceedings for affected Idaho residents separate from the proceedings conducted by
UPSC for Questar's Utah ratepayers, and,
WHEREAS, Questar will do business in Idaho as Enbridge Gas Idaho.
WITNESSETH:
1. Scope. The IPUC and UPSC hereby contract and agree that the rates, charges and
service regulations adopted by UPSC for Questar in Utah shall be applied to similarly situated
customers served by Questar in Idaho and that the findings,decisions and orders of the UPSC are
CONTRACTFOR
REGULATORY SERVICES 1

presumptively correct and will take effect according to the terms of the order of the UPSC, with
review as provided by Idaho Code § 61-505(4). Idaho residents who receive utility service from
Questar will be accorded full rights of representation and participation in the hearings conducted
by UPSC concerning Questar as well as the same rights that Utah customers have to pursue
service-related issues. The rates, charges and service regulations for Idaho customers will not be
less favorable than those of similarly situated Utah customers.
2. Winter Moratorium. It is further agreed that Idaho customers of Questar will be
subject to Rule 306 of the IPUC Customer Relations Rules for Gas, Electric and Water Public
Utilities, IDAPA 31.21.01.306, for purposes of disconnection of natural gas service during the
winter months of December through February.
3. Revenue. Expenses. Service. UPSC agrees to include the revenue, investment and
expenses of Questar's Idaho service territory in its calculation of rates and charges for Questar.
UPSC agrees to place the IPUC on its service lists for any cases involving Questar so that IPUC
may receive all orders, notices, etc. that are issued in cases that involve Questar.
4. Toll-Free Number. UPSC agrees to provide toll-free telephone access to Idaho
customers of Questar to contact the UPSC.
5. Term and Renewal. It is the intent of IPUC /and UPSC that this contract have an
�`F
initial term of one (1) full calendar year from S�,� - 1, 2024, and shall be renewed
automatically for additional one (1)year terms, subject to the Termination provision below.
6. Termination. Either party may provide written notice of termination of this contract
prior to the expiration of the initial term or each one (1)year renewal term. This contract may be
discontinued and terminated pursuant to the applicable laws of either Idaho or Utah.
7. IPUC Review. IPUC may review this contract or rates applied to Idaho residents
pursuant to this contract upon petition of Idaho customers of Questar upon the conditions
provided by Idaho Code § 61-505(4), namely: a showing that all remedies with the UPSC have
been exhausted, that all remedies with Questar have been exhausted and that Idaho customers
have been discriminatorily, preferentially or otherwise unlawfully treated by the UPSC.
8. Written Notice. Any notice given in connection with this contract shall be in writing
and shall be delivered either by hand to the other party, by certified mail, postage prepaid, return
receipt requested,to the addressee provided below or by facsimile transmission to the other party
at the facsimile number below. Notice shall be deemed delivered immediately upon personal
CONTRACTFOR
REGULATORY SERVICES 2

service or facsimile transmission or forty-eight (48) hours after depositing notice or demand in
the United States mail. Either party may change its address by giving written notice of the
change to the other party.
TO: TO:
Idaho Public Utilities Commission Utah Public Service Commission
PO Box 83720 160 East 300 South
Boise, ID 83720-0074 Salt Lake City,UT 84111
secretan.-.,&p Lie.idaho.go psc u,utah.gov
Telephone: [phone]
FAX: [phone]
ATTN: Commission Secretary
Street Address for Express Mail:
11331 W. Chinden Blvd.
Boise, ID 83714
9. Headings. The headings have been inserted for convenience solely and are not to be
considered when interpreting the provisions of this contract.
10. Counterparts. This contract may be executed in two (2) or more counterparts, each
of which shall be deemed an original but all of which together shall constitute one and the same
instrument.
11. Sovereign Immunity. Nothing in this contract shall be construed as a waiver of
Idaho's or Utah's sovereign immunity,which immunity is hereby expressly reserved.
12. Entire Agreement. This Agreement constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof and supersedes all prior agreements and
understandings, both written and oral, between the parties with respect to the subject matter
hereof.
DATED this day of _2024.
IDAHO PUBLIC UTILITIES COMMISSION
By
Eric Anderson, President
CONTRACTFOR
REGULATORY SERVICES 3

UTAH PUBLIC SERVICE COMMISSION
By
r.
Jerry . Fe , Chair
CONTRACTFOR
REGULATORY SERVICES 4