Notice of Investigation (ON 15709).pdf

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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTI - )
GATION INTO INTERMOUNTAIN GAS )
COMPANY'S PURSUIT OF DOMESTIC )
GAS SUPPLIES .................)
)
CASE NO. U- 1034-88
NOTICE OF INVESTIGATION
ORDER NO. 15709
For several months prior to the date of this Notice, the
Idaho Public Utilities Commission has actively encouraged Inter-
mountain Gas Company and its two major industrial customers, Beker
Industries and J.R. Simplot Company, to seek new domestic supplies
of natural gas. Acquisition of domestic gas has been encouraged
in the interests of preserving the viability of the industrial
customers, lowering gas costs to ratepayers and increasing the use
of gas for the purpose of space heating as a means of avoiding the
greater incremental costs of adding new thermal electric plant.
This Notice is prompted by great concern on the part of
this Commission over what appears to be a more aggressive search
for domestic gas by the two major industrial customers of Inter-
mountain Gas Company than by Intermountain Gas Company itself. In
a letter addressed to President Conley Ward, Jr. dated July 3,
1980, and signed by the Acting President of IGC, Walter Smith, the
price of the domestic gas which the industrial customers are
attempting to secure is quoted as being "something under $3. OO/mcf. "
Recognizing that this figure does not include the cost of getting
the gas to Idaho, it still appears to be a far less expensive
source of gas than Canada, upon which Northwest Pipeline Co. and
consequently IGC rely for a large percentage of natural gas supply.
The fact that large industrial customers of the Company as opposed
to the Company itself appear to be the active seekers of lower
priced gas is most disturbing. If such gas is available, this
Commission would expect Intermountain Gas Company to expend every
possible effort to acquire it for the benefit of all its customers
pursuant to its duty to maintain adequate service at just and
reasonable rates; not merely acquiesce to act as a conduit of the
gas for large industrial customers who manage to acquire it through
their own efforts.
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While it is by no means clear at this time that a
complaint should issue against Intermountain Gas Company for
failure to perform in a responsible manner towards all of its
ratepayers, an investigation by this Commission to determine
whether grounds for such a complaint exists is certainly warranted.
For the present, such an investigation will be conducted
as part of the investigation into the Company's entire supply and
storage situation which is an issue in the Company's general rate
case pending before this Commission.
Therefore, it is hereby ordered that Intermountain Gas
Company be prepared to provide this Commission with a full history
of the negotiations and efforts it has undertaken to acquire
natural gas from Southern Union Gas Company and its subsidiaries
at the initial phase of hearings set for the Company's general
rate case, Case No. U-l034-88. The witnesses who speak for the
Company on this issue shall also be prepared to respond to questions.
That hearing has been set for AUGUST 12, 1980 COMMNCING AT 9: 30
A .M. IN THE COMMISSION HEARING ROOM, 472 WEST WASHINGTON STREET,
BOISE, IDAHO.
DONE by Order of the Idaho Public Utilities Commission
a t Boise, Idaho, this 22nd day of July, 1980.
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NOTE: Commissioner Wickberg was out
of the office on this date.
COMMISSIONER
ATTEST:
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SECRETARY
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