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HomeMy WebLinkAbout20251030Notice_of_Proposed_Settlement_Order_No_36824.pdf Office of the Secretary Service Date October 30,2025 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF INTERMOUNTAIN ) CASE NO. INT-G-25-02 GAS COMPANY'S APPLICATION FOR ) AUTHORITY TO INCREASE ITS RATES ) NOTICE OF PROPOSED AND CHARGES FOR NATURAL GAS ) SETTLEMENT SERVICE IN THE STATE OF IDAHO ) NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF PUBLIC COMMENT DEADLINE NOTICE OF TECHNICAL HEARING ORDER NO. 36824 On May 30, 2025, Intermountain Gas Company ("Company") applied to the Idaho Public Utilities Commission ("Commission") requesting authority to increase its rates and charges for natural gas service in the state of Idaho ("Application"). On June 13, 2025, the Commission issued a Notice of Application, Notice of Suspension of Proposed Effective Date, and Notice of Intervention Deadline. Order No. 36639. The Commission granted intervention to Alliance of Western Energy Consumers and Micron Technology, Inc. (collectively, "Intervenors"). Order Nos. 36654, 36676. On July 22, 2025, the Commission issued a Notice of Parties. On August 19,2025,the Commission issued a Notice of Schedule,Notice of Virtual Public Workshop, Notice of Customer Hearing, Notice of Public Comment Deadline, and Notice of Technical Hearing. Order No. 36723. On September 4-5, 2025, Commission Staff("Staff'), the Company, and all Intervenors participated in a settlement conference. At the Commission's September 16, 2025, decision meeting, Staff informed the Commission that Staff believed a settlement had been reached in NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF PUBLIC COMMENT DEADLINE NOTICE OF TECHNICAL HEARING ORDER NO. 36824 1 principle, and Staff requested that the Commission vacate the written testimony deadlines, customer hearing date, and public comment deadline until such time as a proposed settlement was filed for Commission approval,or the Commission was informed that a proposed settlement would not be filed. On September 30, 2025, the Commission issued an order vacating the written testimony deadlines, the customer hearing date, and public comment deadline. Order No. 36783. On October 20, 2025, the Company filed a Stipulation and Settlement ("Proposed Settlement") and a Motion for Approval of Stipulation and Settlement ("Motion"). The Proposed Settlement was signed by Staff, the Company, and all Intervenors (collectively"the Parties"). We now issue this order providing notice of the Proposed Settlement,an amended schedule for the case, reset testimony deadlines, a rescheduled customer hearing at which customers of the Company can testify before the Commission, a reset public comment deadline, and updated participation information for the previously scheduled technical hearing. NOTICE OF PROPOSED SETTLEMENT YOU ARE HEREBY NOTIFIED that under the Proposed Settlement, the Company's authorized revenue requirement would increase by $13 million reflecting an increase of approximately 10.4 percent. Proposed Settlement at 2. YOU ARE FURTHER NOTIFIED that the components of the revenue requirement include: (1) a 9.5 percent Return on Equity; (2)a cost of debt of 4.956 percent with a debt to equity ratio of 50 percent equity and 50 percent debt, resulting in an overall rate of return of 7.23 percent on the total cost of capital; and(3) a total rate base of$524,773,059. Id. at 3. YOU ARE FURTHER NOTIFIED that if the Proposed Settlement is approved as filed,the average residential customer's bill would increase by $2.45 per month, or 6.02%, and the average general service commercial customer's bill would increase by $4.42 or 2.46%. Exhibit 2 to Settlement Agreement. YOU ARE FURTHER NOTIFIED that the Proposed Settlement includes an updated cost of service, rate design and rate spread, including an increase in the monthly residential customer charge to $11.00; an increase in the monthly general service customer charge to $23.00; and increase in the monthly T-4 Transport Firm customer charge to $275.00. Proposed Settlement at NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF PUBLIC COMMENT DEADLINE NOTICE OF TECHNICAL HEARING ORDER NO. 36824 2 3. The Parties agreed that the customer charge for all remaining classes would be as filed in the Company's Application.Id. YOU ARE FURTHER NOTIFIED that prior to filing the Company's next general rate case, the Company and Staff agreed to hold workshops to discuss: (1) a process to ensure utility customers are insulated from the costs of renewable natural gas projects; (2) issues concerning separation of project costs and Company betterment costs associated with mainline extensions; and(3) the components of the Company's cost of service study and related matters.Id. at 4-5. YOU ARE FURTHER NOTIFIED that prior to filing the Company's next general rate case, the Company and Staff agreed to meet to discuss notices provided to paperless billing customers. Id. at 6. YOU ARE FURTHER NOTIFIED that under Commission Rule 275, "[p]roponents of a proposed settlement carry the burden of showing that the settlement is reasonable, in the public interest, or otherwise in accordance with law or regulatory policy." IDAPA 31.01.01.275. YOU ARE FURTHER NOTIFIED that the Commission is not bound by the Proposed Settlement reached by the Parties. The Commission will independently review any proposed settlement to determine whether the settlement is just, fair, and reasonable, and in the public interest, or otherwise in accordance with law or regulatory policy. The Commission may accept a settlement, reject a settlement, or state additional conditions under which a settlement will be accepted. IDAPA 31.01.01.274—.276. YOU ARE FURTHER NOTIFIED that if the Commission rejects any part or all of the Proposed Settlement or imposes any additional material conditions on its approval, each signing party reserves the right to withdraw from the Proposed Settlement within fourteen days of such order. YOU ARE FURTHER NOTIFIED that the Settlement in Case.No. INT-G-25-02 has been filed with the Commission and, along with the rest of the record, is available for public inspection during regular business hours at the Commission's office or on the Commission's website at www.puc.idaho.gov. Click on the "NATURAL GAS" tab in the left-hand column of the home page, click"Open Cases," and select the case number as shown on the front of this document. NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF PUBLIC COMMENT DEADLINE NOTICE OF TECHNICAL HEARING ORDER NO. 36824 3 YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000, et seq. NOTICE OF AMENDED SCHEDULE YOU ARE FURTHER NOTIFIED that the Commission establishes the following amended procedural schedule: • November 5, 2025: All Party Written Testimony Deadline • November 13, 2025: Customer Hearing in Boise starting at 4:30 p.m. and ending at 7:30 p.m. (MT) • November 13, 2025: Public Comment Deadline • November 17, 2025: Rebuttal Testimony Deadline • November 18, 2025: Technical Hearing in Boise starting at 9:00 a.m. and ending at 5:00 p.m. (MT) • November 19, 2025: Technical Hearing continued as needed starting at 9:00 a.m. and ending at 5:00 p.m. (MT) YOU ARE FURTHER NOTIFIED that all testimony and exhibits in this matter must comport with the requirements of Commission Rules of Procedure 231 and 267. IDAPA 31.01.01.231 and.267. YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000, et seq. NOTICE OF CUSTOMER HEARING YOU ARE FURTHER NOTIFIED that the Commission will hold a customer hearing in this matter in Boise, Idaho, on Thursday, November 13, 2025, starting at 4:30 p.m. (MT) and ending at 7:30 p.m., or after all customer testimony has been taken, whichever comes first. The Commission, in its discretion, may adjust the scheduled times as necessary. The customer hearing will be held at the Idaho Public Utilities Commission, 11331 W. Chinden Boulevard, Building 8, Suite 201-A, Boise, ID 83714. Persons attending the hearing in-person will have an opportunity to provide testimony. Persons may also participate in the hearing via telephone by calling 1-208-985-2810 then entering the conference ID number of. 661071763#when prompted. NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF PUBLIC COMMENT DEADLINE NOTICE OF TECHNICAL HEARING ORDER NO. 36824 4 NOTICE OF PUBLIC COMMENT DEADLINE YOU ARE FURTHER NOTIFIED that the Commission seeks comments from the public on the Proposed Settlement. Persons desiring to state a position on the Application may file a written comment explaining why the person supports or opposes the Application. Persons must file comments by November 13, 2025. Comments must be filed through the Commission's website or by e-mail unless computer access is unavailable. To comment electronically, please access the Commission's home page at www.puc.idaho.gov. Click the"Case Comment Form"and complete the form using the case number as it appears on the front of this document. YOU ARE FURTHER NOTIFIED that to file by e-mail, persons must e-mail the comments to the Commission Secretary and the Company at the e-mail addresses listed below. Persons submitting a comment by e-mail must provide their name, address, and the Case Number under which they are commenting. Persons submitting a comment by e-mail also acknowledge that submitting a comment in an open case constitutes a public record under Idaho Code § 74-101 (13), and all information provided by such person is available for public and media inspection. YOU ARE FURTHER NOTIFIED that if computer access is unavailable, then comments may be mailed to the Commission and Company at the addresses below. Persons submitting a comment by mail must provide their name, address, and the Case Number under which they are commenting. Persons submitting a comment by mail also acknowledge that submitting a comment in an open case constitutes a public record under Idaho Code § 74-101 (13), and all information provided by such person is available for public and media inspection. For the Commission: For the Company: Commission Secretary Preston N. Carter Idaho Public Utilities Commission Megann E. Meier P.O. Box 83720 Givens Pursley, LLP Boise, ID 83702-0074 601 W. Bannock Street secretga&puc.idaho.gov Boise, ID 83702 prestoncarter(a),givenspurs ley.com Street Address for Express Mail: mem( aivenspursle. stephaniewggivenspursl ey.com 11331 W. Chinden Blvd. Building 8, Suite 201-A Boise, ID 83714 NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF PUBLIC COMMENT DEADLINE NOTICE OF TECHNICAL HEARING ORDER NO. 36824 5 NOTICE OF TECHNICAL HEARING YOU ARE HEREBY NOTIFIED that the Commission will conduct a technical hearing in this matter on Tuesday, November 18, 2025, starting at 9:00 a.m. (MT) and ending at 5:00 p.m. The technical hearing shall continue as necessary on Wednesday, November 19, 2025, starting at 9:00 a.m. (MT) and ending at 5:00 p.m. The technical hearing will be held at the Idaho Public Utilities Commission, 11331 W. Chinden Boulevard, Building 8, Suite 201-A, Boise, ID 83714. A technical hearing is an opportunity for the parties to the case to present witnesses, testimony, and exhibits. IDAPA 31.01.01.241.04. Persons interested in listening to or watching the testimony and presentations at the technical hearing may attend the meeting either online or by telephone. To participate online,please visit teams.live.com; click on the"Join a meeting" option on the upper left side of the page; type 278 500 464 709 in the "Meeting ID" window; then type zQ9S5XU6 in the "Meeting passcode"window. To participate by telephone, call 1-208-985-2810 then entering the conference ID number of: 737 135 124#when prompted. YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in this matter will be held in facilities meeting the accessibility requirements of the Americans with Disabilities Act ("ADA"). Persons needing the help of a sign language interpreter or other assistance in order to participate in or to understand testimony and argument at a public hearing may ask the Commission to provide a sign language interpreter or other assistance at the hearing. The request for assistance must be received at least five working days before the hearing by contacting the Commission Secretary at: IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83702-0074 Telephone: (208) 334-0338 Facsimile: (208) 334-3762 Email: secretgakpuc.idaho._og_v YOU ARE FURTHER NOTIFIED that the record in this matter is available for public inspection during regular business hours at the Commission's office. These documents are also NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF PUBLIC COMMENT DEADLINE NOTICE OF TECHNICAL HEARING ORDER NO. 36824 6 available on the Commission's website at www.puc.idaho.gov. Click on the "NATURAL GAS" icon, select"Open Cases," and click on the case number as shown on the front of this document. ORDER IT IS HEREBY ORDERED that the Commission amends the procedural schedule as set forth above. IT IS FURTHER ORDERED that written testimony in support of, or opposition to, the Proposed Settlement is due on November 5, 2025. The Company shall have until November 17, 2025, to file any rebuttal written testimony. IT IS FURTHER ORDERED that the Commission shall hold a customer hearing in Boise, Idaho, on Thursday, November 13, 2025, starting at 4:30 p.m. and ending at 7:30 p.m. (MT), or after all customer testimony has been taken, whichever comes first. IT IS FURTHER ORDERED that persons desiring to submit public written comments must do so by November 13, 2025. IT IS FURTHER ORDERED that the Commission will conduct a technical hearing in this matter on Tuesday, November 18, 2025, starting at 9:00 a.m. and ending at 5:00 p.m. (MT). The technical hearing shall continue as necessary on Wednesday,November 19, 2025, starting at 9:00 a.m. and ending at 5:00 p.m. (MT). IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between parties should continue to be accomplished electronically when possible. However, voluminous discovery-related documents may be filed and served on CD-ROM or a USB flash drive. NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF PUBLIC COMMENT DEADLINE NOTICE OF TECHNICAL HEARING ORDER NO. 36824 7 DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 30ffi day of October 2025. / G Grp DWARD LODGE, RE 'I ENT HN R. HAMMOND JR., COMMISSIONER DAYN HARDI , COMMISSIONER ATTEST: Lau a Calderon Robles Interim Commission Secretary I:\Legal\GAS\INTG2502_GRC\orders\Ntc_PSet_Sch_CH_TH jl jh.docx NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF PUBLIC COMMENT DEADLINE NOTICE OF TECHNICAL HEARING ORDER NO. 36824 8