20250530Direct Martuscelli.pdf

RECEIVED
May 30, 2025
IDAHO PUBLIC
Preston N. Carter, ISB No. 8462 UTILITIES COMMISSION
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
DIRECT TESTIMONY OF ERIC MARTUSCELLI
INTERMOUNTAIN GAS COMPANY
MAY 30,2025

INTRODUCTION
1 Q. Please state your name and business address.
2 A. My name is Eric P. Martuscelli and my business address is 8113 West Grandridge Blvd.,
3 Kennewick, WA 99336.
4 Q. By whom are you employed and in what capacity?
5 A. I am employed by Intermountain Gas Company ("Intermountain" or"Company"), a
6 wholly-owned subsidiary of MDU Resources Group, Inc. ("MDU Resources"), as Vice
7 President of Field Operations & Customer Experience for Intermountain, Cascade Natural
8 Gas Corporation("Cascade" or"Company"), Montana-Dakota Utilities Co. ("Montana-
9 Dakota"), and Great Plains Natural Gas Co. ("Great Plains"). Collectively, "MDU
10 Utilities Group".
STATEMENT OF QUALIFICATIONS
1 1 Q. Please describe your educational background and other qualifications.
12 A. I hold a bachelor's degree in Organizational Management, in the Forbes School of
13 Business, from Ashford University. I have held executive level positions at MDU Utilities
14 Group since 2012.
15 Q. Please describe your work experience.
16 A. I have worked in the utility industry since 1992. From 1992 to 2004 I held various non-
17 supervisory roles, with Cascade, in Walla Walla, Washington and Bend, Oregon: meter
18 reading, construction, service, administrative, and customer acquisition. From 2004—2008
19 I was District Manager in Pendleton, Oregon and Mount Vernon, Washington,
20 respectively. From 2008 —2012 1 held the position of Region Director in Cascade's
21 Southern Region, consisting of the Bend, Oregon district, the Eastern Oregon District
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I (Ontario and Baker City), and Pendleton District(Pendleton and Hermiston). In 2012, I
2 was promoted to Vice President, Operations at Cascade in Kennewick, Washington. In
3 2018 my executive role expanded across all brands as Vice President, Field Operations for
4 MDU Utilities Group. In 2025 my executive role further expanded as Vice President, Field
5 Operations & Customer Experience. Today, my role provides executive leadership, directs,
6 and coordinates activities for the entire gas and electric distribution field operations,
7 customer experience team, and fleet in the MDU Utilities Group service territory.
PURPOSE OF TESTIMONY
8 Q. Please summarize your testimony.
9 A. My testimony will discuss Intermountain's focus on providing exceptional customer
10 service. Next, I will address project selection and the budgeting process. I will then discuss
11 major project additions to plant in service overseen by Field Operations that have been
12 placed in service since the test year in Intermountain's last general rate case (Case No.
13 INT-G-22-07). Finally, I will address the request for 2025 pro forma plant in service under
14 my responsibility area.
15 Q. Are you sponsoring any exhibits to your direct testimony?
16 A. Yes, I sponsor the following exhibit:
17 Exhibit 26 Customer Satisfaction Trends
18 Q. Please explain Intermountain's Field Operations and Customer Experience Team
19 organization.
20 A. Field Operations employees are the "boots on the ground" in Idaho. Their primary purpose
21 is to provide safe, reliable natural gas service to the customers and communities
22 Intermountain serves, with an expectation of providing exceptional customer service with
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I each interaction. The philosophy of this team is to execute the "playbook" and seek
2 continuous improvement. The "playbook" consists of Intermountain's organizational
3 integrity guide and our operations policies and procedures, the latter incorporating federal
4 regulatory and state administrative codes applicable to the safe operation of the natural gas
5 distribution system. Our Customer Experience Team is the first point of contact for our
6 customers and is where our expectation of exceptional customer service begins. In
7 partnership, these two teams work together to deliver on our CORE strategy with a focus
8 on Customers and Communities and Operational Excellence.
9 Q. Please provide a high level description of Intermountain's distribution system.
10 A. Intermountain Gas is the sole distributor of natural gas in southern Idaho. Its service area
11 extends across the entire breadth of southern Idaho, an area of 50,000 square miles.
12 Currently, Intermountain serves approximately 429,000 total customers, in 74
13 communities, through a system of over 7,600 miles of transmission and distribution lines;
14 delivering approximately 819.6 million therms in 2024.
PROVIDING EXCEPTIONAL CUSTOMER SERVICE
15 Q. How does the Company's CORE strategy help ensure exceptional customer service?
16 A. Intermountain's CORE strategy, as presented in the direct testimony of Nicole Kivisto, is
17 centered on delivering exceptional customer service and achieving best-in-class customer
18 satisfaction, as consistently measured by the J.D. Power U.S. Gas Utility Residential
19 Customer Satisfaction Study. The strategy builds trust by focusing on safety, timely and
20 clear communication, and efficient service. Intermountain also takes a community-focused
21 approach, supporting economic development and strengthening relationships across the
22 communities it serves. As part of this commitment, the Company actively invests in
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I charitable initiatives that improve the quality of life for residents. By putting customers
2 first and supporting community growth, Intermountain aims to create a positive cycle of
3 shared success throughout Idaho.
4 Q. Please provide an overview of the customer service options available to
5 Intermountain customers.
6 A. Intermountain's Customer Experience Team ("CXT")provides customers multiple options
7 for communicating with and requesting service from the Company. Intermountain
8 customer service representatives communicate with customers through U.S. mail, email,
9 telephone, smart phone, social media platforms, text, web-based applications, and other
10 online applications.
11 Intermountain provides customers with toll-free access to customer service
12 representatives who handle utility service requests and service or billing inquiries. The call
13 center answers calls received from 7:30 a.m. to 6:30 p.m. Mountain time, Monday through
14 Friday. The Company is also staffed to handle emergency calls 24 hours a day, seven days
15 a week. A scheduling center, which is part of the CXT, transmits electronic service orders
16 to the mobile terminals placed in the Company's fleet of service and construction vehicles.
17 This network allows Intermountain to respond quickly to customer requests and emergency
18 situations.
19 The Company's customer support team monitors email and responds to customers'
20 requests during regular business hours. Additionally, the CXT provides online chat
21 assistance through the Intermountain online customer portal from 9:00 a.m. to 4:00 p.m.,
22 Monday through Friday, as well as 24/7/365 messaging through Facebook and Instagram
23 Messenger. The CXT also continues to increase and improve online self-service options on
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I its website. Customers can easily enroll and manage their utility accounts through online
2 account services found on www.intgas.com. The CXT provides customers with many
3 means to make a payment, request to start or stop service, set up electronic billing, review
4 usage and payment history, transfer service, and enroll for account, outage, energy
5 efficiency, and industry or Company news email and text notifications.
6 Q. How does Intermountain's customer satisfaction compare to other similarly situated
7 utilities?
8 A. Intermountain has a consistent track record of high rankings within the J.D. Power Gas
9 Utility Residential Customer Satisfaction Study. As illustrated in Exhibit 26, through 2024,
10 Intermountain has been ranked first or second in overall customer satisfaction for West
11 Midsize utilities twelve out of the previous fourteen years, including finishing first overall
12 in four out of the past five years. Intermountain's Overall Satisfaction score has remained
13 above the West Midsize segment and Natural Gas industry each of those fourteen years.
14 Six factors influence a utility's ranking within the study: Safety &Reliability, Billing &
15 Payment, Price, Corporate Citizenship, Communications, and Customer Care.
16 Intermountain has ranked in the top five for each factor for the past four years.
17 Intermountain's success within the J.D. Power study is a testament to the commitment of
18 each employee, from the top down, to serve our customers and communities.
19 Q. What bill management programs are available to Intermountain customers?
20 A. Intermountain offers the following options to customers:
21 • Level Pay Plan. A residential customer on Intermountain's Level Pay Plan receives a
22 monthly bill in the amount of one-twelfth of their average annual usage. This payment
23 option allows residential and small commercial customers to avoid extreme
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I fluctuations from month to month due to weather or usage changes. Level Pay Plans
2 are offered in accordance with Rule 313 of Idaho Administrative Procedure Act
3 ("IDAPA") 31.21.01.
4 • Time Payment Arran-ems. A residential customer who expresses difficulty in
5 paying a bill may enter into a time payment arrangement from two to 12 months,
6 extending the due date on any unpaid prior balance.
7 • Auto-Pay. Auto-pay withdraws a customer's monthly payment for natural gas usage
8 from the customer's credit card, debit card, or bank account, as authorized by the
9 customer. This option allows customers to attend to their busy lives without the
10 concern that they may miss making a payment for service received.
11 Q. What low-income financial assistance programs does Intermountain offer?
12 A. Intermountain offers the following programs to qualifying low-income customers:
13 • LIHEAP. Intermountain partners with Community Action Agencies within its service
14 territory to provide customers with access to federal grants that can be used to pay
15 down a past due balance or future billings for natural gas service.
16 • Project Share. Intermountain customers within the Idaho Power service territory who
17 qualify for the Low-Income Heating Energy Assistance Program (LIHEAP) and are at
18 risk for disconnect for non-payment may find additional help through Project Share.
19 This is a fuel blind assistance fund administered by the Salvation Army. Project Share
20 is funded by Idaho Power and Intermountain customer and company donations. Special
21 consideration is given to seniors, who may receive annual assistance if needed and
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I must only be past due, not at risk for disconnect, to receive assistance. The maximum
2 benefit is $450 per year.
3 • Project Warmth. Intermountain customers in Southeastern Idaho who qualify for the
4 LIHEAP and are past-due may find additional help through Project Warmth. This is an
5 assistance fund administered by Eastern Idaho Community Action Partnership
6 (EICAP) and Southeastern Idaho Community Action Agency (SEICAA) and funded by
7 Intermountain customers and Company donations.
8 • Keep Kids Warm. Keep Kids Warm was established in 1996 and is a fuel blind
9 assistance fund with funding provided by Intermountain customer pledge donations.
10 The El-Ada and Western Idaho Community Action Partnership (WICAP) Community
11 Action Agencies administer the fund using LIHEAP income eligibility guidelines.
12 Customers must have children in the home and be pending a disconnect for non-
13 payment to qualify for Keep Kids Warm assistance.
14 • Conservation. Intermountain offers rebates to all Idaho-based core customers for the
15 installation of high efficiency gas-fired appliances. The installation of conservation
16 measures provides customers with an enduring means to lower bills through reduced
17 energy consumption.
OVERVIEW OF PROJECT SELECTION AND BUDGETING PROCESS
18 Q. Please explain the plant in service projects you will discuss.
19 A. The majority of the projects managed by the Field Operations department are
20 Programmatic. Programmatic projects are made according to a schedule, plan, or method
21 and are generally investments that are necessary to provide safe, reliable service to Idaho
22 customers and those seeking natural gas services.
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I I will also be addressing several Specific projects that fall under my responsibility
2 area. Specific projects are clearly defined, identifiable, or discrete investments. I will
3 discuss Specific projects and Programmatic investments placed in service since the
4 Company's last test year ended December 31, 2022. A complete list of the 2023 through
5 2024 projects is included as an exhibit to the direct testimony of Lori Blattner. I will next
6 discuss Pro Forma investments that will be placed in service in 2025. A complete list of
7 Pro Forma Projects is included as an exhibit to the direct testimony of Lori Blattner. Table
8 1 below illustrates a summary of the Company's request included in my testimony.
Table 1 -Additions to Plant In-Service
L A Description Specific Projects Programmatic Total
Projects
2023-2024 Major Projects over$1M
Testimony of Eric P Martuscelli $ 9,226,924 $ 50,604,597 $ 59,831,521
2025 Major Projects over$1M
Testimony of Eric P Martuscelli $ 2,655,048 $ 25,259,183 $ 27,914,231
2025 Major Projects over$200K
T estiniony of Eric P Martuscelli $ 2,147,266 $ 2,447,866 $ 4,595,132
9
10 Q. How are Specific projects forecast?
11 A. Specific projects generally fall into two categories: known (budgeted) and unknown
12 (unbudgeted). Known projects are forecast during the annual capital budgeting process and
13 assigned to a year in the five-year plan. An example of a known project would be working
14 with a municipality on a road improvement project scheduled for construction in a future
15 year. The road improvement project would require relocation of Intermountain's
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I infrastructure to accommodate the project. This type of project can be budgeted in
2 advance.
3 Unknown projects are, by nature, more immediate than can be planned through the
4 annual budgeting process. Using the same example above, Intermountain is sometimes
5 unaware of a road improvement project in advance. However, the municipality will require
6 the Company to relocate its infrastructure pursuant to a franchise agreement. In this case,
7 the road improvement project would be unbudgeted. In either case, the approval process
8 follows the established Company authorization policy.
9 Q. How are Programmatic project costs forecast?
10 A. Funding projects that fall into the Programmatic category include things like main and
11 service growth and replacement, gas regulators, and vehicles and work equipment. Growth
12 related funding project forecasts are based on the Base-Case Growth forecast included in
13 Intermountain's Integrated Resource Plan.
14 Replacement projects are difficult to forecast prospectively. In any year,
15 replacements of Intermountain facilities will be required due to requests from jurisdictional
16 authorities in the communities Intermountain serves or for safety or reliability reasons.
17 Because replacement projects cannot be anticipated with specificity, the estimated expense
18 is based on historical costs and updated for any known requirements.
19 Vehicles and work equipment forecasts are based on an assessment of Company
20 need coupled with an analysis of existing vehicles and work equipment.
21 Q. Are projects ever re-prioritized?
22 A. Yes. There are two primary stages of re-prioritization. During the annual capital budgeting
23 process, the Company goes through several versions of the five-year capital budget each
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I year. Every version is a re-prioritization of projects based on available capital and the
2 project's rank within the Company. The second stage, or re-prioritization, is after the
3 capital budget is approved. As previously outlined in my testimony, the Company must
4 regularly adjust to unknown projects that arise due to requests from jurisdictions served by
5 Intermountain, and for safety and reliability. In this case, the unknown project would push
6 a budgeted project down the priority list.
MAJOR PROJECT ADDITIONS TO PLANT IN SERVICE 2023—2024.
7 FP-101513 - Gas Vehicles-IGC
8 Q. Please describe FP-101513 - Gas Vehicles IGC.
9 A. The Gas Vehicles project is the annual purchase of additions to and replacement of
10 Company fleet assets. Planning for vehicle purchases and replacements is done in
11 conjunction with preparation of the annual capital budget and takes into consideration
12 vehicle needs for the ensuing year compared to the existing fleet vehicles, their age, and
13 operating condition. The fleet department meets with operations leadership annually to
14 understand operational needs in advance of preparing the annual budget.
15 Q. Why did the Company undertake the project?
16 A. Vehicles are essential to the Company's business. This is an annual process designed to
17 proactively identify where additions are necessary to meet growth demands and to
18 minimize downtime of existing fleet assets due to age and/or general condition.
19 Q. How will customers benefit from the project?
20 A. Having a coordinated purchase and replacement philosophy ensures Intermountain has the
21 vehicles needed to provide safe and reliable service to its customers.
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I Q. Did the Company consider alternative ways to meet the need for the project?
2 A. The Company's philosophy emphasizes the high utilization of Company vehicles. If a
3 vehicle is needed in a specific department/operating area and is available and underutilized
4 in another department/area, relocation of the existing asset will be the first consideration.
5 Q. What work has been completed and when will the project be placed in service?
6 A. These vehicles were placed in service over the 2023 —2024 calendar years.
7 Q. What are the estimated costs for the project?
8 A. Total costs closed to plant in 2023 and 2024 were $1,190,059 and$926,506 respectively.
9 FP-200004 - Gas Work Equipment-IGC
10 Q. Please describe FP-200004 - Gas Work Equipment IGC.
11 A. The Gas Work Equipment project is the annual purchase of additions to and replacement
12 of Company fleet assets. Planning for work equipment purchases and replacements is done
13 in conjunction with preparation of the annual capital budget and takes into consideration
14 equipment needs for the ensuing year compared to the existing work equipment, assessing
15 its age and operating condition. The fleet department meets with operations leadership
16 annually to understand operational needs, in advance of preparing the annual budget.
17 Q. Why did the Company undertake the project?
18 A. Work Equipment is essential to our business. This is an annual process designed to
19 proactively identify where additions are necessary to meet growth demands and to
20 minimize downtime of existing fleet assets due to age and/or general condition.
21 Q. How will customers benefit from the project?
22 A. Having a coordinated purchase and replacement philosophy ensures Intermountain has the
23 equipment needed to provide safe and reliable service to its customers.
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I Q. Did the Company consider alternative ways to meet the need for the project?
2 A. The Company's philosophy emphasizes the high utilization of Company work equipment.
3 If equipment is needed in a specific department/operating area and is available and
4 underutilized in another department/area, relocation of the existing asset will be the first
5 consideration.
6 Q. What work has been completed and when will the project be placed in service?
7 A. This work equipment was placed into service over the 2023 —2024 calendar years.
8 Q. What are the estimated costs for the project?
9 A. Total costs closed to plant in 2023 and 2024 were $2,076,657 and$1,575,275 respectively.
10 FP-300217 -UG-Work Asset Management
11 Q. Please describe Intermountain's Work and Asset Management System ("Maximo").
12 A. Maximo is an integrated software solution which stores assets, work orders, work order
13 tracking information, and maintenance schedules. Intermountain is in the third phase of a
14 three-phase and multi-year implementation of Maximo. The first phase was for
15 maintenance work and was implemented in 2019-2021. The maintenance phase included
16 equipment maintenance and all gas compliance maintenance (e.g., corrosion control, leak
17 survey, atmospheric corrosion survey,patrolling, measurement, and equipment
18 maintenance). The construction phase is being implemented in two gas and electric stages.
19 The gas stage went into service in May of 2024. The electric stage is in progress and is
20 planned to be implemented in 2026. The construction phase includes the full lifecycle of
21 construction—initiate, design, estimate,plan/schedule, construct, close out and
22 documentation of construction work. This is a full electronically driven construction
23 process integrated into core systems which reduces touchpoints and data entry. The
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I originally planned final phase will be implemented over time and may include
2 enhancements to the overall work and asset management system, and the addition of
3 transmission electric, electric generation and environmental.
4 Q. Why did the Company undertake the project?
5 A. The primary reason Intermountain is implementing Maximo is to move to a modern work
6 asset management system, and mobile solutions, allowing the Company to better manage
7 operations. This includes the elimination of paper processes. Additionally, Maximo will
8 provide six primary benefits:
9 • Aligns operations business processes across the enterprise.
10 • Replaces fragmented and unintegrated operations technology systems and processes
11 with one unified work and asset management system which improves efficiency of
12 implementation and support.
13 • Reduces touch points, data entry and redundancy.
14 • Gains enterprise-wide insight into asset tracking, construction, maintenance,
15 compliance, and costs. Drives consistent workflows across the enterprise, improving
16 work product results.
17 • Improves the user experience with consistent field data entry technology, lowering
18 training needs, and limiting confusion and errors.
19 • Improves overall quality using smart forms, integrated solutions, high accuracy GPS,
20 bar code scanning and electronic workflows.
21 Q. How will the customers benefit from the project?
22 A. Customers will benefit through the elimination of redundancy of systems and the inherent
23 resources that are necessary to support multiple systems to complete the same or similar
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I tasks. The electronic system will improve the overall quality of information collected in
2 the field and provide a central data repository for information related to all utility
3 maintenance and construction activity. This will improve the safe operation of the system
4 through higher quality gas facility installations, improved maintenance/compliance
5 tracking, and reporting.
6 Q. Did the Company consider alternative ways to meet the need for the project?
7 A. The company did due diligence when selecting Maximo. An exploratory team was formed
8 in 2017 and evaluated the implementation of work and asset management systems across
9 the gas and electric utility industry. It was determined Maximo was the best choice
10 because it is a lower cost solution, the system integrates well to disparate systems, and
11 Maximo is mature and proven compared to other work and asset management systems.
12 The company visited other utilities to learn best practices for implementing work and asset
13 management systems. This information was used to develop the phased approach and to
14 leverage internal resources to develop expertise to support the system going forward. The
15 strategy has worked thus far through the successful implementation of the gas compliance
16 phase of the project.
17 Q. When was the project placed in service?
18 A. The project was placed in service in May of 2024.
19 Q. What were the total costs for the project?
20 A. The estimated cost of the Work and Asset Management system for gas and electric is
21 approximately $33.07 million over the multi-year period. The in-service cost portion
22 allocated to Intermountain during 2024 was $6,176,123.
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I FP-323848-INST 2NM/6NM MIDDLETON INDUST MDLTN
2 Q. Please describe INST 2NM/6NM MIDDLETON INDUST MDLT.
3 A. This project consisted of installing approximately 8,645 feet of 6 inch plastic main, 698
4 feet of 4 inch plastic main, and 848 feet of 2 inch plastic main to serve a seven-lot
5 commercial subdivision in Middleton.
6 Q. Why did the Company undertake the project?
7 A. The project was requested by a commercial developer.
8 Q. How will customers benefit from the project?
9 A. Natural gas was provided for seven buildings in a new commercial subdivision that houses
10 40 individual customers. The new main also exposed other future subdivisions.
11 Q. Did the Company consider alternative ways to meet the need for the project?
12 A. There were no alternative ways to meet the need for this project.
13 Q. When was the project placed in service?
14 A. This project was placed in service in July 2024.
15 Q. What were the total costs for the project?
16 A. The total costs closed to plant in service were $1,053,544.
17 FP-324591 -UG-Locusview Software IGC
18 Q. Please describe Intermountain's Locusview mobile solution for the documentation of
19 the lifecycle of construction.
20 A. As part of the overall Utility Group Work Asset Management System (FP- 300217) Phase
21 2, a new electronic mobile construction solution is needed to track the installation of parts,
22 materials and components during construction in the field. Locusview is this solution.
23 Locusview is tightly integrated into the work asset management software solution
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I referenced above. The solution eliminates the need for paper forms, while leveraging
2 electronic capabilities through data entry on field tablets to gather the information currently
3 captured through manual entry on paper or spreadsheets. Additionally, spatial mapping
4 and GPS capabilities will be used to capture spatial data which will be integrated into the
5 Utility GIS system. The solution will capture the information needed to meet the
6 requirements for tracking and traceability for installed assets. Locusview will be used by
7 Utility employees as well as Utility contractors.
8 Q. Why did the Company undertake the project?
9 A. Currently the Company uses paper forms, spreadsheets and other documents to capture
10 construction activities in the field. The Locusview solution enables the ability to capture
11 the construction processes electronically improving accuracy and data validation. The
12 solution leverages field tablets connected to a high accuracy GPS and electronic code
13 scanners. Various form and asset data is captured as the construction process is in
14 progress. The need for this solution is the result of several business needs:
15 1. The need to ensure data accuracy when performing construction tasks.
16 2. The ability to track, more accurately, the spatial location of installed parts,
17 materials and components during construction. This will meet the requirements for
18 tracking and traceability.
19 3. The need to shorten the time it takes to update the Utility GIS system with spatial
20 features and data. Locusview integrates into the GIS system and spatial features and data
21 are loaded directly into that system.
22 4. To help capture construction activities to ensure compliance with applicable
23 laws, regulations, policies and procedures.
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1 5. The current Work Asset Management System project required an electronic
2 mobile system to perform field data capture.
3 Q. How will the customers benefit from the project?
4 A. Customers will benefit through the elimination of redundancy of systems and the inherent
5 resources that are necessary to support multiple systems to complete the same or similar
6 tasks. The Locusview electronic system will improve the overall quality of information
7 collected in the field and provide mobile field data entry for information related to
8 construction, asset tracking and mapping. This will improve the safe operation of the
9 system through higher quality gas facility installations, improved maintenance/compliance
10 tracking, and reporting. Locusview is a critical solution to deliver on the six benefits of the
11 work asset management system:
12 • Aligns operations business processes across the enterprise.
13 • Replaces fragmented and unintegrated operations technology systems and processes
14 with one unified work and asset management system which improves efficiency of
15 implementation and support.
16 • Reduces touch points, data entry and redundancy.
17 • Gains enterprise-wide insight into asset tracking, construction, maintenance,
18 compliance, and costs. Drives consistent workflows across the enterprise, improving
19 work product results.
20 • Improves the user experience with consistent field data entry technology, lowering
21 training needs, and limiting confusion and errors.
22 • Improves overall quality using smart forms, integrated solutions, high accuracy GPS,
23 bar code scanning and electronic workflows.
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I Q. Did the Company consider alternative ways to meet the need for the project?
2 A. The company did consider utilizing CGI PCAD mobile as an alternative. The company
3 compared the two products and determined that Locusview was the best option to meet the
4 needs of the project. Locusview had the advantage for several reasons:
5 • High accuracy GPS,bar code scanning and electronic workflows
6 • Tracking and traceability of assets with integrated GIS mapping
7 • Works in concert with quality management solution
8 • Electronic as-built documentation delivery
9 • Contractor solution and managed services
10 • Utility focused vendor
11 Q. When was the project placed in service?
12 A. Locusview was placed in service in May 2024.
13 Q. What were the total costs for the project?
14 A. The in-service cost portion allocated to Intermountain for Locusview is $1,997,257.
15 Gas Mains Growth Proiects:
Funding Project FP Description 2023 2024
FP-101018 Gas Mains Growth-Idaho Falls Dist $ 946,561 $ 1,348,666
FP-101019 Gas Mains Growth-Boise District $ 1,494,516 $ 2,730,689
FP-101021 Gas Mains Growth-Twin Falls Dist $ 1,045,923 $ 838,788
FP-101065 Gas Mains Growth-Nampa District $ 3,597,450 $ 3,136,112
FP-101054 Gas Mains Growth-Pocatello District $ 518,424 $ 209,881
16
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I Q. Please describe the Gas Mains Growth Projects.
2 A. Growth Mains are distribution system expansion projects to serve natural gas to new
3 customers throughout Intermountain's service territory. As determined by the Company's
4 engineering department, some Growth Main projects require a supplemental system
5 reinforcement to provide system reliability for core customers. Consideration for all
6 Growth Mains requests follow the Company's General Service Provisions within its tariff.
7 Q. Why did the Company undertake the project?
8 A. Intermountain's obligation to serve requires that Intermountain serve new customers
9 utilizing the Company's General Service Provisions within its tariff.
10 Q. How will customers benefit from the project?
11 A. These projects are undertaken either at the request of new customers which provides them
12 access to safe and reliable natural gas service or these projects are undertaken to provide
13 increased system reliability to new and existing customers through reinforcement of the
14 Company's system.
15 Q. Did the Company consider alternative ways to meet the need for the project?
16 A. No, there are no alternatives to Growth Main installations. Growth mains are installed in
17 the most efficient manner possible utilizing joint trench in new subdivisions. If
18 Intermountain did not install growth mains, the Company could not provide gas service to
19 new customers.
20 Q. When was the project placed in service?
21 A. Individual projects were placed in service throughout 2023 and 2024.
22 Q. What were the total costs for the project?
23 A. Total costs closed to plant in 2023 and 2024 was $7,602,875 and$8,264,136, respectively.
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I Gas Services Growth Proiects:
Funding Project FP Description 2023 2024
FP-101009 Gas Services Growth-Twin Falls Dist $ 2,065,066 $ 2,140,548
FP-101010 Gas Services Growth-Idaho Falls Dis $ 1,909,152 $ 2,812,297
FP-101015 Gas Services Growth-Pocatello Dist $ 754,547 $ 960,824
FP-101027 Gas Services Growth-Nampa District $ 4,565,442 $ 5,712,960
FP-101030 Gas Services Growth-Boise District $ 3,687,477 $ 4,360,779
2 Q. Please describe the Gas Services Growth Projects.
3 A. Growth Services are distribution system expansion projects to service natural gas to new
4 customers, throughout the Company's service territory. Growth Services are installed in
5 conjunction with Growth Mains or as stand-alone installations from existing infrastructure.
6 Q. Why did the Company undertake the project?
7 A. Intermountain's obligation to serve requires that Intermountain serve new customers
8 utilizing the Company's General Service Provisions within its tariff.
9 Q. How will customers benefit from the project?
10 A. These projects are undertaken at the request of new customers which provides them access
11 to safe and reliable natural gas service.
12 Q. Did the Company consider alternative ways to meet the need for the project?
13 A. There are no alternatives. Intermountain's obligation to serve requires that we serve new
14 customers utilizing the Company's General Service Provisions within its tariff.
15 Q. When was the project placed in service?
16 A. Growth Services were placed in service as requested throughout 2023 and 2024.
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I Q. What were the total costs for the project?
2 A. Total costs closed to plant in 2023 and 2024 were $12,981,683 and $15,987,407,
3 respectively.
4 2025 PRO FORMA ADDITIONS TO PLANT IN SERVICE-OVER$1 MILLION
5 FP-101513 - Gas Vehicles-IGC
6 Q. Please describe FP-101513 - Gas Vehicles IGC.
7 A. The Gas Vehicles project is the annual purchase of additions to, and replacement of
8 Company fleet assets. Planning for vehicle purchases and replacements is done in
9 conjunction with preparation of the annual capital budget and takes into consideration
10 vehicle needs for the ensuing year compared to the existing fleet vehicles, their age, and
11 operating condition. The fleet department meets with operations leadership annually to
12 understand operational needs, in advance of preparing the annual budget.
13 Q. Why did the Company undertake the project?
14 A. Vehicles are essential to the Company's business. This is an annual process designed to
15 proactively identify where additions are necessary to meet growth demands and to
16 minimize downtime of existing fleet assets due to age and/or general condition.
17 Q. How will customers benefit from the project?
18 A. Having a coordinated purchase and replacement philosophy ensures Intermountain has the
19 vehicles needed to provide safe and reliable service to its customers.
20 Q. Did the Company consider alternative ways to meet the need for the project?
21 A. The Company's philosophy emphasizes the high utilization of Company vehicles. If a
22 vehicle is needed in a specific department/operating area and is available and underutilized
23 in another department/area, relocation of the existing asset will be the first consideration.
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I Q. What work has been completed and when will the project be placed in service?
2 A. These vehicles are projected to be in place in 2025.
3 Q. What are the estimated costs for the project?
4 A. The total estimated project cost to close to plant in 2025 is $1,962,992.
5 FP-325660 - PURCH LAND DISTRICT OFFICE NAMPA
6 Q. Please describe PURCH LAND DISTRICT OFFICE NAMPA.
7 A. This project consists of purchasing a six-acre parcel of land in Nampa for the future
8 construction of an 11,000 square foot district office and 15,000 square foot warehouse,
9 truck barn, and fabrication shop. Immediately following purchase, the property will be
10 utilized for technical training and steel and plastic pipe inventory storage. The Nampa
11 District is currently storing pipe at the Boise District yard. However, the Boise District
12 yard is out of room for additional pipe storage and the current volume of pipe is limiting
13 access to other material and equipment. Utilizing the six-acre parcel to store pipe will
14 eliminate the need to find storage space to rent in the short term until a new Nampa District
15 office is completed.
16 Q. Why did the Company undertake the project?
17 A. The current Nampa District office was built in 1978. The site is located on 2.46 acres and
18 consists of a 6,396 square foot office, 1,000 square foot shop, a 294 square foot metal
19 welding shop, and various storage sheds.
20 The condition of the office, adjoining warehouse, and shop are not suitable for
21 continued operations. The structures at this location were designed for the work of
22 yesteryear, not the needs of business today and operations functionality has become
23 increasingly limited at this location. The shop is a golf-course maintenance building from
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I the 1950's. The cinder blocks and structural beams are degrading, leading to some areas
2 being unusable. The office space is fully utilized with no room for expansion, additional
3 personnel, or storage. Some offices and cubicles have been converted from one person to
4 two, and the conference room is utilized for material and equipment storage. The break
5 room does not accommodate the 45-person staff(including guests) and many district
6 meetings are standing room only. Because of the limited space, other department manager
7 requests to have employees report from the Nampa District office have been denied. The
8 welding shop can only store equipment and does not allow for fabrication to occur out of
9 the elements. Area growth has increased traffic on Caldwell Boulevard, making it difficult
10 and occasionally unsafe to turn west, especially with large construction vehicles. The
11 larger property will provide space for additional personnel and equipment needed for area
12 growth as well as room for underground construction training.
13 Q. How will customers benefit from the project?
14 A. Once constructed, the new building will have enhanced productivity and efficiency. The
15 new office will have improved access to the freeway and communities served in the
16 Nampa District. Enclosed parking for emergency response equipment will improve
17 response times during inclement weather.
18 Q. Did the Company consider alternative ways to meet the need for the project?
19 A. Yes. The Company considered several available locations in Caldwell, Star, and Nampa.
20 Alternative locations either had a lack of access to the freeway and communities served,
21 were not centrally located, or were too large for the business needs of the district.
22 Q. Are there any offsetting O&M cost savings associated with this project?
23 A. No offsetting O&M cost savings associated with this project.
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I Q. What work has been completed and when will the project be placed in service?
2 A. The Company estimates the property will be utilized for pipe inventory storage and
3 underground construction training by August, 2025.
4 Q. What are the estimated costs for the project?
5 A. The total estimated project cost to close to plant in 2025 is $2,655,048.
6 Gas Mains Growth Proiects:
FP Number FP Description 2025
FP-101018 Gas Mains Growth-Idaho Falls Dist $ 1,407,956
FP-101019 Gas Mains Growth-Boise District $ 2,066,552
FP-101021 Gas Mains Growth-Twin Falls Dist $ 701,653
FP-101054 Gas Mains Growth-Pocatello District $ 575,154
FP-101065 Gas Mains Growth-Nampa District $ 2,789,478
7
8 Q. Please describe Gas Mains Growth Projects.
9 A. Growth Mains are distribution system expansion projects to serve natural gas to new
10 customers, throughout Intermountain's service territory. As determined by the Company's
11 engineering department, some Growth Main projects require a supplemental system
12 reinforcement to provide system reliability for core customers. Consideration for all
13 Growth Mains requests follow the Company's General Service Provisions within its tariff.
14 Q. Why did the Company undertake the project?
15 A. Intermountain's obligation to serve requires that Intermountain serve new customers
16 utilizing the Company's General Service Provisions within its tariff.
17 Q. How will customers benefit from the project?
18 A. These projects are undertaken either at the request of new customers, which provides them
19 access to safe and reliable natural gas service, or these projects are undertaken to provide
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I increased system reliability to new and existing customers through reinforcement of the
2 Company's system.
3 Q. Did the Company consider alternative ways to meet the need for the project?
4 A. No, there are no alternatives to Growth Main installations. Growth mains are installed in
5 the most efficient manner possible utilizing joint trench in new subdivisions. If
6 Intermountain did not install growth mains, the Company could not provide natural gas
7 service to new customers.
8 Q. What work has been completed and when will the project be placed in service?
9 A. Individual projects will be placed in service as completed throughout 2025.
10 Q. What are the estimated costs for the project?
11 A. The total estimated project costs to close to plant in 2025 are $7,540,793.
12 Gas Services Growth Proiects:
FP Number FP Description 2025
FP-101009 Gas Services Growth-Twin Falls Dist $ 2,404,303
FP-101010 Gas Services Growth-Idaho Falls Dis $ 2,782,733
FP-101015 Gas Services Growth-Pocatello Dist $ 1,077,092
FP-101027 Gas Services Growth-Nampa District $ 4,591,992
FP-101030 Gas Services Growth-Boise District $ 4,899,277
13
14 Q. Please describe Gas Services Growth Projects.
15 A. Growth Services are distribution system expansion projects to service natural gas to new
16 customers, throughout Intermountain's service territory. Growth Services are installed in
17 conjunction with Growth Mains or as stand-alone installations from existing infrastructure.
18 Q. Why did the Company undertake the project?
19 A. Intermountain's obligation to serve requires that Intermountain serve new customers
20 utilizing the Company's General Service Provisions within its tariff.
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I Q. How will customers benefit from the project?
2 A. These projects are undertaken at the request of new customers which provides them access
3 to safe and reliable natural gas service.
4 Q. Did the Company consider alternative ways to meet the need for the project?
5 A. There are no alternatives. Intermountain's obligation to serve requires that we serve new
6 customers utilizing the Company's General Service Provisions within its tariff.
7 Q. What work has been completed and when will the project be placed in service?
8 A. Individual projects will be placed in service as completed throughout 2025.
9 Q. What are the estimated costs for the project?
10 A. The total estimated project costs to close to plant in 2025 are $15,755,398.
11 2025 PRO FORMA ADDITIONS TO PLANT IN SERVICE—OVER$200 THOUSAND
12 FP-101087 - UG-Customer Self Service Web/IVRIGC
13 Q. Please describe FP-101087—UG-Customer Self Service Web/IVRIGC
14 A. The project involves developing enhancements to our customer websites and interactive
15 voice response systems. Planned enhancements for 2025 include adding energy efficiency
16 forms to the customer website, implementing security upgrades to the property portal for
17 landlords, improving functionality on the energy assistance website, and starting the
18 development of services for an interactive voice assistant which will enhance customer
19 experience.
20 Q. What are the estimated costs for the project?
21 A. The total estimated project cost to close to plant in 2025 is $233,419.
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I FP-200004 - Gas Work Equipment-IGC
2 Q. Please describe FP-200004, Gas Work Equipment-IGC.
3 A. The Gas Work Equipment project is the annual purchase of additions to and replacement
4 of Company fleet assets. Planning for work equipment purchases and replacements is done
5 in conjunction with preparation of the annual capital budget and takes into consideration
6 work equipment needs for the ensuing year compared to the existing work equipment,
7 assessing its age and operating condition. The fleet department meets with operations
8 leadership annually to understand operational needs, in advance of preparing the annual
9 budget. This work equipment will also assist in gearing up additional crews to meet
10 customer growth.
11 Q. What are the estimated costs for the project?
12 A. The total estimated project cost to close to plant in 2025 is $859,874.
13 FP-305080 - Office Structure & Equip-Boise GO
14 Q. Please describe FP-305080, Office Structure & Equip-Boise GO.
15 A. The funding project consists of necessary ongoing upkeep in and around the Intermountain
16 general office in Boise, Idaho. The projects include roof replacement of the general office,
17 door replacement for the welding shop, LED light conversion inside and outside, fencing
18 around the sprinkler system, replacement of the existing security system, remodel of print
19 shop area to create office space for the safety department and furniture.
20 Q. What are the estimated costs for the project?
21 A. The total estimated project cost to close to plant in 2025 is $220,956.
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I FP-321608-Reul Radio Control System IGC
2 Q. Please describe FP-321608,Repl Radio Control System -IGC.
3 A. The purpose of the Radio Control System replacement project is to replace the old,
4 obsolete Radio Control System and network to allow the Scheduling and Field Operations
5 departments to resume use of radios as the primary contact method when handling and
6 relaying emergency and outage orders. The upgraded radio system will also serve as the
7 primary communications method between the Schedulers and Field Technicians for non-
8 emergency and non-outage work activity as well as between Technicians.
9 Q. What are the estimated costs for the project?
10 A. The total estimated project cost to close to plant in 2025 is $468,214.
11 FP-324627-INSTL MAIN WEISER PIONEER RD NAMPA
12 Q. Please describe INST MAIN WEISER PIONEER RD NAMPA.
13 A. This project consists of installing approximately 2,650 feet of 4 inch plastic main on
14 Pioneer Road in Weiser, Idaho to increase pressure due to area growth.
15 Q. What are the estimated costs for the project?
16 A. The total estimated project cost to close to plant in 2025 is $330,631.
17 FP-324630 -INSTL MN HWY 55 ITD ROAD PRJT NAMPA
18 Q. Please describe the INST MN HWY 55 ITD ROAD PRJT NAMPA.
19 A. This project is a forced relocation due to the widening of Highway 55 and the installation
20 of a pedestrian underpass and retaining wall. The project consists of replacing
21 approximately 2,000 feet of 2 inch steel main.
22 Q. What are the estimated costs for the project?
23 A. The total estimated project cost to close to plant in 2025 is $786,817.
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I FP-326399 -RPL 4" steel 1st st.Ammon IDF
2 Q. Please describe Replace 4" Steel Main on lst Street between Ammon Road and 2511
3 East
4 A. The 4 inch steel pipe on 1 st Street between Ammon Rd. and Hitt Rd. is being relocated due
5 to road reconstruction by the City of Ammon and Bonneville County. A study showed
6 insufficient cover for the pipe with the new road profile, and multiple conflicts with new
7 infrastructure were found. Intermountain is responsible to relocate the main at its own
8 expense.
9 Q. What are the estimated costs for the project?
10 A. The total estimated project cost to close to plant in 2025 is $328,185.
11 Gas Mains Replace Projects:
FP Number FP Description 2025
FP-101033 Gas Mains Replace-Nampa District $ 384,095
FP-101060 Gas Mains Replace-Twin Falls Dist $ 335,544
FP-101020 Gas Mains Replace-Boise District $ 257,135
FP-101066 Gas Mains Replace-Pocatello Dist $ 217,678
FP-101063 Gas Mains Replace-Idaho Falls Dist $ 172,585
12
13 Q. Please describe the Gas Mains Replace Projects.
14 A. Most of Intermountain's infrastructure is within public rights-of-way, and permission to
15 occupy the space is granted through various franchise agreements with respective cities or
16 permits from highway districts. When conflicts arise between jurisdictional projects and
17 Intermountain's infrastructure, Intermountain is required to mitigate the conflict at
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I Intermountain's expense. Other Main Replacement projects can originate from leaks,
2 corrosion, and inoperable valves and/or equipment not associated with the Company's
3 formal distribution integrity management program. Main replacement of this nature is
4 generally identified through leak investigations or scheduled compliance survey programs.
5 Q. What are the estimated costs for the project?
6 A. The Company wide estimated 2025 cost for Gas Mains Replace major projects is
7 $1,367,036.
8 CONCLUSION
9 Q. Does this conclude your direct testimony?
10 A. Yes.
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