20260723Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: CURTIS THADEN, COMMISSION STAFF MEMBER
KELSEA E. ROSS, DEPUTY ATTORNEY GENERAL
DATE: JULY 23, 2026
RE: INTERMOUNTAIN GAS COMPANY TARIFF ADVICE NO. INT-TAG-26-
02 REVISION TO RATE SCHEDULE FT (FRANCHISE FEE/TAX
ADJUSTMENT), SHEET NO. 15; CASE NO. INT-TAG-26-02.
On July 1, 2026,Intermountain Gas Company("Company") submitted to the Idaho Public
Utilities Commission("Commission")Tariff Advice No. INT-TAG-26-02 to revise Rate Schedule
FT (Franchise Fee/Tax Adjustment), Sheet No. 15 ("Application"), to reflect new franchise fee
ordinance numbers in the jurisdictions it serves. Application at 1. The ordinance numbers are
being updated, but the existing franchise fee remains unchanged. Id. A copy of the proposed
revision to Sheet No. 15 is attached. See Attachment A.
BACKGROUND
Idaho Code § 50-329A allows cities to establish franchise fees assessed upon a public
service provider up to one percent without consent of the public service provider or the approval
of a majority of voters 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. Id.
STAFF ANALYSIS
Staff reviewed the proposed tariff change, the franchise agreements, and the franchise fee
requirements under Idaho Code § 50-329A. Five franchise fee agreements have been replaced
with new agreements. Application at 4. The agreements continue to impose the existing franchise
fee from the sale of natural gas within the corporate limits of each respective city for 20 years.Id.
at 1. Since the terms of the agreements are for 20 years, it is Staff s understanding that all the
DECISION MEMORANDUM - 1 - JULY 23, 2026

agreements will remain in effect unless amended in the manner set forth by the terms of the
ordinances.
A matrix showing: (1) the cities in the jurisdiction the Company serves; (2) ordinance
numbers; (3) dates of when the franchise fee agreements were approved by each respective city;
(4) the date the agreements were accepted by the Company; (5) the effective dates and expiration
dates of the agreements; (6) the duration of each agreement; and (7) franchise fee percentage is
attached. See Attachment B.
STAFF RECOMMENDATION
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 August 14, 2026.
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, effective August 14, 2026?
Curtis Thaden
Commission Staff
I:\Utility\UDMEMOS\INT-TAG-26-02 Decision Memo.docx
DECISION MEMORANDUM - 2 - JULY 23, 2026

ATTACHMENT A
Decision Memo
Case No. INT-TAG-26-02
July 23, 2026

I.P.U.C. Gas Tariff
Rate Schedules
Fifteenth Revision Sheet No. 15 ( Page 1 of 1)
Name Intermountain Gas Company
of Utility y
Rate Schedule FT
FRANCHISE FEE/TAX 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 2025-007
Ammon 463 Lewisville 2025-2
Arimo 4 Malta 28
Bancroft 312 McCammon 536
Basalt 125 Menan 396
Bellevue 2025-05 Meridian 26-2123
Blackfoot 2140 Middleton 532
Boise 7-26 Montpelier 690
Buhl 981 Mountain Home 1064
Burley 1210 Murtaugh 24-02
Caldwell 3036 Nampa 2006
Chubbuck 849 New Plymouth 170
Declo 223 Parker 72
Eagle 715 Parma 579
Emmett 02025-05 Paul 2026-1
Filer 649 Payette 961
Firth 131 Pocatello 3179
Fruitland 358 Rexburg 954
Garden City 1066-26 Rigby 2015-576
Georgetown 116 Ririe 136
Glenns Ferry 25-615 Rupert 06-507
Gooding 733 St. Anthony 01-04
Grace 2016-1 Shelley 668
Greenleaf 84 Shoshone 574
Hailey 1355 Soda Springs 721
Hansen 232 Star 66
Heyburn 581 Sugar City 3692021
Homedale 345 Sun Valley 514
Idaho Falls 3052 Twin Falls 0-2025-019
Inkom 25-278 Ucon 196
Iona 319-04-25 Weiser 957
Jerome 1245 Wendell 493
Ketchum 1263 Wilder 365
Kimberly 688
Issued by: Intermountain Gas Company
By: Michael Parvinen Title: Director—Regulatory Affairs

I.P.U.C. Gas Tariff IDAHO PUBLIC UTILITIES COMMISSION
Rate Schedules Approved Effective
F^ rtee +h^+h Fifteenth Revision Sheet No. 15 ( Page 1 of 1)
Apra aa,20266 May 1, 2026
Name of Utility Intermountain Gas Company Commission Secretary
Rate Schedule FT
FRANCHISE FEE/TAX 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 2025-007
Ammon 463 Lewisville 2025-2
Arimo 4 Malta 28
Bancroft 312 McCammon 536
Basalt 125 Menan 396
Bellevue 2025-05 Meridian 46226-2123
Blackfoot 2140 Middleton 532
Boise 7-26 Montpelier 5-93690
Buhl 981 Mountain Home 1064
Burley 1210 Murtaugh 24-02
Caldwell 3036 Nampa 2006
Chubbuck 849 New Plymouth 170
Declo 4—x3223 Parker 72
Eagle 715 Parma 579
Emmett 02025-05 Paul 2026-1
Filer 649 Payette 961
Firth 131 Pocatello 28023179
Fruitland 358 Rexburg 954
Garden City 849 061066-26 Rigby 2015-576
Georgetown 116 Ririe 136
Glenns Ferry 25-615 Rupert 06-507
Gooding 733 St. Anthony 01-04
Grace 2016-1 Shelley 668
Greenleaf 84 Shoshone 574
Hailey 1355 Soda Springs 721
Hansen 232 Star 66
Heyburn 581 Sugar City 3692021
Homedale 345 Sun Valley 514
Idaho Falls 3052 Twin Falls 0-2025-019
Inkom 25-278 Ucon 196
Iona 319-04-25 Weiser 957
Jerome 1245 Wendell 493
Ketchum 1263 Wilder 365
Kimberly 688
Issued by: Intermountain Gas Company
By: Michael Parvinen Title: Director—Regulatory Affairs

ATTACHMENT B
Decision Memo
Case No. INT-TAG-26-02
July 23, 2026

City Ordinance Date Date Start Date End Date Term Franchise
No. Approved Accepted by Fee
by City Company
Declo 223 06-11-2026 06-16-2026 06-20-2026 06-19-2046 20 years 3%
Garden City 1066-26 06-22-2026 06-29-2026 06-29-2026 06-28-2046 20 years 3%
Meridian 26-2123 04-21-2026 04-08-2026 05-21-2026 06-20-2046 20 years 3%
Montpelier 690 05-03-2026 06-15-2026 06-03-2026 06-02-2046 20 years 3%
Pocatello 3179 06-18-2026 06-18-2026 06-24-2026 06-23-2046 20 years 3%