Loading...
HomeMy WebLinkAbout20240827Decision 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 (208) 334-0300, and the UTAH PUBLIC SERVICE COMMISSION (hereinafter UPSC), whose principal office is located at 160 East 300 South, Salt Lake City, Utah 84111,telephone (801)530-6716. 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: (801)530-6716 FAX: (801) 530-6796 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