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HomeMy WebLinkAbout20161017NWIGU 1-40 to INT.pdfCABLE HUSTON ur CHAD M . STOKES Jean D. Jewell Commission Secretary Idaho Public Utilities Commission 472 W. Washington Street Boise, ID 93 702 October 13, 2016 RECEI VED ZOIG OCT 17 PH 2: 59 -·· · :: ) 1 -.JU.IC 1 , ·: -~ r i ' ' ~ 11 In cstokes@cablefrns O .c'6 Re: Northwest Industrial Gas Users' First Request for Production of Documents to Intermountain Gas Company Case No. INT-G-16-02 Dear Ms. Jewell, Enclosed for filing with the Commission are an original and two copies of Northwest Industrial Gas Users' First Request for Production of Documents to lntermountain Gas Company. Please let me know if you have any questions. Thank you. ~ Chad M"'Stokes CMS/sk Enclosure 26678.885\4844-0750-7770. v I Suite 2000, 1001 SW Fifth Avenue, Portland, Oregon 97204-1136 • Phone: 503.224.3092 • Fax: 503.224.3176 • www.cablehuston.com .. Chad M. Stokes (OSB No. 004007) Tommy A. Brooks (OSB No. 076071) Cable Huston LLP 1001 SW Fifth Ave., Suite 2000 Portland, OR 97204-1136 Telephone: (503) 224-3092 Facsimile: (503) 224-3176 cstokes@cablehuston.com tbrooks@cablehuston.com RECEIVED 201 & OCT 17 PM 2: 59 Michael C. Creamer (ISB No. 4030)(Local Counsel) Givens Pursley LLP 601 W. Bannock St. Boise, ID 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-1300 mcc@givenspursley.com Attorneys for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF INTERMOUNTAIN GAS COMPANY FOR THE AUTHORITY TO CHANGE ITS RATES AND CHARGES FOR NATURAL GAS SERVICE TO NATURAL GAS CUSTOMERS IN THE STATE OF IDAHO CASE NO. INT-G-16-02 FIRST PRODUCTION REQUEST OF NORTHWEST INDUSTRIAL GAS USERS TO INTERMOUNTAIN GAS COMPANY Pursuant to Rule 225 of the Rules of Procedure of the Idaho Public Utilities Commission ("Commission"), Northwest Industrial Gas Users ("NWIGU") by and through its attorney of record, Chad Stokes, granted limited admission by the Commission in Order 33610, hereby requests that the Intermountain Gas Company ("Company") provide the following documents: Page 1 NWIGU'S FIRST REQUEST FOR PRODUCTION OF DOCUMENTS TO INTERMOUNTAIN GAS COMPANY DEFINITIONS 1. "Company" refers to the Intermountain Gas Company, any affiliated company, or any officer, director or employee of Intermountain Gas Company, or any affiliated company. 2. "Documents" refers to all writings and records of every type in your possession, control, or custody, whether or not claimed to be privileged or otherwise excludable from discovery, including but not limited to: testimony and exhibits, memoranda, papers, correspondence, letters, reports (including drafts, preliminary, intermediate, and final reports), surveys, analyses, studies (including economic and market studies), summaries, comparisons, tabulations, bills, invoices, statements of services rendered, charts, books, pamphlets, photographs, maps, bulletins, corporate or other minutes, notes, diaries, log sheets, ledgers, transcripts, microfilm, microfiche, computer data (including E-mail), computer files, computer tapes, computer inputs, computer outputs and printouts, vouchers, accounting statements, budgets, workpapers, engineering diagrams (including "one-line" diagrams), mechanical and electrical recordings, telephone and telegraphic communications, speeches, and all other records, written, electrical, mechanical, or otherwise, and drafts of any of the above. "Documents" includes copies of documents, where the originals are not in your possession, custody or control. "Documents" includes every copy of a document which contains handwritten or other notations or which otherwise does not duplicate the original or any other copy. "Documents" also includes any attachments or appendices to any document. 3. "Identification" and "identify" mean : When used with respect to a document, stating the nature of the document (~, letter, memorandum, corporate minutes); the date, if any, appearing thereon; the date, if known, on which the document was prepared; the title of the document; the general subject matter of the document; the number of pages comprising the document; the identity of each person who wrote, dictated, or otherwise participated in the preparation of the document; the identity of each person who signed or initiated the document; the identity of each person to whom the document was addressed; the identity of each person who received the document or reviewed it; the location of the document; and the identity of each person having possession, custody, or control of the document. When used with respect to a person, stating his or her full name; his or her most recently known home and business addresses and telephone numbers; his or her Page 2 NWIGU'S FIRST REQUEST FOR PRODUCTION OF DOCUMENTS TO INTERMOUNTAIN GAS COMPANY present title and position; and his or her present and prior connections or associations with any participant or party to this proceeding. 4. "Person" refers to, without limiting the generality of its meaning, every natural person, corporation, partnership, association (whether formally organized or ad hoc),joint venture, unit operation, cooperative, municipality, commission, governmental body or agency, or any other group or organization. 5. "Studies" or "study" includes, without limitation, reports, reviews, analyses and audits. 6. The terms "and" and "or" shall be construed either disjunctively or conjunctively whenever appropriate in order to bring within the scope of this discovery any information or documents which might otherwise be considered to be beyond their scope. 7. The singular form of a word shall be interpreted as plural, and the plural form of a word shall be interpreted as singular, whenever appropriate in order to bring within the scope of this discovery request any information or documents which might otherwise be considered to be beyond their scope. INSTRUCTIONS 1. These requests call for all information, including information contained in documents, which relate to the subject matter of the Production Request and which is known or available to Company. 2. Where a Production Request has a number of separate subdivisions or related parts or portions, a complete response is required to each such subdivision, part or portion. Any objection to a Production Request should clearly indicate the subdivision, part, or portion of the Production Request to which it is directed. 3. The time period encompassed by these Production Requests is from 2010 to the present unless otherwise specified. 4. Each response should be furnished on a separate page. In addition to hard copy, electronic versions of the document, including studies and analyses, must also be furnished if available. 5. If Company cannot answer a Production Request in full, after exercising due diligence to secure the information necessary to do so, state the answer to the extent possible, state why Company cannot answer the Production Request in full, and state what information or knowledge Company has concerning the unanswered portions. 6. If Company refuses to respond to any Production Request by reason of a claim of Page 3 NWIGU'S FIRST REQUEST FOR PRODUCTION OF DOCUMENTS TO INTERMOUNT AIN GAS COMPANY privilege, confidentiality, or for any other reason, state in writing the type of privilege claimed and the facts and circumstances Company relies upon to support the claim of privilege or the reason for refusing to respond. With respect to requests for documents to which Company refuses to respond, identify each such document, and specify the number of pages it contains. Provide: (a) a brief description of the document; (b) date of document; ( c) name of each author or preparer; (d) name of each person who received the document; and (e) the reason for withholding it and a statement of facts constituting the justification and basis for withholding it. 7. Identify the person from whom the information and documents supplied in response to each Production Request were obtained, the person who prepared each response, the person who reviewed each response, and the person who will bear ultimate responsibility for the truth of each response. 8. These requests for documents and responses are continuing in character so as to require Company to file supplemental answers as soon as possible if Company obtains further or different information. Any supplemental answer should refer to the date and use the number of the original request or subpart thereof. 9. Whenever these Production Requests specifically request an answer rather than the identification of documents, the answer is required and the production of documents in lieu thereof will not substitute for an answer. I II II I II II II II I II II I II II I I II II II II I I II I I I II I I I II II II I II Page 4 NWIGU'S FIRST REQUEST FOR PRODUCTION OF DOCUMENTS TO INTERMOUNTAIN GAS COMPANY PRODUCTION REQUESTS NWIGU REQUEST NO 1 TO COMPANY: Please provide copies of all publications and credit reports referenced in the direct testimony of Dr. Gaske and Mr. Chiles. NWIGU REQUEST NO 2 TO COMPANY: Please provide all of Dr. Gaske's exhibits and workpapers in electronic format with all formulas intact. NWIGU REQUEST NO 3 TO COMPANY: Please provide Intermountain Gas Company's ("IGC") capital structure, requested capital cost rates, and revenue conversion, or tax gross up, factor in electronic format with all formulas intact. NWIGU REQUEST NO 4 TO COMPANY: Please provide copies of all credit reports published by Standard & Poor's ("S&P"), Moody's and Fitch Ratings for IGC, all of its affiliates issued and parent Company issues over the last two years. NWIGU REQUEST NO 5 TO COMPANY: Please provide complete copies of all recent credit reports issued by Standard & Poor's, Moody's and Fitch Ratings that discuss the natural gas utility industry. NWIGU REQUEST NO 6 TO COMPANY: Please provide the most recent senior secured, unsecured and corporate credit rating of IGC assigned by S&P, Moody's and Fitch. Also, please provide IGC's S&P business and financial risk profiles. NWIGU REQUEST NO 7 TO COMPANY: Please provide copies of all correspondence, presentations and all other materials that IGC and its parent provided to credit and equity analysts over the last two years. NWIGU REQUEST NO 8 TO COMPANY: On an electronic spreadsheet with all formulas intact, please provide the monthly average balances for construction work in progress and short-term debt for the most recent 13- month period. Page 5 NWIGU'S FIRST REQUEST FOR PRODUCTION OF DOCUMENTS TO INTERMOUNT AIN GAS COMPANY NWIGU REQUEST NO 9 TO COMPANY: Please provide the amount of capitalized interest paid during the test year related to construction projects. NWIGU REQUEST NO 10 TO COMPANY: Please state whether IGC has any off-balance sheet debt such as purchased power agreements and operating leases. If in the affirmative, provide the amount of each off­ balance sheet debt item and estimate the related imputed interest and amortization expense associated with these off-balance sheet debt equivalents. NWIGU REQUEST NO 11 TO COMPANY: On an electronic spreadsheet with all formulas intact, please provide the five-year projected and five-year historical capital structure, capital expenditures and capital funding. NWIGU REQUEST NO 12 TO COMPANY: Please provide a detailed explanation ofIGC's dividend payment and debt financing plans through the test period. NWIGU REQUEST NO 13 TO COMPANY: Do any ofIGC's outstanding long-term debt issues have call provisions? If the answer is "yes," please provide a list of the callable issues with the following: a) outstanding balance, b) issuance date, c) maturity date, d) coupon payment percent, e) annual interest expense, and f) call price (as a percent of par). NWIGU REQUEST NO 14 TO COMPANY: Has IGC performed any debt refinancing feasibility studies on its outstanding debt issues? If the answer is "yes," please provide the following: a. A detailed description of the results from the study. b. A detailed description of the conclusion(s) made by IGC based on the results of the study. c. All debt refinancing feasibility studies in an electronic spreadsheet with all formulas intact. NWIGU REQUEST NO 15 TO COMPANY: Please provide all workpapers in native electronic format with all formulas intact that support the direct testimony of Mr. David Swenson. Page 6 NWIGU'S FIRST REQUEST FOR PRODUCTION OF DOCUMENTS TO INTERMOUNTAIN GAS COMPANY NWIGU REQUEST NO 16 TO COMPANY: Please provide all workpapers in native electronic format with all formulas intact that support the direct testimony of Mr. Branko Terzic. NWIGU REQUEST NO 17 TO COMPANY: Please provide all workpapers in native electronic format with all formulas intact that support the direct testimony of Ms. Lori A Blattner. NWIGU REQUEST NO 18 TO COMPANY: With respect to the direct testimony of Ms. Lori A. Blattner, to the extent not already provided, please provide the following information with respect to class cost of service and rate design: a. Exhibit 19 in native electronic format with all formulas intact. b. Exhibit 20 in native electronic format with all formulas intact. c. Exhibit 21 in native electronic format with all formulas intact. d. Exhibit 22 in native electronic format with all formulas intact. e. Exhibit 23 in native electronic format with all formulas intact. f. Exhibit 24 in native electronic format with all formulas intact. NWIGU REQUEST NO 19 TO COMPANY: Please provide a complete copy oflGC's most recent management approved integrated resource plan. NWIGU REQUEST NO 20 TO COMPANY: Concerning IGC's distribution main planning process, please answer the following: a. How were main sizes determined based on customers' load on the system, and the length of mains needed to connect customers the distribution system. b. How does the length of distribution main impact distribution related equipment such as compression, pressure regulation, safety equipment, etc. needed to reliably and safely provide gas delivery service. Please explain answer. Page 7 NWIGU'S FIRST REQUEST FOR PRODUCTION OF DOCUMENTS TO INTERMOUNTAIN GAS COMPANY c. Please provide a copy of any distribution main system modernization plan currently being considered or approved by IGC's management. d. Please provide a complete copy oflGC's main extension rules. NWIGU REQUEST NO 21 TO COMPANY: Please provide all workpapers, schedules and exhibits discussed in witness testimony in working Excel electronic format with all formulas intact. NWIGU REQUEST NO 22 TO COMPANY: Please provide all schedules and exhibits supporting the Company's filing in working Excel electronic format with all formulas intact. NWIGU REQUEST NO 23 TO COMPANY: Please provide all workpapers and spread sheets supporting the Company's filing in working Excel electronic format with all formulas intact. NWIGU REQUEST NO 24 TO COMPANY: Please provide the O&M expenses by FERC account, annually beginning in 2007 through 2015 in working Excel electronic format with all formulas intact. NWIGU REQUEST NO 25 TO COMPANY: Please provide the O&M expenses by FERC account, monthly, beginning in 2011 through 2015 in working Excel electronic format with all formulas intact. NWIGU REQUEST NO 26 TO COMPANY: Please provide the actual O&M expenses by FERC account, monthly for 2016, as the data becomes available, in working Excel electronic format with all formulas intact. NWIGU REQUEST NO 27 TO COMPANY: In working Excel electronic format with all formulas intact, please provide a calculation showing the determination of the revenue requirement increase requested in the current case. The following questions are related to the Direct Testimony of Hart Gilchrist NWIGU REQUEST NO 28 TO COMPANY: Please provide the following regarding pipe replacement. a. The dollar amount and miles of pipe that have been identified annually in each of the last five years as being in need of replacement. Page 8 NWIGU'S FIRST REQUEST FOR PRODUCTION OF DOCUMENTS TO INTERMOUNTAIN GAS COMPANY b. The dollar amount and miles of pipe that were replaced annually in each of the last five years as a result of being identified as being in need of replacement? c. As specifically as possible, identify the annual sources of funding used for the pipe replacements identified in subpart b. The following questions are related to the Direct Testimony of Ted Dedden NWIGU REQUEST NO 29 TO COMPANY: Please provide the following regarding Customer Deposits. a. Does the Company collect Customer Deposits? b. If the response to subpart a. is "no," explain why. c. If yes to subpart a., explain in detail how these funds are accounted for in the Company's books and records? d. The monthly dollar amount balances for Customer Deposits for the period December 31 , 2010 through December 31 , 2016 as the data becomes available, in working Excel electronic format with all formulas intact. e. Explain in detail the cause of any month to month deviations, of+ or - 10% or more, in the amounts provided in response to subpart d. f. The rate of interest paid on customer deposits. g. Explain in detail why Customer Deposits are not included m the Company's rate base, including cites to Commission orders and/or policies. NWIGU REQUEST NO 30 TO COMPANY: Please provide the following regarding Customer Advances. a. The monthly balances of the dollar amount of Customer advances for the period December 31 , 2010 through December 31, 2016 as the data becomes available, in working Excel electronic format with all formulas intact. b. Explain in detail the cause of any month to month deviations, of+ or - 10% or more, in the amounts provided in response to subpart a. Page 9 NWIGU'S FIRST REQUEST FOR PRODUCTION OF DOCUMENTS TO INTERMOUNTAIN GAS COMPANY NWIGU REQUEST NO 31 TO COMPANY: Please provide following regarding other revenues. a. The annual amount of other revenues for the 2011 through 2015, and monthly for 2016 as actual data becomes available, consistent with the income statement values used in the Company's case filing (Dedden Exhibit 09), in working Excel electronic format with all formulas intact. b. A detailed explanation for year to year variances of+ or -10% or more, by revenue item. NWIGU REQUEST NO 32 TO COMPANY: Please provide the actual July through December 2016 balances as they become available for plant, depreciation and amortization reserves, materials and supplies, customer advances, accumulated deferred income taxes and gas storage, consistent with the rate base values used in the Company's case filing (Dedden Exhibit 07), in working Excel electronic format with all formulas intact. NWIGU REQUEST NO 33 TO COMPANY: Please provide the following: a. The Cross Charge Summary annually for 2011 through 2015 and monthly for 2016 as actual data becomes available, consistent with the line item values used in the Company's case filing (Dedden Exhibit 11). b. Data for the 2015 summary. c. Provide subparts a. and b. in working Excel electronic format with all formulas intact. NWIGU REQUEST NO 34 TO COMPANY: Please provide the following regarding the deferred income tax reserves included in rate base. a. Supporting calculations demonstrating that the deferred income taxes included in rate base reflect the timing difference associated with bonus depreciation available on 2016 plant additions, in working Excel electronic format with all formulas intact. b. Supporting calculations demonstrating that the deferred income taxes included in rate base reflect the timing difference associated with non­ bonus tax depreciation available on 2016 plant additions, in working Excel electronic format with all formulas intact. Page 10 NWIGU'S FIRST REQUEST FOR PRODUCTION OF DOCUMENTS TO INTERMOUNTAIN GAS COMPANY c. Supporting calculations demonstrating that the deferred income taxes included in rate base reflect the timing difference associated with tax depreciation on pre-2016 plant additions, in working Excel electronic format with all formulas intact. d. Detailed explanations associated with subparts a. through c. NWIGU REQUEST NO 35 TO COMPANY: Please provide the following regarding costs charged by MDUR. a. The amount, by function/category, annually for 2010 through 2016, as the data becomes available, charged to the following entities: 1. Montana Dakota -Electric utility segment; 2. Montana Dakota/Great Plains -Gas utility segment; 3. Cascade Natural Gas ("CNG"); 4. Intermountain Gas Company ("IGC"); 5. WBI Energy Transmission; 6. WBI Midstream; 7. Knife River Construction ("KRC"); and 8. MDU Construction Services Group, Inc. ("CSG") b. A description of the business performed by each entity in subpart a. c. Describe in detail the basis of the cost charged by MDUR (actual, or other) and how it is determined, including the rate of return and depreciation rates used for recovery of assets. d. Describe in detail the process used to determine that the costs charged for services are necessary, reasonable and equal to or below the cost that would be charged by an independent third-party. e. Identify where these costs are charged in the books and records ofIGC and the amount included in the cost of service in this case. Page 11 NWIGU'S FIRST REQUEST FOR PRODUCTION OF DOCUMENTS TO INTERMOUNTAIN GAS COMPANY NWIGU REQUEST NO 36 TO COMPANY: Please provide the following regarding costs charged to each operating company by Montana Dakota/Great Plains, Cascade Natural Gas and IGC. a. Identify the operating companies receiving costs from each of the above providers. b. The amount, by function/category, annually for 2010 through 2016, as the data becomes available, charged to the companies in subpart a. c. For the period 2010 to 2016, describe in detail the services provided and the cost charged by Montana Dakota/Great Plains (actual, or other) for services provided and a description of how the cost is determined, including the rate of return and depreciation rates used for recovery of assets. d. Describe in detail the process used to determine that the costs charged for services are necessary, reasonable and equal to or below the cost that would be charged by an independent third-party. e. Identify where these costs are charged in the books and records of IGC and the amount included in the cost of service in this case. f. Provide complete copies of all regulated filings of the service Company charges including FERC Form 60. The following questions are related to the Direct Testimony of Jacob Darrington NWIGU REQUEST NO 37 TO COMPANY: Please provide the following regarding Incentive compensation cost included in the 2016 cost of service. a. Identify the different incentive plans included in the cost of service. b. Identify the amount of each plan in subpart a., and how it was determined for each category (financial, safety, cost control, etc.). c. Provide the plan documents for each incentive plan that fully describe the terms of the plan, its intended purpose, the employees covered, how payouts are determined by category, what adjustments can be made in the determination of payouts and the level of control management has over the administration of the plan. d. The five most recent annual amounts of payout for each plan, by category, in working Excel electronic format with all formulas intact. Page 12 NWIGU'S FIRST REQUEST FOR PRODUCTION OF DOCUMENTS TO INTERMOUNTAIN GAS COMPANY e. Calculations, in working Excel electronic format with all formulas intact, and other documentation supporting the amounts in subpart b. and d., including weightings, scorecards, comparisons to benchmarks, etc. f. Describe how the Idaho Public Utilities Commission has ruled with regard to the recovery of incentive compensation, including cites to past orders. NWIGU REQUEST NO 38 TO COMPANY: Please provide the following regarding the adjustments to the deferred income tax reserve shown on Exhibit 12, page 2. a. All calculations supporting the amount of each adjustments, in working Excel electronic format with all formulas intact. b. Supporting calculations for the determination of the FAS l 09 and APB 11 amounts and detailed explanations of how these amounts were used in the calculations in subpart a., in working Excel electronic format with all formulas intact. c. References to the specific IRS code sections that require the proposed adjustments. d. Excerpts from prior Commission orders that support the adjustments and the method of calculation. NWIGU REQUEST NO 39 TO COMPANY: Provide the following regarding the adjustments associated with non-utility LNG adjustments . a. Rationale for characterizing these transactions as non-utility. b. Explain whether utility assets and personnel were used to facilitate these transactions. c. A detailed explanation of the circumstances that gave rise to these transactions. d. Excerpts from Commission orders that support the Company's proposed treatment of these transactions. Page 13 NWIGU'S FIRST REQUEST FOR PRODUCTION OF DOCUMENTS TO INTERMOUNTAIN GAS COMPANY e. A calculation showing the total cost associated with these transactions, including storage cost, in working Excel electronic format with all formulas intact. NWIGU REQUEST NO 40 TO COMPANY: In working Excel electronic format with all formulas intact, please provide the actual number of customers by rate class, by month, for the period January 1, 2011 through December 31 , 2016, as the data becomes available Dated this 13th day of October 2016. Respectfully submitted, ~ Chad M. Stokes, OSB No. 004007 Tommy A. Brooks, OSB No. 076071 Cable Huston, LLP 1001 SW Fifth Ave., Suite 2000 Portland, OR 97204-1136 Telephone: (503) 224-3092 Facsimile: (503) 224-3176 E-Mail: cstokes@cablehuston.com tbrooks@cablehuston.com Of Attorneys for Northwest Industrial Gas Users Page 14 NWIGU'S FIRST REQUEST FOR PRODUCTION OF DOCUMENTS TO INTERMOUNTAIN GAS COMPANY CERTIFICATE OF SERVICE I CERTIFY that I have on this day served the foregoing document upon all parties of record in this proceeding via electronic mail and/or by mailing a copy properly addressed and first class postage prepaid. Peter J. Richardson Gregory M. Adams Richardson Adams, PLLC 515 N 27th Street Boise, ID 83 702 peter@richardsonandoleary.com greg@richardsonandoleary.com Ronald L. Williams Williams Bradbury, P.C. 1015 W. Hays Street Boise, ID 83702 ron@williamsbradbury.com Benjamin Otto Idaho Conservation League 710 N 6th Street Boise, ID 83 702 botto@idahoconservation.org Brad M. Purdy 2019 N 17th Street Boise, ID 93 702 bmpurdy@hotmail.com Michael P. McGrath Director, Regulatory Affairs Intermountain Gas Company PO Box 7608 Boise, ID 83707 Mike.mcgrather@intergas.com Scott Dale Blickenstaff Amalgamated Sugar Co LLC 1951 S Saturn Way Ste 100 Boise, ID 83702 sblickenstaff@amalsugar.com F. Diego Rivas NW Energy Coalition 1101 81h Avenue Helena, MT 59601 diego@nwenergy.org Dated in Portland, Oregon, this 13th day of Page 1 -CERTIFICATE OF SERVICE Chad M. Stokes, OSB No. 004007 Tommy A. Brooks, OSB No. 076071 Cable Huston LLP 1001 SW Fifth Ave., Suite 2000 Portland, OR 97204-1136 Telephone: (503) 224-3092 Facsimile: (503) 224-3176 E-Mail: cstokes@cablehuston.com tbrooks@cablehuston.com Of Attorneys for the Northwest Industrial Gas Users