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Home My WebLink About20010402Second Production Request.pdf~/O3;1....~ -,,- "'" - i .; "- 1, -\~LV1_' L F':"'! t'~J LISA D. NORDSTROM DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 (208) 334-0314 IDAHO BAR NO. 5733 '~ i L.' ~ !" 2DDli':.P?-'2 Pi'2:09 , ".. ~ . c. i '-, uTiL!T:Li~; C:::, ,1\::;3:(':1 Street Address for Express Mail: 472 W. WASHINGTON BOISE, IDAHO 83702-5983 Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE INVESTIGATION INTO THE PURCHASE GAS ADJUSTMENT (PGA) MECHANISM AND THE NATURAL GAS PURCHASING POLICIES OF INTERMOUNTAIN GAS COMPANY. SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO INTERMOUNTAIN GAS COMPANY CASE NO. INT-Ol- The Staff of the Idaho Public Utilities Commission by and through its attorney of record Lisa D. Nordstrom, Deputy Attorney General, requests Intermountain Gas Company (Intermountain; Company) provide the following documents and information, pursuant to Commission Rule of Procedure 225 , IDAP A 31.01.01.225. The Company shall be prepared to answer the following list of questions at the scheduled April 9 meeting. Please bring all supporting information and documents necessary to answer Staff questions at the April 9 meeting. Based on the information provided at the meeting, Staff will determine if additional written response is necessary. Request No. 15: What is Intermountain Gas Company doing differently this year to reduce the deferral account and cost of gas purchases to below the approved weighted average SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO INTERMOUNTAIN GAS COMPANY APRIL 2 2001 cost of gas (W ACOG)? Please include an analysis showing this year as compared to previous years. Request No. 16: How does the Company plan to improve price stability for its ratepayers? Please include all specific information available such as contracts, hedges, etc. Request No. 17: In the letter dated March 8, 2001 , the Company stated that it made decisions not to secure gas because gas prices were anticipated to go down in 1999 and 2000. Please provide all meeting notes, memorandums, decision flow charts that include personnel involved, or any other documentation the Company can provide that outlines the decision process during this time period. Request No. 18: Please provide (confidentially, if necessary) any written policies used by the Company when making Natural Gas purchases. Request No. 19: Provide an analysis showing the cost and any premium over the physical price of gas for the possible financial hedge products outlined in your letter dated March 8 , 2001 on page 6 (i., Price Caps, Price Collars, Portfolio Pricing, Extendables Participating Options, and IGI Pool Participation). Please define all of the products and any possible effects of these products to ratepayers. Request No. 20: Given the Company s reliance on storage for price protection, please provide a cost comparison between storage costs (including losses, fuel and any other costs associated with storage use) as compared to all costs associated with financial hedges. Request No. 21: What price is anticipated for storage gas in the next 12 months? Request No. 22: What steps has Intermountain Gas taken to ensure storage gas is purchased at the lowest price? SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO INTERMOUNTAIN GAS COMPANY APRIL 2, 2001 Request No. 23: Please provide the information and resulting analysis upon which the Company determined that it is operating at the optimum level of storage for its customers. Request No. 24: Please provide an analysis showing storage injections and withdrawals for fiscal years: 1996, 1997, 1998, 1999 2000 and proforma 2001. Please include the price paid for stored gas and the market price for gas available on the wholesale market when storage gas was withdrawn. Request No. 25: Please provide the names, qualifications, and job descriptions of all natural gas traders on Staff with the Company. Request No. 26: How is IGI Resources directed to make spot market purchases for the Company? Request No. 27: What parameters or guidelines does the company impose on IGI Resources when it makes spot market purchases for the Company? Request No. 28: Which individuals are responsible for directing IGI Resources to make spot market purchases for the Company? Request No. 29: Which individuals at Intermountain Gas oversee the daily purchases made by IGI Resources and confirm that purchases are made at the lowest prices and are in the best interest of ratepayers? Request No. 30: Which individuals at Intermountain Gas are responsible for making the forward decisions on Gas Purchases? Request No. 31: Which individuals at Intermountain Gas are involved in setting natural gas purchase policy? SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO INTERMOUNTAIN GAS COMPANY APRIL 2 2001 Request No. 32: Please provide confidential copies of all of the Company s existing gas purchase contracts. Request No. 33: Please provide the anticipated price (unit price and total contract amount) for gas purchased under these contracts for the next 12 months. Request No. 34: Please provide the annual quantity of gas purchased at index prices, the actual index price, and any adders. Request No. 35: Provide the Company s load projections in aggregate and by customer class for the next 12 months. Request No. 36: Provide the Company s market price projections for natural gas for the next 5 years. Request No. 37: Please provide the Company s annual natural gas purchase projections for the next 5 years including quantity, price and W ACOG. Request No. 38: Please provide an update of actual purchases shown on the Intermountain Gas W ACOG Calculation spreadsheet from the most recent PGA filing. Request No. 39: What is the expected deferral amount for the next 12 months under current regulatory conditions? Request No. 40: When does Intermountain Gas anticipate its next PGA filing will occur? What does the Company anticipate that increase with be? Request No. 41: Please provide any studies performed by the Company or its agents determining the best natural gas supply portfolio with respect to both reliability and price. SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO INTERMOUNTAIN GAS COMPANY APRIL 2 2001 Request No. 42: In the January 1996 Integrated Resource Plan (IRP) the Company recognized potential problems with supply from Sumas. The Company stated that the percentage of future natural gas supply from Sumas will be reduced from a high of about 63 % to approximately the following: Sumas 20%Alberta 40%Rockies 40% Based on the Company s March 8 letter the Company s current supply portfolio is: Location Daily Volume Annual VolumeSumas 28.1 % 48.Alberta 9.6% 16.Rockies 62.3% 35. a) What were the assumptions made and analysis performed to determine the above supply portfolio? b) What situations changed that caused the Company to move away from the direction stated in its 1996 IRP? c) How does this new portfolio provide optimum price and reliability for Idaho ratepayers? d) How would ratepayers have been affected if the Company had achieved the 1996 IRP goals? Request No. 43: What is the availability oflonger term (greater than 2 year) fixed price contracts? Request No. 44: What are the typical terms included in fixed price contracts? Request No. 45: What is the Company s evaluation of fixed price contracts with regard to financial and other considerations? Request No. 46: How much of the Company s gas is purchased on both firm supply and firm price? What is the cost for this gas? SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO INTERMOUNTAIN GAS COMPANY APRIL 2 2001 Request No. 47: When did the Company s last fixed price contract expire? Request No. 48: Has the Company considered purchasing natural gas production? Request No. 49: Please provide any analysis the Company or its agents have performed regarding the purchase of natural gas production. Request No. 50: Acquisition of natural gas resources can be obtained in many ways. One method is through demand side management. What, if anything, is the Company proposing in this area? Request No. 51: Could the Company offer ratepayers longer term price stability? If so at what cost? Request No. 52: Could the Company offer individual customers supply options such as: , 2, or 3- year contract prices, spot market prices, or Company portfolio pricing? If so, what is the anticipated cost of these programs? Ifnot, why not? Request No. 53: The Commission has ordered the Company on several occasions to provide a price comparison and analysis of equivalent service providers other than IGI Resources. When will the Company complete the required analysis? Request No. 54: How can the price actually paid by IGI Resources be verified to ensure that Intermountain Gas is paying the same price for the gas? Request No. 55: Did Intermountain Gas, its customers, and/or IGI resources gain any benefit from capacity releases or off-system sales in the past 6 months? If so, what are the dollar amounts for each: Intermountain Gas, Intermountain Gas Customers, and IGI Resources? SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO INTERMOUNTAIN GAS COMPANY APRIL 2, 2001 Request No. 56: Provide an analysis showing off-system sales in fiscal years 1999 2000 and 2001. In this analysis, please show if the sale was made from contracts or storage, the price paid by Intermountain Gas (including any costs paid to IGI Resources), the price the gas was sold for, and which company purchased the gas. Request No. 57: How are Intermountain Gas Company stockholders affected by the increased cost of gas? 0l- Dated at Boise, Idaho, this day of April 2001. A/ Lisa D. Nordstro Deputy Attorney General Technical Staff: Michael Fuss Alden Holm LN :gdki:/umisc/comments/intgOl.l .lnmfussah SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO INTERMOUNTAIN GAS COMPANY APRIL 2, 2001 CERTIFICATE OF SERVICE HEREBY CERTIFY THAT I HAVE THIS 2ND DAY OF APRIL 2001 SERVED THE FOREGOING SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO INTERMOUNTAIN GAS COMPANY, IN CASE NO. INT- 01-, BY MAILING A COpy THEREOF, POSTAGE PREPAID, TO THE FOLLOWING: MICHAEL E HUNTINGTON VP GOVERNMENTAL AFFAIRS INTERMOUNTAIN GAS COMPANY PO BOX 7608 BOISE ID 83707 MORGAN W RICHARDS JR MOFFATT THOMAS ET AL PO BOX 829 BOISE ill 83701-0829 MIKE McGRATH INTERMOUNTAIN GAS COMPANY PO BOX 7608 BOISE, ID 83707 1(~ SECRETARY CERTIFICATE OF SERVICE