U-1034-99 Exhibit 5 Lebens.pdf

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Intermountain Gas Company
Case No. U-1034-99
Exhibit 5
Schedule 1
Page 1 of 3
Witness: Lebens
SECTION A
GENERAL SERVICE PROVISIONS
(Continued)
20. REVENUE STABILIZATION CLAUSE
20.1 Applicability. This Revenue Stabilization Clause applies to all
rate schedules contained in Second Revised Volume No. 1 of this
IPUC Gas Tariff. It specifies the procedures to be utilized in
adjusting rates applicable under each such rate schedule in order
to reflect changes in the average Gross Margin on a uniform cents
per therm basis for ratemaking purposes for sale and delivery
under such rate schedules.
As used herein, the terms "Gross Margin" shall represent all
those costs included in the total cost of service including the
"cost of capital" but excluding charges recorded in IPUC Account
Nos. 800, 801, 802, 803, 804, 805, 806, 808 and 809 and the City
Franchise Tax charges recorded in IPUC Account No. 408.
20.2 Base Tariff Rates. The Base Tariff Rate Schedule applicable to
each schedule contained in Second Revised Volume No. 1 of this
IPUC Gas Tariff is identified on Sheet No. 3A hereof.
20.3 Currently Effective Tariff Rates. Rates applicable to each rate
schedule contained in Second Revised Volume No. 1 of this IPUC
Gas Tariff shall be the Base Tariff Rates plus a surcharge as
ident if ied on Sheet No. 3A hereof.
20.4 Changes in Currently Effective Tariff Rates. Rates applicable to
each rate schedule contained in Second Revised Volume No. 1 of
this IPUC Gas Tariff include a surcharge as identified on Sheet
No. 3A. The surcharge shall be adjusted on the Adjustment Dates
identified in Section 20.5 below, for changes in the Gross Margin
in accordance with the rate adjustment provision hereof to the
end that the Company will be reimbursed for the actual costs.
20.5 Adjustment Date. The Adjustment Date shall be October 1 of each
year. On such date, Company shall, in accordance with the rate
adjustment provisions hereof, increase or decrease the surcharge
applicable to each rate schedule contained in Second Revised
Volume No. 1 of this IPUC Gas Tariff to ref lect changes in the
average Gross Margin. As so adjusted, the surcharge rate
applicable to each rate schedule will be included on Sheet No. 3A
(Second Revised Volume No.1) hereof as the Currently EffectiveSurcharge Rate.
20.6 Amount of Adjustment. The amount of adjustment to be made
effective each Adjustment Date shall consist of the sum of a
Gross Margin Adjustment and Surcharge Adjustment. The Gross
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20.7
Intermountain Gas Company
Case No. U-1034-99
Exhibit 5
Schedule 1
Page 2 of 3
Witness: Lebens
Margin Adjustment shall consist of the net change in the
annualized Gross Margin per Therm sold.- The procedure for
determining the Gross Margin Adjustment is set forth in
Section 20.7 below.
The Gross Margin Surcharge Adjustment shall consist of an amount
necessary to recover or return the amount accumulated in the
Unrecovered Revenue Stabilization Account including an
appropriate amount of carrying charge. The procedures for
establishing and maintaining the Unrecovered Revenue
Stabilization Account and for determining the Gross Margin
Surcharge Adjustment are set forth in Section 20.8 below.
The Gross Margin Cost Adjustment and the Gross Margin Surcharge
Adjustment shall be applied to all rate schedules contained in
Company's IPUC Gas Tariff, Second Revised Volume No.1.
Gross Margin Cost Adjustment. The Gross Margin Cost Adjustment
per Therm sold shall be determined by dividing the net change in
the annuálized Gross Margin Cost, determined as specified below,
by the amount of Therms delivered during the 12 months ending
three months prior to the applicable Adjustment Date.
The amount of net change in the annualized Gross Margin shall be
calculated as follows:
(a) The amount of net change in the annualized Gross Margin
Cost for the purposes of this Section shall be the
difference between the cents per Therm computed under (i)
and (ii) below applied to the total Therms of gas delivered
as defined in Section 20.7(b) below.
(i) The annualized Gross Margin Cost for gas shall be
that determined by the Commission in its most recent
Order. The average Gross Margin Cost per Therm is
then established by dividing the total Gross Margin
determined by the Commission in the most recent
order, as described above, by the total amount of
Therms delivered as defined in Section 20.7(b)
below.
(ii) The average Gross Margin Cost per Therm applicable
to the currently effective tariff rates, as set
forth on Sheet No. 3A of Second Revised Volume No. 1
of this IPUC Gas Tariff, and determined in Company's
most recent filing under this Section 20.
(b) Annual Therms to be Utilized: The amount of Therms to be
utilized shall be that delivered as defined in Section 20.7
hereof during the twelve month period ending three months
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Intermountain Gas Company
Case No. U-1034-99
Exhibit 5
Schedule 1
Page 3 of 3
Witness: Lebens
prior to the applicable Adjustment Date; provided, however,
that such quantities shall be subject to adjustment by
Company to reflect annualization of new deliveries and
significant changes in takes from existing delivery
connections.
20.8 Gross Margin Surcharge Adjustment. The Gross Margin Surcharge
Adjustment per Therm delivered shall be determined by dividing
the balance in the Unrecovered Gross Margin Cost Account, defined
below, at the end of the latest available month at the time of
the computation being made under the provisions of this Section,
by the amount of Therms estimated to be delivered under rate
schedules identified on Sheet No. 3A in this IPUC Gas Tariff,
Second Revised Volume No. 1 during the twelve billing months that
the Surcharge Adjustment will be in effect.
Beginning as of the date this Gross Margin Cost Adjustment
Provision becomes effective, Company shall establish and maintain
an Unrecovered Revenue Stabilization Account. Entries shall be
made to this account each month as follows:
(a) A debit entry equal to the difference between actual Gross
Margin and the Minimum Gross Margin Cost as set forth on
Sheet No. 4A (if the actual Gross Margin is less than the
Minimum Gross Margin Cost) or a credit entry equal to the
difference between actual Gross Margin and the Maximum
Gross Margin Cost as set forth on Sheet No. 4A (if the
actual Gross Margin is greater than the Maximum Gross
Margin Cost).
(b) A Credit entry equal to the Therms delivered during the
month under rate schedules contained in this IPUC Gas
Tariff, Second Revised Volume No. 1 and multiplied by the
Surcharge Adjustment reflected in the rates charged during
the month.
(c) In each month the Unrecovered Revenue Stabilization Account
shall be debited (if the balance in said account is a debit
balance) and shall be credited (if the balance in said
account is a credit balance) for a carrying charge which
shall be determined by multiplying the balance in the
account by 1/12 of the interest rate established for
short-term borrowings as approved in the Company's last
general rate case.
20.9 Time and Manner of Filing and Related Reports. Company shall
file each adjustment at least 30 days prior to the applicable
Adjustment Date by means of a Revised Sheet No. 3A (Second
Revised Volume No.1). Each such filing shall be accompanied by
a report which shows the derivation of the adjustments to be
applied. Such filing, including the report, shall be posted as
defined by the Idaho Public Utilities Commission.
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Intermountain Gas Company
Case No. U-1034-99
Exhibit 5
Schedule 3
Witness: Lebens
Original Sheet 4A
INTERMOUNTAIN GAS COMPAN
Total
GROSS MAGIN ($000)
Allowed Minimum Maximum
$2,022 $1,837 $2,098
3,273 2,976 3,399
4,503 4,093 4,674
5,421 4,928 5,627
5,081 4,620 5,276
3,837 3,487 3,982
3,295 2,996 3,420
2,019 1,834 2,094
1,449 1,317 1,504
1,143 1,038 1,185
1,375 1,250 1,427
1,490 1,355 1,547
$34,908 $31,731 $36,233
Month
October
November
December
January
February
March
April
May
June
July
August
September