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Home My WebLink About20250617Decision Memo.pdf DECISION MEMORANDUM TO: COMMISSIONER LODGE COMMISSIONER HAMMOND COMMISSIONER HARDIE COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: CURTIS THADEN, COMMISSION STAFF MEMBER JEFF LOLL,DEPUTY ATTORNEY GENERAL DATE: DUNE 17, 2025 RE: INTERMOUNTAIN GAS COMPANY TARIFF ADVICE NO. INT-TAG-25- 01 REVISION TO RATE SCHEDULE FT (FRANCHISE FEE/TAX ADJUSTMENT), SHEET NO. 15. On May 30, 2025, Intermountain Gas Company ("Company") submitted Tariff Advice No. INT-TAG-25-01 to revise Rate Schedule FT (Franchise Fee/Tax Adjustment), Sheet No. 15, to reflect new franchise fee ordinance numbers in the jurisdiction it serves. The ordinance numbers are being updated,but the existing three percent franchise fee remains unchanged. A copy of the proposed revision to Sheet No. 15 is attached(Attachment No. 1). Six (6) franchise fee agreements have expired and have been replaced with new agreements. The agreements continue to impose a three percent franchise fee from the sale of natural gas within the corporate limits of each respective city and all the agreements will remain in effect unless amended in the manner set forth by the terms of the ordinance. A matrix showing the cities; ordinance numbers; dates of when the franchise fee agreements were approved by each respective City; the date the agreements were accepted by the Company; the effective dates and expiration dates; the duration of the agreement; and franchise fee percentage is attached(Attachment No. 2). BACKGROUND Idaho Title 50, Chapter 3, § 50-329A allows cities to establish franchise fees assessed upon a public service provider up to one percent without the consent of the public service provider or the approval of a majority of voters of the city voting on the question at an election. DECISION MEMORANDUM - 1 - JUNE 17, 2025 Franchise fees up to three percent are allowed with the consent of the public service provider or the approval of a majority of voters of the city voting on the question at an election. STAFF RECOMMENDATION Staff reviewed the proposed tariff change, the franchise agreements, and the franchise fee requirements under Idaho Title 50, Chapter 3 § 50-329A. Staff recommends that the Commission accept Company's proposed revision to Rate Schedule FT (Franchise Fee/Tax Adjustment), Sheet No. 15 as filed, effective date of July 7, 2025. COMMISSION DECISION Does the Commission wish to accept Company's proposed revision to Rate Schedule FT (Franchise Fee/Tax Adjustment), Sheet No. 15 as filed, effective date of July 7, 2025? Curtis Thaden Commission Staff 1:\Utility\UDMEMOS\1NT-TAG-25-01 Decision Memo.doex DECISION MEMORANDUM - 2 - JUNE 17, 2025 I.P.U.C.Gas Tariff Rate Schedules Ninth Tenth Revision Sheet No 15 (Page 1 Idaho Public Utilities Commission of 1) Office of the Secretary Name Intermountain Gas Company ACr-EPTED FOR Fill an of utility P y August 20, d Rate Schedule FT FRANCHISE FEEITAX ADJUSTMENT APPLICABILITY: To all charges for natural gas service rendered within the jurisdiction imposing a fee, tax, or charge as provided in Section A, paragraph 4.4 of the Company's General Service Provisions. ADJUSTMENT: The rates and charges shall be increased by an adjustment equivalent to the amount of the charge imposed by the jurisdiction. The following cities charge a 3% franchise fee CITY ORDINANCE NO. CITY ORDINANCE NO. Aberdeen 351 Kuna 2023-05 American Falls 628 Lava Hot Springs 1985-3 Ammon 463 Lewisville 41-952025-2 Arimo 4 Malta 28 Bancroft 210 McCammon 255 Basalt 125 Menan 396 Bellevue 85-042025-05 Meridian 462 Blackfoot 2140 Middleton 532 Boise 6444 Montpelier 593 Buhl 981 Mountain Home 1064 Burley 1210 Murtaugh 24-02 Caldwell 3036 Nampa 2006 Chubbuck 849 New Plymouth 170 Declo 123 Parker 72 Eagle 715 Parma 579 Emmett 780 Paul 2006-1 Filer 554 Payette 961 Firth 131 Pocatello 2802 Fruitland 358 Rexburg 954 Garden City 849-06 Rigby 2015-576 Georgetown 52 Ririe 136 Glenns Ferry 375 Rupert 06-507 Gooding 699733 St Anthony 01-04 Grace 2016-1 Shelley 324 Greenleaf 84 Shoshone 496574 Hailey 1190 Soda Springs 654 Hansen 121 Star 66 Heybum 581 Sugar City 369_2021 Homedale 345 Sun Valley 514 Idaho Falls 3052 Twin Falls 2165 Inkom 85-166 Ucon 44.7-196 Iona 62319-04-25 Weiser 957 Jerome 688 Wendell 493 Ketchum 1134 Wilder 365 Kimberly 409 Attachment No. 1 Case No.INT-TAG-25-01 Decision Meeting June 17,2025 Issued by Intermountain Gas Company By: Lori A Blattner Title Director—Regulatory Affairs I.P.U.0 Gas Tariff Rate Schedules Tenth Revision Sheet No. 15 (Page 1 of 1) Name Intermountain Gas Company of UtilityP Y Rate Schedule FT FRANCHISE FEEITAX ADJUSTMENT APPLICABILITY: To all charges for natural gas service rendered within the jurisdiction imposing a fee, tax, or charge as provided in Section A, paragraph 4.4 of the Company's General Service Provisions. ADJUSTMENT: The rates and charges shall be increased by an adjustment equivalent to the amount of the charge imposed by the jurisdiction. The following cities charge a 3% franchise fee: CITY ORDINANCE NO. CITY ORDINANCE NO. Aberdeen 351 Kuna 2023-05 American Falls 628 Lava Hot Springs 1985-3 Ammon 463 Lewisville 2025-2 Arimo 4 Malta 28 Bancroft 210 McCammon 255 Basalt 125 Menan 396 Bellevue 2025-05 Meridian 462 Blackfoot 2140 Middleton 532 Boise 6444 Montpelier 593 Buhl 981 Mountain Home 1064 Burley 1210 Murtaugh 24-02 Caldwell 3036 Nampa 2006 Chubbuck 849 New Plymouth 170 Declo 123 Parker 72 Eagle 715 Parma 579 Emmett 780 Paul 2006-1 Filer 554 Payette 961 Firth 131 Pocatello 2802 Fruitland 358 Rexburg 954 Garden City 849-06 Rigby 2015-576 Georgetown 52 Ririe 136 Glenns Ferry 375 Rupert 06-507 Gooding 733 St. Anthony 01-04 Grace 2016-1 Sheiley 324 Greenleaf 84 Shoshone 574 Hailey 1190 Soda Springs 654 Hansen 121 Star 66 Heybum 581 Sugar City 369_2021 Homedale 345 Sun Valley 514 Idaho Falls 3052 Twin Falls 2165 Inkom 85-166 Ucon 196 Iona 319-04-25 Weiser 957 Jerome 688 Wendell 493 Ketchum 1134 Wilder 365 Kimberly 409 Attachment No. 1 Case No.INT-TAG-25-01 Decision Meeting June 17,2025 Issued by- Intermountain Gas Company By: Lori A. Blattner Title. Director-Regulatory Affairs City Ordinance Date Approved Date Accepted Effective Date Expiration Date Duration Franchise No. by City by Company Fee Bellevue 2025-05 5-27-2025 5-28-2025 5-28-2025 5-27-2035 10 years 3% Gooding 733 5-5-2025 5-14-2025 5-14-2025 5-13-2045 20 years 3% Iona 319-04-25 4-22-2025 4-24-2025 4-24-2025 4-23-2055 30 years 3% Lewisville 2025-2 4-9-2025 4-10-2025 4-10-2025 4-9-20025 30 years 3% Shoshone 574 3-19-2025 3-19-2025 3-19-2025 3-18-2045 20 years 3% Ucon 196 5-14-2025 5-21-2025 5-21-2025 5-20-2055 30 years 3% Attachment No. 2 Case No. INT-TAG-25-01 Decision Meeting June 17,2025