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HomeMy WebLinkAbout20250306Decision Memo.pdf RECEIVED March 6, 2025 Idaho Public DECISION MEMORANDUM utilities Commission Case No.: TO: COMMISSIONER LODGE GNR-G-25-01 COMMISSIONER HAMMOND COMMISSIONER HARDIE COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: JEFF BROOKS, PIPELINE PROGRAM MANAGER CHRIS BURDIN,DEPUTY ATTORNEY GENERAL DATE: MARCH 4, 2025 SUBJECT: INVESTIGATION INTO DALE RAINEY DESIGN GROUP,OWNER OF A HOUSING DEVELOPMENT AND UNDERGROUND PIPELINE SYSTEM Dale Rainey Design Group, also known as the owner of the Old Mill Development ("Company") in Old Town, Idaho has installed a new underground pipeline system for a new housing development near or within Avista Gas Company's franchise area near Priest River,Idaho. The Company is not a utility; is not currently regulated by the Idaho Public Utilities Commission ("Commission"),and does not currently possess a Certificate of Public Convenience and Necessity ("CPCN"). BACKGROUND In early October 2024, Commission Staff("Staff') received notification from Avista Gas Company that a new pipeline system was being built within its franchise area. Avista indicated that the location in Old Town was too far from its existing pipeline system to extend service. Staff visited the development site on Old Mill Road to confirm a new development was being built that included a buried pipeline system. The State of Idaho has adopted the federal Pipeline and Hazardous Materials Safety Administration's ("PHSMA") pipeline safety program, which includes both natural and liquid pipeline systems. Staff believes that the pipeline system at the Old Mill development will fall under the jurisdiction of the Commission's pipeline safety program as one of the following conditions exist: 1. Multiple customers (10+ supplied from a single source). 2. Multiple customers, where a portion of the system is in a public place. DECISION MEMORANDUM 1 On November 20, 2024, Staff sent a letter (See Attachment A) to the Company requesting additional information about the underground pipeline system. To date, the Company has not responded. STAFF RECOMMENDATION Based on information available, Staff believes there is evidence to merit a formal investigation to determine whether the Company is operating an underground pipeline system that would be subject to the Commission's Pipeline Safety requirements. The investigation would conclude with a Staff recommendation to the Commission for further action, if any. COMMISSION DECISION Does the Commission wish to open an investigation to review whether Dale Rainey Design Group and its underground pipeline system should be regulated by the Commission and direct Staff to submit a recommendation after the investigation is complete? 0-,, )-L4, Chris Burdin Deputy Attorney General I:\Legal\GAS\DRD_investigation\Gas_dec_cb.docx DECISION MEMORANDUM 2 Idaho Public Utilities Commission Brad Little,Governor � �- P.O. Box 83720, Boise, ID 83720-0074 Eric Anderson,President John R.Hammond,Jr.,Commissioner Edward Lodge.,Commissioner November 21, 2024 Dale Rainey Dale Rainey Design Group. dale c,�t raineydesigslgi•oup.com Dear Mr. Rainey: This letter is to request additional information on the Old Mill housing development in Old Town, Idaho relating to the underground pipeline system. In early October, the Idaho Public Utilities Commission received a call indicating a new pipeline system was being installed in Old Town. Staff from the PUC visited the development site on Old Mill Road (picture included with this letter)to confirm a new development was being built that included a buried pipeline system. The State of Idaho has adopted the federal Pipeline and Hazardous Materials Safety Administration's (PHSMA) pipeline safety program, https://www.phmsa.dot.gov/. This safety program includes both natural gas and manufactured gas pipeline systems per Idaho legislation Title 61, Public Utility Regulation, Title 61 —Idaho State Legislature. It is staffs understanding that the pipeline system at the Old Mill development will fall under the under the jurisdiction of our pipeline safety program as one of the following conditions exist: 1. Multiple customers (10+ from a supplied from a single source). 2. Multiple customers, where a portion of the system is in the public place. Additional information and guidance on determining if this system is subject to regulatory requirements can be found at: littys://www.plimsa.dot.gov/sites/i)limsa.dot.gov/files/does/training/pipeline/56031/revised- P-Llidance-operators-snial l-lp-gas-systems-april-2017.pdf In order to finalize our evaluation of jurisdictional regulation, can you please provide additional information on how the pipeline system was designed, will operate, and if any of the pipeline runs under a public place, easement or roadway. .If you agree that this system falls within the parameters described above, you will need to file a request for an Operator ID with PHMSA. The application form(s) can be found at: https://www.phmsa.dot.gov/forms/operator•-reports-submitted-plimsa-forins-and-instrLIctions. Once you receive an operator ID, our Pipeline Safety Inspectors will reach out to review the various required inspections and schedules. Attachment A March 4, 2025, Decision Memorandum 11331 W.Chinden Blvd.,Building 8 Suite 201-A,Boise ID 83714 Page 1 of 2 Telephone:(208)334-0300 Facsimile:(208)334-3762 I understand this is a lot of information to go through. Please feel free to contact Jeff Brooks, Pipeline Safety Program Manager at 208-507-8911 if you have any questions. Sincerely, ('✓ 1' L 1 Maria Barran-Riley Executive Director, Idaho Public Utilities Commission 11331 West Chinden Blvd, Ste 201-A Boise Idaho 83714 Attachment A March 4, 2025, Decision Memorandum Page 2 of 2