20251014Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: CURTIS THADEN, COMMISSION STAFF
JEFFREY R. LOLL,DEPUTY ATTORNEY GENERAL
DATE: OCTOBER 14, 2025
RE: INTERMOUNTAIN GAS COMPANY TARIFF ADVICE NO. INT-TAG-25-
04 REVISION TO RATE SCHEDULE FT (FRANCHISE FEE/TAX
ADJUSTMENT), SHEET NO. 15.
On October 1, 2025, Intermountain Gas Company ("Company") submitted tariff advice
No. INT-TAG-25-04 to revise Rate Schedule FT (Franchise Fee/Tax Adjustment), Sheet No. 15,
to reflect a new ordinance number for the City of McCammon. The existing three percent franchise
fee remains unchanged. The new agreement will remain in effect for ten (10) years from the
effective date, unless amended in the manner set forth in Ordinance No. 536. A copy of the 1)
City of McCammon Ordinance No. 536, which sets forth the City Franchise Agreement with the
Company, and 2) the proposed revisions to Sheet No. 15 are attached (Attachment No. 1).
The proposed franchise fee agreement was approved by the City of McCammon on
September 10, 2025, as authorized in the attached City of McCammon Ordinance No. 536. The
agreement was accepted by the Company on September 15, 2025.
BACKGROUND
Idaho Code § 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. 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.
DECISION MEMORANDUM - 1 - OCTOBER 14, 2025

STAFF RECOMMENDATION
Staff reviewed the proposed tariff change, the franchise agreement, and the franchise fee
requirements under Idaho Code § 50-329A. Staff recommends that the Commission accept the
Company's proposed revision to Rate Schedule FT(Franchise Fee/Tax Adjustment), Sheet No. 15
as filed, effective date of November 19, 2025.
COMMISSION DECISION
Does the Commission wish to accept the Company's proposed revision to Rate Schedule
FT(Franchise Fee/Tax Adjustment), Sheet No. 15 as filed,with an effective date of November 19,
2025?
Curtis Thaden
Commission Staff
I:\Utility\UDMEMOS\INT-TAG-25-04 Decision Memo.docx
DECISION MEMORANDUM - 2 - OCTOBER 14, 2025

s
ORDINANCE NO.536
AN ORDINANCE OF THE CITY OF McCAMMON,IDAHO,GRANTING A NON-
EXCLUSIVE FRANCHISE EXTENSION TO INTERMOUNTAIN GAS COMPANY TO
CONSTRUCT,MAINTAIN,AND OPERATE A GAS TRANSMISSION AND
DISTRIBUTION SYSTEM WITHIN THE CITY RIGHTS-OF-WAY; PROVIDING FOR
A TEN(10)YEAR EXTENSION OF THE EXISTING AGREEMENT; AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS,Intermountain Gas Company("Company"}currently operates a natural gas
transmission and distribution system within the City of McCammon pursuant to a franchise
agreement adopted by ordinance of the City; and
WHEREAS,the Company has requested a ten(10)year extension of its franchise to continue to
construct,maintain,and operate its natural gas system within the corporate limits of the City and
within the rights-of-way and easements owned or controlled by the City;and
WHEREAS,the City Council of McCammon finds it is in the public interest to grant said
extension under the terns and conditions set forth herein.
NOW, THEREFORE, be it ordained and enacted by the Mayor and City Council of the city of
McCammon,Idaho,that the McCammon City Code be amended as follows:
SECTION 1. Grant of Franchise
The City of McCammon,Idaho, does hereby grant to Intermountain Gas Company, a corporation
organized and existing under the laws of the State of Idaho,its successors and assigns,a non-
exclusive franchise to construct,maintain,and operate a natural gas transmission and distribution
system,with all necessary pipelines,mains, services,valves,meters, and other appurtenances,in,
under, and across the present and future streets, alleys,avenues,highways,bridges,and other
public places within the City of McCammon, subject to all provisions of the franchise agreement
referenced herein.
SECTION 2.Term
This franchise extension shall be for a period of ten(10)years from the effective date of this
ordinance,unless earlier terminated according to law or by mutual agreement of the parties.
SECTION 3. Incorporation of Agreement
The terms, conditions,rights,and obligations of the parties shall be governed by the attached
Franchise Agreement(Attachment A.)between the City of McCammon and Intermountain Gas
Attachment No. 1
Case No. INT-TAG-25-04
Decision Memo
October 14, 2025

Company,which is incorporated herein by reference as though fully set forth.All provisions of
said agreement remain in full force and effect, except as specifically modified by this ordinance.
SECTION 4. Non-Exclusivity
The franchise granted herein is non-exclusive, and the City reserves the right to grant other
franchises or rights to use the public rights-of-way as permitted by law.
SECTION 5. Severability
If any section, clause,or provision of this ordinance shall be held invalid or unconstitutional,
such invalidity shall not affect the validity of any other section,clause,or provision,which shall
remain in full force and effect.
SECTION b. Effective Date
This Ordinance shall take effect and be in force on September 10, 2025, following its passage,
approval,and publication as required by law, and the execution of the"Acceptance and Consent"
by Grantee.
PASSE APPROVED by the City Council of the City of McCammon,Idaho,this L
day of 4P2025.
CITY OF McCAMMON,IDAHO `
117
Attest: Karleen Hall,Mayor
Kassadi Dunn
City Clerk
CITY COUNCIL VOTE:
Steve Campbell Yes No JK Absent
Dale Kinloch Yes _ _No Absent
Stephanie Iverson Yes No Absent
Aaron Hunsaker _ Yes No Absent
Attachment No. 1
Case No. INT-TAG-25-04
Decision Memo
October 14, 2025

Attachment A.
Franchise Agreement
Section 1: Grant of Authority.
There is hereby granted to Intermountain Gas Company,a corporation,its successors and assigns
(hereinafter collectively referred to as"Grantee")a ten year extension to the right and authority to
construct, install, maintain and operate a gas transmission and distribution system, including
mains, pipes, conduits, services and other necessary structures and appliances appertaining in,
under,upon,over,across and along the streets,alleys,bridges and public places within the present
and future corporate limits of the City of McCammon,Idaho (hereinafter referred to as "City")for
the furnishing, transmission, distribution and sale of gas, whether artificial, natural, mixed or
otherwise, for heating, domestic, industrial and other purposes and for transmitting gas into,
through and beyond said City.The City represents that it has the sole power and authority to make
this grant of authority and agrees to notify Grantee in writing if the City should cease to have this
power.
Section 2:Use of Streets and Rules Governing the Same.
Grantee shall secure a permit for any opening it shall make in the streets,alleys and public places
in the City and shall be subject to all applicable ordinances,but no fee shall be required of Grantee
for any such permit. Grantee may,however, open or disturb the streets, alleys, and public places
without a permit if an emergency exists requiring the immediate repair of facilities.The location
or relocation of all facilities shall be made under the supervision and with the approval of such
representatives as the governing body of the City may designate for such purpose, but not so as
unreasonably to interfere with the proper operating of Grantee's facilities and service. Whenever
the City shall pave or repave any street or shall change the grade or line of any street or public
place or shall construct or reconstruct any conduit;water main,sewer or water connection or other
city public works or city utility,it shall be the duty of the Grantee when so ordered by the City to
change its mains, services and other property in the streets or public places at its own expense so
as to conform to the established grade or line of such street or public place and so as not to interfere
with the conduits, sewers and other mains of the City as constructed or reconstructed; however,
the Grantee shall not be required to relocate pipes,mains and appurtenances when the street,alley
or public ground in which they are located is vacated for the convenience of abutting property
owners and not as an incident to the public improvement, unless the reasonable cost of such
relocation and the loss and expenses resulting therefrom is first paid to Grantee. The City will
avoid the need for such moving or changing whenever possible.In the event Federal,State or other
funds are available in whole or in part for utility relocating purposes,the City shall apply for such
funds and the Grantee will be reimbursed to the extent any such funds arc actually obtained.
Section 3: Grantee Subject to All Powers of City Rules Governing Repair and Reconstruction of
Streets.
The exercise of privileges herein granted shall be subject at all times to all of the powers of the
City and all regulatory ordinances adopted pursuant thereto.The Grantee shall not unnecessarily
or unreasonably obstruct the use of or damage any street or alley and shall within a reasonable
time and as early as practicable upon completion of any construction or repair work, restore all
City streets and alleys to the same order and condition as they were before the excavation was
made insofar as reasonably possible.The Grantee shall maintain,repair and keep in good condition
for a period of three years all portions of streets and alleys disturbed by it or its agents.The Grantee
shall be responsible for any obstruction in any street,alley or other public place caused by it in the
Attachment No. 1
Case No. INT-TAG-25-04
Decision Memo
October 14, 2025

operation and maintenance of its properties occurring at any time and shall promptly remove such
obstruction.Any such obstruction which,after proper notice to Grantee demanding removal is not
promptly removed by the Grantee may be taken care of by the City and the costs thereof shall be
charged against Grantee. For purposes of this Section, Grantee's above-ground facilities or
temporary construction materials and equipment shall not be considered an"obstruction".
Section 4:Term of Franchise and Grant.
Such right and authority,permission and power is hereby granted for a term of ten years from and
after the date of the final acceptance of this Ordinance by the Company,herein referred to as the
primary term This franchise will automatically renew for successive periods of ten (10) years
unless cancelled at the end of a term by either party by written notice to the other party no less
than 180 calendar days prior to the end of the primary term or the then current successive term.
Section 5: City Right to Inspection of Grantee's Plans,Accounts and Books—Gmntec to Furnish
Certain Maps.
Upon reasonable advance notice, the City shall have access to Grantee's records to the extent
necessary to verify the accuracy of the Franchise fee payments required herein during the normal
business hours of Grantee.The Grantee shall furnish,upon request, the City with a complete set
of maps, including plans and profile of the distribution system of the Grantee and any future
extensions.The City shall make every reasonable effort to maintain the confidentiality of any trade
secrets or other proprietary information(such as proprietary maps and other mapping information)
provided pursuant to this Section, including execution of a data sharing agreement with Grantee.
Any map supplied shall not be used for locating gas facilities with the intent of excavating. Prior
to excavating, the City shall request line locates per the requirements of Idaho Statutes Title 55
Chapter 22 Underground Facilities Damage Prevention.
Section b: Payment To City And Filing Of Annual Written Report With The City
As consideration for this franchise and grant said Grantee, its successors and assigns, during the
franchise period, shall pay to the City three percent(3%) of the gross receipts received from all
sales of gas by Grantee within the corporate limits of the City through use,operation or possession
of this franchise and grant.
Such payments shall be made on a quarterly basis and shall be in lieu of any and all other fees,
charges, licenses or taxes(other than ad valorem taxes)related to easements, franchises,rights-of
way, utility lines and equipment installation, maintenance and removal during the term of the
public service providers' franchise with the City which the City may impose for the rights and
privileges herein granted or for the privilege of doing business within the City.
The Grantee shall file 30 days after the end of each calendar quarter with the City a report for the
preceding calendar quarter,which report shall contain a statement of all the gross receipts arising
from all sales of gas by said Grantee within the City for the calendar quarter preceding such report,
and at the same time the Grantee shall pay to the City the stipulated percentage of the gross
quarterly receipts due for the calendar quarter which said report is made and filed.
Attachment No. I
Case No. INT-TAG-25-04
Decision Memo
October 14, 2025

Section 7: Grantee Liability-Indemnification
It is expressly understood and agreed by and between the Grantee and the City that the Grantee
shall save the City harmless from all loss sustained by the City on account of any suit,judgment,
execution, claim or demand whatsoever, resulting from negligence on the part of the Grantee in
the construction,operation or maintenance of its gas system in the City.The City shall notify the
grantee's representative in the City within ten (10) days after the presentation of any claim or
demand, either by suit or otherwise, made against the City on account of any negligence as
aforesaid on the part of the Grantee.Nothing herein shall require Grantee to save and hold the City
harmless to the extent any loss sustained by the City is caused by the acts,omissions,or negligence
of the City its agents,representatives, contractors, officers, directors, employees, or other parties
subject to its direction or control.
Section 8: Insurance
Upon acceptance of this franchise by Grantee and before Grantee shall have any rights hereunder,
Grantee shall file with the City Clerk a certificate evidencing the insurance of the Grantee against
property damage in an amount not less than$500,000.00 and bodily injury with limits of not less
than$500,000.00 per person and$1,000,000.00 total for each occurrence. Provided,however,the
minimum limits of insurance as set forth herein shall be automatically increased at any time the
liability limits of the City are increased pursuant to the Idaho Tort Claims Act(Idaho Code Section
6-901 et. seq.)or any similar legislation.
Section 9: Safety Regulation Compliance
Grantee shall comply with and conform to all safety regulations promulgated by the United States,
State of Idaho,or any regulatory body having jurisdiction thereof.
Section 10:Agreement Not to Compete—Reserve to City Power of Eminent Domain
In consideration of Grantee's undertaking hereunder as evidenced by its acceptance hereof the City
agrees not to engage in the business of distributing and selling gas during the life of this franchise
or any extension thereof in competition with the Grantee, its successor and assigns; but nothing
herein contained shall be construed or deemed to prevent the City from exercising at any time any
power of eminent domain granted to it under the laws of the State of Idaho.
Section 11: Surrender of Franchise
In the event natural gas at any time shall cease to be available to Grantee for the distribution and
sale hereunder, Grantee reserves the right to surrender this franchise and in the event of such
surrender prior to any expiration or termination of this franchise,or in any of such events,Grantee
reserves the right to salvage all of its plant,works and facilities,and will restore City's streets and
alleys damaged by such salvage operation.
Section 12: Written Acceptance
The Grantee shall within thirty (30) days after the passage and publication of this ordinance, file
with the City Clerk its acceptance of this franchise in writing signed by its proper officers and
attested by its corporate seal.
Section 13: Publication Costs
Attachment No. 1
Case No. INT-TAG-25-04
Decision Memo
October 14,2025

The Grantee shall assume the cost of publication of this franchise as such publication is required
by law.
Section 14: Forfeiture
Any material violation by the Grantee, its vendee, lessee or successors of the provisions of this
ordinance, franchise and grant or any material portions thereof or the failure promptly to perform
any of the provisions thereof shall be cause for the forfeiture of this franchise and grant and all
rights hereunder should Grantee fail to cure such violation within sixty(60)calendar days of City's
providing Grantee written notice, which shall be served upon Grantee by registered mail on its
Region Director at 12584 W Tyhee Road,Pocatello,Idaho 83202,or if not reasonably capable of
being cured within sixty (60) calendar days, within such other reasonable period of time as the
parties may agree. This provision shall not prevent the Grantee from submitting such question of
forfeiture to proper court determination.
Section 15: Separability
If any part or parts of this ordinance shall be adjudged by the courts to be unconstitutional or
invalid, the same shall not affect the validity of any other part or parts hereof which can be given
effect without the part or parts adjudged to be unconstitutional or invalid.The City declares that it
would have passed the remaining parts of this ordinance if it had been known that such other part
or parts thereof would be declared unconstitutional or invalid.
Section 16: Repeal
All ordinances and parts or ordinances of City in conflict herewith shall be, and the same are
hereby repealed_
Section 17:Notifications
Whenever this Franchise calls for notice to or notification by any party,the same(unless otherwise
specially provided)shall be in writing and directed to the recipient at the address set forth in this
Section, unless written notice of change of address is provided to the other party. If the date for
making any payment or performing any act is a legal holiday,payment may be made, or the act
performed on the next succeeding business day which is not a legal holiday. Notices shall be
directed to the parties as follows:
To the City: City Clerk
City of McCammon
802 Front Street
McCarrunon,Idaho 83250
To IGC: Region Director
Intermountain Gas Company
12584 W Tyhee Road
Pocatello, Idaho 83202
Attachment No. 1
Case No. INT-TAG-25-04
Decision Memo
October 14, 2025

DATED this Qday of September,2025
CITY OF.X CAMMON
Karlene Hall,Mayor
ATTEST:
Kassadi Dunn, City Clerk
ACCEPTANCE AND CONSENT
INTERMOUNTAIN GAS COMPANY, as the franchisee and `Grantee'in the ordinance set forth
above,accepts the franchise set forth therein at the time of Grantee's execution,and agrees to abide
by the terms and conditions thereof: Specifically(and pursuant to I.C. § 50-329A), IGC consents
to the three percent(3%)franchise fee assessed by the City pursuant to this ordinance.
DATED this 1 Sth day of-September 2025
By. Eric Marluscelli
Its:VP,Field Operations&Customer Experience
Attachment No. 1
Case No. INT-TAG-25-04
Decision Memo
October 14, 2025

P.0 C Gas Tariff IDAHO PUBLIC UTILITIES COMMISSION
Rate Sched,iles Approved Effective
Elevenths welflh Revision Sheet No 15 (Page 1 of 1) Septerrt�e &, f] ' C?ctol�er-= -20 '�
Name Commission Secretary
of UU ity Intermountain Gas Company
Rate Schedule FT
FRANCHISE FEEITAX ADJUSTMENT
APPLICABILITY:
To all charges for natural gas service rendered within the jurisd!ction 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 37,o franchise fee
CITY ORDINANCE NO- CITY ORDINANCE NO.
Aberdeen 351 Kuna 202305
American Fars 628 Lava Hot Springs 1985-3
Ammon 463 Lewisville 2025-2
Arlmo 4 Malta 28
Bancroft 210 McCammon 255536
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
Ca'dwell 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
F rth 131 Pocatello 2802
Fruitland 358 Rexburg 954
Garden City 849-06 R gby 2015-576
Georgetown 52 R rie 136
Gienns Ferry 375 Rupert 06-507
Goading 733 St Anthony 01 04
Grace 20161 Shelley 324
Greenleaf B4 Shoshone 574
Halley 1190 Soda Springs 654
Hansen 121 Star 66
Heyburn 581 Sugar City 369 ,2021
Homedale 345 Sun Valley 514
Idaho Falls 3052 Twin Fails 2165
inkom 85-166 Ucon 196
Iona 319-04-25 Weiser 957
Jerome 688 Wendel 493
Ketchum 1263 Wilder 365
Kimberly 409
Attachment No. 1
Case No. INT-TAG-25-04
Decision Memo
October 14, 2025
Issued by: intermountain Gas Company
By Lori A. Blattner Title, 0 rector—Regulatory Affairs

I.P.U.C.Gas Tariff
Rate Schedules
Twelfth 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 536
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
F rth 131 Pocatello 2802
Fruitland 356 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 Shelley 324
Greenleaf 84 Shoshone 574
Haley 1190 Soda Springs 654
Hansen 121 Star 66
Heyburn 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 686 Wendel! 493
Ketchum 1263 Wilder 365
Kimberly 409
Attachment No. 1
Case No. INT-TAG-25-04
Decision Memo
October 14, 2025
Issued by: Intermountain Gas Company
By:Lori A.Blattner Title:Director—Regulatory Affairs