20250530Ogami Exhibit Nos. 17-21.pdf

Preston N. Carter, ISB No. 8462
Megann E. Meier, ISB No. 11948
GIVENS PURSLEY LLP
601 West Bannock Street
P.O. Box 2720
Boise, Idaho 83701-2720
Office: [phone]
Fax: [phone]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION Case No. INT-G-25-02
OF INTERMOUNTAIN GAS COMPANY
FOR THE AUTHORITY TO INCREASE
ITS RATES AND CHARGES FOR
NATURAL GAS SERVICE IN THE STATE
OF IDAHO
EXHIBIT 17 TO ACCOMPANY THE
DIRECT TESTIMONY OF NIKI OGAMI

2024 Segment Structure
January-October
GROUP,MEMDU RESOURCES
MDU Energy
*Depicts the segment structure of the corporation;not the legal organization.
Capital Centennial
Montana-Dakota Cascade Intermountain WBI Energy MDU Construction Centennial Capital
•Natural gas . Natural as • Natural as . SerVICES
• Electric g g Pipeline •Other
•Construction services
• b• December
GROUP.MDU RESOURCES
MDU Energy
'Depicts the segment structure of the
Capital Centennial
Montana-Dakota Cascade Intermountain WBI Energy Centennial
• Natural gas • Natural gas • Natural gas • Pipeline Capital
•Electric •Other
corporation;
Case No. 1
N. •
Exhibit

Preston N. Carter, ISB No. 8462
Megann E. Meier, ISB No. 11948
GIVENS PURSLEY LLP
601 West Bannock Street
P.O. Box 2720
Boise, Idaho 83701-2720
Office: [phone]
Fax: [phone]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION Case No. INT-G-25-02
OF INTERMOUNTAIN GAS COMPANY
FOR THE AUTHORITY TO INCREASE
ITS RATES AND CHARGES FOR
NATURAL GAS SERVICE IN THE STATE
OF IDAHO
EXHIBIT 18 TO ACCOMPANY THE
DIRECT TESTIMONY OF NIKI OGAMI

Exhibit No. 18
MDUR Pricing Methodology- Effective for 2024
Note: Any cost incurred in a shared service department is allocated to MDUR according to each department's pricing formula. Any cost allocated to MDUR is
allocated to the operating companies using the corporate overhead allocation factor in Exhibit No. 3.
761 —Payroll Shared Services:
Payroll Shared Services costs are invoiced based on the number of employees paid and stated as a cost per check. The word check, for this purpose, generically
refers to paper paychecks, direct deposits and pay card transactions.
Checks are charged on a tiered structure, intended to recognize the fixed or baseline effort associated with maintaining a payroll cycle and associated reporting,
regardless of number of people paid. It is also intended to reward consolidation of multiple pay groups and companies where possible and to align charges with
the additional effort required to maintain multiple pay groups and pay cycles. The monthly volume for this step pricing is accumulated individually for each pay
cycle processed.
766—Time Entry Shared Services:
Time Entry Shared Service is provided 100% to the MDU Utility Group and is based on the average number of employees.
970—Human Resources—Shared Services:
Human Resources costs for the MDU Resources HR team are based on employees served. The average number of employees at each company for 12 months
ending June 30 is calculated, then further broken down to whether they are on the Corporate-held benefit plans and/or retirement plans.
762—Business Services:
This allocation factor is derived from the results of MDUR, MDUG, WBI, and CSG. After allocating the projected (budget) costs for the following four
responsibilities to each business unit, based on the weighted allocation factor of each of these responsibilities, each business unit total is summed and divided by
the total cost.
763—Fleet:
Fleet Department costs are invoiced based on four weighted factors from the previous year:
• Managed Units
• National Account Spend
• Construction Equipment Acquisitions
• Fleet Acquisitions
764—Supply Chain:
Allocations are based on two weighted factors from the previous year:
• Purchase Order Dollars Count
• Purchase Order Line Count
767—Accounts Payable:
Costs are invoiced based on three weighted factors from the previous year:
• Number of Payments
• Number of Vouchers
• Number of Unclaimed Property reports
Case No.INT-G-25-02
N. Ogami,IGC
Exhibit No. 18
Page 1 of 3

770—Buildings and Grounds:
This allocation is based on Jira tickets and labor hours spent by location from the previous year.
Enterprise Information Technology (EIT):
There are several EIT departments, and each is billed out based on its own criteria. They are as follows:
Application Services (765)—This team is made up of software developers providing integrations to systems and software changes. The allocations are based on
time tracked history for the 12 months of the prior year.
Operational Technology (768)—This team is made up of security and infrastructure technicians. The allocations are based on projected workload. This
department is 100% direct allocated based on the projects assigned.
Customer Relations (965)—This team is made up of help desk agents who support company owned devices and software. Enterprise charges for the customer
relations group are invoiced using three weighted allocation factors. The factors are as follows:
1. Direct charge for employees working for a specific business, work is only completed for businesses identified in methodology below.
2. Number of computing devices supported by the help desk (85%)
3. Number of mobile devices supported by the help desk (15%)
The metric used to determine device counts is devices that have checked into LANDesk at allocation time (August) and active devices in Mobilelron.
Communications (971)—This team supports the wide area network and phones. This includes switches, routers, and firewalls. Enterprise charges for the
communications group are invoiced using four weighted allocation factors. The factors are as follows:
1. Direct charge for employee hours working for a specific business (MDUG portion is split by meter count).
2. Wide Area Network/Local Area Network/Metropolitan Area Network- Number of business unit locations
3. Internet/Firewall Access—Number of computing devices
4. IP Telephony
Operations (972)—This team is responsible for administration of the enterprise servers. Enterprise charges for the operations group are invoiced using three
separate factors:
(1) 11.77% are direct charges that are costs directly related to the AS/400 computer and are invoiced upon the AS/400 allocation as agreed to by MDU and WBI
and CCB Oracle support costs and are allocated by meter counts for MDUG.
The remaining 88.23% of the costs are based upon the number of servers supported for each business unit. These servers are then broken out between full
service servers and shared service servers. Full service servers have a greater weighting factor since they require more dedicated time and cost more.
(2) Full Service Servers—66.17% (88.23%x 75%)
(3) Shared Service Servers 22.06% (88.23% x 25%).
Security(977)—This team supports the cyber security initiatives. Enterprise charges for the security group are distributed via the number of computing devices
(90.00%) and mobile devices (10.00%).
ERP (956)—This team supports the accounting/HR, enterprise asset management and enterprise document management systems. The allocations are based on
time tracked history for the 12 months of the prior year. The MDUG portion is further divided by employee count by brand and the WBI portion is further divided by
the WBI corporate factor.
Scada (968)—This team supports the gas SCADA and measurement accounting systems. The allocations are based on time tracked history for the 12 months of
the prior year. The MDUG portion is further divided by gas meter count.
Case No.INT-G-25-02
N. Ogami,IGC
Exhibit No. 18
Page 2 of 3

Finance & Compliance (982)—This team supports EIT software licensing, vendor management, budgeting, compliance, EIT Governance, Project Management
Office, IT Asset Management, and mobile related items. Costs for the EIT finance and compliance group are invoiced based on a weighting of the combined
methodologies of the nine previous EIT responsibilities.
Case No.INT-G-25-02
N. Ogami,IGC
Exhibit No. 18
Page 3 of 3

Preston N. Carter, ISB No. 8462
Megann E. Meier, ISB No. 11948
GIVENS PURSLEY LLP
601 West Bannock Street
P.O. Box 2720
Boise, Idaho 83701-2720
Office: [phone]
Fax: [phone]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION Case No. INT-G-25-02
OF INTERMOUNTAIN GAS COMPANY
FOR THE AUTHORITY TO INCREASE
ITS RATES AND CHARGES FOR
NATURAL GAS SERVICE IN THE STATE
OF IDAHO
EXHIBIT 19 TO ACCOMPANY THE
DIRECT TESTIMONY OF NIKI OGAMI

MDUR Corporate Overhead Allocation Factors
2024
Montana-Dakota Total WBI
Electric Gas Dist CNG IGC Utility WBI Non-Reg CSG MDUR
Jan-Jun 20.1 17.4 21.7 12.3 71.5 14.8 0.1 13.6 100
Jul-Oct 20.2 17.4 21.8 12.3 71.7 15.2 0.1 13.0 100
Nov-Dec 23.1 20.0 25.0 14.1 82.2 17.7 0.1 100
Case No.INT-G-25-02
N. Ogami,IGC
Exhibit No. 19
Page 1 of I

Preston N. Carter, ISB No. 8462
Megann E. Meier, ISB No. 11948
GIVENS PURSLEY LLP
601 West Bannock Street
P.O. Box 2720
Boise, Idaho 83701-2720
Office: [phone]
Fax: [phone]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION Case No. INT-G-25-02
OF INTERMOUNTAIN GAS COMPANY
FOR THE AUTHORITY TO INCREASE
ITS RATES AND CHARGES FOR
NATURAL GAS SERVICE IN THE STATE
OF IDAHO
EXHIBIT 20 TO ACCOMPANY THE
DIRECT TESTIMONY OF NIKI OGAMI

Intermountain Gas Company
Example of an Accounts Payable Shared Service Allocation
*This is an example demonstration,notan actual costamount.
Accounts Payable Shared Service
Cost: $ 1,000.00
MDU MDUR WBIP WBIM CSG CNGC IGC
January AP SS Allocation Factors 0.402 0.051 0.011 0.0100 0.027 0.257 0.242
$ 402.00 $ 51.00 $ 11.00 $ 10.00 $ 27.00 $ 257.00 $ 242.00
1
MDU Electric 0.201 $ 10.25
o N MDUGas 0.174 $ 8.87 Intermountain's Total Allocation of an
c WBI Transportation 0.148 $ 7.55 Accounts Payable Shared Service Cost
W WBI Energy 0.001 $ 0.05 AP Shared Service Allocation $ 242.00
ac c CSG 0.136 $ 6.94 MDUR Corporate Overhead Allocation $ 6.27
c E m CNGC 0.217 $ 11.07 $ 248.27
O IGC 0.123 $ 6.27
1.000 $ 51.00
Case No.INT-G-25-02
N. Ogami,IGC
Exhibit No. 20
Page 1 of 2

Total
1.000
$ 1,000.00
Case No.INT-G-25-02
N. Ogami,IGC
Exhibit No.20
Page 2 of 2

Preston N. Carter, ISB No. 8462
Megann E. Meier, ISB No. 11948
GIVENS PURSLEY LLP
601 West Bannock Street
P.O. Box 2720
Boise, Idaho 83701-2720
Office: [phone]
Fax: [phone]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION Case No. INT-G-25-02
OF INTERMOUNTAIN GAS COMPANY
FOR THE AUTHORITY TO INCREASE
ITS RATES AND CHARGES FOR
NATURAL GAS SERVICE IN THE STATE
OF IDAHO
EXHIBIT 21 TO ACCOMPANY THE
DIRECT TESTIMONY OF NIKI OGAMI

Exhibit 21
Utility Group Pricing Methodology - Effective for 2024
Leadership Group:
President&CEO (985)—The payroll allocations will be based on average Utility Group customer and employee counts for the President& CEO and Executive
Assistant.
Vice President of Regulatory Affairs and Customer Service 985—The payroll allocation will be 50% for IGC & CNG Regulatory Affairs and then based on Utility
Group customer and employee counts.
Executive Vice President of Business Development &Gas Supply(701)—The payroll allocations will be based on Utility Group customer counts.
Vice President of Safety, Process Improvement& Operations Systems (707)—The payroll allocations will be based on Utility Group meter counts.
Vice President of Operations & Engineering Service (960)—The payroll allocations will be based on Utility Group customer counts.
Vice President of Field Operations (725)—The payroll allocations will be based on Utility Group customer counts.
Customer Experience Team (129, 711, 712, 714):
The Customer Experience Team is made up of four distinct areas and provides service to all four brands within the MDU Utility Group. Those areas are Credit and
Collections, Scheduling, Customer Service, and Customer Programs and Support. In addition to these departments, the Customer Service group has a
management team, Consumer Specialists, and other administrative positions. Customer Service payroll costs are allocated using five (5)different methodologies:
Customer Count, Customer Call Time, Cleared Order Count, Credit To-Dos, and Emails and Web Requests. Costs other than payroll will be allocated based on
customer count if they provide benefit for all brands. Costs specific to a brand will be charged directly to that brand and will not go through an allocation process.
Operations & Engineering Services Group:
Process Improvement& Operations Tech (Dept 703)
The payroll allocations will be based on the Utility Group employee counts.
Quality Control (Dept 730)
The Quality Control department provides oversight and post work review of both maintenance and construction work that is performed by both utility group
employees and our contractors. The payroll allocations will be based on time studies.
Engineering Services (Dept 769)
The Engineering Services department duties include gas modeling, working with district personnel, engineering design of capital projects, creation of cost
estimates, creation of design and work plans, budget planning, etc. The payroll allocations will be based on time studies.
Construction Services (Dept 863)
The Construction Services (CS) department provides construction management and inspection for large and high-pressure projects, as well as for projects
generated by TIMP, DIMP, and MAOP Validation Plans. CS creates and manages programs and procedures for welding and fusion programs. Fabrication
standards and a majority of fabrication are done by CS. The payroll allocations will be based on time studies.
Case No.INT-G-25-02
N. Ogami,IGC
Exhibit No. 21
Page 1 of 3

Operation Systems (Dept 864)
This department supports Operations compliance systems as well as supporting other systems that Operations and Engineering utilize. The group not only
supports these efforts but also works as a liaison group between the business and enterprise information technology (EIT). The payroll allocations are based on
the Utility Group meter counts.
Operations GIS (Dept 867)
This department supports the Operations and Engineering GIS system. The group not only supports these efforts but also works as a liaison group between the
business and enterprise information technology (EIT). The payroll allocations will be based on time studies. Costs specific to a brand will be charged directly to that
brand and will not go through an allocation process.
System Integrity (Dept 865)
The System Integrity department is responsible for the Utilities Distribution and Transmission Integrity Management Programs, Integrity Projects, Cascade's MAOP
Validation Project, and Corrosion Control. The payroll allocations will be based on time studies.
Safety Management System & Quality Assurance (Dept 866)
The Safety Management System and Quality Assurance (SMS/QA) department is responsible for the implementation of the utility group's safety management
system. The team is responsible for reviewing, documenting, and developing processes to ensure compliance with the industry recommend practice 1173. Key
objectives of our current plan include the development of an operational risk management program, SMS/QA program oversight and metrics, and completion of
risk-based process audits. The payroll allocations will be based on Utility Group Meter Counts for gas and electric.
Operations Policies & Procedures (Dept 923)
This department is responsible for aligning new Utility Group procedures as well as maintaining all previous company specific procedures. Each company was and
is required to have and maintain these procedures per federal code 192. The payroll allocations will be based on time studies.
Operation Services (Dept 958)
The Operation Services department provides compliance, damage prevention, and public awareness across the Utility Group. The payroll allocations will be based
on time studies.
Information Technology and Communications Group:
Enterprise Management, Enterprise Development and Integration, Field Automation (Dept 926)
These teams support business and technical functions that are common to all brands. Provides support to the business through data requests and augments the
system by developing programs and technical solutions to accommodate business and field needs as well as regulatory requirements. The payroll allocations will
be based on Utility Group meter counts.
Enterprise GIS (Dept 951)
This department provides gas, electric and fiber pipeline and facilities mapping services for the Utility Group. The payroll allocations will be based on Utility Group
meter counts.
Environmental (Dept 889)
The Environmental Department provides environmental regulatory compliance guidance and assistance to MDU Utilities Group facilities and operations in
accordance with the company environmental policy. The payroll allocations will be based on time studies.
Safety &Technical Training (Dept 720, 901)
Case No.INT-G-25-02
N. Ogami,IGC
Exhibit No. 21
Page 2 of 3

The Safety and Technical Training department provides oversight for all things safety and technical training for the entire utility group. The payroll allocations will
be based on Utility Group employee counts or time studies, depending on the employee's job functions.
Gas Supply and Gas Control (Depts 931, 933, 928)
The payroll allocations will be based on two methodologies: Utility Group employees will be based on time studies. If there are employees focused on Montana-
Dakota Utilities functions, which will be allocated 100% to Montana-Dakota Utilities gas segment.
Utility Group Controller(Dept 941)
The Controller Department provides various accounting services to the Utility Group: Fixed Assets Accounting, Revenue Accounting, Internal Controls
Coordination, and Management. The payroll allocations are based on these methodologies: Utility Group customer count, Utility Group meter count, number of
employees, Montana-Dakota customer factor, Utility Group corporate factor, Montana-Dakota corporate factor, and specific shared services methodologies.
Utility Group Human Resources (Dept 963)
The Human Resources payroll allocations will be based on average Utility Group customer and employee counts.
Case No.INT-G-25-02
N. Ogami,IGC
Exhibit No. 21
Page 3 of 3