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Home My WebLink About20170321Transcript Exhibits Staff,Intervenors.pdfo rNT-G-16-02 Sales and General Advertising Expense - Adjustment Detail Test Year 2016 - January - September Actual Expenses Schedule 3 o ExhibitNo. l0l Schedule 3 Case No. INT-G-16-02 B. Romano, Staff 12116116 Page I of 5 Line No. Exhibit line No Acct. No.Description 1 Desription 2 Amount t 1 930.1 ldaho Governor's Cup 2015 golf sponsor s 16,000.00 2 Boise State University Foundation College of bus/econ golf tourney 5,500.001930.1 Boise Metro Chamber of Commerce Cust 1604 2016 Golf Classic 5,000.003t930.1 BOYS & GIRLS CLUB OF ADA COUNT 2016 SPUD CHALLENGE GOLF TOURN 5,000.004L930.1 c cHAPtN 8-16 ISPE golf scramble 410.0051930.1 400.006T930.1 POCATELLO CHU BBUCK CHAM BER OF annual golf tourney 7 1 930.1 Blackfoot chamber of Commerce Golf tournament sponsorship 280.00 8 1 930.1 GREATER POCATELLO ASSN OF REAL 2016 GPAR GOLF TOURNAMENT 100.00 9 L 913.0 EASTERN IDAHO HOME BUILDERS ASSN lnactive hole sponsorship 75.00 10 2 930.1 FUNDSY, INC.FUNDSY Gala Sponsor 5,000.00 11 2 930.1 A CHEF'S AFFAIRE SPONSORSHIP 5,000.00 72 2 913.0 IDAHO PUBLIC TELEVISION General operating support 4,000.00 13 2 930.1 Boise State University Foundation DIRECTOR SPONSOR 3,000.00 t4 2 913.0 PROSPERTERE-NEW WORLD MEDIA LL 2,000.00 15 2 930.1 B MARCONI2-16 table sponsorship 1,891.00 16 2 930.1 BISHOP KELLY FOUNDATION 2016 WINNER,S CHOICE DINNER 1,750.00 t7 930.1 BUY IDAHO INC SNAKE RIVER SPONSORSHIP PKG 1,750.002 B DEFENBACH 4-15 Good will mealfor non-profit L,507.64182930.1 VANDAL SCHOLARSHIP FUND VSF Gala Table Sponsor 1,500.00192930.1 BANNOCK DEVELOPMENT CORP SYMPOSIUM 1,500.00202930.1 COLLEGE OF WESTERN IDAHO table sponsor 1,200.00272930.1 WEST ADA EDUCATION FOUNDATION Gala 1,000.00222913.0 SHOSHONE BANNOCK TRIBES Festival Sponsorship 1,000.00232913.0 1,000.00242930.1 BRUSH UP NAMPA community event sponsorship 930.1 WASSMUTH CENTER FOR HUMAN RIGH Change your world table 1,000.00252 NEIGHBORWORKS BOISE 7t/72116 RAKE UP SPONSOR 1,000.00262930.1 EXHIBIT .CATEr, LAtiE: o tNT-G-16-02 Sales and General Advertising Expense - Adjustment Detail Test Year 2016 - January - September Actual Expenses Schedule 3o o Line No. Exhibit Line No.Acct. No.Description 1 Description 2 Amount 27 2 930.1 R MORGAN 8.16 Team Registration 1,000.00 28 2 930.1 B DEFENBACH 4-15 Good Will Lunch IPT 996.27 29 2 930.1 RULE STUDIOS TEE 770.34 30 2 930.1 B MARCONI4.16 Community Goodwill 750.00 31 2 930.1 B DEFENBACH 4.16 Goodwill meals for non profit 707.36 32 2 913.0 EASTERN IDAHO TECHN ICAL COLLEG 2016 Great Race for Ed 5s0.00 33 2 930.1 L MURRAY 9.15 Non-Profit Event 550.00 34 2 913.0 ADA COUNTY ASSOCIATION OF REAL Annual Realtor Award Sponsor s00.00 35 2 913.0 ST ALPHONSUS FOU NDATION T-shirt sponsor 500.00 36 2 930.1 DCN SPORTS SCHOOL DISTRICT SCHOLARSHIPS 500.00 37 2 930.1 NAME BRAND PROMOTIONS LLC CUST IMGC - Shirts for Jr Achievement 438.03 38 2 930.1 The Salvation Army table sponsor 375.00 39 2 913.0 Green Wing Teal LLC Apparel for IDPTV Phone Bank 300.00 40 2 913.0 SEICAA SPONSORSHIP 300.00 47 2 913.0 SOUTHEAST IDAHO COUNCIL OF GOV 2016 Portneuf Valley Env Fair 250.00 42 2 930.1 N GYLLENSKOG 3.16 sponsor leadership Boise lunch 250.00 43 2 913.0 IDAHO STATE UNIVERSITY ATHLETI ORANGE&BLACK CLASSIC SPONSOR 200.00 44 2 930.2 ROTARY CLUB OF IDAHO FALLS TERITENGAIO DUES 775.OO 45 2 930.1 SLT GRAPHICS Shirts for Pain Fest 1s3.80 46 2 930.1 UNITED WAY OF SOUTHEASTERN IDA BRONZE SPONSOR 150.00 47 2 930.1 IDAHO FALLS HISTORIC FOUNDATIO 10'TREE - LIGHTING CEREMONEY 1s0.00 48 2 913.0 Pocatello Marathon 2016 POCATELLO MARATHON 150.00 49 2 930.1 G WEGNER 8.15 West Ada School 10s.32 50 2 930.1 PAYETTE COUNW FAIR BUYER ID 436 100.00 51 2 930.2 TWIN FALLS LIONS CLUB L MCBRIDE 1ST QTR DUES 100.00 52 2 913.0 SMALL BUSINESS DEVELOPMENT CEN 2016 Women's Symposium 90.00 53 2 930.1 J CAPPS 8-16 Team Sponsorship 70.00 Exhibit No. l0l Schedule 3 Case No. INT-G-16-02 B. Romano, Staff 12/16116 Page 2 of5 o !NT-G-16-02 Sales and General Advertising Expense - Adjustment Detail Test Year 2OL6 - January - September Actual Expenses Schedule 3o o Line No. Exhibit Line No.Acct. No.Description 1 Description 2 Amount 54 2 913.0 H BATTEN 3.16 Lunch 55.00 55 2 930.1 SEICAA SPONSOR T-SHIRTS 58.55 56 2 930.1 VICTIM ASSISTANCE PROGRAM MEAL SPONSOR FOR MONTH 50.00 57 2 913.0 BLACKFOOT CHAMBER OF COMMERCE FIREWORKS 50.00 58 2 930.1 KIWANIS CLUB 49TH BNG HONG PANCAKE BREAKFAST 30.00 59 2 930.1 R JONES 5-15 Promotion 25.97 60 2 930.1 J STATTNER JR 9-15 BCAA Charity Event 10.00 61 2 930.1 G WEGNER 8-15 West Ada School 2.73 62 2 930.1 ldaho Statesman Together Treasure Valley 2076 2,000.00 63 2 930.1 ldaho Statesman Together Treasure Valley 2076 2,000.00 64 2 930.1 ldaho Statesman Together Treasure Valley 20L6 2,000.00 55 2 930.1 ldaho Statesman Together Treasure Valley 20L6 2,000.00 66 3 930.1 AMERICAN HEART ASSOCIATION heart walk/ go red 15,000.00 67 4 930.1 BOISE METRO CHAMBER OF COMMERC Acct 1504 5,000.00 68 4 930.1 NAMPA CHAMBER OF COMMERCE Leadership Nampa Sponsorship 2,500.00 69 4 913.0 POCATELLO CHUBBUCK CHAM BER OF COMMERCE Sponsorships 2,400.00 70 4 930.1 BOISE METRO CHAMBER OF COMMERC Acct 1504 2,000.00 7T 4 930.1 BOISE METRO CHAMBER OF COMMERC 1604 - Congressional Forum Risch 1,500.00 72 4 930.1 BOISE METRO CHAMBER OF COMMERCE Cust 1604 Sponsor - Congressional Forum Simpson 1,500.00 73 4 930.1 BOISE METRO CHAMBER OF COMMERC Acct 1504 1,000.00 74 4 930.1 BOISE METRO CHAMBER OF COMMERC cusT 1604 650.00 75 4 930.1 BOISE METRO CHAMBER OF COMMERC Acct 1504 650.00 76 4 930.1 B MARCONI3.16 sponsorship s00.00 ExhibitNo. l0l Schedule 3 Case No. INT-G-16-02 B. Romano, Staff l2l16116 Page 3 of 5 o !NT-G-16-02 Sales and GeneralAdvertising Expense - Adjustment Detail Test Year 2016 - January - September Actual Expenses Schedule 3o o Line No Exhibit Line No.Acct. No.Description 1 Description 2 Amount 77 4 930.1 POCATELLO CHU BBUCK CHAM BER OF BREAKFAST W GOVERNOR 2s0.00 78 4 930.1 POCATELLO CHU BBUCK CHAM BER OF hanging basket sponsor 16th yr.200.00 79 5 930.1 J GRIVET III 9-16 GAS GRILLS 3,866.88 80 5 930.1 J GRIVET III 9.16 GAS GRILLS 7,933.44 81 5 930.1 c TMLACH 9-16 Grills 1,359.30 82 5 930.1 G PANTER 7-16 Go Anywhere Gas Grills 7,220.9L 83 5 930.1 D COMBS 2-16 go anywhere gas grill 635.89 84 5 930.1 D COMBS 6.16 go anywhere gas grill 635.89 85 5 930.1 R MORGAN 5.16 Grill 591.48 86 5 930.1 c TMLACH 8-15 GoodwillGrill 485.51 87 5 930.1 G PANTER 8.16 BB Grill 486.51 88 5 930.1 reclass a bove/below expenses reclass goodwillgrill 485.48 89 5 930.1 B DEFENBACH 3-16 Goodwillgrill 485.48 90 5 930.1 B DEFENBACH 3-16 Goodwillgrill 485.48 91 5 930.1 B MARCONI4-15 bbq 470.63 92 5 930.1 D DANIELS 5.16 donation grill 422.94 93 5 930.1 B MARCONI2-16 bbq 422.94 94 5 930.1 A SCHNEIDER 6-15 BBQ 422.94 95 5 930.1 R MORGAN 4-16 BBQ Grill 391.14 96 5 930.1 B DEFENBACH 2.16 Goodwillgrill 320.48 97 5 930.1 A SCHNEIDER 8-16 BBQ donation 285.L4 98 5 930,1 G PANTER 8-16 BB Grill 285.14 99 5 930.1 G PANTER 8-16 BB Grill 285.14 100 5 930.1 G PANTER 8.16 BB Grill 285.L4 101 5 930.1 A SCHNEIDER 9-16 BBQ for non-profit 285.L4 702 5 930.1 M VITLEY 9-16 Nat. Gas BBQ 27s.59 103 5 930.1 J GRIVET III 2-16 GAS GRILLS 184.44 104 5 930.1 J GRIVET III 2.15 GAS GRILLS 784.44 105 5 930.1 D PETERSON 9.16 BBq 94.34 106 5 930.1 J GRIVET III 2-15 GAS GRILLS 92.22 107 5 930.1 J GRIVET III2-16 GAS GRILLS 92.22 108 6 930.1 BOYS & GIRLS CLUB OF ADA COUNT 2015 Dessert Sponsor 2,500.00 109 6 930.1 reclass above/below expenses reclass boys and girls club sp 800.00 110 5 930.1 D GOFF 6-16 materials for Girl Scouts 91.39 111 6 930.1 D GOFF 6-15 materials for Girl Scouts 22.47 t72 7 930.1 R NISHIKAWA 5-15 Paint the Town Materials 349.20 113 7 930.1 G PANTER 6-16 BBQ Paint the Town 316.94 ExhibitNo. l0l Schedule 3 Case No. INT-G-16-02 B. Romano, Staff 12116116 Page 4 of 5 o o rNT-G-16-02 Sales and General Advertising Expense - Adjustment Detail Test Year 2OL6 - January - September Actual Expenses Schedule 3 o o Line No. Exhibit Line No.Acct. No.Description 1 Description 2 Amount 114 7 930.1 reclass a bove/below expenses reclass paint the town prize 315.94 115 7 930.1 B MARCONI 6-15 paint supplies 298.L7 116 7 930.1 B MARCONI 6-16 paint supplies 250.28 717 7 930.1 R PHILLIPS 5-16 Material 185.50 118 7 930.1 R PHILLIPS 5-15 Material 185.50 119 7 930.1 R PHILL!PS 5.16 Material 185.50 120 7 930.1 R PHILLIPS 5.16 Material 185.50 127 7 930.1 R ANDERSON 6.16 Paint for PTT 178.08 122 7 930.1 reclass a bove/below expenses reclass paint the town prize 125.93 123 7 930.1 R ANDERSON 3.16 Paint the Town Team 2015 100.00 L24 7 930.1 R MORGAN 6.16 Paint Supplies 54.71 L25 7 930.1 B MARCONI6.16 paint supplies 43.40 L26 7 930.1 R NISHIKAWA 6-15 Paint the Town Materials 24.54 t27 8 Total s 143,168.34 Exhibit No. l0l Schedule 3 Case No. INT-G-16-02 B. Romano, Staff 12116/16 Page 5 of 5 INT-G-16-02 Management Expense Reports 2015 Test Year Adjustmentso o INT-G-16-02 Management Expense Reports 2016 (Actual Expenses) Name Exp Rpt Created Date of Exp Sub Ledgel Acct Merchant Item Description Amount David Nelson t2l29l20LS 1212912015 29260 Pioneer Saloon lnc.Christmas dinner for employees and spouses 229.70 Roger Phillips L212912015 L2/1812015 29260 One Up LLC Christmas Partv Western Region 2.781.00 Randall Morcan L/2612016 Ll27l20t6 29260 BSU Conference Services Region 2016 Christmas Party Reservation Fee 1,650.00 James Capps 6/6120t6 6ltLl20t6 28800 Gun Club ShootinS costs - employee and company vendors event 2,071.56 Timothy Wold s/2s12016 6lt7l20L6 28850 Goodwood BBQ Company Miss ldaho Judges - dinner 150.7s 6178120t6 28850 Brick 29 Miss ldaho Judges - dinner 278.06 Linda Murray 6/22/2016 7/1812016 29210 PortorCharterLishthouse CNG HR Lunch 70.o2 Gary Panter 612217075 6129120L6 29301 Evans Buildins Center Go Anywhere Gas Grills - Chervl lmlach 7,220.9L Scott Madison 8/3u2076 9130120t6 29210 Alaska Air Gov Cup Airfare ts7.70 Scott Madison 7/22/20t6 819120L6 292LO Alaska Air Gov Cup Airfare 13.00 8l9l2Ot6 29210 Alaska Air Resort Golf Course Snack Gov Cup Airfare 125.00 8.50 Mark Chiles 9/30/20L6 913012016 292r0 CDA Resort Dockside lD Gov Cup meal 23.60 913012016 292L0 Coeur D Alene Resort lD Gov Cup meal 9.23 s13012016 292L0 PDX Laurelwood A1 lD Gov Cup meal 25.80 s13012016 29270 Chevron lD Gov Cup gas for car 12.00 913012016 292L0 ABM Parklnc lD Gov Cup parking 57.50 9l30l2076 29210 Coeur D Alene Resort lD Gov Cup hotel 1,159.53 A. Schneider 6127120L6 6/2212076 28790 Girl Scouts of Silver Sace Non-prof it Recognition 40.00 A. Schneider 1137/20L6 7ltl20t6 28790 fexas Roadhouse LLC Volunteer gatherinR - The Aquarium 58.19 7ltl2076 28790 Ihe Piper Pub & Grill Event planninS 60.88 71712016 28790 Stacecoach Volunteer recruitment - The Chefs Affaire 63.69 7lLl20r6 28790 Moons Kitchen Cafd AHA Heart Walk Event debriefinc 29.38 7lt/2076 28790 Bittercreek Red Feather United Way event planninS - Flapiack Feed 37.33 A. Schneider 813712016 813t12016 28790 Sharis of Boise Chefs Affaire meetinS - company donations 28.97 8l3tl20t6 28790 Even Steven Sandwiches Donor meetinR 29.08 8l3tl2076 28790 Applebees Boise Community garden meeting - volunteer recruitment s6.L7 813712076 28790 SQ Alzheimers IDA Golf fees - Alzheimers Fundraiser event 420.00 813712076 28790 FORK Volunteer lunch - United Way Update 76.24 813u2o76 28790 The Dish Donation meetinS - Chefs Affiare Event 53.53 813112076 28790 Moons Kitchen Caf6 Community garden meeting 33.51 A. Schneider 913012016 913012016 28790 SCENTSY Scentsy fundraiser - volunteer meeting 21.35 9130/2016 28t90 Bittercreek Red Feather Chefs Affaire donation lunch 48.96 s/7/2ot6 28790 Bittercreek Red Feather Volunteer duties - A Chefs Affaire planning s9.42 9l3Al2016 28790 Bittercreek Red Feather Volunteer recocnition 41.s4 Total 2016 Jan-Sep Ad.iustment (based on actuals)3 LL,2t2.44 INT-G-16-02 Management Expense Reports (Forecasted) Name Exp Rot Created Date of Exp Sub Ledter Merchant Item Descriptlon Amount James Capps t2/8/zOLs L2/4/29ts 29301 MaSic Bowl Front counter Christmas ParW Meal/Entertainment 1,800.00 Randall Morgan Lt/24120rs 72lt9l20LS 29260 Courward bv Marriott ReBion Christmas ParW 2.000.00 LzlL9/2015 29260 Courtvard bv Marriott RePion Christmas ParW 2.000.00 t2h9/2}ts 29260 Courtyard by Marriott Recion Christmas ParW 2,000.00 Total 2016 Oct-Dec Adjustment (based on 2015 expenses for the same period)s 7,8@.00 Total recommended 2016 test vear adiustment s 19,012.44 EXHIBIT $l'lEr .rlArae Exhibit No. 102 Case No. INT-G-16-02 B. Romano, Staff t2lt6il6 o 'l* 3* 1: *)l x:e** H.H"t *)t d *** cira; al { * 59 :l 55 s! ol! >E ;lgEI H ES ;EE s.,fftiT6EsE;oEi Fo FEEEEE Revised Exhibit No. 103 Case No. INT-G-16-02 J. Terry, Staff 02124117 Fl{ot{Exul & roO Il ss riE a' c oq q ifto sd! i6 ss ctotr rlddE dgE a ?oRE8s3F @.i N. ,t 3 EEAEE- O rEfr Ff BCE LEgE: r6E2& g PoEtsEE!E9AEEE3 sE 5 s s-A6€BEEE: €E.EEE.E.EEouJOooo aeI h d c e 6oa dF ooo @d F;rt.i d€ ts ' F.t o{ s.t 3T €e rjda F.t 58 6 lJu rr8:eooo aijq'qctdl: O-l- 6-6-r g > oq6 Er'0 E; 5 rs E 5*EFEta>o-qp.;: 3;1" *E * i c*E:EE3 E3E!5$ BHSnSS .9 EPo o ! o3 ET'.4 I6-9 IqIE,iE €sEE?t6Etszxp ^t .t oildt i =-l I I ICola o - o ooNlo600666lO-tsO-l- 661F6000ryal =-l II-^t o dlN F @ d Id ol? oi d N'N' O alo - F O ?ct dlrj rt "t i.i 6 6lN-1 N_ O- IF !!o a o- N- 3. E.IF6Eg oc oloo60Nl OOFr NaO6-Fo -N ;Te"g$d8 6o 6S ca 2< E gt EEE .13:* 8p335 :EE 6< 90"!383: LI o EEeE6 6L5Oo t E-Be " !FE e;$r z <E !q !E EE T& 6 eEeEpr;pt=d ZE 9E6iE E3?E: Bi3 .8 E2 E b- E Eo o ?oo- ft- @- N- o- F, g. ""t39EgTI &E'-sdIEE!iO EE!8 P9Ri g eG E6Ed5 co F-i -EE 3gac E3-9.2e1aE(rgeB"-gEEEEE.E€ETgE€czFoooo I 9,= o,r e EEEooo @-t 6d?6NoliN F-.- 6- i- F_ a F- 6Nts60tso@ OOF+66aOO-tsO 60N@FNO6 F oO B8 o'o F E aeg BxdE .etl g 6 E;a.c EgE EE E s6E E l, i5 F9 5!o d6l6€ts az >RA>RXAXXXE,E eS H I D f, S P HH ES+cir.ir-+r.F.,-d iESooFolI\drcnooo tJl 6gE(u(!Nq.lovt,fiL(J(ulJ!,c00-Htoor!ro.!?=ui<.='=r1e o, oo'Ho6LE!.t Eiiov.-'-E.Y cL oO.= =E2 ,5=;g EEqC;?Et'9;6Psr*5EEEPIEHqqETEEg;gg:55PEEE5a6iEi>= cOOt<t-lr<OHr{'UarONFrnOslNtE;OOOOOOTiCLXOF{F{NOl/lstitj6*"h"h*-i.itrOF{r{dFrttj'lo Exhibit No. 104 Case No. INT-G-16-02 J. Terry, Staff 12n6il6 oooooooO-r{slNnnUlFlF{oO (! -@ O Fi (\t <l 6 f\g=Ed$'oid@'o'rigEf+@rnNNm(ne<- rhe.0eio(!NcLata5&LL)0,()Eoo(1--(EEtr.oo(!ro; .E !,i=* E Fo'ioJ6L (u =o.=.gE.Y CL oO.= =e; -fi81 E;:*;EEi.eEEEPIEHq aE *E EtE*o<(9-iI<>5 cOO!.tF{F{OF{FlEarONf\u1 Osl 6ltE;OOOOOOt{o.XOF{F{NO{1T3U6*"h"hrl.n*O OFtr{FlF{<trjto a,OOOOOOOss!!&!55(o(o(o(o(!(!G(!.=ETIET'E'E!Vr-- ooooooo(u-t\lt.E)F{N@ONoO(!>m<tNmCDg)(,rS=Eoo'a;A^idd9EEs.1(ooroosrsr€<- H t,c.0eYC't!No.A1;,5ELL,,o9Eoo(faro:--roct/|bOo ,'i = ,/i<.='ELz,e o (Uo'H66-v..(U = o .=.9E, E ?* ,H= s # ESqg;?gl-o-=ooJ, EEEEESEE. +gEEEgEEg:ESEEEE5<6fEA>= cOoF{t{FIOF{FtEa'6rrtN!nOslNo-ii6OOOOOrieXOHFro{Ou1 sl3O6*c'\oi*"h.lOoF{Frt-{r{(ttno @ !9 o o tt th tn vt vt '5fff,llf,f, o o o :+o iz Fl.aEl{ xuI s fil o CASE NO. INT-G.I6.02 EXHIBIT NO. 105 PREPARED AND SPONSORED BY JOSEPH TERRY IS CONFIDENTIAL AND ONLY AVAILABLE TO THOSE PERSONS WHO HAVE SIGNBD PROTECTIVE AGREEMENTS o Confidential Exhibit No. 105 Case No. INT-G-16-02 J. Terry, Staff t2lt6lt5 EXHIBIT I{n , il05 €ntF.\ {a itti o o Line No. 1 2 3 4 Assets that are Partly Held for Future Use Description Net Book Value Dep Rate Building - Project (390) 3,510,700 2.3tYo Land (389) 2,004,555 0.00% 5,615,255 Allocation % 34.6OYo Annual Dep 83,407 83,407 Amount Allocated to IGC 1,942,979 9 10 11 5 Plant Allocation 5 rGC 7 Depreciation 8 rGC Book Value 5,615,255 83,407 (647,6261 (9,620) Allocation Factor 354,324 332,505 273,Otz 959,842 34.60%28,859 Ll3 of book value allocated to lGC Yo 36.90Yo 34.60% 28.4OYo Adjustment Rate Base Depreciation LZ Customer Counts 13 MDU Electric, Gas, Combo L4 IGC 15 CNG 16 Total o Sta EXHIBIT NoI ,EIlEp ttttitt? Exhibit No. 106 Case No. INT-G-16-02 J. Terry, Staff t2/.t6lr6 o s\ovl o\ 6lU'o oL Oi cla U c)qr) o& Exhibit No. 107 Case No. INT-G-t6-02 M. Rogers, Staff 12/16/16 Page I of2 Xssss\e:D+ =oio.r-F- sssss€8t38t-\ciG++ sssss$a=s3+ c'i .'i c.i c.i sssssc\\ora\ovHanooFV+ c'i ci oi 6i Ecl.--Uq) ETa\/() d9Fc):JEcltsdaa6 d-o A )..='E E ; aFliCrlN*F] ssssssf:rfrEi5\o(r.-oi"-=F.= ssssssso\oooootn(n\n\nC)O'"n\O\cr+\d+\ci+F- sssssss$c{cn\O$dO\ocooooso\He,i cri .ri c.i + c.i cri oooooooooooooot+tf=f.f,<f!f,$qqqqqqq HH__HiH sssssssVHOc{c{c\r=q-1oqv?-\c!(\lcnNcnt+Nc! ixz1a5,9 .9 >.! 4!v ct =o.trE d cx=ocov v t\ r rrE IruEF B:;FEJ9v a lv ) .- -r) y H E 1.,:[idctn.r,h ( E;(.9 i'q a-!t-Efi B Y r [i 6Eqa3 22r*4E g iEEEi.:'E a, o ^ xJ< 6"ZZ,i,n- U'q) I G oct\J= a(J O6t:v -o ll l-V+rAliD -Eett '7;q6GIArh -lvE =q)!Y t) ii C)d*.z= EE?,a Q) q)a Ic! Lla arE U U)ctzl\J L G+. t-o ts-LoI I- o o f\.-a <iz Ft{El.{ xllr u) *l (.) J4fr(€z >\Ld Or d o.dO o ano(J B Eo "E, C)6.)=gdaxr! x €aE,X>GEdC) -rE )v E = rL, ji.nHA O-aEU.=;€' 9 ,t, o).i>o l-rG).vc)F (d& Eo(J o Exhibit No. 107 Case No.INT-G-16-02 M. Rogers, Staff 12/16116 Page 2 of 2 (h C)F0 (! d U)o -od (lg (-) c) € d) o)€ ah (d o. o() xo .o C)d c)bod c) * ssssst{r) C.t 6l €O.lF-tO\to( od cd r- F- sssssoOO\t-O\OOO ;r ca \O\odvi+c'i \o .o -o \o \og\ o\ o\ o\ 6\O\ O\ F f\ c.l.1 '.?qq9!+cil.)c\lc\ sssssOt \O rr \O sf,c?| oo r- s+ c'i Gi c.i c.i * €! q)t-av o)q.)=o '5 l- .-hEEa2,=fo o-'J O =='E e a a 'l c4 6l il .o.o.o -o -o.o.oo\ o\ o\ o\ o\ o\ o\Ola\--(r)O\(noqqv?nqc.loOf-O\FoO€O\ \O \O \O rQ rO rO rOo\ o\ O\ o\ O\ o\ O\O\$O\\O\Of-OO\,.'lq9q-atn$(^.i$rn\O -o -o -o \o \o -o \oq\ s\ s\ o\ o\ o\ o\.iNc.l\ o\C.lCt9nqoqc'!qqC.I ci c-l ci !+ C.l a.t ooooooo$ss$$$$ooooooa ---i \O \O \O \O \O \O \Oo\ 0\ o\ o\ o\ o\ o\t-Oc.lc!c{tnn:oq9-\oqN ca c{ ci t c! c\l i*zlaI",9 €>r!E =o.- PH ci c ^ A V L U.= -O-i=E E p.u I* gYHFPo i d 5-Yt? HEEYAP i2;8 E'EdYAii*-irl.]ci:q)0)(),: --9 =h' =''rr 5 F E EE=s9 5ES E9qJq ECJo frr(JU 1A =cllefr;FEZE59r -()9!E =622EC)!r .3EBc)t<av cl 0 IGE oU U)c,(, c! o L Lq)+a - o o s6 OcdO=az,a (! U o tttoo o) tcdEdOa 6)= d0o.>vxlrl]ts(, tE6 E\OC X: 0.) =+?5v 8zo9 o-a +: t'9<IL E to.=>o Lc).!1(.) F cla oQ o o o REqUEST NO. 202: Please provide a breakdown of Capital Expenditures in FERC accounts 380, 381, 382, 383, 384, and 385 and by existine rate class. RESPONSE TO REQUEST NO. 202: Please see the CDtile labeled "PR #202 Plant Act Bals YTD Sep 20l6.xlx" Jor the brealodown of octual accounl balances for January through September 201 6. For the forecasted months of October- Decentber 2016, please refer toJile "Gas Plant inSen,ice.r/sr" subnitted in response to Production Request No. 178. Inlerntounlain's accounling records have never provided thefitnctionality to tack plant ond accumtrlated depreciation by rale class for FERC accounls 380, 381, iE2, 3E3, i81, and i85. Since this llpe of direct assignment $'os no! possible, lntermounlain chose to use an industry occepted praclice lo allocate these occounts to the various customer classes. Because Inlermounlain can associale ils meters in sentice wilh a a$tomer class, the Contpany was able to delermine the number of eoch type of meter cutently installedfor each rale class. Intermounlain lhen valued lhose melers at lhe atnent replacemenl cosl for each meler. The total currenl cost of the melersfor each class y,as calculated and then overaged by the nttmber of merers in each class. Thar averoge meter cost was indexed anc! then nutltiplied by annual cuslomers to creote a veighted cuslomer allocator. The weighted crulomer allocator v,as splil into Group I and Group 2 categories as oullined in lhe response lo Production Request No. 200. The calculation of the v,eighted customer allocator vas included in response to Production Request No. 33, "PR 33 2015 Meter Study - CONFIDENTUL.xIr". These allocalors nere used to assign the FERC accounls 380-385 to Intermounlain's customer classes. RecordHolder: MikeMcGrath.20S-377-60@ Location:555 S Cole Rd. Boise. ID 83707 Sponsor/Preparer: Ted-Dedden.208-377-6000 o Exhibit No. 108 Case No. INT-G-16-02 M. Morrison, Staff 12fi6t16 StaFF EXHIBIT 0 <lEF lLaaEl RESPONSE OF IGC TO NINTH PRODUCTION REQUEST OF COMMISSION STAFF o o REQUEST NO. 102: Please provide any workpapers showing the Company's cost allocation methodology for its intemrptible snow melt schedules, IS-R and IS-C. RESPONSE TO REQUEST NO. 102: The snow melt schedules provide an operational toolfor Intermounlain to maximize its syslem eficiency and lo keep cosls low for all cuslomers. Snow melt customers have a very lott loadfactor and tend to use gas during peak usage pertods. The snow mek tarifs have allowed customers to contiruE to add this equipment without necessitaling the investment in millions of dollars af capacity upgrades to serue the snotv melt load under peak day conditions. When the lar{fs u,ere established, the IS-R (Residential) customers were priced the same as RS-? cuslonters, and IS-C (Commercial) customers were priced the same as GS-/ customers. Since na incremenlal infrastructttre has been added lo serve these customers on a peak day, Intermountain believes it is still appropriate to price lheir usage based on lhe new RS (Residential) or GS-l (Contmercial) rales. Therefore, lhe IS-R customers ond usage have been included with RS and the lS-C cuslomers and usage have been included with GS-l for cost allocation purposes. Record Holder: Mike McGrath.208-377-6000 Location:555 S Cole Rd. Boise- ID 83707 Sponsor/Preparer:Lori Blattner. 208-377-6000 Exhibit No. 109 Case No. INT-G-16-02 M. Morrison, Staff t2/t6116 EXHIBIT No . toq ItfEi .IrHf-o RESPONSE OI' IGC TO FOURTH PRODUCTION REQUEST OF COMMISSION STAFF. o o Class RS-1 RS-2 IS.R GS-1 ts-c LV.1 T-3 T-4 T-5 Staff Allocation of Revenue to Existing Classes Test Year Ending December 3t,2Ot6 Normalized Test Year Revenue at Current Rates Base Rate Gas Operating Base Rate Fraction Revenue S10,9s3,290 o.Lzg473 529,282,269 43,290,919 0.507759 139,209,206 20,158,015 0.000307 76,7L0,782 26,749 0.236438 97,025 1,891 0.000022 6,79t 407,862 0.004784 2,952,3L5 833,713 0.009779 79!,t75 8,909,434 0.104501 8,364,283 675,936 0.007928 549,238 Staff Allocation of Revenue to Proposed Classes Test Year Ending December 31, 2016 Normalized Test Year Revenue at Current Rates Base Rate Gas Operating Base Rate Fraction Revenue 554,244,209 0.636242 St67,q9L,q76 20,158,015 0.000307 76,7t0,782 26,749 0.236438 97,025 1,891 0.000022 6,791 407,862 0.004784 2,852,3L5 833,713 0.009779 79L,t75 9,585,370 0.112429 9,0L3,521 s85,257,209 1.000000 s256,952,485 Revenue Requirement Base Rate s11,622,935 45,937,573 27,748 21,390,405 2,007 432,797 884,683 9,454,126 717,260 Total 585,257,2O9 1.000000 5256,962,485 Sgo,4G9,s34 Revenue Requirement Base Rate S57,550,509 27,748 2L,390,405 2,O07 432,797 884,683 L0,L7L,386 s90,469,534 Class RS IS-R GS-1 ts-c LV-1 T-3 T-4 Total Notes: 1. Base rate revenues exclude PGA costs of gas. 2. 590,469,534 revenue requirement from Witness Terry's Exhibit 103. 3. Base Rate Revenue requirement obtained by multiplying Revenue Requirement by Class Base Rate Fraction. o Revised Exhibit No. I l0 Case No. INT-G-16-02 M. Morrison, Staff 02t241t7 # Staff EXHIBIT 6Foorom an @st€H<lmNNOl-@o1..i N(Ol/t dmfnF.'+ro(o@ t/l <'otr\FNFtsm(o lrt<t N6rt I\dro F*roo CN (O r{01 0r(n sld F.'(odN hHomort 6 !4,rod dNNO6r\ddro ord o\ <lu)0Fdrodro slrn or oosl t\dCn NO@@rl 00 ro6msf o1r.'d(oN(n N NOOl r/)Fdf\ slro tnN+ oloC'HoriF\ slrO a\rorri d()f\ <l6CnF ar,.|rooo-F E oqE =FcoE 2E e oqE =FcoG 2-P E o6= =Fo6 :E E (u9Ero5ci:zt- !nNol r\FOrO LfrOFNOIan rodN (n slut (nr{ lO d(nHNm+6dt doD<f 'o(o@ ON(n0.iN do H6t ONHdtIr1 d oo' r\@orn(lt '.o 01 060Nst@ "'{(o@otdr\mmol<fo6l (ooiFI FOro 01momstsi (o6l rndd stm+dlor ut N'\$NNN F o (h€o F;m oo d l,t@ o cc oo o2 to flo@or Fl t,co rl-{OrnF N6 H@ ut ro6Ftn (, =a ;666mglt o.5 qro6 Ec0,1l'fr9* E 'o. 0l 2 (n G1or 6Fi t"id (I} G1r{ N oNsi <fsf st@ N@ ro sl01 0NNor@Odrn stri Fl rOgt utrt, d6(no\om6(n Nslo't ul.-NO!iol^o(nNo+.aE-o!\omoNC ;o6o-m -1tro 60|J1rnfiHFi dioofnF d t/)ONrl <t FdOlnm66'd N t/ld$sl Oir\ \OONm01UiN oddNorl,N€o+rr1 0yi(n 6raNOtnorooo6fno sf OrnOFI(nF.,i dsfONt1t ro u)slNNOdNr$ <lNT\(n oorntd6dlnst (O ^to d t+rrUIONd|/lmd r.i<HN\D u! G rD^30rc.g.irgTEEO--P€PEEt.959.9ooo !!= c.gE^i=rri6;Et9+0rrriE o=EFo'E -6 !?neH6G-E. CLV 6EEn8E -eE saJots CLo n05 E3 oca o = CL g .E = (nHolnNddrisfNNdo mold6o)toto NOlutd olnNOlrOFCNN mNriN HNOddtn ch st(nNNHo;N Frout lo\o co@r0(nNNOd(n ..oq,r t! trt!C.E o 0,o o ExhibitNo. I I I Case No. INT-G-16-02 M. Morrison, Staff 12116116 Page I of 4 EXHIBIT S+G llll5.O fid<f(r1€Or\mdOdooF(n @Ostft1(oGlsl OlOr\6tDflstqr@utf\6rsldNoiuidd<tmstNrafndo+i.ii (ommm<iri <tslOO6@66r,) r^ NOrnNant.oNmNd(ncn6N OQFNorrn(oFmdd NOOOOoojj 6st@FOHNNdOrruro)N(o olNNOrOHr,)\o6m\o(oslmO NOr@OHro€oFd(o(!)N@ di ui i Lr;ourolutN or t rJ'l rt \otrnHl\root ro co ft1 <i.iF:uiduim<tm@N.o.Fnf- NH rndro(o0odo)rodo6I Ut ii c1oN<lmNd cllOoronu)\tO 3*s.D.s.6mddd FIcoNd otlnotd N@Or<tsllo(,t('tmlINorm<tN(ONMoro(r)utNHF{ mstHN t\6co.a(notodNro@6NCOr+j+rddFi(n<f,LnHN<l cn rn o)ri i 6r' d(nm()O o Neistd(t,(o\oFdt\ourslo\ridrioirn sf f\ aOrndNd NN NO)(omOur6and$m<tm(I,rr1 N U) st|J.l0o)l\N stta.t:' o{drnglFaoorNH<to 6 l/'t lo <l6r'djddmooNr\ofauld =fddd NstNf\Ulroorroosf+NN(NdNd(odrooslNd r^Cr666morororNF(n(lNdo HT\6NN(Y1utHNdN6m@ ^ii HNd'\SI(.E)6rn(o(oNNO0r F.. Fi + '/iroNN(Omdi N@sl d NFI.oNOTLnN(OOrHororuldNjoid+j(n100ldN<t(,lo6d.nd.i |^(o(or\m(omdc{o1F{rONt\d oo'd dF'NNd<d.,td c'lr\6('rc)(ot\d(ootoF(o(I,N<iF$Nroov'ttO r-l o !'{ @$orlnN(DHd('rO6666dtn(n@d66CrlNdd'ld E -,pactm=F+(+-rqEooo ci666A E.!*r.lm =Lvvt6;EEE6 E-6E,4 (n JI -9-Q6E.oOFz E.!*r.rrn:L-.LiN; E I Ec,6686 E.,!rNrn:uv!!i"e t t EcjE666 (ndrnN (n dorc)NNH@(OC)No-q\qorsiorNdoOON€NNmmNoojoid<r'ONSf,N a,lF@ln(normoNlaHOr{lOFlN@NOlnmurdrocn@o60rtntla\md o(n0rot'J,slor€Ood(.c)costmr\storFFm(oooror\@HN6m<td NSISINN@rrir\d(I,.oryqo-.o-(norooltosl<tr\tn(YtdoTHNd rnl\Fd6NN.1 mV'NthlnNNslmtd!nou)\oH(nd (n fn ul f'') rJ)NtohrosNNN6 ONo,lNrl@dicosidH FOTNNOFONtOt(om<tr\ dd6dHOF{(n NOdOOtr\ulO6(oodul(n+Nln(or+O(oa\mdd o(ndormNa\mNrO(o60r@Fi oo'd F.'sl\od(oNd O(nmN(nho)(nd$$. .r. ul utd!f@6t/'t sl ro (Vld or{m<tdrro.ANdHdoi; rDNslstj d ci oo.ch io (n fnd oc, ut(nt6rlf\ tn Ot rO rOroulNr\dNn6F(nFlslNH (o6HrnNN6d66dslc.lm '.o@( o(v|drnto tn@dNolf\l,tcON+N1l'T\ON(n(o(oulmdoslHNd m(,rFlo6F<'MG)No(nqrt\€dfnNlnstrlr(r1(AdNt'{ mooooF.@rn(oNlom\t6 oo' '/i ..i dslslNco(oHfi)d o:cC tuo oz to CL0, b!5 .>t G = CL .Ecl!E !o4 EG o o (n olstm (n orsttO oIDrD rii(,XE d-l! EEF6ltUi.EE9EgniE.Cf I qo9rE H? f=UUIa;e-!oo #88El--E.r I .6!g-aei EefiET o, .gE9 EE Eo N6tO\OtI'(oorr\o)NrnslNmoi.i+'Yio ro or u'lN oNNrnsfO)d,.Lto(n0(n(ni; rolooor66nNmNd<'I\H F{mNtiP tor\NI\moroN<fm@NIJlNCNdrr(t)@OMH6N6NNN\O Nd F{6d66d,INNNNNi.:@l\Norn H@COrarir)o<tol(,rnot^\o d)dd (Y) NNrn rnH6(n (nsfo an orrod NFro o doooo ooooo oooo(f doooo olN@OlraOl^Or\(oo@oNutN\otnc,HmstoNNro(lnr\idiriGiH NCNdN(Orn(oofn(no6N01 ln Nrj.)OOt(,MFF6d@dr\cnr.'.lslF(n 00N@(n(om6NUtOo.6-ryqd!NOTCnOOmNdlout6N(NNoo'dduid Eoc.E o a,o Exhibit No. l u Case No. INT-G-16-02 M. Morrison, Staff 12/16/16 Page2of4 o NOdrYl\oodd.!Ndoor6Nduidr; HFINI/1Nor@lom@FrI'(oNF6<tNtoutooNortco(nut(n(nd OHN(OddttnNd (normoolansldddG,t cn r\ rD rO NroNOlg1d)mo6coo- dl t- .tl\slcO<t NNmstl,laoNslorcoNONolFN6FFN(oNan(oN\t, N <t orOtsid dMF$N<lN@F\mNOrnfnlnNOO('Uttl)m(o€m<lh<ll\an THHd do6rolDt/tI\Hii)dslNoN trr' ci r/i -i uiMN€O'YTmol(oFr;i otom@utdcn,lodddouno.oldl\ -N<sforor9md\oorsfh -16rtl0o.mHo ,!rI)o(n(l)N:'.:<doFmvorooo'trDa'ru'riuiuid;im01oo€!O(hsfl\Sdii i--urNN'i66@NNl/t 6|r \!, N N r-{vd<loOtJ1d -rm66HrrlH F-n6-r- ,A mHH(,61A01 0rStroIUSICDOOOtonslFt =Ntsdsldgmd(I)f\COg odNo(ONNd l?-+6-rNvolsfororut =O('rNlaO\NstoNor(nNF\t$ddmialoiddj r\rolnmorutoro(Vtl^dul(nNl^ N6Fd(hmNFrO,nul(o(no\ ^i tri ui .i t\otdd1 olr\ orl rjt @ r.ndc)Noioc.iiGid,Yi.ntFtooost(nNF.'+ oo'd (nHFUIGO66C,]ost.1 ,o- o- \ 0o-NOsllootMChN(NNdmo(td+d'/iNd o dtdm@c)dNmF(NFNd oiNFOO{<tNN sr<h600NT\ ood€moItlN@N<TNjj ANlnNNod(om$r\@6(nd F6@rOrl<t|nlf<idolNslrO NN o,ctr goo oz to ooooo o\oooo (noooo c0, !0 = Ef oC3 o = CL t o = to o c qr-Glll,.: E r/lF g;EIE! oosa?ree€ I =r!n6=;rg! r!ol!EF98.3.EUCE6l!Eh96iEE(Jfi8 o ou 9oroooo6 NN ooro@ooNN oodNstoOOoiulmd o E:8x!I6;EtE ci :666z; lt(,r co E -!-rcvm:LIII 1;-E-E-E:E"- t!tr E 0, c,6 o ExhibitNo. lll Case No. INT-G-16-02 M. Morrison, Staff 12/16/16 Page 3 of4 (oON€raNutoHNfI)E(c)rl0(nu.tNUT|C)dddd m6lJ10d co co r/1rosl6c66tfN(r.|(r1 d (nutooH@ln<lrolaro<flodrf co cor\ st m!nl,lodQm<tlosfosfula+NorlYld d fnla00d@ut(o(l)stFl SiN€+@l-NMj (n6utod@(n(nlONHst t/t oSINNNd d mulu)oH6CONrocoNsid.i<TNH j l^.r1 rnNOt.rH6mNFlo6d <fa(osf N ra,NLNd tnrnol@HOd@ro <l ro sldfnSINNantd (nullo6d@oNromNstl\@sl co r,lAr Sl d rnutorodcotno(lr6\l+ dt r.i\idlom<cj mlrmrni@oolourulgdu!st(ostNN .nu]@cta@€roultor\+utN$<tmm<t d eP q IEEESdE99zoE.O E.!ec.rm:LYY!6= t E Eci66Aa E.!acrrrn:Ltv!6aEEtciEAcocE E (l,3fcoE d:ztr fnNlnoNo1 l\m(oNor(lrlnN(nroNo€m\l|oi\lltNoio)stOrnNrod@(o dOCD(NT\6rl(nNNQandmNdOlNl,lmoiNstOll,Or r\OAFt\d o6ulrnOroo6NCnoro(,ErdoF.Yrco(nmr+hstNrtF6ONNNd (\roftdo€lostor(nuto(o@ tstNt\ood@doOOrtO)FF N6rot\rn@F\N<rrOlnNroH('tt\OF{OdsfrnOm+N€d qi d rYi l,lo!mrnN6mo1 Nr\<loimost<tOOtHrn(n@cloro<nroFrod lJ1O(nslN6O(nHOr|nN\lr\ 'iid+dro666NOiS@ 6N6Nd tt<lcnmoia)'€EEDfrj ci .i F.'6NrOrf,oourtroa|^N sl l^ <f st t\co(n(nslormu.)0routchN6€$tnFd@66oi od'd r; (nrtf\01 S@dor6dOtr}Ost NdFSIdrllrto 'o- ol N- .f-or@Fm .nsf(n(c)ttr,€OllndNtO6N\1, (N@FFro (n In 1l)dctutu'rOc,Or\(nH NUtN(nO@o1 slNanr\r\mr\nldmNdororoNC,.\@FC'@@Nd NOdr/)t6NO@morjt\to FOINTA(nNc{orof)<looo6dmdH Ndc)m{Nln@dr+NOOHddoioiFOdslN01siO<t@G.imsf an roo)mutdtsif\morFm6NCno{utOr\ttt,oI ,^Nn(n (n (ooulsiolstdtar\ulFldN OtlOdi{@ulOrsfAFN66N roootosfo@Nr\Fln(hNl\rnorN(ourrastNOtc.irf,+ri tor\Fdor<tNNsf6Nr\(norrlglsto € '.r, olor ot rn ul MN (oForcn@rnrostm(I)OSd doirYidcoulutNao\oNCnrf.i @Nln0001l,)!n$sto(n(n(nNOFsIOONF@(o.\orNd m@'o<fc)dr,r@n@6ForNo oo' di Fa r:.6gcoNrr(oN(o MN F{I tlrdHdolO(nutdoo- oo- UI .+-o)NuldNNC'\(t'coroN@r; .i TONFNt+o)N1/)(o<tNmmHNU)(n\oo(rorqroNq MN ur6nomHOtYIOOtOraFjfdoior6$o\sf- ra N \qmFa (DN$.n+ UINIJ)I\N6N(O N6(Odtooodolomo<l (n (ooro(nur6UlOmNrn(oco60rmN@mco@O@Nt-{tt ft1 f\oH\ONlr)N d l!5Ec oo6rnrnro 6 lJ'ldNF+tnro r.nFFt(n<lrl @rndFOrcd(l)st CLo utN<fdro<t cooHOo F-'(o<t co oo €d 6 6r-l Or F( 6d oo o2 Io o o sl@6t 6 @@odt(ost EINdt FF\st lr)r/).r: Nrl rJ1 N\ooti ut slF\ d tl' 00H oc, a! = c G = !og cl! tro .E E o tua t0: 5 6'*rO !,+{EC'6 -tt .64EEqTq€F.EEf EE3!ooEscq,qp€ E.=EO=UTCo;.:ltg:0rr O l!a=EFiJE-6 5,Be*6ocLO.6 l!El-figE0roE-rt!EEr6 =atE ExhibitNo. lll Case No. INT-G-16-02 M. Morrison, Staff 12/16/16 Page 4 of 4 o o Line Embedded Residential Customer Charge Estimate Description Cutfom.r.RaLted O pct.Ang Expenscs (lncl udea daprecladon cxpcnsc) Opsration1010.2878 $226,3754010.28783 -S556,0974010.2879 $7,126,046 o 1 2 3 4 5 6 7II 10 11 12 13 14 16 17 19 20 21 22 25 27 28 29 30 31 32 33 34 35 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 6B 69 70 Maintenance 4020.2892 4020.2893 Customer Accounting 401 0.2901 4010.2902 401 0.2903 Customer Service E lnbrmation Expenses 4010.2908 Labor-Distribution Operation Expenses 4010.287.1 4010.2878 4010.2879 Labor-Distribution Maintenance Erponses 4020.2892 4020.2893 Labor-Customer Account 4010.2902 4010.2903 Depreciation Expense-Distribution Plant 4030.0005 Total O&M C u sto mer- Re larad Pt.nl 1010.38 Oist SeNices 1010.381 Dist Meters 1010.382 Dist Meter lnstiallations 1010.383 Dist House Regulators 1010.384 Dist Housa Regulator lnstall 1010.385 Dist lnd Reg Sta Accumulated Deprecialion for Selected Dist Plant l{et Plrnt % Debt Financed (Company Assumptions) Cost of Debt lnter€rt Exponre Oporatlng Erpense! plu. lntorclt Net Plant Equity Portion (in Percent) ol Net Plant Equity Portion (in t) of Net Plant Retum as % (Company Assumption) Equlty Return Gross Revenue Conversion Factor $1,037,,t43 s832,745 $98,925 $715,432 $7,599,357 $202,610 s1,611,161 $202,693 $5,917,585 $357,288 $353,914 $553,077 $4,401.233 s12,612,078 $43,291,865 Add Lines 3 through 39 s149,255,828 t44,853,911 $1 3,955,058 $6,,010,602 $7,047 ,749 $1 ,|,259,697 1232,782,U6 Add Lines 43 through 46 -$130,903,051 $101,879,59t3 Line 49 minus 51 50.0007o 4.940% t2,516,426 Line 52 times 54 limes 55 1a5,808,291 Add Lines,f0 and 56 Line 61 limes 62 9.90% $5,043,0,10 Line 62 times 63 1.67055 18,'124,620 Line 64 times 66 Exhibit No. I l2 Case No. INT-G-16-02 B. Erdwurm, Staff 12/16116 Page I of2No.l12-ffi StaFF EXHIEIT o Grored.Up Equlty Return Lines 58 and 68. o Embedded Residential Customer Chargo Estimate 7'.! 72 Alternatc Welghted Cu.tomcr Celculatlon Weightsr Weighted Customerg RS GS LV.1 T-3 T-1 6,16r Weights arB choson to reduce allocation to residential (for a conservativo estimato). Calculatc Curtomer Ro!.tcd portlon .lloceted to Rerldentlel % of Wtd Customerg73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 Bitls 3,701,803 385,898 217 72 1,158 Customer-Related Revenue Requirement Times Residentlal % welghted Factor Divide by Annual Bills Unadjusted CosUCustomer Contormod to Steft Revenue 3,701,803 2,315,388 21,700 7,200 $54,232,917 Line 70 60.08% Line 7,f -$52ffi 3,701,E03 $8.80 t8.57 1 6 100 100 100 O 60.06% 37.58Yo 0.35% O.12o/o 1.Ea% Exhibit No. I 12 Case No. INT-G-16-02 B. Erdwurm, Staff 12116/16 Page 2 of 2 o RS-1 Bill Comparison - Apr through Nov - Current v. Staff Proposed O Therms 0 10 20 30 35 40 50 60 70 80 90 100 125 150 200 300 400 500 750 1000 currentl Bill Excluding Gas Costs 2.s0 S s.57 S 8,84 s 12.00 S rs.sg s 1s.17 s 18.34 s 21.s1 5 24.67 s 27.84 s 31.01 s 34.18 s 42.10S so.ozS os.ess 97.s3s 129.21 S roo.sgs 240.09 S srg.zs Staff- Proposed Bill Excluding Gas Cost5 s.sos 7.2tS e.ss S lo.ea s 11.s0 s 12.36 s 14.07 s 1s.79S rz.sos 1s.22 s 20,93 s 22.6s s 25.93 s 3L.22 S sg.zg s s6,94 s 74,09 s 91.24 s 134.10 5 776s7 S ChangeS :.ooS r.ssS o.ogs (1.35) 5 (2.0e) s (2.81) 5 4.27l. S (s.72) s (7.17) S (8.62) s (10.08) s (11.s3) 5 (1s.15) s (18.80) s (26.06)s (40,se)s (ss.12)s {6e.66)s (10s.e8) s (142.31) % Change 120% 27lo t% -Lt% -L5% -L9% '23Yo -27% -29% -37% -32Yo -34% -36% -38% -40% -42% -43% -43% -44% -45% 11.23 s 19.9s s 28.68 s 33.04 s 37.4t s 46.13 s s4.85 s 63.s9 s 72,3L S 81.04 s 89.77 s 111.s8 s 133.40 s L77.03 s 254.30 s 351.s7 s 438.84 s 6s7.00 s 87s.t7 s 72.77 20.05 30.96 34.59 41.87 49.14 56,42 53.69 70.96 78.24 96.42 114.60 150.97 223.71 296.44 369.18 551.02 732.86 S r.ssS o.ogs (1.36) s (2.0s) s (2.81) 5 t4.27l,S (s.zz)s l7.t7lS (a.sz) s (10.08) s (11.s3) s (1s.16) s (18.80) s (26.06)s (4o.ss)S (ss.12)s (6e.66)s (1os.s8) s (142.31) Staff- currentl Bill Proposed lncluding Billincluding Gas Cost Gas Cost S Change % Change2.s0s s.sos 3.00I ': rii ,tl 1 .;1 ',i 4:i ft ii 1ti; : '1 i: s 5 S s s s s s s s s s s s s s s s S s 27.32 t2OYo r4% 0% -5% -6/o -8/o -9% -ro% -!t/o -12% -72% -13% -t4% -t4% -tSlo -t5% -76Yo -16% -76% -L6% o o RS-l Bill Comparison - Dec through Mar - Current v. Staff Proposed 5taff- Proposed Bill Excluding Therms $ Changes (1.00)s (1.33) s (1.66) s (1.e8)s (2.1s)s (2.31) S (2.54) S (2.e7)s (3.2e)s (3.52)s (3,ss)s (4.28)s (s.oe)s (s.e1)s (7.ss) s (10.83) s (14.10) s (17.38)s (2s.s5)s (33.7s) % Change -t5% -t6% -t6% -76% -t6% -t6% -L5% -L6% -L6% 'L6Yo -L6% -l6Yo -16% -L6% -16% -16% -16% -16% -t6% -L6Yo Current Bill Excluding Current Bill lncluding Gas Cost Staff- Proposed Bill including Gas Cost 5.50 L2.77 20.05 0s Note 1: Based on Gas Costs in Company's Application 10 20 30 35 40 50 50 70 80 90 100 L25 150 200 300 400 500 750 1000 Gas Cost 5.s0 s 8.s4 s 10.s8 s t2.53 s 13.5s s t4.67 s L6.7L S L8.7s s 20.80 s 22.84 s 24.88 s 26.e2 s 32.03 s 37,13 $ 47.34 s 67.77 s 88.19 s 108.51 s 1s9.67 s 2LOJ2 s Gas Cost 5.50 7.2L 8.93 10.54 11.50 L2,36 L4,07 15.79 17.50 19,22 20.93 22.65 26.93 37.22 39,79 56.94 74.09 9L.24 134.10 776.97 6.s0 s 14.10 s 2L.70 s 29.30 s 33.10 s 36.90 s 44.5L s s2.11 s s9.71 s 67.3L s 74.9L s 82.s1 s 101.51 s 120.s2 s 1s8.s2 s 234.53 s 310,s4 s 385,55 s s76.s8 s 766.6t 5 $ Changes (1.00) s (1.33)s (1.56) s (1.s8) s (2.1s) s (2.3U s (2.64)S (2.e7) 5 (a.zs) S (3.62)S (3.es) 5 (r4.27ls (s.oe)s (s.sl)s (7.ss) s (10.83) s (14.10) s (17.37)s (2s.s5)s (33.7s) s s s s s s s s s s s 5 s s s s s s s isjsls lS;ls'l s1s:i s'., s.] s,, S slsrS'i s:sis,is.lStS 30.96 34.59 41.87 27,32 49.L4 % Change -15% -9% -8% -7% -6% -6% -6% -5/o -6% -5% -5% -5% -5% -SYo -5% -5% -5% _4% -4% _4% Revised Exhibit No. I l3 Case No. INT-G-16-02 B. Erdwurm, Staff 02t24/17 56.42 63.69 70.95 78.24 96.42 114.60 150.97 7L223. 296.44 369.18 551.02 732.86 EXHIBIT D Ii 'r*.nfle a RS-2 Bill Comparison - Apr through Nov - Current v. Staff Proposed Staff- Proposed Currentl Bill Bill Excluding Excluding Therms Gas Cost Gas Cost S Change % Change Staff- currentl Bill Proposed lncluding Billincluding 0 10 20 30 35 40 50 60 70 80 90 100 L25 150 200 300 400 500 750 1000 S s s S S S s s s s s s s s s s s s 5 s 2.s0 s 4.46 s 6.42 s 8.38 s 9.36 s 10.34 s 12.30 s L4,26 s 16.22 s 18.18 s 20.t4 5 22.tO s 27.00 s 31.e0 s 41J0 s 61.30 s 80.90 s 100.s0 s 149.s0 5 198.50 s s.so s 7.2t s 8.s3 s 10.54 s 11.s0 s L2.36 s L4.07 s L5,79 S 17.s0 s t9.22 s 20.93 s 22.65 s 26.93 s 3t.22 s 39.79 s s6.94 s 74.09 s 9t.24 s 134,10 s t76.97 s 3.00 2.75 2.5t 2.26 2.L4 2.02 t.77 1.53 1.28 1.04 0.79 0.55 (0.07) (0.68) (1.s1) (4.35) (6.81) (e.27l. (1s.40) (21.s3) Gas Cost 2.50 9.62 t6.74 23.86 27,4t 30.97 38.09 45.2t s2.33 59.45 66.57 73.69 91.48 109.28 L44.87 216.06 287.24 358.43 535.39 714.35 Gas CostS s.so 5 12.37s 19.2sS za.P S zs.sos 32.99S sg.ez 5 46.74S ss.e r5 oo.+gS sz.se s 74.23 S gr.az S 108.60s 142.95s 211.70 s 280.43 S 349.15 s s20.99 5 692.82 S changeS s.oo5 z.tss 2.s1 5 z.zaS z.tt5 2.02s t.77s 1.s3s 1.28S r.oaS o.zs$ o.ssS (0.07) S (0.68)s (1.s1)s (4.35) s (6.81) s (e.27) s (1s.40)s (21.s3) % Change r20% 29% L5% 9% 8% 7% 5% 3% 2% 2% 1% t% 0% -r% _t% -2% -2% -3% -3% -3% r20% 62% 39% 27% 23% 20% 74% tt% 8% 6% 4% 2% o% -2% -5/o -7% -8% -9% -t0% -fi% s s srS siS rS ,.S ',SrS'l s,s:s s s s s s S's o RS-z Bill Comparison - Dec through Mar - Current v. Staff Proposed Staff- Proposed Current Bill Bill Excluding Excluding Therms 0 10 20 30 35 40 50 60 70 80 90 100 L25 150 200 300 400 500 750 1000 Gas CostS o.soS a.rzS g.zs s 11.37 s 12.18 S rz.gg 5 L4.62 5 L6.24 s L7.87 S rg.+g s 21.11 5 22.74 s 25.80 S so.goS se.szS ss.zr s 7L.455 az.og s 128.28 s 168.87 Gas CostS s.so 5 7.2L S s.g:5 ro.oaS rr.so s 12.36 5 74.07 s 1s.79S rz.sos te.22 s 20.93 s 22.6s s 26.93 s 31.22 S sg.zg s s5.94 s 74.09 s 91.24 s 134.10 5 t76.97 S Changes (1.00)s (o.su s (0.82) s (0.73) s (0.58) S (0.64) S (0.s4)s (0.4s)S (0.35) S (0.27) s (0.18) $ (o.os) S o.raS o.szS o.sz s 1.73S z.aqS s.ss S s.es5 s.ro %Change -t5% -Lt% -8% -5% -6% -5% -4% -3% _2% -1% -1% o% 7% 1% 2% 3Yo 4% 4% 5% S% lncluding Gas Cost 6.50 13.28 20.06 26.85 30.24 33.63 40.4L 47.L9 53.98 60.76 67.54 74.32 9L.28 108.23 L42.t4 209.97 277.79 345.51 515.17 684.72 S Change % Change -75% _7% _4% -3% -2% -2% -t% -L% -L% o% 0% o% o% o% t% L% L% L% t% LYo s s s s s S s s s s 5 s s s s s S s s s ", $., $isls siS:, s s $ 5 s s s s s;S s,S,s s Current Bill Staff- Proposed Bill including Gas CostS s.so 5 L2.37s 19.2s S za.PS zg.soS sz.ggS ag.ezs 46.74S ss.orS oo.+sS sz.go5 74.23 S gt.qz s 108.60 s 142.96 5 2Lt.7O s 280.43 s 349.15 S szo.gg s 592.82 (1.00) (0.s1) (0.82) (0.73) (0.68) (0.54) (0.ss) (0.4s) (0.35) {.0.271 (0.18) (o.os) 0.14 0.35 o.82 7.73 2.64 3.55 5.82 8.10 Note 1: Based on Gas Costs in Company's Application Revised Exhibit No. I l4 Case No. INT-G-16-02 B. Erdwurm, Staff 02124117 it4 fe No EXHIBIT .Ari!:' -La5 o o General Service Bill Comparison - Apr through Nov - Current v. Staff Proposed Staff- Proposed Staff- currentl Bill Bill currentl Bill Proposed Bill Excluding Excluding lncluding Gas including Gas Therms Gas Cost S Changes 7.s0 Se.ezS s.z+ s 4.8sS s.gz5 z.ztS o.aas (1.40) S (3.24)s (6.s3)s (10,51) s (1e.82) s (2e.02) s (84.es) s (180.65) 5 Q76.341 s (372.01) s (1,119.61) s (1,867.21) s (2,514.81) 0 25 50 75 100 150 200 250 300 400 500 750 1000 2500 5000 7500 10000 20000 30000 40000 3,543.59 5,291.19 7,038.79 Gas CostS s.so s 14.06S re.or 5 23.t7 s 27.72S ss.ess 4s.94 S sa.agS sr.ea 5 77.73 S gs.s: s 133.36 s 173.10 s 400,30 s 74L.s2 S 1,082.75 5 r,423.97 S 2,423.97 S 3,423.97 5 4,423.97 % Change 375% 89% 4s% 26% t7% 6% 1% -3% -5% -8Yo -tOYo -t3% -L4% -t8% -20% -20% -21% -32% -35% -37% Cost 2,00 20.23 38.46 s6.69 74.92 111.38 t47,84 183.21 218.58 289.33 360.07 s36.93 713.80 1,764,46 3,480.54 5,195.51 6,9L2.69 L3,776.99 20,64L.29 27,505.59 Cost 9.50 26.85 44.\9 61.54 78.89 113.58 148.28 181.81 2L5.34 282.40 349.46 5L7.12 684.77 L,679.47 3,299.87 4,920.27 6,540.67 t2,657.37 18,774.07 24,890.77 S ChangeS z.soS s.sz5 s.zaS e.ssS s.gzS z.zoS o.aas (1.40) S (3.24)s (6.s3)s (10.51) s (1s.82) s (2e.02) s (84.es) s (180.56)s (276,34)s (372.01) s (1,11s.5U s (1,857.21) s (2,614.81) % Change 375% 33% t5% 9% 5% 2% 0% -t% -L% -2% -3% -4% _4% -5% -5% -5% -5% -8% -9% -LO% LS:srS,i 5js.,! S'r s:S:$ s;s s s,s,s s s:5 s s 2.00 7.44 12.88 18.31 23,75 34.53 45.50 55.29 65.08 84.56 L04.24 153.18 202.t3 485,29 922.t9 1,359.09 1,795.99 s s S s s s s s 5 s s s s s s S s 5 s s s s s s s s s s s s s s s s s s s s s s o General Service Bill Comparison - Dec through Mar - Current v. Staff Proposed Staff- Proposed Staff- Current Bill Bill Current Bill Proposed Bill Excluding Excluding lncluding Gas including Gas Therms 0 25 50 75 100 150 200 250 300 400 500 750 1000 2500 5000 7500 10000 20000 30000 40000 Gas Cost S g.so S 13.67 s 17.83 s 22.005 za.ss 34.s0 S 42.83S so.rrs s7.38 s 71.92 S go.az 5 122.84 S 1s9.20 S 367.15 S G79.66s 992.15 s 1,304.66 5 2,ss4.66 s 3,804.66 S s,0s4.66 Gas CostS g.so S r+.oe s 18.51 s 23.17 5 zt.tzS ss.sss 4s.94s s3.8es 51.84 5 77.73S ss.os s 133.36 s 173.10 s 400.30 5 741.52 s L,082.7s s t,423.97 5 2,423.97 5 3,423.97 5 4,423.97 ange _ 0.39 0.78 L,L7 1.55 2.33 3.11 3.78 4.45 5.81 7.t6 10.53 13.90 33.14 51.86 90.59 119.31 (130.6e) (380.6s) (630.6e) % Change Cost 9,50 26.45 43.42 60,37 77.33 111.25 L45.77 t78.02 210.88 276.59 342.3L s06.s9 670.87 L,646.34 3,238.01 4,829.69 6,42L.36 L2,788.06 19,L54,76 25,521.46 S Ctr s s s s s s s s S s s s s s s S s s s s o% 3% 4% 5% 6/o 7lo 7% 8% 8/o 8Yo 8% 9% 9% 9% 9% 9% 9% -5% -L0/o -L2/o isls:s,S;s s S.S s $ s s s,$ s,s ,t,, S,;;: S'l s:s CostS g.so S zs.asS +e.rs5 or.sas 78.8s s 113.58 s 148.28 s 181.81 s 21s.34 s 282.40 s 349.45 s sL7.72 S 684.77 5 L,679.47 s 3,299.87 5 4,920.27 s 5,s40.57 5 L2,657.37 5 18,774.07 5 24,890.77 S Change % Change s s s 5 s S s s s s s s s s s s S S 5 s 0.39 0.78 t.t7 1.55 2.33 3.11 3,78 4,46 5.81 7,L6 10.53 13.90 33.14 61.86 90.59 119.31 (130.5s) (380.6s) (630.6s) o% t% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% -L% -2% -2% O Revised Exhibit No. I l5 Case No. INT-G-16-02 B. Erdwurm, Staff 021241t7 EXHIBIT .G .il*l*si ta No lt5 Note 1: Based on Gas Costs in Company's Application o Proof of Revenue No.Line Class RS-1 Annual Bills Therms Total RS-2 Annual Bills Therms Total rs-R Annual Bills Therms Total GS-1 Annual Bills Billing Determinates Rate Ss.so So.t7t47 Ss.so s0.17147 Ss.so s0.17147 s0.043s6 s0.01733 s0.00408 Revenue 1 2 3 4 5 6 7 8 9 10 11 t2 13 L4 15 15 t7 18 19 20 807,488 32,972,3L4 2,893,307 184,003,6s8 1,008 r37,397 31,992,655 52,346,235 26,L85,787 54,441,784 s5,5s3,763 S10,094,947 s15,913,189 s31,551,107 547,464,296 Ss,s44 s23,ss9 385,791 Se.so 0.18221 0.15895 0.13549 0.10000 1t0,524,687 702 ss.s0 o.L822t 0.15895 0.13649 0.10000 15,010 2L7 No Charge 450,360 s0.20000 Ssse st,077 s1,08s Sut So s2,509 s3,s78 s90,072 s35s,25s Revised Exhibit No. I l6 Case No. INT-G-16-02 B. Erdwurm, Staff 02124/17 Page I of 2 s29,103 s3,56s,01s ss,829,383 s8,320,434 s3,574,098 SOo Therms - Tier 1 Therms - Tier 2 Therms - Tier 3 Therms - Tier 4 Total Therms Total Annual Bills Therms - Tier 1 Therms - Tier 2 Therms - Tier 3 Therms - Tier 4 Total Therms Total Annual Bills MDFQ Therms - Tier 1 Therms - Tier 2 Therms - Tier 3 Total Therms Total s s77,723,916 21,388,930 2L 22 23 24 25 26 27 28 29 rs-c 5,911 6,823 3,276 30 31 32 33 34 35 35 37 38 39 LV.1 6,317,560 0 527s,193 So SO 6,377,560 s27s,193 No ilG EXHIBIT +itl: -llAl.5r a o O Proof of Revenue (cont.) Class T-3 Annual Bills Therms - Tier 1 Therms - Tier 2 Therms - Tier 3 Total Therms Total T-4 Annual Bills MDFQ1 Therms - Tier 1 Therms - Tier 2 Therms - Tier 3 Total Therms Overrun Total T-5 Annual Bills MDFQl Therms - Tier 1 Therms - Tier 2 Therms - Tier 3 Total Therms Total Total (excludes Gas Costs) Billing Determinates RevenueLine No. 40 4t 42 43 44 45 46 47 8,308,080 3,419,023 33,049,148 Rate 72 No Charge s0.01897 s0.00772 s0.0028s s1s7,504 s26,39s se4,190 s278,189 52,932,296 55,479,788 s1,s01,734 s364,775 57,346,298 S10,278,s94 s131,954 s325,343 s87,s2o s21,8s8 s434,72t s566,685 S90,4G9,s87 Revised Exhibit No. I l6 Case No. INT-G-16-02 B. Erdwurm, Staff 02124117 Page 2 of 2 44,775,25t 14,651,480 tL0,747,535 85,960,760 67,928,377 s0.04948 so.oL747 s0.00s37 No Charge so.2o s0.04948 5o,o7747 s0.00537 $278,189 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 53 64 65 66 67 68 59 70 L,L49 No Charge so.2o 264,536,672 4,120,808 659,820 6,575,248 5,009,713 4,070,392 15,655,352 o o Residential & General Service Rates - Current & Staff Proposed Company Current Proposed Staff Proposed Current to Staff Change Current to Staff % Change Residential RS-1 Customer Charge Apr-Nov (8 months) Dec-Mar (4 months) Weighted Avg S2.so S6.so Sg.aa s10.00 s10.00 s10.00 Ss.so Ss.so Ss.so S3.oo (s1.00) S1.67 L20% -75% 43% Commodity Charge Apr-Nov (8 months) Dec-Mar (4 months) s0.31678 50.20422 s0.1126s s0.1126s 50.17747 50.17t47 (So,r+sl r1 (So.o:zzs1 -46% -L6% Residential RS-2 Customer Charge Apr-Nov (8 months) Dec-Mar (4 months) Weighted Avg Sz.so So.so S3.83 Sro.oo S10,oo s10.00 Ss.so Ss.so Ss.so S3.oo (Sr,oo1 S1.67 t20% -15% 43% Commodity Charge Apr-Nov (8 months) Dec-Mar (4 months) s0.19600 s0.16237 s0.1125s s0.1126s 50.r7L47 s0.t7t47 (So.o24s3) So.oo91o -t3% 6% o General Service 65-1 Customer Charge Apr-Nov (8 months) Dec-Mar (4 months) Weighted Avg Sz.oo Sg.so 5a,so s3s.00 s3s.00 S3s.oo Sg.so 5g.so Se.so S7.so So.oo Ss.oo 375% o% tllo/o Commodity Charge Apr-Nov (8 months) 1st block 2nd block 3rd block 4th block s0.217s1 s0.19s78 50,17476 N/A S0.11076 s0.09652 50.082s7 s0.07s00 s0.18221 s0.1s89s s0.13549 s0.10000 (So.oasaol (S0.03683) (So.oaazzl N/A -15% -t9% -22% N/A Dec-Mar (4 months) 1st block 2nd block 3rd block 4th block s0.16656 50.14546 So.12soo N/A s0.11076 s0.09662 s0.08297 s0.07s00 S0.18221 s0.1s89s s0.13649 s0.10000 s0.01ss5 s0.01349 So.ou49 N/A 9% 9% 9% N/A Revised Exhibit No. I l7 Case No. INT-G-16-02 B. Erdwurm, Staff 02124117 No ll7 EXHIBIT IIo (u E't= .E(EP 5o Eo-r\ Ec(g E(!Fcoo =OJ-ornL(u EoPrn5oq(U(, .c(op ,c5o ELoPC EoL E(u':o(J c,L ,rt (U() Lo(ts oL(g vt(J LPo UvtUo.CF P oZ Fo xUI :L * Cr I ExhibitNo. t l8 Case No. INT-G-16-02 D. Klein, Staff 12/16/16 Page I of 2 +Fl\PNt -i\ft1 XLnFIltl rO .. Y -I c! =-{@\^lFg oo Fr .,oo oz (,o CLo aD EDrOO:PLnOO =O.i7n-sfOO<s ";fi^ Fl O) >F rJ) \9 o) (o =(Y.)oHmtn53 ";n- r{ ol o@sf\90r@rcDoxicno+* "ilo^ >r(,ol,)>gNcnaE (.C, F{ .-; N (r') =R ":,j fi+in CII =6rn\oLo(nEtn84E<NF{\sf ol -Ec!00>9N+OOrlilNOhS ";d+g =@ oo ll@(o>emlnONO=-NN'.sJj+RtnF EoOO>9(or\t!ooF{Hc.lO-3r;,i +utJ1 r\ eE--iEgss EEg,gEE H j --u=;8.=Eqo'=Ec =occo('i a.(u (UE -Vlltl-e,*8 99-9.8 slcn\olJld) -(ctLnx;<t(.o83";+3Fil r\ sr omN\or{o)O@rl-tf)(oo3r,Yi+nsl t\ > (r1 Fl \o ol (.c,,gR3$E st lft E$r*$$ F$ESHH Elr@ o >s rn ln =oOOi;Fl(t.)<NJ,i'jjH(r') (O >o ot \o oo ot= ffi c{ x <t ctt.:i+"-:jiFr,ON\E{+00 0,cnr\\oq)FlEFINI-rr1 (OE$ ii*s >@ rn \o o $a!NmX;m+=R";+S+N :=$ o $ $ E .E o) Fr >P O) lf,o(O(nXir{(oEH"$*n ll (c) N >P tJ) tJ)dt(Om-Fl(OlL u.) " 'j .- lJr6SrFlsf oo Erl(D\oooN(!f\(\i;dm-"3";+S sf,@ ;sgCs E f E E-fr={ 8.= E! o'=E c =(uLcoaio.o(oE -ltla.h-eti8gg,*g.E o ? (E CL EoOoo.9oE(9-gs2'6()*'- A =oo ELo!F'tr o (c) Flor{ rftF{oN <r oN o o(o\oN(o -oN-$rns3";+fiOOoorlFln C, cn to >R r-l oQtEnlssrn@ !ils$HNanN ESSESSoH"..i fiscn oo EffiPX8ilo o "': .x mU'R S-' \ooloaolJ) =fi'Ot orloNO)Nfn ED 3pf;sHE -oF{-l <i ol EHnUIH5s s- gHHS$e +o) =Nsl>91.oLOFlXmr'{cLm " -.I o<g 5 fifisxREEo"":::NE3 s f;$o$$e E3oXeH e qp oJC<Eep!^!fE'885: sEEJ4o'<Ec =OCc.Oii CLO.,(6EvtntU,TC.HB ee-eE =4<4<< +ln(oFi Fl r{oooNN'{III o E i= '6 Pc o Eo.r\ !c(o E(!Fco(u =(l,, -ot,Lo Eo lnf(J v,(o(, C (E+)C'=o ELo+)c EoLrFEo.z(u(J(uLI (E(J Lo OJL(o v,(J LP(tJ (JtJ't(J (u !F o(uo oz tso vo.o)t/, hof .}, o,E (o o 6 -o(uu c.l !'l?EI c.r-o & -l!HGl-F<!lQ.dz, tZ.;i- '=z oi- = 9V;fr8ciS Nqo sqoFl }Rgof{ }Rqo(n ;sgosf >Rqor/t }Rqo(o }RqoN xqo@ 6\ooo) xocioF{ c(o o o q o o oU'5 otn U.h(J c(oo- Eo(J ti$(, .=(oPc Jo Etro c o o Avista Credit Tracking Report - ldaho Data is gathered on approximately the first business day of the following month. Credit Tracking Definitions * Low-lncome: Accounts receiving LIHEAP Energy Assistance within last 12 months. Accounts:Accountsaremeteredserviceofelectricand/orgasservicesandactiveatthetimethedataisgathered. Typicallyoneaccountis associated with a specific service address, customers can have multiple accounts. Accounts with Moratoriums: Accounts with an enrollment date for Moratorium within the last 12 months and are active at the time data is gathered. 3. Accounts ln Arrea6: Accounts with a past due balance (Arrears Amount) and active at the time data is gathered. Comfort Level Billing (levelized pay) accounts with a past due amount are included. Number of Payment Atreement wlth Moratoriums: Accounts with payment agreement and an enrollment date for Moratorium within the last 12 months and are active at the time data is gathered. Reconnects withln 1 week: Accounts where service was reconnected within 5 calendar days of disconnect, excluding same day reconnects. Reconnects reported this month can be for disconnects which occurred in the last week of the last month, 6. Total Dolla6 Written Off: Gross write offs. 7, Wrlte Offs Due to Bankruptcy: Gross write offs due to bankruptcy and reported based on the date the Company is notified of the final judgment. L, 2. 4. 5. o ExhibitNo. I 19 Case No. INT-G-16-02 D. Klein, Staff 12116116 Page I of 3 October 2016 Non-Low lncome Low-lncome* 1. Accounts 1 15199 4148 2. Accounts with Moratoriums 1 185 276 3. Accounts with Arrears 15306 1607 4. Total Arrears Amount $1,490,084.63 $214,848.91 5. Number of Payment Agreements 2121 399 6. Total Payment Agreement Arrears $477,399.82 $96,010.74 7. Number of Payment Agreements with Moratoriums 210 70 8. Past Due Notices 4230 684 9. Past Due Notice Collect Amount $873,448.69 $135,857.18 10. Final Notice Letter 4215 688 11. Disconnects for Non-Pay 394 69 12. Total Collect Amount at Disconnect $74,633.01 $13,477.97 13. Same Day Reconnects 292 44 14. Reconnects within 1 week 70 16 15. Total Dollars Written Off (gross)$72,533.07 $13,577.69 16. Write Offs due to Bankruptcy $2,074.72 $134.46 17. TotalKwh Billed 68940169.53 2713978.5 18. TotalTherms Billed 1991968.68 36926.46 No lt EXHIBIT ItaCFI*, t December 9, 2016 o IDAHO POWER COMPANY Low lncome Tracking Report for October 2016 Non Low lncome Residential Contracts Low lncome Residential Contracts ^Key Description L0'l LO2 103 L04 105 106 LO7 108 109 L10 L11 L12 L13 Contracts Contracts with Winter Moratoriums Contrads with Anears Total Anears Amount Past Due Notices Mailed Past Due Notice Amount Final Disconnect Notices Disconnects for Non-Pay Total Colled Amounl at Disconnect Same Day Reconnects Recormects within 5 Business Days Total $ Witten Off lA/tite-offs due to BankLptdes in ldaho 435,494 91,723 $ 10,533,153 30,314 $ 8,519,531 12,859 3,064 $ 3,626,308 2,292 2,801 $261,374 $ 2,71e 9,716 4,088 $ 535,043 1,378 $ 367,780 u4 245 $ 170,490 73 102 $ 34,599 a * Low lncome contracts are those receiving an energy assistance payment within the past 12 months. Line ltem Notes: L01) Contracts are individual metered electric service contracts, active during any portion of the reporting month. Customers can have multiple service contracts on an account. Customers can also have multiple accounts. L02) Active service contracts assigned to the moratorium collection path. L03) Count of service contrads that are in a 31+ days anears status at the end of the current revenue month. L04) Total $ amount of service contracts that are in a 31+ days arears status at the end of the cunent revenue month. L1 1) Count of reconnects that were performed within 5 business days of disconnects for non payment, including same day reconnects. L12) Total amount written off including bankruptcies. Total $ Written Off includes only the ac@unt balance at the time it is written off. ExhibitNo. I l9 Case No.INT-G-16-02 D. Klein, Staff 12116116 Page 2 of 3 o 1 l/i/16 5:03:13 AM GMT-06:(X!B1 tCS003 Page I o Yffiffir'IouNrArN o State of Idaho Low-lncome Tracking Report October 2016 Non-Low-lncome Residential Aqreements 1. Agreements2 61,161 2. Agreements with Moratoriums (past 12 months) 310 3. Agreements with Arrears a 8,397 4. TotalArrears Amount ($) a $1,251,576.54 5. Past Due Notices 3,621 6. Past Due Notice Collect Amount ($) $1,145,797.98 7. Final Notice Letter 3,024 8. Disconnects for Non-Pay 44 9. Total Collect Amount at Disconnect ($) $34,720.34 10. Same Day Reconnects 20 11. Reconnects within 1 Weef 30 12. fobl$s Writtenoff 5 $58,822.28 13. Write-offs due to bankruptcies filed in ldaho 6 $12,037.21 14. Total kWh Billed 42,517,098 Low-lncomel Residential Aqreements 1,193 85 483 $107,138.40 243 $78,876.90 233 0 $0.00 0 0 Not broken out $0.00 851,559 Thursday, November 03, 2016 ExhibitNo. 119 Case No. INT-G-16-02 D. Klein, Staff 12/16/16 Page 3 of3 Report Notes: 1.) Low-lncome Agreements are those receiving an energy assistance payment within the past '12 months 2.) Agreements are individual metered electric services active during any portion of the report month. Customers can have multiple agreements on an account. Customers can also have multiple accounts. 3.) Reconnects in this month can be for disconnects which occuned in the last week of the prior month. Reconnects include only those where payments to reconnect are provided within 5 working days. Customers making payments after 5 working days are not included as a reconnect in this report. 4.) Arears and the number of agreements in anears are based on a snap-shot 2 days prior to the report date. Arrears are included on agreements that are active during any portion of the report month. 5.) Write-offs occur 180 days after the closing bill due date or at the time of a bankruptcy filing. The total residential write-off for metered service is not broken out for low-income and non-low income residential service since all agreements in this report were active sometime during the report month and low-income agreements are identified by energy assistance payments within the last 12 months. 6.) All ldaho residential agreements included in the bankruptcy claim are included even though they may not have been active for an extended period. Claims filed in other states are not included even if an ldaho agreement was included in the bankruptcy claim. o o Offrce of the Secretary Service Date August 19,2008 BEFORE THE IDAIIO PI]BLIC UTILITTES COMMISSION IN THE MATTER OF TIIE SUSPENSION OF THE COMMISSION'S GAS SERVICE RULE 1020 IDAPA 31.31.01.102 oRDER NO. 30625 In July 2008, the Commission Staff received an inquiry from Avista Utilities regarding an apparent conflict between two Commission rules. The issue was brought to Avista's attention when a Post Falls City building ofEcial asked Avista about the utility's procedures for inspecting a customer's installation of a natural gas appliance. More specifically, the City offi.cial was referring to the Commission's Gas Service Rule 102,IDAPA 31.31.01.102. This nrle states in pertinent part: The gas corporation shall inspect the customer's installation [of a gas appliance] before the connection of a meter to ascertain that the installation conforms to the provisions contained in the National Fuel Gas Code and the Unifomr Mechanigal Code, as adopted by the Commission Gas Rule I 02, IDAPA 3 1.3 I .0 l. 1 02 (1993) (emphasis added). The apparent conflict arises with Subsection .02 of the Commission's Safety Rules 202 and 203, IDAPA 31.11.01.202.02 and203.02. Safety Rules 202 and 203 were most recently amended in 2008. These two nrles are nearly identical and read in pertinent part: 02. Utility Compliance. All gas corporations subject to the jurisdiction of this Commission are required to abide by applicable provisions of the Intemational Mechanical Code [or International Fuel Gas Codel and to connect for service and light only those installations that: a. Have been inspected and approved by authorized agencies; or b. When inspecting agencies do not exis! to require their customers to abide by applicable provisions of the Intemational Mechanical Code [or Fuel Gas Codel as a condition of receiving service or continuing to receive service. Safety Rules 202.02 and203.02, IDAPA 31.11.01.202.02 and203.02 (emphasis added). Safety Rule 202 adopts the International Fuel Gas Code of 2006 and Safety Rule 203 adopts the ) ) ) ) ) CASE NO. GNR-G.08.01 o Exhibit No. 120 Case No. INT-G-16-02 J. Farley, Staff 12116116 Page I of 4No l?b EXHIBlT I I o oRDERNO. 3062s O o Intemational Mechanical Code of 2006. The International Codes are updated and published every three years by the Intemational Code Council. Based upon its review, Staff asserts there are two inconsistencies between Gas Service Rule 102 and the two Safety Rules. First, in 2006 the Commission adopted the "lnternational Mechanical Code" and "Intemational Fuel Gas Code" which superseded the Uniform Mechanical Code and National Fuel Gas Code, respectively. The Commission took this action after the Legislature adopted the International Mechanical Code and the International Fuel Gas Code in 2004, Idaho Code $ 54-5001. Second, the new International Codes no longer require a gas utility to inspect the installation of gas appliances. As the Commission explained in its 2004 Notice of Rulemaking, the new Intemational Codes establish a new regulatory framework that employs permits and inspections. Idaho Code $ 54-5016 requires that any installation of a gas appliance be accomplished pursuant to the issuance of a permit. Idaho Code $$ 54-5001 and 54-5018 require an inspection for each permit. For local governments that have adopted the International Codes, the current regulatory practice is for these jurisdictions to issue permits and conduct subsequent inspections. For areas of the State that do not have inspection agencies, the State Division of Building Safety issues permits and performs the inspections, IDAPA 07,07,01.1 In addition, the installation of gas appliances is generally required to be performed by a licensed installer and the license holder is required to comply with the International Mechanical Code. Thus, gas utilities are no longer required to inspect the installation of gas appliances - inspections are the responsibility of other entities. Consistent with the applicable Intemational Codes, Safety Rules 202.02.b, and 203.02.b. simply compel utilities to "require their customers to abide by applicable provisions of the [nternational Mechanical [and Fuel Gas] Code[s] as a condition of receiving or continuing to receive service." IDAPA 3l.l1.01 .202.02.b. and 31.11.01 .203.02.b. DISCUSSION AND FINDINGS Based upon our review of the rules in question, we find that Gas Service Rule 102 is incompatible with the Commission's Safety Rules 202.02 and203.02. In particular, the safety codes referenced in Gas Rule 102 have been superseded. We further find that Gas Rule 102 compels utilities to perform actions that are no longer required under the International Codes ' Idaho Code $ 54-5002 does list certain exemptions but even if exempted, the installation of gas appliances "shall comply with" the applicable lnternational Codes. 2 Exhibit No. 120 Case No. INT-G-16-02 J. Farley, Staff 12116/16 Page 2 of 4 o oRDERNO. 30625 o o adopted in 2004 by our Legislature in ldaho Code $ 54-5001. Consequently, on our own motion, we suspend Gas Service Rule l02,IDAPA 31.31.01.102. We further find that it is appropriate for us to undertake a comprehensive review of our Gas Service Rules. More specifically, we direct the Staff to meet with the gas utilities and other interested persons and informally review the Gas Service Rules, IDAPA 31.31.01. This informal review could be the basis for a negotiated rulemaking to update the Commission's Gas Service Rules next year. ORDER IT IS HEREBY ORDERED that Gas Service Rule 102, IDAPA 31.31.01.102, be suspended. IT IS FURTHER ORDERED that the Commission Staff undertake an informal review of our Gas Service Rules with gas utilities and other interested persons. IT IS FURTHER ORDERED that the Commission Secretary serve this Order upon our gas utilities. THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally decided by this Order) or in interlocutory Orders previously issued in this Case No. GNR-G-08- 01 may petition for reconsideration within twenty-one (21) days of the service date of this Order with regard to any mafier decided in this Order or in interlocutory Orders previously issued in this case. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See ldaho Code $ 6l-626. o 3 Exhibit No. 120 Case No. INT-G-16-02 J. Farley, Staff 12l16l16 Page 3 of 4 oRDER NO. 30625 o DONE by Order of the Idaho Public Utilities Commission at Boise, Idatro this l lt^ day ofAugust 2008. ATTEST: MACK A. REDFORD, MARSHA H. SMITH, COMMISSIONER D. KEMPTON SIONER o N,^B NA ie{il o. Jewell ll Co%mission SecYetary bls/O:GNR-G-08-01 dh 4 Exhibit No. 120 Case No. INT-G-16-02 J. Farley, Staff 12/16/16 Page 4 of4 o oRDER NO. 30625 o o GAS DISTRIBUTION RATE DESIGN MANUAL Prepared by the NARUC Staff Subcommittee on Gas June 1989 .: I\ATIOI\AL ASSOCIATION OF REGUIATORY UTILITY COMMISSIONERS 1101 Vermont Avenue I'[W Washington, D.C. 20005 USA Tel: (202) 898-2200 Fa,r: (202) 898-2213 www.naruc.org No.lzt EXHIBIT I I o o -22- accordance with prescrlbed uniform accountlng systems. These systems, such as the Unlform System of Accounts, classlfy costs according to primary operating functions. Thus, the functiona'lizatlon of costs ls already done for the cost of service analyst. 2 Classlflcatlon of Costs The functionallzatlon of costs ls of llmlted use ln the allocatlon of costs. Therefore, lt is necessary to further classify costs lnto customer, energy or commodlty, and demand or capaclty costs. it. customer cos ts o Customer costs are those operatlng capltal costs found the number of customers served rather than with the amount supp'lied. They include the expenses of metering, readfng, and accountlng, as well as those costs associatbd with the metering equipment and in customers' servlce connectlons. to vary directly with of utillty service bil ling, collecting, capltal lnvestment ln A portlon of the costs associated with the distributlon system may be inc'luded as customer costs. However, the lnclusion of such costs can be contro- versial. One argument for incluslon of distributlon related items ln the customer cost c'lasstflcation is the "zero or mlnimum size main theory." This theory assumes that there ls a zero or mlnlmum size main necessary to connect the customer to the system and thus affords the customer an opportunlty to take service if he so deslres. Under the minlmum size main theory, a1'l distribution malns are prlced out at the historlc unit cost of the sma'llest main instal]ed in the system, and assigned as customer costs. The remalnlng book cost of dl stributlon malns ls ass'igned to demand. The zero-lnch main method would a'llocate the cost of a o a o .23. theoretica'l main of zero-inch d'iameter to the customer function, and allocate the remaining costs associated with mains to demand. A ca'lculatlon of a minlmurn size main is shown in the illustratlve cost allocation study. The contra argument to the inclusion of certain distributlon costs as customer costs ls that mains and services are installed to serve demands of the consumers and shou'ld be allocated to that function. Under this baslc system theory, only those facllltles, such as meters, regulators and service taps, are considered to be customer related, as they vary directly with the number of customers on the sys tem. Another controversial item is the lnclusion of sales pronotion expenses ln the customer cost conponent. Ana'lysts vary in thelr opinions as to the extent of the inclusion. Some would lnc'lude all, some none, and some a portlon of sales promo'tion expense in the customer category. l.lith emphasis placed on conser- vation, many regulatory bodies have prohibited this type of activity, and in those cases, if cost were incurred, it shou'ld be deleted fron the study based upon its being a "be1ol the llne" or a stockholder expense. b. Enerqy or Commod'ity Costs Energy or commodlty costs are those whlch vary with the quant{ty of gas pro- duced or purchased. They are largely made up of the commodity portlon of purchased gas cost and the cost of feedstock, cata'lyst, fuel, and other variable expenses used in the productlon of gas from a manufactured or synthetlc gas (SNG) plant. Energy or commodlty costs increase or decrease as more or less gas i s consumed. c. Demand or Capacity Costs Demand or capacity costs vary wlth the quantity or slze of plant and equlp- ment. They are re'lated to maxlmum system requirements rvhich the system ls o o a .24- designed to serve during short intervals and do not dlrectly vary wlth the number of customers or their annual usage. Included in these costs are: the capital costs associated wlth productlon, transmission and storage plant and thelr related expensesi the demand cost of gas; and rmst of the capltal costs and expenses associated with that part of distrlbution plant not allocated to customer costs, such as the costs associated $rith distributlon mains ln excess of the mi nlmum slze. 3. Allocatlon of Costs to Custoner C'las es After the assignnrent of cog.ls to the custorrer, energy, and demand categories, each category must.be allocated to the varlous service classlflca- tions or to their subdivisions; -' il. Customer Costs Customer costs may be distrlbuted in proportion to the number of customers in a class, or a more detailed study may be made whereby certaln ccrnponents of the customer costs may be dlstributed on a per-customer basis, directly asslgned or dl strlbuted on a welghted per-customer basis. The latter mthod perrnits recognition of known or ascertainable customer cost differences such as the fre- quency of meter readings, complexity ln obtalning readlngs or integrating mter reading charts, and the indlvfdiual attention which may be given to large custo- mers, such as separate mter readlng schedules. As discussed earlier, whlle there may be dlfferences on whether certaln items of plant should be assigned to customer costs, there are clearly certaln expenses which are independent of whether a customer consumes gas or not. Slnce these costs will not be recouped lf little or no gas is consumed, they are generally inc'luded in a minimum bill or customer service charge. f)ne of the o O AHtF"ffiilTTAIN- o ht lttc ComruWlos)fl.' October 25,2016 ToAll lntermountain Gas Company Large Volume Customers Dear Customer, As you have already been notified, lntermountain Gas Company filed its first General Rate Case in over thirty (30) years requesting a rate reduction for lntermountain's firm large volume customers. You also have been made aware of the Company's proposal to implement a Demand Charge whereby each large volume customer receiving service through one of lntermountain's firm tariffs would be responsible for paying a monthly Demand Charge based on the customer's contracted Maximum Daily Firm Quantity, or MDFQ. Said another way, under this proposed billing mechanism, there will now be both operational and financial ramifications relative to your contracted MDFQ. lntermountain Gas Company has now initiated an .Open Season'whereby. irespective of your cunent contract term, you will now be given the opportunity to change your MDFQ election. Under the Company's proposed rate design, aligning your MDFQ with your actual peak-day needs should, in most cases, bring additionalenergy savings to your company while at the same time providing the peak day gas delivery security you require. I have attached some information that may help you determine whether any modifications to your existing MDFQ are waranted. Over the next several weeks l, or other members of lntermountain's team, will be communicating with you to answer questions you might have about our General Rate Case orthe attachment and assist you in making the best decision relative to the Open Season. Please let me know if you would prefer a personalvisit or if communications via phone or email work best for you. I will also update your marketer with the same information. This Open Season will end on Monday November 28th, 2016 and therefore your written response must be received by the Company on or before Monday, November 28th. You can send your response to me via US mailor email. I look forward to vis ly, David Swenson Manager, lndustrial Services lntermountain Gas Company 555 S. Cole Road Boise, ldaho 83709 Direct (208) 377-6118 Mobile (208')794-4118 dave. swenson@ intoas. com Ito \22' EXHIBIT I I o o o Ronald L. Williams,ISB No. 3034 Williams Bradbury, P.C. l0l5 W. Hays St. Boise,ID 83702 Telephone: (208) 3 44-6633 Email: ron@williamsbradbury.com Attomeys for Intermountain Gas Company BEFORE THE TDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICATION OF INTERMOUNTAIN GAS COMPANY FOR THE AUTHORITY TO CHANGE ITS RATES AND CHARGES FOR NATURAL GAS SERVICE TO NATURAL GAS CUSTOMERS TN THE STATE OF IDAHO Case No. INT-G-16-02 EXHIBIT 39 ) ) ) ) ) ) ) No \23 I I o Gase No. U-1034-134 INTERMOUNTAIN GAS COMPANY t?t I*t I o o BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ln the Matter of Application of lntermountain Gas Company For Approval of its Weather Normalization Model REVISED TESTIMONY AND EXHIBIT ii t Exhibit llo. 39 Cero No. !ilT.G,l6{2 L. Blrttncrtub. Prgc i ofEi o '! 5 I INTERMOIINTAIN GAS COMPA}IY CASE No. U-f034-134 REVISED Subeequent to the orlglnal flllng of U-1034-134, Lnconslet,enclealrere dlacovered Ln some of the blIIlng data for the perlod October, L979 through June, 1980. Therefore, all data durlngthle perlod was dlscarded ln the revtsed study. The data ueed ln the model waa updated to lnclude December 1985, through June, 1986. Thls captures the Erost recent avallable dataand aLlowe the etudy perlod to contaln an adequate number ofhlstorlcal data poiots in relatlon to the nuuber of predlctlng varl.ablee. The nodele were then refltted to that data. The stattstically non-eignlflcant data lncluded ln the orlglnalflllng, has been ouitted from the revleed flllng. Anyone lnterested ln that data can obtaln lt fron the orl.glnal flllng or by request to Internountain Gaa Conpany. I Exhibit No. 39 Case No. INTG-1S02 L. Blattner Reb. Page 2 of 81 I o Ij Case No. U-1034-134 INTERMOUNTAIN GAS COMPANY (Request for Approval of Weather Normalization Model) REVISED PREPARED DIRECT TESTIMONY OF JOHN M, KOHLMEIER I Exhibit No. 39 Case No. INT-G-16-02 L. Blatner Reb. Page 3 of 8'l I Page 9 cS) of almost ldentical form. These modeLs are very logical from a buslness or economic theory standpoint and have very strong statistical support,. The model ln each case predicts actual therm sales per customer ln the class for the month based on varlables whlch are not highly correlated, which are all statistLcally slgnifi- cant at the 95t level and together produce remarkably high R square. The models are presented ln the following tab1e. FINAL REGRESSION IvIODELS BY RATE CI,ASS a 1 ?, J 4 5 6 7 8 9 10 11 L2 13 t4 15 L6 L7 18 L9 20 2L 2.2 23 24 25 fntercept HDD45 HDD65 October November December January February March April Usage Trend ,Adjusted R' RS-ICoefflcient 5. 609 o,0207 0.0679 (3. e81) 5.255 L4.995 19.333 L9.237 L4,542 10.598 (0.130) RS-2Coefflcient 23 .584 0. 0152 0.0799 (6. e28) 9.44l. L4,479 t2.736 9.52]- 7 ,ALg (0.078) 99 ,7 GS-1Coefficient t 48.73 0.3045 o.2573 68.84 222.27 282,41 2?9 .47 259 . 02 225.93 183. 60 (4.s34) 99,7 98.9 o A nore detailed presentation of the models and the rnethodology is sontained in Exhibit I. Kohlmeier, Revised Dl Intermountain Gas Company Exhibit No. 39 Case No. INT-Glm2 L. Blafiner Reb. Page 12 ofSt o I I Ij I Case No. U-1034-134 INTERMOUNTAIN GAS COMPANY (Request for Approval of Weather Normalization Model) REVISED PREPARED EXHIBIT JOHN M. KOHLMEIER I I 1 I I OF 1o I I I I I J Exhibit No. 39Clr l{o. NI.@IAol L.8lrUrterR.b. Prgc 16 dtl o lj Interuountaln Gag Conprny Casc No. U-1034-134 Rcvtecd hhiblr No. I Pagc 3 of 65 Kohlucler WEAMTEN, NORI{ALIZATIOII ANI} DECLINING USE I{Ef,HODOI,oGI Once thc regreeslon equatlona havc been epeclfled and eatlrrted, ttla thc eoefflclenta of ths ucether varlablea that arc luportant tothe ncether adJuctuent proc.ar. Theae coefflclenta ncerurG tha responsc of eales to chengoa ln thoee weather verlabler. For exanplcl thc coefftclent of the heatLng degrec da, (besc 65') varlablc ln tha BpEce heetlng only, realdent,lal total ByBtrE .quatlon reprea.Etr the nuuber of addlttonal ther:ne per custouGr thit oncaddltlonal heatlng degrcr day (base 65') would caurc. Thccocfflclant of the heatlng dcgrec day (baee 45') varlabla represGnttthc nuuber of addlttonal therac pcr custoner thrt onG addltlonal haatlnS dcgrcc day (base 45') rould cauee. Trro weether varleblcs arc ured beceusc an eddltlonel dcgrca drop ln tenparature bclow 45' caulea rrorc addltlonal uac of ger than a degree drop Ln tGnpcreturc batr.Getr 65' and 45'. The effect of thc HDD45 Le eddl.tlvc to thacffect of the HDD65'. By rulttplylng thege coefflctcnta by th: dlffcrcncc botvcen thc noroal and ectual heatl.ng degrco dayr (baar 65') end haetlng degrco deyr (baee 45'), thc dlffcrancc bctwGcn acturl and uornal therns p8r cu8tonar 1g dcterrained. Note thet thc non-neathcr verleblcr rre uecd only to artftutc thr rcgrceelon equ.tlona and thet only thc cocfflclente of thc wcathcr varlabloa arG uaed ln the actuel adJuatnent. Alao notc thet thcprhery purpooc of the nodele 1r to edJurt aales thet have elready occurrcd rethcr then to predlct future ealcs. Exhbt No. 39 Caro ]6. NT-G-16{2 L. Bbttncr Rcb. P4o t9of Cl l. 5 , Ronald L. Williams,lSB No. 3034 Williams Bradbury, P.C. l0l5 W. Hays St. Boise,ID 83702 Telephone : (208) 344-6633 Email: ron@williamsbradbury.com . .tr' -- -) ^ 1 nr. ar. I o, -..1 , - , LU Iii J' Li4 ii p il-t:t'"t"t;'i-) ':.:l:l\./[Do o r-'uI!.II Attomeys for Intermountain Gas Company BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF INTERMOLTNTAIN GAS COMPANY'S APPLICATION TO CHANGE ITS RATES AND CHARGES FOR NATURAL GAS SERVICE Case No. INT-G-I6-02 RESPONSE OF INTERMOUNTAIN GAS COMPANY TO SECOND PRODUCTION REQUEST OF THE COMMISSION STAFI' COMES NOW, Intermountain Gas Company, and in response to the Second Production Request of the Commission Staffto lntennountain Gas Company dated September 7, 2016, herewith submits the following information: REQUEST NO. 25: Please provide a detailed explanation for the difference between the Total RS Margin of $60,988,492 on line 6 of Exhibit No. 27, and the $56,830,872 Distribution Revenue Requirement fbund on page 4 of Exhibit No. 20. RESPONSE TO REQUEST NO.25: As the following table illustrates, the differences between the total RS Margin on Exhibit No. 27 and the Distribution Reverute Requirementfound on page 4 oJ'Exhibit No. 20, resultfrom the fact that more than just Distribution Revenue Requirement is being included in the RS Margin on Exhibit No. 27. The Distribution Revenue Requirement only addresses lhe revenue necessary to cover expenses associated with moving gas from the city gate or.farm taps of Northwest Pipeline or .'lge I ) ) ) ) ) ) ) o I 'i-.l JN -oZ @ xul 3.ESPONSE OF tcc TO SECOND PRODUCTION REQUEST OF THE COMMISSTON STAFF /ar{ o o RESPONSE TO REQUEST NO.26: All of Intermountain's costs are assigned to one of three classi/ications based on the characteristics of the cost. These classifiers are capacity, customer ond commodity. Both Exhibit Nos. 2l and 22 show how each account has been assigned to these three dffirent classilications. Customer costs are costs that are incurued to extend service to a customer, attach the customer lo the distribution system, meter any gas usage and maintain lhe customer's account. Examples of costs classiJied os customer related include the Rate base account Distibution Meters and the O&M account Maintenance of Meters/House Regulators. Capacity costs are those costs associated with a plant lhat is designed, installed and operated to meet maximum hourly or daily gasflow requirements. Examples of costs classified as capacity include Rate base accounl Transmission Mains, and the O&M account Maintenance of Mains. Commodity costs are those costs thal vary with the throughput sold to, or transportedfor, customers. These costs are not addressed in the general rate case, but are ruled on eachyear as part of Intermountain's PGA Jilings. Record Holder: Mike McGrath: 208-377-6000Location: 555 S Cole Rd. Boise. ID 83707 Sponsor/Preparer:Lori Blattner 208-377-6000 REQUEST NO.27: Please provide the data and workpapers used to develop the regression equations described on pages 3-5 of Ms. Blattner's testimony. o R.ESPONSE OF ICC TO SECOND PRODUCTION REOUEST OF THE COMMISSION STAFF l)rge 3 o RESPONSE TO REQUEST NO.27: The regression equations usedfor weather normalization and described on pages j-5 of Ms. Blattner's testimonyfollow the methodologt outlined in Intermountain's previous weather normalization case, U- I 034- I 34. The data used in developing the models can be.found on the attached CD under the PR 27 folder\Data. The /iles are: PR 27 RSI data.xlsx PR 27 RS2 data.xlsx PR 27 GS data.xlsx The workpapers used in developing and selecting the tinal models are included in the PR 27 folder\WorlEapers. Thetile "PR 27 Model Test.xlsx" includes notes on the statistical validity of the models, as well as a review of how the models would have performed under actual weather conditions measured against actual usage for the previous Jive year period. It is also important to test the models against data that was not included in the model development. This workbook shows that test for the /irst four months of 2015. Additionally, the Company reviewed how well the models normalized data for the first six months of 2016 in preparation for Jiling this case. That analysis is shown in the /ile "PR 27 lTeather Normalization Reconciliation.xlsx". The weather normalization models and methodologt are regularly reviewed by Ph.D. statisticians to ensure that the methods follow accepted statistical practice as well as the process approved in case U-|034-134, and that they are appropriate for weather normalizalion. The opinion letter resultingfrom that review was included in the case as Exhibit No. 18. Included here are the items sent lo the consultants 1in addition to the items provided ubove) that assisted them in their analysis (See "PR Consultant Review.pdf'). Also included as " PR 27 Final Models.pdf' are the.final models used by Intermountainfor weather normalizalion. o o RESPONSE OF rGC TO SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Plqe 4 o a Record Mike McGrath: 208-377-6000 Location:555 S Cole Rd.ID 83707 Sponsor/Preparer: LoriBlattner: 208-377-6000 REQUEST NO. 28: Please describe the method and provide the workpapers used to weigh customer weather data described on page 4 of Ms. Blattner's testimony. RESPONSE TO REQUEST NO.28: The data used to weight the weather data by customers (which is refened to in this response as " Rate Study") is stored in a clustered SqlServer database. Data is imported and processed by SqlServerjobs running on the production server. All code used by Rate Study is stored on the securedproduction server. The code consists ofstoredprocedures,functions andviews. SqlServer Jobs to collect external data: Rate Study - Import Actual Temps Rate Study - lmport Billing Data The section highlighted by dashed lines in Chart I on the following page represents the stored procedure that calculates the normalized temperatures. The weighting is calculated through a series oJ'database views (SQL code) using billing data and normalized temperature data. The final weighted weather is weighted by the proportion of customers in each weother region and billing cycle. The followingflowchart shows the weighting process: o I ti I ii RESPONSE OF IGC TO SECOND PRODUCTION REQUEST OF THE COMMTSSION STAFF i)rge 5 o PR#28 Chart I cailorlaia llonttal wcrurc?CIS tmpo.t trlclttS tI^,Y&13 Cls lmpo.f VEU t-rdhdras hrElEal5Filfr rt& !d.t"LLult gfilril,y MN'|lrl IET's6r-t DAfA vl€il htilE6lrF<ilt lblc rirt {o''tl rE}rrsruil ufE lll, r(xf{rl m{qsocu urtItuDAr Wtom-v vl€w vlElirwl6tt0cruDllt*v tslrLltrf'lrt6t0 Ya t- "<r:ryi4tEf€wililryffi,tris{-t]Ps4w Bffiwc.€k4i*r@d Record Holder: Location: Mike McGrath: 208-377-6000 555 S Cole Boise- ID 83707 Sponsor/Preparer:Lori Blattner. 208-377-6000 REQUEST NO. 29: The Company provides different customer counts in its Application and throughout the testimony of several witnesses. Please explain the following discrepancies, particularly how any corrections might impact the proposed rates . Application at pg. 2 I Kivisto Direct at2,ln.14 o Madison Direct at2,ln.9 o Gilchrist Direct at 5, lns. 2, 3 r Gaske Direct at 4, ln. 13 o Blattner Workpaper No. 8 334,650 339,000 134,650 334,650 320,000 338,798 i{ o RESPONSE OF IGC TO SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Page 6 o PR 27: CONSULTANT REVIEW o O o o BOIiE t?A?t uiltvtnsI?Y cot.Ltof or Eu$xItt AND IEONOHSCTD.prtl/t t,tt al tnlbm.tlon Dcrrnoro!ry trld I'aw& ch.tn t rasg.ilat t Iune 22,2016 Ms. Lorl Blattner lntermountaln Gas Company 555 South Cole Road Boise, ldaho 83709 Dear Ms. Blattner, At the request of Intermountain Gas Company, we have revlewed the methodol,ogy used to develop staflsdcal models for forecasfing monthly and annual nahrnal gas demand measured in therms for three different customer dasses (RS"1, RS-2, and G$. ln our opinion, the methods used are apprupriate and are based on sound statisdcal methodology. The lndlcator variables used ln the forecastlng models for therm usage are consistent wlth buslness prectlce and the economic theory. While there are alternatlve staustlcal approaches that could be employed that would be acceptable, there is no basls for belleving that alternative methods would provide superlor results to thosc that your method has dellvered. Therefore, w6 are of the opinlon thattha methods used by lntermountaln 6as Company are an appropriate and adequate basls furweather normalization. Furthermore, the methodology the company has used is consistent wlth that prcvious[ approved bV the ldaho Publlc Utilities Commlsslon. Your approach follows the methodology approved by the ldaho Public lJtlliHes Commlssion ln Case U-103+134. You tested the forecasting accuracy potendd foi each model. You conducted a baclcward forecast to see how well the models forecast monthly and annual therm use for the years 2010-2015. You also ran a "truo forecart" test on the first four months of 2016 whlch were not used in developing the model. The forecast test results demonstrate the vtahlllty of the selected models. ln summary based on our analysls, the forecastlng approach thatyou have used ls appropriate and the process you used to arrive at the preferred models is consistent wtth standard forecasdng methodology. Thts optaton ls supported by our academlc backgrcunds and e:rperiences. Patriclr Shannon holds a Ph.D. ln Stadsttcs and Quantitatlve Metlrods from the University of Orcgon, has co- authored sEneral unlversity textbooks including edlflons 1-9 of Enslncss5tadsdcs,' A Declslon- lvloktng Apptoach, and has consulted for numerous publlc and prltrate sector organlzadons. Phlllip Fry has a Ph.D. in quarttitative business analysis ftom Louisiana State Unlversity. He has been a co. author on the textbook Euslness Stat{su*c,s A Decision-ltaktng Appraach {editions 5-9J publtshed by Pearson. Sincerely, Patrlck Shannon Ph,D. Exhibit No. 18 Case No. INT-G-16-02 L. Blnftner, ICC p. i crf i o o INTERMOUNTAIN GAS COMPANY TO: FROM: SUBJECTI DATE: PHII, FRY AND PATRICK SFIANNON LORI BIdTTNER 2OI 6 \Y4i{'I FIER NOR.I\{.{IIZATION MODTJJ,S 6/1/15 o I have enclosed for your review a packet that contains the statisticd output for out top Weather Nofilelizlden ms6elt for each rate class. I belicve these models have bcen developed using an approach drat is consistent with the mettlodology approved in Case No. U-1034-134. Scvcral notable stnrctural shifts have occurred in the data since we began collecting it io 1981. First, new building codes and efficicncy factols have been implemented. According to the.information I pthered, thc Idaho Residential Energlr Code was adopted by many cities beginning in 1991. This ncw building standard was desip;ned to improve the encrgy efficieocy of ncw homes. In addition, efficicncy standards for fumaccs and wate! heaters began to improve during thc latc 1980's. Although these standards only applied to new homes and new purchases, we have seen tremendous Sowth in our customer base since that drne. Over 60% of our customers ale new since 1990. These customers would be using the new standards and equipment, and as they become a larger percentage of our customer base, they have had a gradual impact on our therrn usage per custome!, Further, price stability has changed dramatically io reccnt years. Until 1999 we went through a period of relatively stable prices. Beginningwith the prices effective in August 1999, however, we entered a period of extreme price volatility with a gcnerally increasing pricc trend. ln reviewing ouJ usage pci custome( per degree day cherts for the three rate classes (see "Usage per Custome/), it appeared that usage per customer may have reached a new equilibrium around 2003, following the ransition to this ncw price environmenL Finally, I tcsted sorne models based on a time series beginning on October 2C08, The nation-wide economic downrurn began to affect Idaho in the fdl of 2006. I wanted to test whether there was a difference in the way customers used nanrral gas following thc onset of the downturn. To account for all of these factors, I ran models for three different time series. I fust testcd a 25-yet time-pcriod (Oct. 1990 - Dec. 2014) to account for the efficiency changes, Next, I tested a 72-yeu time period (Oct. 2003 - Dec. 2014) to account for changes in usage per customer per degree day, resulting from a more volatile price environrnent, customer conservation measures and housing market conditions. Finally, I tested a short, 7-year time pcriod (Oct 2008 - Dec. 2014) to account for the impact of the economic downtum. I developed a l-ist of variables that i thought might be significant in explarning changes in usage per customer. "I'he attached 'Variables Tested.pdf' oudines the list of potential variables. I began by running correlations on the variablcs to tcst for sigdficance. The correlation matrix for each of the three classes is attached (see "Correlations,xls). I then selected independent variables for regression against the dependent variable, actual usage. Each of the selected models meets nccepted standards for statistical soundness, including a high R2 e0.99), t-statistjcs for each of the variables that indicatc they are signiEcant G>0.05), and a Durbin-Watson statistic that has bcen corrected where necessary to fall within an acceptcd range. o t o rGC VEATFTER NORMALTZAI'rON, PAGE | 2 Once I came up with models that were statistically acceptable, I used some comparisons to actual usagc to try to evaluate which models rvould have performed best under actua.l conditions, I compared the usage these models would have predicted for the past 6ve years with our ach:al usagc for the same period (2010 through 2014). Additionally, I compared thc predicted usage to actual usage forJan - Apr 2015. 'lhe end date for data used in the model development was Dec 2014. This provided 4 months that werc not included in the model development dam upon which I could test the models' performance. I selected thc past five years as the test yeats because we believe they most closely represcnt tlc conditions we may experience in the near future. The RS-l models I am sending are M03,4b (data series 2003.10 through 2014.12, with monthly dcgree day variables, a winter trend, and monthly binary), and M03.4 (data series 2003.10 through 2014.12with monthly degree day variables and a wintet trencl), r\fter I ran the original M03.4 model, I noticed that it did not perform wcll io the shoulder months (the months going into and coming out of 'rinter where the relationship between usage and the weather is not as strong). 'I'o help account for this I tested some monthly binaries. April remained in the model as being significant in helping to further rc6ne this model. Thc RS-2 models I am sending include M03,4b (daa series 2003.10 through 2014.12, with monthly dcgree variables, a winter trcnd, and monthly binaries), and M08.2 (data series 2008,10 through 2014.12, rvith monthly degrec day variablcs and a winter pricc variable). The GS models I am sending include M03.4b (data serics 2003.10 through 2014.12, with monthly degree variables, a winter trcnd, and moothly binary), M03.4 (daa series 2003.10 through 2014.12 with monthly degree day variables and a winter trcnd). The modcis I have listed first in cach customcr class are my favorites, I hope that this information rvill be helpfi:l as you conduct your analysis and that you havc enough background on our project. [f you need any additional information or backgJound, please let me know. r\s wc discussed in February, we plan for your review to take the month of June. I vill bc available to answer qucstions and incorporatc your suggestions into the modcls until we are able to devclop models we are all comfortable with. tsyJuly ltt, we expect to have e-mail confrmation from you that the final models we decide on through this collaborative process are acceptable in your opinion. Then, by July 15, 2015 you will provide us with a formal lettcr conveying yout expert opinion regarding thc validity of thc weather normnlization models. You can reach me by phr:ne at 208-861-6622 or by c-mail. I look fonvard to working with you on this proiect o o o '1 I %"r^€/; er)* ;2 t^ % '%oo)(/s "oo^ ?;.-oo^ -:q"ooe bo- %; q; % %b %, % %t%, % %q % "r", %.bq bq %q -5.o0z (!o €,o cDoo *o octro6= Eb(Jcs5o>o.o EDGo:) I U)t o i:o + ao r!o ooqo rf)co oo ci alf)o{o oo(7) ci o o(,oNo o )J),t Oa oocn rs$t -uEr o E5o tIoo "a "^ ?;'4 ,ro* ot^ #. fuo- %qie %- %; e ,% ,e %t%, % % *'q 3.e ,% % %q t"t, ""r,tg, spq bq %q +q Gooo EDq)o LE ocE-9o=qboe b=o.otoo3 NI(rtil, o oooooooOrjfOtJ,.f,t.crou?qcc?c?ryo!ooooooo oocn r?ul -uEra iia IEoo (!o 0,(u oloo 0toCLE or= r==ao ar .= E=o- 0,(r, (I,o3oo %no' %%,r^ o,-to- h<oo^ "r; b €: Aqooa %%; %, % '%, "%,b %, % %,%, % %q %agr, "%,,'%q ,:_ 'oo,."- o o ooooooooooooooooooo(,Pq{o!qqqac!qC{C!C.lC!C\Frrrf oOq(o ooSn JEH -uElo o o ECoN0MtC E_CPI E_GDP E_HOUSING E-INCOME E-MORTG E_PRIME PRICE P_WIN P-SUM P*CHG P_2MA P-3MA P6MLAG P 1YLAG VARIABLES TESTED 2016 Weather Normalization Models NationalCPl NationalGDP ldaho housing starts ldaho per capita personal income - current dollars Mortgage Rates Prime Rate IGC Prices IGC winter prices IGC summer prices IGC percent change in prices year over year. Z-year moving average price 2&3-year moving average price (RS-2, GS) 6 month lagged prices 1 year lagged prices 45 Degree Day Variable - Monthly 65 Degree Day Variable - Monthly TREND TREND(90/03/08) lncreasing Usage Trend TR_W(90/03/08) lncreasing Winter Usage Trend (Oct-Mar) T_(90/03i08)_Y2Y lncreasing Year-to-Year Winter Trend (Oct-Mar) BINARIES JAN, FEB, etc Monthly Binaries for each of the 12 months. 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E SEd hEB S1R8 fiTn d d d o! ci q.',1.i - q c, n d ci d ci ci Y d d d cidt 'rro,ocoor O \, o o RS.l MODELS M03.4b Dependent Variable: THERMS Method: Least Squares Date: 05/29/15 Time: 11:52 Sample (adjusted): 2003M1 1 2014M12 lncluded observations: 134 after adjustments Convergence achieved after 7 iterations Variable Coefftcient Std. Error t-Statistic Prob. c JAN65 FEB65 MAR65 APR65 MAY65 JUN65 SEP65 ocT65 NOV65 DEC65 TR-WO3 APR AR(1) 8.277344 0.088880 0.087776 0.081677 0.103182 0.050883 0.028442 0.027018 0.054981 0,074097 0.085354 -0.100007 -22.01741 0.268952 0.408269 0.000681 0.000765 0.001021 0.006709 0.00't679 0.003022 0.007746 0.002849 0.001209 0.000787 0,012970 4i166/'4 0.087709 20.27423 130.5789 114.6833 80.02600 15.37916 30.29968 9.418418 3.488061 19.29601 61.26865 108.4702 -7.710339 -5.348389 3.066390 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0007 0.0000 0.0000 0.0000 0.0000 0.0000 o.oo27 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) 0.997870 0.997640 1.761309 372.2651 -258.5961 4325.352 0.000000 Mean dependent var S.D. dependent var Akaike info criterion Schwaz criterion Hannan-Quinn criter. Durbin-Watson stat 46.56706 36.25393 4.06859S 4,371358 4.1S1630 1.991455 lnverted AR Roots .27 o o o M03.4 Dependent Variable: THERMS Method: Least Squares Date: 05/26/15 Time: 11:12 Sample (adjusted): 2003M1 I 2014M12 lncluded observations: 134 after adjustments Convergence achieved after 7 iterations Variable Coefficient Std. Enor t-Statistic Prob. c JAN65 FE865 MAR65 APR65 MAY65 JUN65 SEP65 ocT65 NOV65 DEC65 TR_WO3 AR(1) 8,160052 0.088983 0.087910 0.081876 0.067692 0.051124 0,028931 0.028408 0,055529 0.074292 0.085482 -0.100763 0.191522 0.427663 0.000725 0.000815 0.001088 0.001192 0,001830 0.003383 0.008713 0.003076 0.001296 0,000840 0.013474 0.088596 19.08057 122.ffi20 107.8072 75.27825 56.77313 27.94011 8.551031 3.260318 18.05301 57.31600 10'l.7749 -7.478515 2.16174',1 0.0000 0.0000 0.0000 0.0000 0,0000 0.0000 0.0000 0.0014 0.0000 0.0000 0.0000 0.0000 0.0326 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) 0.997370 0,997109 1.949258 459.7526 -272.7384 3823.825 0.000000 Mean dependent var S,D. dependent var Akaike info criterion Schwarz criterion Hannan-Quinn criter. Durbin-Watson stat 46.56706 36.25393 4.2er'.756 4.545889 4.378999 2.023977 lnverted AR Roots 1g o o RS.2 MODELS M03.4b Dependent Variable: THERMS Method: Least Squares Date: 05/28/15 Time: 18:17 Sample: 2003M10 2014M12 lncluded observations: 1 35 Convergence achieved after 10 iterations Variable Coeflicient Std. Enor t-Statistic Prob. o c JAN65 FE865 MAR65 APR65 MAY65 JUN65 JUL65 SEP65 OCT65 NOV65 DEC65 TR-WgO APR OCT AR(1) 16.51103 o.121207 0.120228 0,114706 0.120501 0.075089 0.ffi2344 0,074064 0.069009 0.065251 0.107415 o,117302 -0.086568 -16.77782 9.16't516 0.239284 0.565348 0.001485 0.001661 0.002212 0.007968 0.002133 0.004250 0.018650 0.012706 0,010015 0.002828 0.001768 0.013751 4.846835 2.943159 0.093076 29.20506 81,60060 72.39535 51.85679 15.12385 35.20789 14.66909 3.971347 5.431152 6.515378 37.98602 66.34459 -6.295318 -3.461604 3.112817 2.570833 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0,0001 0.0000 0.0000 0.0000 0.0000 0.0000 0,0007 0.0023 0.0114 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) 0.998192 0.997964 2.080875 515.2748 -281.9679 4379.471 0,000000 Mean dependent var S.D. dependenl var Akaike info criterion Schwaz criterion Hannan-Quinn criter. Durbin-Watson stat 66.94881 46.1 1509 4.4143li0 4.758669 4.554265 1.988545 lnverted AR Roots .24 o o M08.2 Dependent Variable: fHERMS Method: Least Squares Date: 05/27115 Time: 11:09 Sample: 2008M1 0 201 4M12 lncluded observations: 75 Convergence achieved after 7 iterations Variable Coefficient Std. Enor t-Statistic Prob. c JAN65 FE865 MAR65 APR65 MAY65 JUN65 JUL65 SEP65 ocT65 NOV65 DEC65 P-WIN AR(1) 15.95718 0.1 16652 0.1 161 33 0.1 10578 0.093409 0.076711 0.064785 o.074413 0,063872 0.064419 0.088832 0.111869 -0.089795 o.240596 0.623338 0.001977 0.002271 0.002946 0.0016't0 0.002251 0.004574 0.018279 0.019296 0.003950 0.001531 0.002382 0.029086 0.128248 25.59957 59.01062 51.1 3414 37.53828 58.03392 34.07106 14.16498 4.072ffi9 3.310060 16.30929 58.03380 46.98211 -3.087256 1.87ffi15 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0001 0.0016 0.0000 0.0000 0.0000 0.0030 0.0654 o R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) 0.998758 0.998493 1.768184 190.7149 -141.4188 3772.857 0.000000 Mean dependent var S.D. dependent var Akaike info criterion Schwarz criterion Hannan-Quinn criter, Durbin-Watson stat 66.14147 45.54999 4.14/.502 4.577100 4.3172?4 1.964795 lnverted AR Roots .24 o o o GS MODELS M03.4b Dependent Variable: THERMS Method: Least Squares Date: 05/28/15 Time: 21:16 Sample: 2003M10 2014M12 lncluded observations: 135 Convergence achieved after 7 iterations Variable Coefficient Std. Enor t-Statistic Prob. C JAN65 FEB65 MAR65 APR65 MAY65 ocT65 NOV65 DEC65 TR-WgO SEP AR(1) 156.4242 0.455898 0,444788 0.394486 0,266841 0.139923 0.226815 0.317030 0.425533 -0.358425 22.86495 0.445873 4.046121 0.010226 0,011479 a.015224 0.009867 0.013030 0.M2276 0.018106 0.011871 0.098681 5.490874 0.081063 38.66029 44.58060 38,74,6S5 25.91217 27.04308 10.73825 5.365158 17.s0950 35.84741 -3.632'153 4.1U173 5.500312 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0004 0.0001 0.0000 R-sguared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) 0.992613 0.991953 16.10113 31887.30 -560.4232 1502.625 0,000000 Mean dependent var S,D. dependent var Akaike info criterion Schwaa criterion Hannan-Qulnn criter, Durbin-Watson stat 324.9130 179.4880 8.480343 8.738590 8.585287 2.122143 lnverted AR Roots .45 o o M03.4 Dependent Variable: THERMS Method: Least Squares Date: 05127115 Time: 11:48 Sample: 2003M10 2014M12 lncluded observations: 135 Convergence achieved after 10 itenations Variable Coefficienl Std. Error t-Statistic Prob. C JAN65 FEB65 MAR65 APR65 MAY65 ocT65 NOV65 DEC65 T_90_Y2Y AR(1) 164.0493 0.465296 0.455599 0,409193 0.257922 0.130710 0.246265 0.330552 o.435787 -o.212377 0.484254 4.155666 0.011819 0.013243 0.017504 0.010289 0.013491 0.049865 0.021109 0.013750 0.047495 0.0830't7 39.47606 39.36833 34.40267 23.37769 25.06771 9.688780 4.938628 15.65963 31,69254 4.471577 5.833183 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0,0000 0.0000 a R-squared AdJusted R-squared S,E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) 0.991725 0.991058 16.97312 35722.76 -568.0898 1486.085 0,000000 Mean dependent var S.D. dapendent var Akaike info criterion Schwaz criterlon Hannan-Quinn criter. Durbin-Watson stat 324.9130 17S.4880 8.579108 8.815835 8.675307 1.993880 lnverted AR Roots .48 o o O PR 27: FINAL MODELS o {r$M o RS-z MODELS M03.4b Dependent Variable: THERMS Method: Least Squares Date: 05/28/15 Time: 18:17 Sample: 2003M1 O 2.014M12 lncluded observations: 135 Convergence achieved after 10 iterations Variable Coefficient Std. Error t-Statistic Prob. C JAN65 FEB65 MAR65 APR65 MAY65 JUN65 JUL65 SEP65 OCT65 NOV65 DEC65 TR-WgO APR ocT AR(1) 16.51103 o.121207 o.120228 0.1 14706 0.120501 0.075089 o.06234/. 0.074064 0.069009 0.065251 0.1 07415 0.117302 -0.086568 -16.77782 9.161516 0.239284 0.565348 0.001485 0.001661 0,002212 0.007968 0.002133 0.004250 0.018650 0.012706 0.010015 0.002828 0.001768 0.013751 4.846835 2.943159 0.093076 29,20506 81.60060 72.39535 51.85679 1s.12385 35.20789 14.66909 3.971347 5.431152 6.515378 37,98602 66.34459 -6.295318 -3.461604 3.112817 2.570833 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0001 0.0000 0.0000 0,0000 0.0000 0.0000 0.0007 0,0023 0.0114 o R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) 0.998192 0.997964 2.080875 515.2748 -281.9679 4379.471 0.000000 Mean dependent var S.D. dependent var Akaike info criterion Schwaa criterion Hannan-Quinn criter Durbln-Watson stat 66.94881 48.1 1 509 4.414340 4.758669 4.554265 1.988545 lnverted AR Roots .24 o i,1fli\k o o GS MODELS M03.4b Dependent Varlable: THERMS Mathod: Least Squares Date: 05/28i15 Tima: 21:16 Sample:2003M10 2AMM12 lncluded observationg: 1 35 Convergence achieved afier 7 iterations Variabls Coefficient Std. Enor t-Statistic Prob c JAN65 FEB85 MAR65 APR85 MAY65 oc165 NOV65 DEC65 TR_W9O SEP AR(1) 156.4242 0.4558S8 0.444788 0.394486 0.266841 0,139923 0.228815 0.317030 0,425533 -0.358425 22.864e5 0..145873 4.046121 0.010226 0.011479 0.015224 0.009867 0.013030 0.442276 0.018108 0.011871 0.098681 5.490874 0.081063 38.6602S 44.58060 38.746e5 25.91217 27.0.ti}08 10.73825 5.365158 17.50950 35.84741 -s.632153 4.184173 5.500312 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0004 0.0001 0.0000 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistlc Prob(F-statistic) 0.992613 0.991953 16.'t 0'113 31887.30 -560.4232 1502.625 0.000000 Mean dependent var S.D. dependent var Akaike info criterion Schwaz criterion Hannen-Ouinn criter. Durbin-Watson stat 324.9130 't79.4880 8.480343 8.738s90 8.585287 2,122143 lnverted AR Roote .45 o I o Ronald L. Williams,ISB No. 3034 Williams Bradbury, P.C. 1015 W. Hays St. Boise,ID 83702 Telephone: (208) 3 44-6633 Email: ron@williamsbradbury.com i).If IiYED .,:i',r'i!-? []1ll:lbt1J,1" '- 'ri;!.4. rt irJ l';."';isslirli Attomeys for Intermountain Gas Company BEFORE THE IDAIIO PUBLIC UTILITES COMMISSION IN THE MATTER OF INTERMOI.'NTAIN GAS COMPANY'S APPLICATION TO CHANGE ITS RATES AND CHARGES FORNATURAL GAS SERVICE Case No. INT-G-16-02 RESPONSE OF INTERMOUNTAIN GAS COMPANY TO SIXTH PRODUCTION REQUEST OF THE COMMISSION STAFF COMES NOW, Intermountain Gas Company, and in response to the Sixth Production Request of the Commission Staff to Intermountain Gas Company dated October 12,2016, herewith submis the following information: REQUEST NO. 120: On page 5 of her testimony, Ms. Blattner explains that she used a test year using 6 months of actual data and six months of forecasted data. Please provide the workpapers, assumptions, and supporting data used to create this forecast. Please explain why forecast, rather than actual weather data was used. RESPONSE TO REQUEST NO. 120: The forecasted therm usage data was developed in the following steps: l. Intermountain used data.from October 2003 - December 2014 to create regression equations that were used both to weather normalize actual months and toforecast usage in the forecast months. The regression study was submitted in response to Production Requesl No.27. ) ) ) ) ) ) ) o O \,],5 EXHIBIT ffiF,to RESPONSE OF ICC TO SIXTH PRODUCTION REQUEST OF COMMISSION STAFF Page t ld€ o O 2. The Company then applied the regression equations to normal heating degree days and forecast trend to arive at usage per customer. The /ile " PR I20 Usage Calculation.r/sx " provides an tllustration of how the regressionformulas were applied. The resulting usage forecast can be found in the Jile "PR 120 Usage per Customer.xlsx" in Excel columns A-G. 3. The regression study is based upon aEage per customer data. To calculate usage per customer, the Company took the total billed usage for the month divided by customers actually using natural gas to arrive at usage per customer. Customers receiving billing adjustments and customers that had zero usage for the month were excludedfrom the divisor. Because the regression equalions are used to establish a relationship between natural gas usage, wealher, and other explanatory variables, the Company believed it was appropriate to removefrom the customer total those customers that did nol use any natural gas. As would be expected, during the sttmmer months of June through October, the many RS-l and GS customers who use natural gas for heating purposes only were removedfrom the divisor because their usage during those months u'as zero. Since these cuslomers are paying a customer charge year round, however, they are included in the customer count in Exhibit No. l5 in order to accurately reJlecl the revenue generated from the customer charge. To eliminate the confusion of having a customer count to apply to usage and a separote cuslomer count to apply to the customer charge, Intermountain chose lo adjust the usage in the June through October period to accountfor these zero usage customers in the RS- I and GS closses. That calculation is included in this response in the file " PR I 20 Usage per Customer.xlsx" on the "RS-I Adj" and "GS Adj" tabs. The resulting usage per customer that was applied to Exhibit No. l5 forecast customers to generote forecast usage is listed in Excel columns I through O of thefile "PR 120 Usage per Customer.xlsx". o RESPONSE OF IGC TO SIXTH PRODUCTION REQUEST OF COMMISSION STAFF Page2 o o Forecast, or Normal degree days were used to calculate usage in the.forecast months of July through December 2016, becouse actuol weatherfor those months had not yet occurredwhen the case was /iled. The processfor weather normalizing the months of January through June 2016 is explained in Production Request No. 121. Record Holder: Mike McGrath,208-377-6000 Location:555 S Cole Rd, Boise, ID 83707 Sponsor/Preparer:Lori Blattner, 208-3 77-6000 REQUEST NO. 121: Please provide the workpapers, assumptionsn and supporting data used to determine the Company's weather normalized consumption as summarized in Table B.1 of Ms. Blattner's direct testimony, and used by Company witness Darrington. RESPONSE TO REQUEST NO. I21: The process ofweather normalizing actual consumption also begins with the regression equations provided in response to Production Request No. 27. As illustrated in thefile "PR l2l ll'eather Normalization Adjustment.xlsx", the actaal degreesfor the month are subtractedfrom the normal degree days for the month. The heating degree day regre.ssion coefficient for the appropriate month is applied to the change in degree days to calculate the change in usage resultingJiom the dffirence in heating degree daysfrom normal. Finally, that adjustment is applied to customers to arrive al the total change in usage for the class. The actual therm usage for lhe RS-[, RS-2 and G,Sc/asses was westher normalized in this mannen RecordHolder: MikeMcGrath.20S-377-6000 Location: SponsorlPreparer: S Cole Rd rD 83707 Lori Blattner. 208-37 7 -6000 REQUEST NO. 122: Please provide the accounting entries and related supporting documentation associated with the Ketchum/Sun Valley Area Hookup. Please include all components associated with the Hookup including but not limited to the revenues, costs, and rateo RESPONSE OF ICC TO SIXTH PRODUCTION REQUEST OF COMMISSION STAFF Page 3 u=A B i @ivL!D!f @isT!o!g @i\, -!o 6i)>:E @b-!o;< @'NL!E!t oi.r c!E 9o>NE!G! @i.. 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F) NO 5o'o'5qN60 12.zdl:E4O-0ooG -SDooo50 @! qaaqN {! 9ou@ q ooa F@o !@t5aos oo{ 6oo! aLao! NNJ!hqoo!@ .:Jooo6{ @!qb@ q)mE 5oo oo oo o a 6,m oN@in o! q s!N N o{b,GN@ Io@qo Noob@ qoLN N qo'5N N qoLN N !!oN@@N 6 iso6 No ! @@ q iDo o o ==qE o o O 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 Michael C. Creamer (ISB No. 4030) Givens Pursley LLP 601 W. Bannock St. Boise,ID 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-l 300 mcc@ qivenspursley. com Attorneys for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF INTERMOUNTAIN GAS COMPAI\Y 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.I6-02 EXHIBIT NO. 301 No.3o I EXHIBITo NW IGU o lntermountain Gas Gompany Rate of Return (December 31. 2016) Weighted Line Description Weiohtl (1) Cost (21 Gost (3) 1 Long-Term Debt 2 Common Equity 3 Total 52.00% 48.00Yo 100.00% 4.94o/o 9.30% 2.57o/o 4.460/0 7.03o/o Surce,: 1SNL Financial, downloaded on December 14,2016. o Exhibit No. 301 Case No. INT-G-16-02 M.Gorman, NWIGU p.1 oflo O o 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 c stokes@cablehuston. com tbrooks@ cablehuston. com Michael C. Creamer (ISB No. 4030) Givens Pursley LLP 601 W. Bannock St. Boise,ID 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-1300 mcc@ givenspurslev. 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-I6-02 EXHIBIT NO. 302 o lc EXHIBIT N\N TGU o o lntermountain Gas Company Valuation Metrics Avaraoo (11 zo,t6" 2015 2ot1 zo13 2012 2011 2o1o 2009 20oB 2oo7 Zg@l2l (3) (4) (s) (6) (7) (8) (e) (10) (rr) (r2) Line ComoanY 1 Atmos Energy2 Chesapeake Ulilities3 New Jersey Resources4 Nisource lnc.5 Norlhwest Nat. Gas6 South Jersey lnds.7 Southwest GasI Spire lnc.9 UGI Corp.10 WGL Holdings lnc. 11 12 15.44 16,13 16.18 19.97 19.49 '17.28 16.89 15.82 '14.98 15.91 15.93 14.8'l 16.83 17.87 21.08 'r6.94 15.00 14.46 16.38 't5.27 13.21 12.21 14.98 15.33 16.97 16.81 13.97 't3.74 10.86 15.11 13.59 14.15 12.27 12.07 18.08 15.90 20.27 14.31 13.30 13.66 21.40 20.90 20.20 23.80 27.70 23.10 22.50 19.80 20.80 20.00 17.50 '19.15 16.61 37.y 23.69 17.95 19.35 16.49 17.71 16.99 16.09 17.70 11.73 22.74 20.69 18.03 17.86 19.80 15.81 15.15 '15.87 15.62 '15.98 18.89 19.38 18.90 15.76 2'1.25 15.44 18.25 14.36 '14.16 '16.76 19.36 19.02 18.48 15.69 13.05 15.03 '16.97 12.54 '14.20 14.93 14.U 15.',t7 14.96 12.20 13.39 10.30 '12.58 15.87 't6.72 21.61 18.82 16.74 17.18 't7.26 14.19 15.14 15.60 13.52 17.85 16.13 19.16 15.85 '1't.86 15.94 '13.60 13.97 '15.46 Aversge Median 17.56 17.78 Sources: 1 The value Line lnvestment Suruey lnvestnent Analyzer Sofrware, downloaded m November 30, 2016. 2 The Value Line tnvestment Swey, S€ptember 2, 2016. 16.81 '16.44 22.O2 2't.'t5 20.28 17.83 17.53 17.11 16.46 '16.15 16.29 16.22 14.32 14.48 13.46 13.80 14.76 13.9'l 16.91 16.73 15.33 15.66 Exhibit No. 302 Case No. INT-G-16-02 M. Gorman, NWIGU p.1 of3 O O lntermountain Gas Company Valuation Metrics Market Price to Cash Flow (IrrPrCF) Ratio I Lins Companv ll-Yeat Averaoe 20162' 29.15 2011 2013 2012 2011 3S,LS ?SE 49C(1) (2t (3) (4) (5) (6) l7l (8) (s) (10) 209! (11) 2006 112l o 'l Atmos Energy2 Chesapeake Utilities3 New Jersey Resources4 Nisource lnc.5 Northwest Nat. Gas6 South Jersey lnds.7 Southwest GasI Spire lnc.9 UGI Corp.10 WGL Holdings lnc. 7,60 8.66 11.70 7.34 9.09 10.71 5.58 9.48 8,91 1',|.74 11.23 '15.'15 8.83 't2.24 't1.76 7.08 10.52 8.88 12.19 10.16 11.71 10.38 9.46 10.70 6.56 8.47 8.47 9.59 8.79 9.25 8.95 10.56 8.84 10.57 6.35 12.03 7.49 8.46 7.72 8.12 11.29 8.71 8.61 11.57 5.94 1 3.76 6.55 9.83 7.02 7.46 12.29 7.81 9.48 10.95 5.55 8.80 6.30 9.03 6.87 7.35 't2.71 6.81 9.08 't 1.98 5.60 8.08 7.51 9.52 6.15 6.36 't't.32 5.09 8.94 10.78 4.91 8.12 6.02 8.34 5.76 9.48 11.34 4.06 8.26 9.57 3.84 8.58 5.74 7.17 6.48 7.88 9.15 4.87 8.75 '10.38 4.89 8.95 7.'t1 7.68 7.44 8.58 't3.76 6.69 8.54 11.23 5.42 8.46 7.92 8.39 6.36 9.40 11.0'r 6.87 7.83 8.32 5.28 8.46 7.48 7.8'l 11 't2 Average Median 8.63 8.51 10.96 11.48 9.48 9.s2 9.13 8.90 9.2',1 8.66 8.47 8.31 8.55 7.80 7.60 7 _24 7.38 7.71 7.62 7.78 8.64 8.42 7.88 7.82 Sources: 1 The value Line lnvestment SuNey lnvestment Analyzer Software, downloaded on November 30, 201 6. 2 The value Line lnvestment SuNey, September 2, 2016. Note: " Based on the average of the high and low price for 2016 and the projected 2016 cash flow per share, published in The Value Line lnvestment Suruey, August lg, September 16, and October 28, 2016. Exhibit No. 302 Case No. INT-G-16-02 M. Gorman, NWIGU p.2 ol 3 o o lntermountain Gas Company Valuation Metrics farkot Price to Book value (tlPrBV) Ratio I Line Comoanv 'l Atmos Energy2 Chesapeake Utilities3 New Jersey Resources4 Nisource lnc.5 Northwest Nat. Gas6 South Jersey lnds.7 Southwest GasI Spire lnc.9 UGI Corp.10 WGL Holdings lnc. ll-Ysar Averaos 2016 2r' zo/,i(1) (2t (3) 2W 2013(4) (5)112l(rr)(e)(8)17l(61 2012 2011 2010 2009 2007 2006 '1.40 1.84 2.17 1 .16 2.O5 2.21 '1.46 1.66 2.16 1.64 1.70 1.70 Exhibit No. 302 Case No. INT-G-16-02 M. Gorman, NWIGU P.3of3 2008 (10) 1.42 1.81 2.18 1.35 1.76 2.10 1.47 1.54 1.91 1.74 '1.72 2.'19 2.28 1.95 1.63 't.77 't.68 1.44 2.29 2.15 1.39 1.83 2.05 1.58 '1.56 2.27 1.61 1.34 1.69 1.71 1.28 1.66 2.33 '1.37 1.72 2.2'l 'l.51 '1.51 1.45 1.66 1.30 1.61 2.31 1.'15 1.70 2.59 1.43 1.46 1.75 '1.63 1.18 1.40 2.09 0.92 1.78 2.38 1.24 1.39 1.55 1.50 2.22 z.co 2.58 1.96 2.O1 1.60 1.88 1.76 2.29 2.48 1.55 2.12 2.13 1.94 1.59 2.07 1.68 1.33 1.97 1.69 1.05 1.37 2.',t6 0.69 1.73 1.95 0.97 1.68 1.66 1.45 1.34 1.85 2.01 '1.19 1.69 1.93 '1.46 1.71 2.21 1.59 78 75 1.20 1.U 1.92 0.94 '1.96 2.08 1.20 1.71 2.01 1.59 1.62 1.67 1.47 1.56 1.91 1.86 o 11 12 Average Median 1.73 1.71 2.11 2.11 1.81 1.8't 1.70 1.65 1.67 1.58 1.69 1.62 1.54 1.45 Sources: 1 The Value Line lnvestment SuNey lnvestment Analyzer SoJtware, downloaded on November 30, 2016. 2 The value Line lnvestment SuNey, Septembq 2, 2016. Note: ' Based on the aveEge of the high and lofl price for 2016 and the pro,iected 2016 cash flow per share. o o 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 Michael C. Creamer (ISB No. 4030) Givens Pursley LLP 601 W. Bannock St. Boise,lD 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-1300 mcc@ eivenspursley.com Attorneys for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION o IN TIIE 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.I6.02 EXHIBIT NO. 303 o EXH!B!To Nv.lIou o lntermountain Gas Gompany Proxv Group Credit Ratingsl Common Equity Ratios Line Comoanv Atmos Energy Corporation New Jersey Resources Corporation 3 Northwest Natural Gas Company South Jersey lndustries, lnc. Southwest Gas Corporation Spire lnc. WGL Holdings, lnc. s&P (1) Moodv's SNLI (3) 52.5o/o 54.6Yo 47.4o/o 41 .60/o 49.9o/o 41 .8o/o 48.3Yo Value Line2 56.5% 56.8% 57.5o/o 50.8% 5O.7o/o 47.0o/o 56.1o/o l2l M Aa2 A3 N/A A3 Baa2 A3 A2 A A A+ BBB+ BBB+ A- A+ A (4) 1 2 3 4 5 6 7 8 I o Average 48.0o/"53.6% lntermountain Gas Company 48.O"/oa Sources: 1 SNL Financial, Downloaded on November 11,2016. 2 The Value Line lnvestment Survey , September 2, 201 6. 3 New Jersey Resources Corporation is not rated; using ratings for New Jersey Natural Gas, a wholly owned operating subsidiary of New Jersey Resources Corporation. a Exhibit No. 301. Exhibit No. 303 Case No. INT-G-16-02 M. Gorman, NWIGU p.1oflo o 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 c stokes@cablehuston. com tbrooks@ cablehuston. com Michael C. Creamer (ISB No. 4030) Givens Pursley LLP 601 W. Bannock St. Boise,lD 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-l 300 mcc@ sivenspursley. com Attorneys for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION o 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.IGO2 EXHIBIT NO. 304 o EXHIB!To NwaGu o lntermountain Gas Gompany Consensus Analvsts' Growth Rates Zacks Estimated Number of GroMh 7o2 Estimates(3) (4) 6.907o 5.300/6 4.00o/o 10.007" 4.OOYo 4.700/0 7.80o/o 6.10% Reuters Estimated Numbor o- Growth %3 Estimate3(5) (6) 7.3QYo 6.00% 4.00v. N/A 4.00o/o 4.700k 8.007o 5.67.h 2 st{L Average of Growth RatesE9Companv Atmos Energy Corporation New Jersey Resources Corporation Northwest Natural Gas Company South Jersey lndustries, lnc. Southwest Gas Comoration Spire lnc. WGL Holdings, lnc. Estimated Growth %t (1) 7.20o/o 6.507o 4.00o/o 10.00o/o 4.500h 4.80o/o 7.30o/o Number of Estimates l2l (7) o 2 1 1 N/A 1 ? 2 I 2 3 4 5 6 7 N/A N/A N/A N/A N/A N/A N/A N/A 7.13o/o 5.93% 4.O0o/o 10.00% 4.170k 4.73o/o 7.70% I Average 6.33% Sowces[I Zacks Elite, http://www.zackselite.com/, downloaded on November 1 1, 2016. 2 SNL lnteractive, http:/ mru.snl.corn/, domloaded on November 1 1, 2016. 3 Reuters, htF:/ ffi.reuters.com/, domloaded on November 11, 2016. 2 6.24% Exhibit No. 304 Case No. INT-G-16-02 M. Gorman, NWIGU P.1of1 o o o 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 Michael C. Creamer (ISB No. 4030) Givens Pursley LLP 601 W. Bannock St. Boise,lD 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-l 300 mcc@ givenspursley.com Attorneys for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF INTERMOUNTAIN GAS COMPAI\Y 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-I6.02 EXHIBIT NO. 305 o EXHIBIT N\N IOr,t o lntermountain Gas Gompany Constant Growth DGF Model (Consensus Analvsts' Growth Ratesl @ Ccu@r Atmos Energy Corporation New Jersey Resources Corporation Nodhwest Natural Gas Company Soulh Jersey lndustries, lnc. Sorrhwest Gas Corporation Spire lnc. wGL Holdings, lnc. AYsiage lledi8n Sources: ' SNL Finarcial, Doilnloaded on Novembs 17, 2016. ' Exhibit No. 304. x The Value Line lnvestrent Swvey , September 2, 2016. ,3-Wbe* AVG Analysts' Annualized AdjGtsd CoEtant stock Pricor Gwthz Diyidend! y!g!!l @!!.ocE(r) el (3) (4) (5) I e 4 5 6 7 $73.29 $33.32 $59.36 $29.40 $70.19 $63.36 $62.25 155.88 7.13% 5.93% 4.00vo 10.00% 4.170/o 4.73Vo 7.70vo 6.210h $1.68 $0.96 $1.87 $1.06 $1.80 $1.96 $1.95 11.6r 2.So/o 3.05% 3.28Yo 3.95% 2.670/o 3.24o/o 3.38o/o 9.597o 8.99o/o 7.28o/o 13.95o/o 6.U% 7.9lYo 11.08o/o I 9 3.'r5%9.38% 8.9996 Exhibit No. 305 Case No. INT-G-16-02 M. Gorman, NWIGU p.1ofl o o o o Chad M. Stokes (OSB No. 004007) Tommy A. Brooks (OSB No. 076071) Cable Huston LLP l00l Sw Fifth Ave., Suite 2000 Portland, OR 97204-1136 Telephone: (503) 224-3092 Facsimile: (503) 224-3176 c stokes@cablehuston. com tbrooks@ cablehuston.com Michael C. Creamer (ISB No. 4030) Givens Pursley LLP 601 W. Bannock St. Boise,lD 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-l 300 mcc@ sivenspursley.com Attorneys for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF INTERMOUNTAIN GAS COMPAIIY 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.I6-O2 EXHIBIT NO. 306 EXHIBITa Nu.JI-CrU a lntermountain Gas Company Pavout Ratios Dlyidends Per Share Earnlnos Per Share Payout Ratio @ ComDanv 2015 (1) Proiocted 2015 Proiectsd m15 Pioiecied l2l (3)(4)(5)(6) 1 2 3 4 5 6 7 8 Atmos Energy Corporation New Jersey Resources Corporation Northwest Natural Gas Company South Jersey lndustries, lnc. Southvr€st Gas Corporation Spire lnc. WGL Holdings, lnc. $1.56 $0.93 $1.86 $1.02 $1.62 $1.84 $1.83 s2.1s $1.02 $2.05 $1.40 $2.40 $2.20 $2.0s $3.09 $1.78 $1.96 $1.44 $2.92 $3.16 9,3.16 $4.20 $1.85 $3.1 5 $1.80 $4.50 $4.20 $3.30 fl.49o/o 52.25o/o 94.90% 70.83Yo 55.48% 58.23Yo 57.910/" 51.19% 55.140k 65.08% 77.78Yo 53.33% 52.fio/o 62.1204 Avsrage 9r.52 S1.90 i2.s0 $3.29 62.87%59.57% Source: The Value Line lnvesfment Suryey, September 2, 2016. o Exhibit No. 306 Case No. INT-G-16-02 M. Gorman, NWIGU p.1 oflO o 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 Michael C. Creamer QSB No.4030) Givens Pursley LLP 601 W. Bannock St. Boise,lD 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-l 300 mcc@ qivenspursley. com Attorneys for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION o 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.I6-02 EXHIBIT NO.3O7 EXH!B!To N\^,XOu o lntermountain Gas Company Sustainable Growth Rate Sur(aanaUo irlvld.ndr Emlng! B@a. vdD B@t vd6PdShE Eb P.rshe @u(r) (21 (3) (4) Adl0.lm.nt Adlded @ @ G(s) (G) (7) P.yout @ (E) @ (e) lntaml Growtr Sre@.84s Rtu(r0) (1r) R.!.dion UEs @p!I[ Ams Erergy CorpoEtbnN* JeEey Reeurc6 Corpodion t,lodtMBt NduEl Gas Compony South JeMy lndudriB, 1rc. Solnhd Gas CorpoEtio Spiro lrc- WGL Houings, |rc. 8 A6rag6 11.e0 33.29 93r.09 {84t6 to.l8rt 3.09e,6 5.71% 2.N% 8.02% 2.73% 3.30% a.74% 11.46% 10.7W. 9.59% 8.37% 11.7Wo s.8496 e 54% 1.02 1.03 1.01 1.04 1.0,| 1.02 1.03 1.O2 1 1.63% 1 t.0g% 9.73% 8.8S% 't 't.8696 't 0.00% 9.S96 51.1S% 55.14% 65.08% n.7a% 53.3396 52.38* @.12.b 48.81% 44.8606 u.92% 22.22% 46.67% 47.d2% 37.8896 $2.r5 $1.02 $2.05 $1.40 $2.40 62.20 $2.05 $4.20 $1.85 $3.15 $'1.80 !r.50 04.20 13.30 $36.65 s17.15 $32.85 $2r.50 $8.,r5 $12.70 $34.m 5.68e,6 4.A7% 3.40% 1.93% 5.5.1% 1.7* 3.73% 1021% 527% 3.U% 5.89% 7.58% 6.2S% 6.71% o 10./tt* 50.57* it0./896 azeL 6.56t4 Exhibit No. 307 Case No. INT-G-16-02 M. Gorman, NWIGU 9.1 ol 2 SourG aM ilotGl Cob. (1 ), (2) ard (3): TID Val@ line lnwdmilt Slm/, Septemb€r 2, 2016. Col. (a): t Col. (3) / tu96 2 Cal. (21'l^ lltsl - 1. col. (5): Col. (2)/ Col. (3). col. (6): t 2 '(1 + Col. (4)) 1 / (2 + col. (4)). Col. (7): col. (6)' Col. (5). Col. (8): Col. (1) / Col. (2). Col. (9): I - Col. (8). Col. (10): Col. (s)'Col. (7). Col. (11): Col. (10) + Pago2 Col. (9). o o Intermountain Gas Company Sustainable Growth Rate Lim ComDn Atms Erergy CorpoEtionNil JeMy R€sur6 Coporationllodlil6t Ndu€l GsB Comperry South J6ey lrdusries, lnc. SouthEt Gas Corpoclion Sfire |rc. WGL HouirErs, |ft. llIv.cl 2015 Aw.gc Sooh VdE Sl6t Prl6t t.i She'z(r) (21 ComoSham OlIMding (in flllion.)t 2015 3-6Y.d(4) (5)s'dh(c) sF.cto/ VF.clor' S.V $73.20 $3:).s2 $59.38 $29.40 s70.1s $63.36 8A2.25 $3'1.48 $12.99 $2a.47 $14.62 s,33.61 s36.30 $21.97 I.rk l to B@k R.Uo (3) 2.33 2.57 2.08 2.01 2.O9 1.75 2.15 2-19 1 01.44 45.19 27.43 70.s7 47.fi 43.36 40.78 60.a0 120.00 88.00 28.00 84.00 52.00 48.00 s5.00 3.41% o.19ry. 0.41% 3.92% 1.8896 2.05% 2.O1 7. %O1gr 0.88% 7.A7% 3.g2% 3.5S% 5.O2% 57.05% 61.02% 52.03% 50.26% 52.12% 42.71% 59_8e96 (e)(8)(7) 1 2 3 4 5 6 7 47.&t.st*1.A* 53,58* 4.53% 0.30% 0.45% 3.060/6 2.O4% 1.53% 3.O1% 2297. Exhibit No. 307 Case No. INT-G-16- 02 M. Gorman, NWIGU p.2 ot 2 o I Awrrgp $,s.EE 326.06 5;rcs aitd Notec ' SNL FiEncial, Dflnlosd€d on Novemb€r 17, 201E. 2 The velue Line lnwdment Surcy , Sept€mber 2, 201 L 3 Expeted Grwth in lhe Nmbd of Shar6, Column (3) ' Column (6). ' Expded Prcfit of Sbck lnv6tlM, [ 1 - 1 / Cdum (3) ]. o o o Chad M. Stokes (OSB No. 004007) Tommy A. Brooks (OSB No. 076071) Cable Huston LLP l00l SW Fifth Ave., Suite 2000 Portland, OR 97204-1136 Telephone: (503\ 224-3092 Facsimile: (503) 224-3176 cstokes@cablehuston. com tbrooks@ cablehuston. com Michael C. Creamer (ISB No. 4030) Givens Pursley LLP 601 W. Bannock St. Boise,ID 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-1300 mcc@ givenspurslev. 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.I6.02 EXHIBIT NO. 308 (c ..1 DEXHI ITo NWIG\J o Line lntermountain Gas Gompany Gonstant Growth DCF Model (Sustainable Growth Rate) 13-WeekAVG Sustainable Annualizcd Stock Pricer Growth2 Dividend(1) (2) (3) Comoanv Atmos Energy Corporation New Jersey Resources Corporation Northwest Natural Gas Company South Jersey lndustries, lnc. Southwest Gas Corporation Spire lnc. WGL Holdings, lnc. $73.29 $33.32 $59.36 $29.40 $70.19 $63.36 $62.25 10.210/" 5.27Yo 3.840/, s.89% 7.58o/o 6.29Yo 6.74o/o Adiusted Yield (4) 2.53% 3.03% 3.27o/o 3.80% 2.76Yo 3.290k 3.35% Constant Growth DGF (s) 12.730k 8.30% 7.12o/o 9.69% 10.34% 9.58% 10.09% 1 2 3 4 5 6 7 8 9 $1.68 $0.96 $1.87 $1.06 $1.80 $1.96 $1.95 Average Median $s5.88 Sources: ' SNL Financial, Oownloaded on November 17,2016. 'z Exhibit No. 307, page 1. 3 The Value Line lnvestment Survey, September 2, 2016. 6.550/"$r.61 3.150h 9.69% 9.690/0 Exhibit No. 308 Case No. INT-G-16-02 M. Gorman, NWIGUp.1ofl o o a o 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 Michael C. Creamer (ISB No.4030) Givens Pursley LLP 601 W. Bannock St. Boise,ID 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-l 300 mcc@ eivenspursley. com Auorneys for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF INTERMOUNTAIN GAS COMPANY FOR TIIE AUTHORITY TO CHANGE ITS RATES AND CHARGES FOR NATURAL GAS SERVICE TO NATURAL GAS CUSTOMERS IN THE STATE OF IDAHO CASE NO.INT.G.I6-02 EXHIBIT NO. 309 0 EXHIBITo Nu., xGiJ o lntermountain Gas Company Electricity Sales Are Linked to U.S. Economic Growth o 200 190 180 170 160 150 LN 130 720 110 100 90 lnder 19tt= 10o sourc€s: U.S. Energy lnformation Administration Federal Reserve Bank of St. Louis Real GDP Energy Use Exhibit No. 309 Case No. INT-G-16-02 M. Gorman, NWIGU p.1 ofl 9e9."r"+'f--d'"d-clS,""dff f"d"$"d'"d'"S"d"Sd"d"-Sd"o""d)"dP"rf "d)"dl Note: 1 988 represents the base )rear. Graph depicts increases or decreases from the base year o O o Chad M. Stokes (OSB No. 004007) Tommy A. Brooks (OSB No. 076071) Cable Huston LLP 1001 SW Fifth Ave., Suite 2000 Portland, OR 97204-1 136 Telephone: (503) 224-3092 Facsimile: (503) 224-3176 cstokes@cablehuston. com tbrooks@ cablehuston. com Michael C. Creamer (ISB No.4030) Givens Pursley LLP 601 W. Bannock St. Boise,lD 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-1 300 mcc@ sivenspursley. com Attorneys for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF INTER]VIOUNTAIN GAS COMPAIIY F'OR TIIE AUTHORITY TO CHANGE ITS RATES AND CHARGES FOR NATURAL GAS SERVICE TO NATURAL GAS CUSTOMERS IN THE STATE OF IDAHO CASE NO.INT.G.I6.O2 EXHIBIT NO. 310 o EXHIBITo Nv{J-c\, o lntermountain Gas Company Multi-Staoe Growth DCF Model Lin.SgErllr 1 &Week AVG Annu.llz.dgtgslldeC Dlvld.nd' Firt Shg.cMh' (3) Second SLg. GrdthYesr.! Ie!!.Z I!!L! E!4 les.lS Thlrd Sbgc Multishg. ct9Bd @!.giE(e) (10)(7)(5)(4)(2)(1) Atmos EEBy CopoExon New J€B6y RoouEs CorpoEtbn Nodhweat Natucl Gas Comfny $dh JeGey lnduddes, lnc. Sodhwest Gas CopoGtion Spire lnc. WGL Hobings, lnc. $73.20 s33.32 $59.S $29.40 $70.10 $63.36 s62.25 7.13% 5.C3% 4.00% 10.00% 4.17% 4.7304 7 70% 5.69% 5.09% 4_13% 7 _13% 421% 4A9% 5.08% 5.21% 4.A1% 4_17% 6_17% 422% 4.41% 5.40% 4 73% 453% 4_21% 5_21% 4_240h 4.33% 4.a3% $1.68 t0.s $1.97 $1.06 $1.80 $1.06 $1.95 31.G1 6.65% 5.65% 4_U% g_o4% 4.18% 4.65% 7.13% 6.17 5.37% 4.08% 8.08% 4.19% 4.57% 6.55% 425% 425% 425% 4.25% 4.25% 4.25% 425% 7 _12% 7 -59/r 7 _47% 9.56% 6.80% 7 _57% 8.31% Av.Dg. il.dLn a$.66 a.24t/.5.81%5.50!d 5.2Lvt 4.e1 4.5t%1.25ii 7.n 7.57 Exhibit No. 310 Case No. INT-G-16-02 M. Gorman, NWIGUp.1of1 o Sour@s:! SNL Finsncial, Downbedod on Nowmbor 17, 2016 z The Vdue Lho lnwslmart S@ey, S€plembr 2, 2016. 3 Erhibn No. ao4. ' Blu€ Chip Fin.ncial Fo€€*, D6@mb6r 1, 2016 ai 14. o o 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 Michael C. Creamer (ISB No. 4030) Givens Pursley LLP 601 W. Bannock St. Boise,lD 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-1300 mcc@ givenspursley.com Auorneys for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION o IN THE MATTER OF INTERMOUNTAIN GAS COMPAI\Y 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-I6.02 EXHIBIT NO. 311 .5 EXHIBITo NNIGU o o lntermountaln Gas Gompany Common Sbck trlarlat/Book Ratlo 2g 2.m 1.S 1m 0s o0 ddd,rPdr'/.d.r/Sd/d,/,trtrdd.f .tr,trd.trC.f fd.dC.p+++.fde'.C+s SdD:ts - 2000: lt .!.na A$lb UBity if.rul. am . 20tA AUS tmfty R.ro.lr, t .rioo irtb. Exhibit No. 311 Case No. INT€-1G02 M. Gorman, NWIGU p.'tof1 O o Chad M. Stokes (OSB No. 004007) Tommy A. Brooks (OSB No. 076071\ Cable Huston LLP l00l Sw Fifth Ave., Suite 2000 Portland, OR 97204-1136 Telephone: (503) 224-3092 Facsimile: (503) 224-3176 cstokes@cablehuston.com tbrooks@cablehuston. com Michael C. Creamer (ISB No. 4030) Givens Pursley LLP 601 W. Bannock St. Boise,lD 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-1 300 mcc@ sivenspurslev. 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.I6-02 EXHIBIT NO. 312 o o EXHIBITo N'\^l"IGU o o Intermountain Gas Gompany Eouitv Risk Premium - Treasurv Bond Line Year Authdized Ga3 Retumsr (1) 30 yr. Trsasury Bond Yield l2l lndi6ted Rbk @!@ (3) Rolling 5 - YGar &!r3E (4) Rolling 10 - Ysar AEI3se (5) 4.420/ 4.30vo 4.35o/o 4.55o/o 4.59o/o 4.73o/o 4.84o/o 4.97o/o 5.10o/o 5.25o/o 5.38% 5.470/o 5.54yo 5.56% 5.69% 5.74vo 5.80o/o 5.94o/o 5.96% 6.05o/o 6.14o/o 6.290/ 'l 2 3 4 6 7 8 9 10 1'.| 12 13 14 l5 16 17 18 19 20 2'l 22 23 24 25 26 27 28 29 30 3r 32 33 34 1 986 1987 1988 1989 1990 '1991 't992 1993 1 994 1 995 1 996 I 997 1 998 '1999 2000 2001 2002 2003 200/. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3 13.460k '12.740/o 12.85yo 12.88Vo 12.67vo 12.460/o 12.010h 'l'l..35o/o 11.35o/o 11.43vo 11.19Vo 11.290k 't1.51Vo 10.66% 11.39o/o 10.95% 11.03vo 10.99% 10.59% 10.46Yo 10.40vo 10.22Vo 10.39% 'to.22vo 10.1sVo 9.92Yo 9.94Yo 9.680/o 9.780h 9.60% 9.45vo 7.800/0 8.58% 8.96% 8.45Vo 8.61% 8.140k 7.67Vo 6.60o/o 7 -37o/o 6.880/o 6.7ivo 6.6't% 5.58vo 5.87Vo 5.94o/o 5.49% 5.43vo 4.96% 5.05o/o 4.65yo 4.990/0 4.83Vo 4.280/0 4.O70/o 4-25Vo 3.91Vo 2.920/0 3.45yo 3.Uvo 2.84yo 2.52Vo 5.66% 4.160/0 3.89% 4.43o/o 4.O6yo 432% 4.yvo 4.750/o 3.980/o 4.55yo 4.49yo 4.680/0 5.93% 4.79o/o 5.45Yo 5.460/0 5.607o 6.03% 5.*Vo 5.81yo 5.4'to/o 5.39% 6.11yo 6.150/o 5.90% 6.01% 7.020/0 6.23vo 6.44./. 6.761o 6.93% 4.MVo 4.',170/o 4.21o/o 4.38o/o 4.29o/o 4.39o/o 4.42Vo 4.490h 4.7svo 4.89o/o 5.Q7o/o 5.260/o 5.45% 5.47o/o 5.620/o 5.69% 5.68% 5.64yo 5.65% 5.77yo 5.7gVo 5.91% 6.24o/o 6.26% 6.32o/o 6.49vo 6.68% 5.31% 1.17% 6.68% 5.3{r% 1.N% 4.29% AYerage Minimum ilaximum 11.06%5.7M 5.36% Sources: 1 Regulatory Research AssocEtes, /nc., Regulatory Focus, Major Rate Case Decisions, January '1997 page 5, January 201'1 page 3, and Octobet 2016 page 6. 2St. Louis Federal Reserve: Economic Research, httpr/research.stlouisfed.org/. The yields from 2002 to 2005 represent the 20-Year Treasury yields obtained from the Federal Reserve Bank. tThe data includos the pariod Jan - Sep 2016. Exhibit No. 312 Case No. INT-G-16-02 M. Gorman, NWIGU p.1of1o o o 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 Michael C. Creamer (ISB No. 4030) Givens Pursley LLP 601 W. Bannock St. Boise,ID 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-1 300 mcc@ givensourslev. com Attorneys for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF INTERMOUNTAIN GAS COMPAI\Y 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.I6-02 EXHIBIT NO. 313 \z EXHIBITo N.NfGU o o lntermountain Gas Company Equitv Risk Premium - Utilitv Bond Ee YeI Authorized Gas Returnsr (t) 13.46Yo 12.740/o 12.85yo 't2.88v. 't2.670/0 12.46v. 12.01% 11.35Yo 1',1.350/o 't1.43yo 't1.19yo 11.290/0 't1.51yo 10.66% 11.390/0 10.95% 't1.o30/o 10.99o/o r0.59% 10.460h r0.400/0 10.22Vo 10.39% 10.220k 10.15% 9.92% 9.94% 9.68% 9.78./. 9.60% 9.45% Average '?" Rated utility Bond Yield l2l 9.587o 10.10% 10.49yo 9.77'/. 9.86% 9.36% 8.69% 7.59yo 8.31o/o 7.89./" 7.750/0 7.No/o 7.Uo/o 7.620/0 8.24./" 7.76yo 7.37yo 6.58% 6.16% 5.650/6 6.07v. 6.07Yo 6.53% 6.04o/o 5.460/0 5.Uo/o 4.130to 4.44o/o 4.280/0 4.120/0 3.89% lndicated Ri3k Premium (3) Rolling 5 - Yeal Avoraqa Rolling '10 - Year &sI3se(5)(1) 1 2 3 4 5 6 7 8 9 10 1'l 12 13 14 15 16 17 18 '19 20 21 22 23 24 25 26 27 28 29 30 3'r 32 33 34 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 r999 2000 200'l 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016' 3.88% 2.ilv, 2.36% 3.11Yo 2.81Vo 3.100/0 3.32./. 3.760/0 3.Uv" 3.54Yo 3.440/0 3.69% 4.470/0 3.U./. 3.15yo 3.'r9% 3.660/o 4. 'to/o 4.430/0 4.8'toto 4.330/0 4.150k 3.86% 4.',tBYo 4.69% 4.$yo 5.810/0 5.20"/. 5,50o/o 5.48Yo 5.56% 2.u60/o 2.W'/o 2.94Yo 3.22Yo 3.210/0 3.35% 3.42Yo 3.49o/o 3.64Yo 3.64Yo 3.560/o 3.51Yo 3.50o/o 3.490h 3.770/0 4.',too/o 4.330/o 4.430k 4.320k 4.27% 4.24% 4.35yo 4.68% 4.95Yo 5.220/0 s.38% 5.510k 3.160lo 3.110h 3.22Yo 3.43% 3.420/0 3.45o/o 3.460/o 3.50% 3.560/o 3.70Yo 3.830/. 3.92o/o 3.96% 3.90% 4.020k 4.1?Yo 4.340/0 4.56Yo 4.630h 4.740/o 4.810h 4.930k 3.90% 3.11% 4.93% Average Minimum Maximum 3.94% 2.AO% 5.51% 't1.06%7.08%3.98% Sources: 1 Regulawy Research Associates, /nc. , Regulatory Fmus, Maior Rate Case Decisions, Calendar 2015. January 1997 page 5, January 201 I page 3, and Octobet 20'16 page 0. 2 Mergent Public Utility Manual, Mergent Weekly News Reports,2003. The uulity yields for the period 2001-2009 were obtained from the Mergent Bond Record. The utility yields from 201 0-201 6 were obtained fiom http://credittrends.moodys.cory'. 3 The data includes the period Jan - Sep 2016. Exhibit No. 313 Case No. INT-G-16-02 M. Gorman, NWIGU p.1oflo o o 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 Michael C. Creamer (ISB No.4030) Givens Pursley LLP 601 W. Bannock St. Boise,lD 83702 Telephone: (208)-388- 1200 Facsimile: (208) -388-1 300 mcc@ givenspursley. com Attorneys for Northwest Industrial Gas Users BEFORE THB IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF INTERMOUNTAIN GAS COMPAI\Y 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.I6-02 EXHIBIT NO. 314 o.:1+ EXHIBITo NWI@t) o Intermountain Gas Company Bond Yield Soreads PuHic lnility Bond c@toBdd t tility to T-Bdd A-T-8dd B.&T-Bond A*T-Bond B.&T-Bond srElC (0) B[ S!!9!C (10) A"Ae9@ (1 t)lilr ]cs! 1S0 1S1 1982 1S3 1 084 I 985 1 986 1S7 1S8 1 989 I 000 I 991 1W2 1m3 1 994 1 0951ffi 1 9S7 I 098 tm0 2000 2N1 2N2 2003 2@4 2m5 2006 2007 2008 2@0 2010 2011 2012 2013 2014 2015 2016 " Yleldr E Ed SrerC !@g A!C. Baai sp@dl2l (3) (4) (5) (6) (7) (8)(1) o 1 2 3 4 1 8I '10 11 12 13 14 15 16 17 18 1S 20 21 22 23 21 25 26 27 2A 2e 30 31 32 33 34 35 36 38 11.30% 1331% 12.74% r 1.1 896 12.39% 10.70% 7.80% 8.58% 8.96% 8.45% 8.61% 8.14% 7.67% 6.60% 7.37% 6.88% 6.70% 6.61% 5.58% 5.87% 5.0,1% 5.4096 5 4396 4.96% 5.05% 4.65% 4.00% 4.83% 4.2A% 4.0796 425% 3.01% 2.92v. 3.45% 3.34% 2.8,4lo 2.52li 13.9% 15.95% 15.8596 1 3.66i6 14.03% 12!7% 9.58% 1 0.1 0% 9.77% 9.86% 9.36% 8.69% 7.59% 8.31% 7.89% 7.75% 7.60% 7.04% 7.62% 8.24% 7.s7% 6.58% 6.1 6% 5.65% 6.07% 6.07% 6.53% 6.04% 5.04% 4j3% 4AA% 4.28% 4j2% 3.8st6 13.95% 16.60* 16.45% 11.20% 14.53% 1 2.96% 10.00% 10.53% I 1.00% 9.0796 10.06% 9.5596 8.86% 7.91% 8.63% 8.29% 8.17 7.05% 7.26% 7.88% 8.36% 8.03% 8.02% 6.84% 6.40% 5.9396 6.32% 6.33% 7.251o 7.06% 5.S% 5.56% 4.83% 4.S8% 4.8096 5.03% 1.70% 2.M% 2.51% 3.10% 2.4a% 1.e% 1.68% 1.78% 152% 1.53% 1.32% 1.25% 1.22% 1.O2% 0.ss% 0.s% r.@96 0.00% 1.,16% 1_75 2.30% 2.27% I.S4% 1.62% 1.11% 1.00% 1.08% 124% 2.25% 1.57% 121% 1.13% 121% 1.03% 0.94% 1.27% 1.31% 2.65% 3.1 6% 3.60% 3.02% 2.14% 2.11% 2.2U% i.9s% 2.M% 1s2% 1A5% 1.41% 1.1e% 1.31% 1.26% 1.41% 1.17% 1.34% 1.68% 2.O1% 2.42% 254% 259% 1.89% 1.35% 1.24% 1.32% 1.50% 2.91% 2.99% 1.71% 1.65% 1.S't% 1.53% 1A6% 2.19% 2.14% 11.9% 14.1?% 13.70% 12.U% 12.7',l% 11.37% 9.O2% 9.38% s.71% 0.26% 9.3296 4.77% a14% 722% 7.96% 7.59% 7.37% 7.26% 6.53% 7.U% 7.62% 7.08% 6.49% 5.67% 5.63% 524% 5.59% 5.56% 5.63% 5.31% 4.94% 4.64% 3.67% 424% 4.16% 3.a9% 3.62% 13.67% i6.&% 16.1 l% 13.55% 14.19% 12.72% 10.39% 10.58% 10.83% 10.18% 1 0.36% 9.80% 8.98% 7 .93% 4.62% 8.2096 8.05% 7.86% 722% 1.A7% 8.36% 7.95% 7.80% 6.77% 6.3S% 6.06% 6.48% 6.48% 745% 7.30% 6.04% 5.66% 4.94% 5.10% 4.85% 5.O0% 1.74$ 0.64% 0.73% 1.03% 0.86% o.32% 0.50% 1.22% 0.80% 0.75% 0.81% 0.71% 0.63% o.47% o.62% 0.5s% o.71% 0.67% 0.66% 0.95% 1.1 8% 1.68% 1.59% 1.06% 0.71% o.58% 0.50% 0.60% 0.72% 1.35% 124% 0.6s% 0.73% 0.75% 0.79% 0.82% 1.05% 1.10% 2.37% 2.60% 3.35% 23A% 1.80% 1.93% 2.58% 2.O0% 1.87% r.73% 1.75% 1.67% 1.31% 1.33% 1.25% 1.32% 1.35% 1.26% 1.il% 2.O1% 2.42% 2A5% 2.37% 1.81% 1.35% 1A2% 1A9% 1.65% 3.17% 3.23% 1.79% 1.75% 2.O1% 1.65% 1.51% 2.16% 2.22% 0.28% 0.56* o.34% 0.65% o.34% o.24% -0.3s% {.05% 0.1 7% 421% {29% -o25% -o.12% -o.o2% o.01% o.o9% o_12% o.09% 0.04% 0.01% -o.01% 0.08% o22% o.08% 0.00% -0.1 4% -0.16% -o.15% {.20% 424% -0.08% {.10% {.11% -o.12% -0.06% 0.03% -o.g% 1.&% 1.78% 2.O7% 1_62% 1.32% 1.10% 0.56% o.72% 0.78% 0.5,1% 0.59% 0.55% 0.37% 0.35% 0.30% 0_38% 0.34% 0.51% 0.58% o.62% 0.68% 0.88% 0.s1% 0.53% 0.41% 0.48% o52% 0.00% o.72% 0.52% 0.40% oA6% o24% o.t 1% 0.23% 0.28% Awdgs O,f 2% a.21% 8.08% 1,52%1.9C% 7.56% 8.C6% 0.64%r.04%o.o2%0.d% Yield Spreads T,6aruryva. Csporae & Tre.suryv3. Utiltty x fi'h 3.00,n 2 &.h 1S% 1980 1982 1g 1S 1S 1m 1902 1994 + uilily A - T-Bond Spred + coDo6t€ Aaa - T-Bond SpEd 2@ M2 2@4 206 2m 2010 +Utility Baa - T-Bond Sprad + CorpoBte Baa - T-Bond Sp@d &12 &14 2016 E;*-;,I St. Louis FedeElR6fl€: Eonomic R6erch, htp://@rch.silouisfd.oE/. '? Me€sl Public Ulility Manual, Molgent W€6kly Ns RepoG, 2003. The dility yi€lds ,or the pedod 2001 -2m0 ree obhined frcm the MeEent Bond Re@d. The dility yi€lds f@m 2010-2016 we obbined frcm http:/cr€dihnds.moodF.@d. 3 The dab includ6 the psiod Jan - Sep 2016. Exhibit No. 314 Case No. INT-G-16-02 M. Gorman, NWIGU p.1of1o o 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 c stokes@cablehuston.com tbrooks@cablehuston.com Michael C. Creamer (ISB No. 4030) Givens Pursley LLP 601 W. Bannock St. Boise,lD 83702 Telephone: (208)-388-1 200 Facsimile: (208) -388-l 300 mcc@ givenspurslev.com Attorneys for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF INTERMOUNTAIN GAS COMPAI\Y 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.I6-02 EXHIBIT NO. 315 o t EXHIBITo N\\,I.OU o o lntermountain Gas Company Treasurv and litv Bond Yields Line 1 2 3 4 5 6 7 8 I 10 11 12 13 Date 11t10t16 11104116 10t28t16 10121116 10114116 10t07t16 09/30/16 09t23t16 09/16/16 09/09/16 o9t02t16 08126116 08/1 9/1 6 Average Spread To Treasury Treasury Bond Yieldl (1) 2.94o/o 2.560/o 2.620/o 2.48% 2.55o/o 2.46% 2.32o/o 2.34o/o 2.44o/o 2.39Yo 2.28o/o 2.29o/o 2.29o/o 2.460/o "A" Rated Utility Bond Yieldz (2) 4.12Yo 3.l',to/o 3.86% 3.75% 3.83% 3.760/o 3.640/o 3.65% 3.760/o 3.69% 3.58% 3.62% 3.60% 3.74% 1.280/o "Baa" Rated Utility Bond Yield2 (3) 4.70% 4.38% 4.40o/o 4.30o/o 4.41o/o 4.33o/o 4.260/o 4.260/o 4.37o/o 4.29% 4.190/o 4.22o/o 4.22o/o 14 15 4.33o/o 1.87o/o Exhibit No. 315 Case No. INT-G-16-02 M. Gorman, NWIGU p.1 of3 Sources: 1 St. Louis Federal Reserve: Economic Research, hftp://research.stlouisfed.org. 2 http://credittrends. moodys.com/. o o lntermountain Gas Gompany Trends in Bond Yields 1o.G 9,ffi a.m 7.G 6G 56 46 3.m 2.G ...-"Ba." Rated Bond Yield +"A" Rated Utility Bond Yi.ld *30-YearTrrasury Bond o r' r' d' d^ / d d / dtr .d .p' +.r d/ d d d +J e'r .d ./ .pc pr Sourc€s: Morg€nt Bond Rocord. w.mood)6.com, Bond Yl€lds and l(oy lndietoE. SL Louis FoGral R€s€rvs: Econo.nic Rgs€arch, http://r6earch.s0ouis,fad.org/ Eldribit No. 315 Case No. INT-G-16-02 M. Gorman, NWIGUp.2of3 o o o 5.@96 s.@96 ,r.(Dr6 3.(x,r6 2.W. 1.(x)r6 0.m6 lntermountain Gas Company Yield Soread Between Utilitv Bonds and 30-Year Treasurv Bonds +As?read +Eaa Spr€ed C d d' d' d d d d .po +os C "J "-| -d d "d .of, .en df "d .ftr.pc Sources: Msrg€nt Bond R6cord. w.moodys.com, Bond Yislds and Key lndicators. St. Louis Fedoral Res6N6: Economic Research, http://r€search.suouisfed.org/ Exhibit No. 315 Case No. INT-G-16-02 M. Gorman, NWIGU p.3of3 il I*-"#r* o o o 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 Michael C. Creamer (ISB No.4030) Givens Pursley LLP 601 W. Bannock St. Boise,ID 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-l 300 mcc@ givenspursley. com Auorneys for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF INTERMOUNTAIN GAS COMPAI\Y FOR THE AUTHORITY TO CHANGE ITS RATES AND CHARGES FOR NATURAL GAS SERYICE TO NATURAL GAS CUSTOMERS IN THE STATE OF IDAHO CASE NO. INT.G.I6-02 EXHIBIT NO. 316 No" EXHIBITo srdIGu o o Line lntermountain Gas Company Value Line Beta Company Atmos Energy Corporation New Jersey Resources Corporation Northwest Natural Gas Company South Jersey lndustries, lnc. Southwest Gas Corporation Spire lnc. WGL Holdings, lnc. Average Source: The Value Line lnvestment Survey, September 2,2016. Beta 0.75 0.80 0.65 0.80 0.75 0.70 0.75 0.74 Exhibit No. 316 Case No. INT-G-16-02 M. Gorman, NWIGU p.1 of1 1 2 3 4 5 6 7 8 o o 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) 224-31,76 c stokes@cablehuston. com tbrooks@ cablehuston.com Michael C. Creamer (ISB No. 4030) Givens Pursley LLP 601 W. Bannock St. Boise,lD 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-l 300 mcc@ sivenspursley.com Attorneys.for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION o 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.I6-02 EXHIBIT NO. 317 \1 EXHIBITo NWI;GV o o Line Description lntermountain Gas Gompany CAPM Return High Market Risk Premium (1) 1 2 3 4 Risk-Free Ratel Risk Premium2 Beta3 CAPM 3.40o/o 7.800/o 0.74 9.19% Low Market Risk Premium (21 3.40o/o 6.00% 0.74 7.860/0 Exhibit No.317 Case No. INT-G-16-02 M. Gorman, NWIGU p.1 ofl Sources: ' Blue Chip Financial Forecasts; December 1,2016, at2. ' Duff & Phetps, 2016 Vatuation Handbook Guide to Cost of Capital at2-4,3-31, and 3-40. 3 Exhibit No.316. o a o 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 c stokes@cablehuston. com tbrooks@cablehuston. com Michael C. Creamer (ISB No. 4030) Givens Pursley LLP 601 W. Bannock St. Boise,lD 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-1 300 mcc@ qivenspurslev. com Attorneys.for Northwest Industrial Gas Users BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF INTERMOUNTAIN GAS COMPAIIY 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.I6-02 EXHIBIT NO. 318 o. ?\ EXHIBITo N'r.rJ.Gu o lntermountain Gas Company Standard & Poo/s Credit Metrics R.t.il Co.t ol Soili@ S&P Benchm.rk (tcdi.l Volatilttyltlntermdiat Sidnlfic.nt A@re..iv. l2l (3) (4) Lin.fsdpse!Am@nt 13000t (r) Retebn6 (5) 1 Rat6 Base 2 W6Ehl6dCommonRotum 3 PreTax R6teofR6tum 4 ln@me to Common 5 EBIT 6 Dopr@iation & Amortation 7 lmp0t6d Amorlization 8 D6ferred ln@mo Td6 & ITC I Funds rrom Operations (FFO) 10 lmputed & Capitalized lntergsl Expense 11 EBITDA 12 Total Debt Ralio 13 O€bttoEB|TDA '14 FFOtoTolalD6bt $ $ $ $ $ $ $ $ 236,e2A,4e7 4.46% 10.03% 10,576,399 23,7U,571 21,707,112 Darrington, Exhibit No. '16. Page 2, Lino 2, Col. 3. Pag€ 2, Line 3, Col. 4. Lin61xLin62 Line1xLin63. Darrington, Exhibit No. '16. N/A Sum of Lin6 4 and Lin6 6 through 8. N/A Sum of Lin6 5 though 7 and Lin6 10. Pag6 3, Line 4, Col. 2. (Line 1 r Lin6 12)/ Line 11. Lin€ I / (Lino 'l x Lin6 12). 32,283,51',1 45,461,683 52% 2.h 260/" 2.5x - 3.5x 23%-35% 3.5x - 4.5x 13Vo -23% 4.5x. 5.5x 9% - 13Vo Sour@:I Standard & P@/s RatingsDir@t'Critoria: Corporat€ Methodology,'November 19, 2013. 2 Standard & P@/s RatingsDiret 'MDU Rosourc€s Grcup lnc. Outlook R€visod To Slablo From Negativo On Plann€d Salo Of Unr€gulatod Asst6; Ralings Affirm€d," Novomber 21, 2016.' Nol€: MDU has an 'Er@llenf businG ri6k prcfile and a 'Signii*nf financial risk profile,o and fslle underlhs "M€dial matdx. o Exhibit No. 318 Case No. INT-G-16-02 M.Gorman, NWIGU p.1 of3 o !ntermountain Gas Gompany Standard & Poor's Credit Metrics (Pre-Tax Rate of Return) Line Description Long-Term Debt Common Equity Total 4 TaxConversion Factor* 1 2 3 Weiqht (1) 52.00% 48.OOo/o 100.00o/o Cost (2) 4.94Yo 9.30% Weighted Gost (3) 2.570/o 4.460/o 7.03Yo Pre-Tax Weighted Cost (4) 2.57% 7.460/o 10.03o/o o Source: Exhibit No. 301.* Darrington, Exhibit No. 16. 1.6706 Exhibit No. 318 Case No. INT-G-16-02 M.Gorman, NWIGU p.2 of 3o o lntermountain Gas Gompany Standard & Poor's Credit Metrics (June 30. 2016) 1 2 Line I 10 Value Line Publiclv Traded Electric Utilitv Companies A RatedAverage A- 19.02Median A- 16.26 Credit Ratinq FFO / Debt (%) Debt / Capital (%)(1) (2t (3) 56.43 54.51 o 3 4 5 6 7 B BBB Rated Average Median AII Utilities Average Median BBB Rated Average Median All Utilities Average Median Source: www. g lobalcreditportal.com/ratingsdi recU Downloaded November 17, 2016. 56.29 56.88 56.33 55.89 50.76 50.77 53.03 53.63 52.03 52.15 Exhibit No.318 Case No. INT-G-16-02 M.Gorman, NWIGU P.3of3 BBB BBB BBB+ BBB+ BBB BBB BBB+ BBB+ 16.39 17.06 17.27 16.30 20.61 19.94 20.92 20.93 Electric Operatinq Subsidiarv Companies A RatedAverage A- 21.31Median A- 21.99 11 12 o o o Chad M. Stokes (OSB No. 004007) Tommy A. Brooks (OSB No. 076071) Cable Huston LLP 1001 SW Fifth Ave., Suite 2000 Portland, OR 97204-1 136 Telephone: (503) 224-3092 Facsimile: (503) 224-3176 cstokes@cablehuston.com tb rook s(0lca b I eh uston. com Michael C. Creamer (ISB No. 4030) Givens Pursley LLP 601 W. Bannock St. Boise, ID 83702 Telephone: (208)-388-1200 Facsimile: (208) -388-1300 m c c(4 g iven sD urs le v. com Auorneys for Northwest Industrial Gas Users BEFORE THE PUBLIC UTILITY COMMISSION OF IDAHO IN TIIE MATTER OF TIM APPLICATION OF INTERMOIINTAIN GAS COMPAIYY FOR TIM AUTHORITY TO CIIANGE ITS RATES A}[D CHARGES FOR NATT]RAL GAS SERVICE TO NATTJRAL GAS CUSTOMERS IN TIIE STATE OF IDAHO Case No. INT-G-16-02 EXHIBIT NO.3I9 ) ) ) ) ) ) ) ) ) EXHIBITo No o Edrarard A Finklea 545 Grandview Drive Ashland, OR 97520 541-708-6338 ofc 503-41 3-01 56 cell E-mail: efinklea@nwigu.org o Primary Professional Experience Employment History Lead counsel for the Northwest lndustrial Gas Users ('NWIGU') from 1986 until 2008 in all regulatory interventions concerning Williams Gas Pipeline West and TransCanada Gas Transmission Northwest, and before state regulatory commissions concerning regulation of the five regional natural gas local distribution companies ("LDCs"), Represented NWIGU before the Federal Energy Regulatory Commission in interstate pipeline rate and certificate proceedings, before the Oregon Public Utility Commlssion in natural gas rate and other regulatory proceedings, before the Washington Utilities and Transportation Commission in natural gas rate, safety and other regulatory proceedings and in proceedings before the ldaho Public Utility Commission,. Executive Director for the Northwest lndustrial Gas Users, August 2Q12to present Adjunct Professor at Northwestern School of Law, Lewis and Clark College "Law and Economicsl' Current Senior Counsel, NiSource Corporate Services lnc. Regulatory counsel to interstate pipellne, representing company before Federal Energy Regulatory Commission and advising company on federal regulatory compliance and business transactions. November, 2009 to November, 2011 Executive Director, Energy Action Northwest. Organization advocated for siting and permitting of interstate pipelines, liquefied natural gas terminals, and high voltage transmission projects in Oregon and Washington. Represented organization before state legislature and in media relations. July, 2008 to October, 2009 Exhibit No. 319 Case No. INT-G-16-02 E. Finklea, NWIGU Page I of4 o o o Summary of Professional Engagements Partner, Cable Huston Benedict Haagensen & Lloyd. Private law practice specializing in energy law. 2004 - July 2008. Managing Partner, Energy Advocates LLP. Founded firm with offices in Portland, Oregon and Washington D.C. 1997- 2003 Partner, Ball Janik LLP. 1994-1997 Partner, Heller Ehrman White & McAuliffe. 1990-1994 Partner, Tonkin Torp Galen Marmaduke & Booth. 1986-1990 Associate, Garvey Schubert. 1 986-1 988 Assistant General Counsel to Northwest Natural Gas handling state regulatory matters and providing counsel to the company on energy projects, including a landfill gas project. 1984-1986 Counsel to the Bonneville Power Administration litigating electric rate issues in administrative hearings and defending BPA before the Ninth Circuit Court of Appeals. 1982-1984 TrialAttorney for the Federal Energy Regulatory Commission in hydroelectric licensing and co-generation regulation. 1981-1982 Law Clerk for the Council on Wage and Price Stability, Executive Office of the President of the United States. 1980-81 Represented Columbia Gulf Transmission in general rate proceeding before the Federal Energy Regulatory Commission. Represented applicants in proceeding before Federal Energy Regulatory Commission seeking authorization to provide incentive fuel mechanism and natural gas hub services. Represented industrial gas consumers in contract negotiations for the purchase of natural gas commodity and interstate pipeline services. Exhibit No. 319 Case No. INT-G-16-02 E. Finklea, NWIGU Page 2 of 4 o o o Counsel to a medical center interconnecting a cogeneration plant with an investor-owned utility and advising client on longterm gas purchasing arrangement for electric generation. Represented numerous clients to secure direct connectionsto interstate pipelines, addressing all regulatory issues involving certiflcation of connecting facilities and operations of private pipelines. Represented liquefied natural gas developer in governmental relations associated with securing federal and local permits for development of an energy project. Represented customers in negotiating special contracts for purchasing natural gas distribution services from local utilities. Represented public port authority in a pipeline siting issue. Represented Eugene Water and Electric Board in select issues concerning Bonneville Power Adm inistration. Represented irrigation farmers in electric rate dispute involving FERC-licensed hydroelectric project before the Oregon Public Utility Commission. Represented clients in trial court and appellate litigation on energy-related issues. Represented industrial customer in anti-trust litigation and FERC refund proceedings stemming for 2000-2001 Western Energy Crisis. Represented induskial electric customers in the restructuring of electric utilities in Oregon. Represented an oil company shipper on an intrastate oil pipeline in rate proceeding before the Washington Utilities and Transportation Commission. Exhibit No. 319 Case No. INT-G-I6-02 E. Finklea, NWIGU Page 3 of4 o o Education Professional Memberships lndividual clients while in private practice in addition to NWIGU included Alcoa, Armstrong World lndustries, Blue Heron Paper, Boeing, ESCO, James River Paper (now Georgia Pacific) JR Simplot, Legacy Health Systems, MicroChip Technology, NorthernStar Natural Gas, Texaco Gas Marketing, Valley Medical Center, WaferTech, Wah Chang, West Linn Paper, and Weyerhaeuser. BA in Political Science from the University of Minnesota 1974 J.D. Northwestern School of Law, Lewis and Clark College 1 980 Admitted to practice law in the States of Oregon and Texas and before several Federal district and appellate courts. Adjunct Professor at Northwestern School of Law, Lewis and Clark College "Northwest Energy Law". 1984 to 2005 Past Chairman of "Energy, Telecom and Utilities" section of the Oregon State Bar. Member of the Federal Energy Bar Association. Lecturer: Buying and Selling Electric Power in the West, Law Seminars lnternational Conference. Presentations on natural gas industry. 2004 to 2009. Exhibit No. 319 Case No. INT-G-16-02 E. Finklea, NWIGU Page 4 of 4 o o o Benjamin Otto (ISB No.8292) 710 N 6'h Street Boise,ID 83701 Ph: (208) 345-6933x12 Fax (208) 344-0344 botto@idaho conservation. org Attorney for the Idaho Conservation League BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF INTERMOUNTAIN GAS COMPANY FOR THE AUTHORITY TO CHANGE ITS RATES AND CHARGES FOR NAUTRAL GAS SERVICE TO NATURAL GAS CUSTOMERS IN THE STATE OF IDAHO CASE NO. INT-G-I6-02 DIRECT TESTIMONY DIEGO RIVAS EXHIBIT 401 CASCADE NAUTURAL GAS DSM INCENTIVES FOR COMMERICAL AND INDUSTRIAL CUSTOMERS DECEMBER 16,2016 ) ) ) ) ) ) ) ) o No 4DI EXHIBlT E, I I o I The better policy option is to use inclining block rates, charging customers more - not 2 less - per therm as they use more energy. Inclining rates send a strong price signal to customers 3 that they should invest in energy efficiency, significantly reducing the payback time for these 4 investments. If inclining block rates are not feasible, a flat per therm rate would achieve greater 5 conservation impact than declining rates. 6 Q. Does this conclude your direct testimony? 7 A. Yes. o a INT-G-16-02 Rivas, Di ICL-NWEC December L6,2016 l8 o t Casca.nE NATLIRaT Gas a -. -. - : k : I , * ' : .t.t,'?. . ".gli. r..),,-5 :.1:;. :. Com mercia t / I ndustriaI Standard lncentives o Worm Air Furnocer - $3.00/kBru/hr Hlgh Efflciency Condensing Furnoce-Min 9l % AFUE HVAC Unit Heolu - $t.50/kBru/hr High Efficiency Non-Condenslng Mln-86% AFUE HVAC Unit Heolor - $3.00/kBru/hr Hlgh Efficiency Condensing Mln-92% AFUE Rqdiont Heoring - $6.95/kBru/hr Direct flred rodiont heotlng Boilcr - $a.00/kBtu/hr Hlgh Effkianq/ Cqtderhg Boilcr Mh 9@loTtrermol Eff & 300 kBtu hput Boiler Vent Domper - $1,0q) Min I,OOO kBtu input Boiler Sl,eom Tropt - $125 Min 300 kBtu in; steom presiure ot Tpsig or > Domestic Hot Woter Tonkr3- $2.50/kBru/hr Condensing tonk, Min 9l % Thermol Eff Domeelic Hol Woter Tcnkless Woler Heoler3- $CO/gpm ENERGY STARq .82 EF Atfic lnsulolion - (rerrofft only) fier l: Mln R-30 - $O.so/sq ft Tier 2: Min R-45 - $o.65/3q ft R.oof lnsulolion - (rerrofit only) fier l: Mln R-21 - $O.6O/sq fr Tier 2: Min R-30 - $O.80/sq ft Woll lnsulolion2 - (retrofit only) Tier l: Min R-l I - $0.5o/q fi Tier 2: Min R-l9 - $O.56/sq ft Energy Sovings Kits3 - FR,EE A: Kitchen Pre Rinse Sproy Volve & Both Acrotors B: Low Flow Showerheod Ozone lniection Loundry3 - $2,500 Venturi iniection or bubble diffusion - Min 125 lb. totol wosher/extroctor copocity. Pre-opprovol required. Molion Conlrol Foucet3 - $105 Moximum flow rote of 1.8 gpm WoterSenseo Ccrtified ond Below Deck Mixing Volve Clothes Woshef - $180 Commerclol gos wosher-1.8 MEF Gqs Conveclion Oven - $450 ENERGY STARO 242oh Cooking Eff/ < I 3,000 Btu/hr ldle Rore Gos Gdddle - $350 ENERGY STARO )387o Cooking Ett/ <2650 Btu/hr sq ft ldle Rore Gos Conveyor Oven - $600 Greoter thqn 42Yo tested boking efficiency Connoclionless 3 Pon Gos Steomer - $850 ENERGY STARo or CEE/FSTC Quolified )38% Cooking Elt / <2,083 Btu/hrf pon ldle Rote Conneclionless 6 Pqn Gog Sleqmer - $1,200 ENERGY STARP or CEE/FSTC Quolified )38% Cooklng Ett / <2,083 Btuftuf pon ldle Rote Double Rock Oven - $2,000 FSTC Quolified 250% Cooklng Eff/ <3,500 Btv/hr/ldle Rote D Rock ENERGY STARo Gor Fryer - $6fit Door Type Dishwosher Low Temp Gos3 - $650 ENERGY STARO(.6 kw ldle Rote/ <1..l8 gollon/rock Mulli-Ionk Conveyor Low Temp Dishwcsher3 - $l,0OO Gos Moin w/Electric Booster ENERGY STAR6 S2.0 kw ldle Rote; ( 0.50 gollons/rock Recirculolion Controls3 - $lO0 Continuous Operotion DHW Pump Pre-Approvol required. Demond Control Venliloliona - $t 2/nominol ton 5 lons ( Unit Cooling Copocity ( 20 tons. Pre-Approvol Required. lf you ore plonning equipmenl or building upgrodes thol do not fit within the stondord incentives, but significontly reduce noturol gos consumption, pleose coll 866.450.0005 to leorn obout cuslom proiect opportunities. Mixed purpose fqcilities thot include buildings on both Residentiol Rote Schedule 503 ond quolifying Rote Schedules 504, 505, 511, 57O, ond 577 os port of the some Coscode Noturol Gos customer occount sholl olso be eligible for custom conservotion incenlives. rThis meosure will only be ollowed where the customer ogrees to regulor trop mointenonce ond replocemenl every seven (7) yeors. 2 Minimum volue of R- l I opplies only where existing wolls hove no inlernol insulotion covities. 3 lncenlive eligibility conlingenl upon use of noturol gos fired domeslic hol woter serving the specified meosure equipment or fixture. a For Existing Pockoged HVAC Units equipped with Gos Fired Furnoce ond Direct Exponsion Cooling Sections. DCV Unir Controller must meet Joint Uriliry Advonced Rooftop Control Guidelines Updoled 09/l 6 o Musl be o new or existing commerciol or industriol customer of CNGC on one of five quolifying rote schedules: 504, 505, 51 1, 57O or 577. lncentives opply on quolified high-efficiency noturol gos equipment such os heoling, insulotion, woter heoting systems, cooking equipment instolled os replocement, retrofit os well os new instqllqtion in ploce of stondord efficiency equipment. lf the equipmenl instollotion, replocement, or retrofil provides significont increose over existing high-efficiency equipment, ond is not listed here pleose contocl progrom representotive for potentiol custom incentive. lnsulotion must be instolled in on existing building, heoled by noturol gos, wilhout functionol insulotion. Eligible meosures instolled ore subiect to the ovoiloble incentives coinciding with the dote of the instollotion os outlined in CNGC's toriff. Cuslomers requesting incentives for site-specific energy efficiency meosures must submit estimoted costs ond noturol gos sovings ossocioted with the proiect. Noturol gos sovings ore to be colculoted using slondord engineering proctices. CNGC will review the noturol gos sovings colculotions, ond reserves the right to modify energy sovings estimotes. I Estoblish your eligibility. Coll 1.866.450.0005 or visit www.cngc.com/conservotion for progrom requirements. 2 lnstoll energy-efficient upgrodes. Contoct o porticipoting Trode Ally controclor or licensed controctor to instoll eligible meosures. 3 Ger the opplicotion, ovoiloble online ot www.cngc.com/conservotion. 4 Sign ond submit the following forms: Send forms to: Moil: Coscode Noturol Gos Corporolion, cf o Lockheed Morlin Energy ond Environmentol Services 22121 20th Avenue SE, Bothell, WA 98021 Fox: 1.877.671.2998 Upon receipt of completed opplicotion, pleose ollow six weeks for processing ond poyment. To opply for on incentive, opply online or downlood o PDF opplicotion ot \ /wv/.cngc.com/conservotion ond return it by fox or moil. Queslions on food service, lodging or heolth core proiects? Coll Bill Prillomon, 503.278.3078 o o o Updoted 09/l 6 gm * th3 Scclttsn Scnlca D.b- DEC E 1 1986 o o BEFORE THE IDATIO PUBLIC UTITNIES COMMISSION IN THE MATTER OF THE APPLICATION )oF TNTERMOTINTATN GAS COMPAI{Y FOR ) APPROVAL OF rTS PROPOSED RATE )STRUCTURE AND DESIGN IN THE TIATTER OF THE APPLICATION OF INTERMOUNTAIN GAS COMPA}iIY FOR TTTE AUTHORITY TO TEMPORARILY DEFER AITID ALLOCATE NORT}IWEST PIPELINE'S RATE INCREASE EFFECTTVE DECEMBER. I, 1985 CASE NO. U-103'+-139 oRDER NO. 20966 On October 31, 1986, tie ldaho Public Utilities Commission (Commission) recelved an application (U-1034-13?; -137) from Intermountain Gas Company [GC; Conpany; Appllcant) requesting autlrortty to revise its residential service (RS-l), nulttple use residential service (RS-z), general senrice (G$1), large volurne firm seMce (LV-l; LV-IA) and traruportation service (I-1) rate sctredules, based upon lts rate structure and destgt studies, to beome effective December I, 1985. The Commission detenmined that implementatlon would not occur urtil after public hearing and order of the Commission. (liltln CodB S6l-522; Ofier No. 20853.) IGC as part of its -137 application seeks to incorforate deferred revenue reductions resultiug from two decreases in its cost of purchased gas frorn Northwest Plpellne Corporation (Northwest) (tracker application, Case Nos. U-1034-136 (-136); U-1034-f32 (-132). The total arurualized decrease under the -135 and -132 trackers totals $8,890,241, The Company pnoposes that the decrease be spread among the classes on a uniform cents per therm basis, Additionally, the Company perceives the LV-l industrial class to be subsidizing residential (RS-l; RS-2) and commerclal (GS-l) classes. It therefore seeks to eliminate the cross'+ubsidies and reallocate revenue responsibility between the classes based on a cost-of-service analysis. cAsE NO. U-103+137 ) ) ) ) ) ) ) ) .,n,'?Prt5 *o' 20e66 Case No. INT-G-16-02 Amalgamated Sugar Company LLC ,| No WLEXHIBIT I II o 1 oOn November 20, 1986, the Commission received a second application (U-103,[-139; -139) from IGC rquesting authority to temporarily defer submission and implementation of new rate schedules reflectlng an increase in its cost of purchased gas from Northwest. IGC, utilizing a l2-month test period ending April 30, 1985, adusted for known and meagurable changes, indicates that it will e:rpenience on an annuallzed basis a permanent increase of 1.1420 per therm in Northwestrs ODL-1 and SGS-I comrnodity charges or $2,819,841. Under the Company's proposed allocation, the entire increase would be allocated to the GS-l commercial class. The Commission in Order No. 20895 joined -139 with -137 for purpose of public hearing. Citing a leck of sufficient filtrgs and lnformatlon of record to make a timely and reasoned analysis or decision in the issue of rate design within classes, we elimlnated the iszue of the design of rates within classes from consideration in the scheduled Decernber 10, 1985 hearing. O Public hearing in Case Nos. -137 and -139 was held on December 10-11, 1985 in Boise, Idaho. The following parties appeared by and through their respective counsel or representativesl INTERMOUNTNN GAS COMPANY . . . M. W. Richards, Jr., Esq., Moffatt, Thomas, Barrett ard Blanton COMMIS$ON STAFF . . . Scott D. Woodbury, Deputy Attorney General NORTI{WEST INDUSTRIAL GAS USERS . . . Allen M. Garten, Esq., Garvey, Schubert, Adams and Barer; anrl Jsm M. Cloonao, ES9,, (Local Counsel) IDAHO POWER COMPANY . . . Ronald L. Williams, Esq. IDAHO CONSUMER AFFAIRS, INC. . . . Harold C. Miles; Wendell M. Phillips IDAHO CITIZENS COALITION . . . Scott L. Burnum, Esq. FMC CORPORATION . . . Robert Mills NORTIIWEST PIPELINE CORPORATION . . . Craig R. Rich, Esq. J. R. SIMPLOT COMPAI{Y . . . Joan M. Cloonan, Esq. O oRDER NO. 20956 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC 2 o o O A post-hearlrE matter to be addrecsed at the concluslon of this Order is the Decernben 18, 1985 Application of Northwest Irdustrlal Gas Usens (NWIGU)for lntervenor furding. THE -I37 CASE Intermountain Gas Cornpany ln tts -13? Application seeks to elimlnate the cross-suboidy odsting between tts scheduled rate classes, narrow its competitive disadvantage wlth alternative firels ard temper the ttrreat of bypass. Additionally, the Conpany wishes to use this case as a vehlcle for tracking through the revenue effect of decreases in lts cost of purchased gas. We dlscuss these topics in tr.rn. COST{F-SERVIG, The primary ttlrust of the Company's Aplicatton ls to secure an adJrstment to rates that will provide it the opportunity or enable it to retaln its high-load factor industrial or LV-l customer class and prevent further loss or deterioration of load within that class to alternatlve fuels. The Company perceives that the LV-l class is subsidizing the residential and commercial classes. It seeks to eliminate this cross-subsidy by reallocatlng revenue responsibility between its customer classes pursuant to coet-of-service analysis. Cost of service is the standard that is most often used for gas utilities as a measune of geneiral rate levels. The Comrnission has always etpressed a preference for multiple cost-of-service studies for prrrpose of analysts and establishing the parameters forcost allocation. Reducing any dynarnic systern to a static one for pupose of study has llmitations. The results of studies vary according to the subJective assumptions underlying the objective arlthmetic. oRDER NO. 20955 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC 1 -3- o Stmply stated, a cost-of-servlce study for a Eas utllity is a three-part process of functionalization, classification and allocation. Costs are first assigned to functional categories (i.e., distribution, storage, transmission, genenal plant, etc.). Costs are then classified into coot categories of capacity or demand, commodity, and crstomer. The final step involves allocation of the costs to the customer classes. This determines revenue responsibility for cost-based rates. The results of allocation will vary based on whatever factor or mettndolory is used The demand allocation factors or rnethodologies of stgnificance utillzed tn -137 are (l) Peak and Average demand (P/A), (2) Average and Excess demand (AED), (3) Coincident Peak (CP), 8nd (4) Non-coincident Peak (NCP). An addittonal study was presented by the Courpany allocatlng demand related costs on the basis of Commodity. Cornmodity allocatlon is allocation of c[sts on the basis of relative annual usage. The Cornpany's preferred mettrodolory for demand allocation is the Peak and O Average rnethod, a modification or reflnement of the Average and Excess method. Under the P/A methodolory demand costs are assigrred on the basis of a two-part formula which recognizes (1) avenage use of capacity ard (2) responsibility for the total capacity required to meet the maxinum system demands, This differs frpm AED which in the second part recognizes responsibiltty for only the "additional capacity'r required to meet the maxlmum slatem demands. Coincident Peak is based upon the demands of the various classes of service at the time of the system or sub-sSrstem peak. It assumes the cost associated with the maximum load should be divlded among the customers causlng such peak load, regardless of the magnitude of their demands at any other time. o oRDER NO. 20966 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC A -4- o o Norpcotncident Peak ts based upon the maximum demands of the indivtdual classes of service irrespective of the time of occurrence. IGC presented multiple oost-of+ervice analyses (Commodity, P/4, & CP) purporting to show that significant imbalance ard cross+ubsldization exists between classes. The magdtude of shift and revemrc recponsibility required to bring the classes back lnto balance rraries with the underlying mettpdolory used: INIERIdoTItrTAIf, GAS CO,IPANT Comparleon of Coet-of-Servlce Studies MdltioaaL Reveaue Requiredl for Equal Rat6 of Return Case No. Methodology R8-1 ns-2 GS-1 LV-1 u-1034-122 u-r.03a-137 AED Comrodllty 9tA* CP DlstrLbutlon Storage rransmi.ssion General Plalt Net Adjustm.trts PIaDt MJustments TCTTAL 0( 24,962, 673,790 938,501 1,110,414 0 1,688,603 350,027 L,O72rg16 1,541r 230 $( 2,720,548) (2.770,L39't 11,520,7461 ( 5,655,556 ) $1 1 2 3 ,001,181 ,746,322 ,509,399 ,003,911 *Compaay' B Preferred lGthod Although the potential results of costd-senlce strdies are as unbourded as the imaglnatlon, we accept the results of these sfidies as defintng the parameters of our analysis in this proceeding. The preferred methodolory adopted W the Company for demand allocatlon in this case departs from the methodolory utlllzed ln Case No. U-1034-122 (-L22), a tradltional Average arud Excess demand study (AED). The Company has utilized the following methodologies in allocattng demand related plant unde,r tts P/A cust-of-seryice study: $51,496,225 - - Non-colnc!.dent Peak (NCP) 3,660,236 - - Coincldent Peak (CP) 10,332,452 - - Peak and Avcrage (P/A) 6,608,L92 - - (Classlf,led ancl allocatetl baaed upoa op€rating plaat- la-servj.ce ) ( 5,129,399 ) ( 605,200 ) $66,362,517 (compare t66,355,113 Compauy case) Exhibit :ffi:'P.$S8*:mfr&q7[S 5 o -5- o Althongh IGC characterizes lts p'referred methodolory in -137 as Peak and Aveirage (P/A), it is not a true P/A. In reality, the Company's stud5r is essentially an NCP study, as the majonity of plant is allocated on NCP. The Company asserts that the NCP and the CP are identicial. Therefore, IGC's study approaches the higtr end of the spectrum, the CP mettlodolory supported by NVYIGU. The alteirnative -122 stldy (AED) as depicted in tle Comparison of Cost-of-Service chart and as presented W Staff also shows that an imbalance exists. Unfortunately, the -122 ard -137 cost-of+ervice studles Ganrpt be directly compared. The -122 AED methodology utilizes the functionalization and classificatlon of plant and e)eense items as deterniroed appropriate in -122. The -13? methodologies, as presented by the Company, on the other hand, have implemented some changes in firnctionalization and classification. Several items alleged by the Company to be improperly classified or allocated are the following: O (1) Revenue fiom transportation of gas o -122 allocated revenue to all classes, although related plant and e)eenses assigred only to LV-l o -137 allocatedrevenue solely to LV-l class (2) Admlnistratlon and General E;penses o -12275% allocated based upon var{able gas supply costs 25% allocated to plant lnvestment costs o -137 50% allocated based on O&M costs 5006 allocated based on plant-in-service co6tg (3) Meter investrnent and e:(penses o -122 allocated part customer and part demand o -137 classified as customer related items only (weighted) o oRDER NO. 20965 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC A -G o o Wtdle these refinements arguably may have merit because of changed conditions, the Company's proposal ls flawed in that it fails to present studies allocating all or a greater pnoportlon of dernand costs under a refined -122 AED rnethodolory or under a true P/A methodology. In attemptlng to speorlate what a true P/A methodology would require by way of revenue shift, we look at Staff Exhtbit 101, Schedule A. This is a Company cost-of-service nrn using its prefenred P/A methodolory and using P/A for both storage and transmission. The effect of using P/A on the small amount of storage plant owned by the Company ($3,650,235) rather than CP reduces the revenue reduction required for equal rate of refinn to the LV-l class by $18?,533, frorn $4,520,7q6 to $4,333,213. We would erqpect that if distribution ($51,496,225) was allocated in a similar manner, P/A rather than NCP, that the requlred change in.revenue would be furtheir decreased. We flnd that no cost{f-serice study presented in thls case accurately defines IGC's csts of senrrlng its customers. This ls not to say, however, that the studies are without value. An awareness of the llmitations pernits reasoned analysis of the results. In the studies presented the colncident ard non-coincident peaks were identical, occurring as they did on a sirgle day, December 12, 1984. This collapsiug results in simllar demand allocation under either CP or NCP methodologies. An occurrence of this nature on its face would seem to indicate that there is an absence of diversity throughout the system. Diversity is the ratio of the sum of non-coincident maximum demands of a systemfs clrstomers to the maximum demand on the whole system. It is oRDER NO. 20965 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC 7 o -7- that characteristic of variety of loads whereby the irdividual maximum demands of a qTstem's customers usually occur at dfferent tines. While it might be true that there is little diversity between the classes, certainly there is diversity within the classes. We remind the Company that its system plant was built not only to provide sendce on a single December peak day but also for the remafuring 364 days of the year. That IGC customers do not use gas. in different emounts and at different times belies reason. It is because of this diversity that we prefer a methodology that recognizes averate usage over one that recognlzes only peak usage. AE stated above, the coincldent peak rnethod for demand allocation allocates demand related cost only to those customens who use seMce at the time of systen or subsystem peak. we flnd that a pure peak methodolory is inappropriate in a system that is unconstrained. IGC has neither comnodity nor capacity constraints. Mr. Harold Cook for NWIGU crlticized the Conpany's utilization of Peak Average rnetMolory for allocation of transmission as discrirninatlng against htgh load factor customers by ndouble counting." The error factor attributed to this "double counting" was calculated by the Company to be erilremely negligible or insignlficant (less than 0.0990). NWIGU proposes that transmission be allocated on the basis of Coincident Peak. For reasons already discussed we reject this pno,posal. Under NMGU's proposal entire plant would be allocatd under either Coincident Peak or Non-Coincident Peak. We find this lnappropriate. o o oRDER NO. 20966 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC n -8- o o o The AED method is argued to be inapFopriate in a $Btem with no interruptibte qstomers. It ls stated that the method collapses to the CP denand method, that the average demand element is lost and that enerBr usate is not being consldened. UnUke an NCP collapstng lnto a CP, the mathematics of thls collapse is difflcult to track. The dispartty and maryin of dlfference ln required dollar spread to achleve parity.between classes is of such a magnitude that it would appear that AED continues to have validlty for purpoee of allocation anal5rsis. The Commission believes there to be slgniflcant merit to the Peak and Average methodology as presented by the Company. It regretc that IGC chose not to present the Commission wlth a cost-of-service study which allocated all or nore of the demand related costs on ttrc basis of P/A. What the Company has presented is a melded appnoach incorporating a blending of NCP, CP and PIA rnethodologies. For thls reaoon we find ourselves constrained to reJect its preferred methodology. In reverting to the Average and Excess methodology we are endorsing a method that takes into account both average usage and system peak. We continue to find that demand related plant is constructed to rneet not only a slngle peak day demand but also the average rse throughout the year. Even though AED has been subJect to critlcism, the Company has not provided this Comruission with a reasonable middle ground. It was the consensus of two tntervenons, NWIGU and Northwest, that elimlnation of the cross-subsidies between classes was the single most important step in retentlon of industrial load. The elimination of cross substdies is also a stated obiective of the Company and of this oRDER NO. 20956 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC q o -9- Commission. We do not, howorer, accept these parties' quantlficatlons of the cross-subsides. In light of the foregoing discussion we find it appropriate, Just ard reasonable that cost-of-service reallocation be in conformance with the presented -122 AED methodolory as set out in Attachment 1 to this Order. We reject the proposed shifttng of revenue responsibillty between classes as per the Conpany cost-of-reMce anal)6is. Because of its slrnllarity we also relect the coot-of-senvlce allocation propoaed by NMGU. -132 and -136 TRACKER DECREASES IGC propooed an allocation and flow-through to the customer classes of recent pipeline reductions in cost of gas to IGC qn 3 nnlforn cents per therm basis. The total decrease under the -135 and -132 trackers totals $8,890,241. Staff and Intervenors agreed wlth the Companyrs prryosed method of adJrrstment. We find it appropriate, iust and reasonable that the proposed -132 and -136 decreases be tracked through on a uniform cents/therm basis. -I39 TRACKER INCRENE The Company pnoposes allocating the entire -139 increase totalllng $2,819,841 to the commercial GS-l class, This is a departure from cost-of-service based rates which favors allocation on a unlform cents per therm basis to all classes. The net effect to the GS-l class would increase the cost per therm by 4.4930 (increase revenue $2,797,322). o o oRDER NO. 20956 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC 1n -10- o O o In departing from ncost-of-seMce" as a basis for price diffenentiation and allocatlon IGC prqo,ses that this Commisslon adopt a rtvalueof-service* or demand related aproach and inplement competitively structured rates. The 'Value of servlcen argument of IGC is a proposed allocatton based on perceived market conditions and competition that threaten loes of load within the LV-1 class. The Company argues that crose-subcldy should be allowed in redestgn to the ertent that the value of seMce must be temporarily met to maintain customer load; and that it should then be allowed only to the ortent that the substdtzed class is elastic enough to requlre tbe ehift of cost brrdens to the remalning classes, i.e., the captive core market. The Compary has based its declslon on an assessment that the GS-l class has a marginally greater competltlve advantage in the tariffprice of natural gas over other fuels than any other senrrice class. In the residential class IGC sees natural gas as being only marginally competltive with wood, oil, coal and some electric heat punps. It views any firther allocation tn -139 to thls class under its proposal as erodlng this marginally competitive posture. A collateral matten that bears mentlonlng is ttre concem e:pressed by IGC that it is presently r:nable to Justify the advance of cmstrrrction costs related to further extension of residential setvice glven its present nentension policytt tariff requiring a lZ.Solo return on rate base prlor to free extension. The Company indicated that it would be economically feasible to hook-up addltlonal customers lf lt were able to recover the construction ard qther assoclated costs wtthin six months. lVe anticipate that the revenue reallocation occasioned by this Order will help justify further o<tenslon wlthout further charge. If the situation persists however, the Conpany should conslder requesting an appropriate tariff change and implementing a shift in rnarketing stratery. Any frrther oRDER NO. 20966 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC 11 o -11- o extension of service is of benefit to the entire customer class. Hce differentiation ln a ncost-of-service" approach is generally based on differences in time of use, load factor or amount of use (average load elpressed as a percentage of peak load). In this case it would be a reasonable form of discrimination based upon attempts to estimate long-term or short-terrn iqts to the system of serving a static or slowly changtng load. Price diffenentlation in a \alue of service'r or demard approach is rate discrinination also. In this case lts justification would be an attempt to quantify the benefits of retaining certaln customers on the system. The controlling factor dictating the proposed allocation is an assessment of "what the traffic will bear" or the elastlcity of the resp€ctive classes. A discussion of IGCrs proposed allocatlon of the -139 tracker would not b€ cornplete wlthout touching upon its competltive postrre vrs-a-vis alternative fuels and the pencelved ttrreat of bypass. O The dual fuel capability of the indusfial or LV-l class rnakes the Cornpany htghly susceptlble to signiflcant load loss to alternative fuels, elther oil or coal. This loss may be temporary or short-term when the alternative fuel is oil because most facilities that burn either oil or gas are designed with minor rnodification to burn the other as well. Thts capability permits the customer to easlly come on and go off the rystem. The loss of load may be long-term or permanent if the tndustrtal customer invests ln plant to use coal because the same faciltties carupt use both coal aruC gas. The market price of natural gas is rpt remotely competltlve to coal. If there is a switch to coal the likelihood of recapturi$ the customer is small. The immediate thneat comes not from cpal but from oil. Nattnal gas is the fuel of choice for many tndustrial applications because of the increased associated costs of rnaterlals handling for oil. It therefore carrles a premium of perhaps l-3$/therm depending on the custorner and the tllpe of oil. This premium, however, is not O oRDER NO. 20965 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC ,12 -12- o o large enough to bridge the gap between the present market price of natural gas and the prtcing of No. 5 and No. 2 fuel oils. The Company adnittedly is not oompetitlve wlth No. 5 oil. It only hopes to be somewhat competltive wlth No. 2 oil. Reportedly No. 5 oll is fes€ntly pniced at 20-23$ltherm equlvalent in southeast ldaho. No. 2 oil is priced at approxlmately a zTQlthero equivalent. The current average prtce undpr the LV-l tariff is 329/therm. This is equivalent to $20 per barrel oil. The rnarket indicators provtde a basis for at best guarded speculation. The Cornpany projects that the contlnued decline ln Northwest Pipeline rates is at or near the end. The rnost recent -139 tracker increase following a serlee of decreases would seem to srpport the Companyrs projection in the short term. The Company also projects that world oil pnices may decllne even frrrther. This Commlsglon caDtrot ignore recent posturiq by the Organization of Petroleum Exporttng Countries (OPEC) and the resultant ramifications in the markeplace that would seem to lndlcate an qmoslte trend- IGC has charactenized its aplicatlon as a defensive mfurg. It foresees any future competitive edge enabling it to retain the hlgh load factor LV-l class as tled to "q)en accessil becorning a reality. Northwest Plpeline is awalting FERC action on its -435 Blanket Certificate Application for open access transpor'tatiom, CP 8G578. lntertm open acoess meanwhile has been shut down by the pipeline. The harsh realtty volced by Reed Pennirg for the Company is that: "we & not really know what wtll happen or when tt wtll happen." The Comparprrs assegsment is not wtthout basls. A resolutlon of the Northwest Pipeline open access problem at FERC is probably of greater moment to the LV-l class and the Company than the decislon we make here today. The threat of b1ryass, the dlrect sale of natural gas by Northwest to an LV-l end-user, becomes possible only with the availability of open access. Northwest states that it "will not passlvely observe a switch to alternate fuels or the closing of factlities oRDER NO. 20955 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC 1? o -13- oby an end-user resulting from lack of competitively4rtced natural gas.n It futher states that tt "would blryass a local distribution company (LDC) in orden to presene and maintaln load." Northwest's concsn is real. It has e:rperienced a rystem-wide decrease ln annual load from 450 billion cubic feet (bcfl to 1986 estimate of 185 to 190 bcf (tncludtttg ffansportation would pull total market up to the range of 240 to 250 bcf). Extension of an interconnect service line together wlth taps & meters connecting the pipeline directly to an er$+ser rnust be preceded by an application for Federal Enerry Regulatory Commission (FERC) authority. The atterdant co6ts for interconnect and dupllcation of facilities, ostenslbly to be borne by the erd-rser, may in many lnstances prove to be pnohibttive. David Hawk for Simplot stat$ tbat ilthe option of blDa*s mnst be avallable to industrial (orstomers), not to ac-t as a cloud or lever oven the head of the LDC, but rather to lnsure falr treatment." The rrfair treatnentrr requested ln this instance is prefenential pnicins and a substdy to the LV-l class O L. C. Randolph for Northwest speculates that "loss of customers by (tGC) to either alternate fuels or blpass wlll create what some have called the ndeath spiral"". Jnst the name itself is erough to engender fear. Under suctr a scenario as prlce increases more ostomers leave the system necessitatlng further increas€s tn pnice ... a viclous cycle. The elasticlty of the LV-l,clasg and its dual fuel capability and consequent sporadic consumption patterns contribute to its volatile and unstable character. It is such characteristics that prompted Staff to conclude that the LV-l class was riskier than the core market residential and commercial classes. To realistically evaluate the tlreat facing the Company one must assess the e)posure to the Company of a total loss of the LV-l load. This was attempted by Cornrnission Staff. Its analysls although tntrtguing oRDER NO. 20966 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC 1A -14- o o O does not form a basts for our declslon. It estimated that 5.40/therm was a realistlc representation of the actual increase to the captlve core market residentlal and commerclal classes resulting fiom the conseq,renttal shifting of fixed costs away from the LV-l class. Staffrs estirnate assumes open access and that the load would not be lost tnstantaneously, but rathen over at least a three-year pertod. Staff and intervenor, NLGU, have recommended allocation of -139 on a urlform cents/therm basis although perhaps for different reasons. This approach is reasonable given the aparent disparity or margin of dlffenence ln the price of natunal gas ard No. 2 ard No. 5 otls. There is little jrrstiflcation fq the dirgcriminatory propoeed allocatlon advocated by the Company tf the deslred end, a competitiveness with No. 2 oil, canrpt reasonably be accomplished. Such a potential was only marginally obtalnable if the Commission were to adopt the Company's preferred cost-of-servlce study. For reasons already stated we rejected that strdy. The natural g3s industry is a volatlle one. Changirtg market conditions may provide the adjustment needed by the Company in malntatnlng or reassurning a competltive posture vis-a-ds oil. We anticipate that the reallgnment of revenue responsibility attendant to the cost-of-servlce as set out herein will significantly aid the Company in closing the competltlve gap. INTERVENOR FIJNDING An Application for intervenor fundiqg was filed by Northwest Industrial Gas Users on December 18, 1985. The Application was untimely. NWIGU has requested a waiver of the time requirements of IDAPA 3l.A 16.2. In support of tts request for waiver NWIGU states that it deferred Applicatlon anticipating that a briefing schedule would be established. The Commlssion Is not required to set a briefing schedule. Appropriate oRDER NO. 20966 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC 15 o -l5- onotice of lntent was required prior to conclusion of hearing on December ll, 1986. NWIGU represents that it has incrrrred the followirrg actual fees and actual and estlmatd expenses: Actual attorney fees: 90.8 hrs ($90-$120/hr) $ 9,448.s0 Actual fees for testimony & appearance of epent witness 106.5 trs ($90/hr) 9,855.00 Estimated travel and mtscellaneoueoeenses 1.110.85 Total $20,414.35 To be entitled to intervenor firnding under Idaho Code !51-617A the witness testimony must have presented a stgniftcantly different point of view and contributed to our decision making process. Although tJre recommendation of NWIGU diffened ln part from that of Commission Staff (cost of sen-vice), in its differences lt was not entirely O dlssimilar to IGCrs proposal. We found the testlmony to be surprisingly predlctable. It actually provlded very little contrast. It ls natural to e:pect thet I{WIGU in representing a sector of the LV-l class would be the proponent of a methodologXr creatirg maximum stttft of revenue responsibility away from the LV-l class. We find the testimony of Harold Cook to be repetltious and duplicative of prior testlmony submitted. We are unable to find that the intervenor's presentation materially contributed to the Commissionrs decision save insofar as it represented the polarized extreme that we were trying to avoid. CONCLUSIONS OF LAW The Idaho Public Utilities Commiseion has Jurisdiction over this matter and Intermountain Gas Company, a gas utility, pursuant to the authority and power gfanted oRDER NO. 20955 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC 1A -15- o O o under Title 61 of the lilatrp Coilc ard the Rules of Practice and Procedure of the Idaho Public Utillties Comrnlssio& IDAPA 31.4. ORDER IT IS THEREFORE ORDERED, in accorrdance wlth the discrssion above, that IntErmountain Gas Company adfust its rates and charges to reflect temporary and permanent decreases and increases in coat of purchased gas. The tracker insreases and dec"reases will be spread ln the traditlonal method of uniform cents/therm. Addtlonally this Commission authorizes and orders a reallocation of revenue responsibility between classes pursuant to the -122 ND methodology. All adJustments should be carried out as set forth in Attachment I to this order. IT IS FURTHER ORDERED that Interrnountatn Gas Company subrnit amended tariff sheets reflecttng the adlusted rates ard charges for the effective date of implementation of January 1, 1987. IT IS FURTHER ORDERED that there shall be no change ln the method of calculating Schedule T-1 tariff rates. IT IS FURTHER ORDERED for reasons discrssed above that Northwest Industrial Gas Users be denied tntewenor fundtng ln Case Noe. U-1034-137 and u-r034-139. THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally decided by this Order) or in interlocutory Orders pnevior:sly lssued in this Case Nos. U-103,1-1371139 Eay petition for reconsideration within twenty-one (21) days of the servlce date of this Order with regard to any matter decided in this Order or in interlocutory Orders previously issued tn this Case Nos. U-l034-1371139, l{ithin seven (7) da)rs after any person has petitioned for reconsideration, any other person may cross-petltion for recorsideration. See lilalp Coilc S6l-626. oRDER NO. 20966 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC 17 o -77- oilut ililt lillt llilt ililt ililt DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, thisTdfuy of December, 1986. ATTEST: SECRETARY S1{:cb/288l o oRDER NO. 20966 Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC 1A -18- o - ta'lxDD rft6a o(t I ; brtoF{dodtroo,4.tJ OomEtUoOHOU'r{ tr t{q, chom lF{rHl oIE#codooul 0)aolrl ddoHNON .oF{ (, I \oC('l.O F{O | .F{6oo €(dm go(, td.qENUtr.moO r.t .C.rl I +J{J\d '+{ (r:o o#otrF{ COr{ OO(, 'r{O +JEt{ d l-loor\ O tl{m r{ .r{ F{ r{CI d.tr aa F{ (\ * EEEU:7r---a\a -E.!r- t3D,\il-dt' -=-|D.Eij B'd asaaJt'a il=A-.' TDfct-h-ar- (Dh -h3tdt' I.3tc{ -rtrl-'-- ali7i rl-cailedt' E3 $s E!I irs ATTACHI1ENT 1 o f$Eg5= =c???d TT-IE= -4...=o??.. !EE3EIEsdpfff;ifj GilE-- -I--e.,EilgTE=tsa.a ='???o ISEEiE E s-tt[dE B= III IEEETA E EEffS. fd-s TEiII=sdt't't'd rtEiin E i{iirf !EIIE=5dt't'dd IsEErn E Egiiin' r.t TI -Ctsb{ Ir =rrilE-l: EEEEEJJSggIt-itraECr---atigiSE u,6Jrt DaE-+na .aE lrt-,{- EB r[$ t 3f tn 3-T' 3 g { C o 3J E * (n U) FlU fi FIEoFlU]DU ),r,a Hoz o HHdil }{o H 142;EDI,) 2( 3{Eoo o4 zHdl{EDo g,tlHzH o G't t Exhibit Case No. INT-G-16-02 Amalgamated Sugar Company LLC 1q Present positioil Don C. Reading Vice President and Consulting Economist Education B.S., Economics C Utah State University M.S., Economics C University of Oregon Ph.D., Economics C Utah State University o o Honors Delta Epsilon, NSF Fellowship Johnson Associates, Inc.:989 Vice President986 Consulting Economist Public Utilities Commission: 1981-86 Economist/Director of Policy and Administration 1980-8 1 Associate Professor, University of Hawaii-Hilo 970-80Associate and Assistant Professor, Idaho State University 968-70 Assistant Professor, Middle Tennessee State University . Reading provides expeft testimony concerning economic and regulatory He has testified on more than 35 occasions before utility regulatory in Alaska, California, Colorado, the Distria of Columbia, Nevada, North Dakota" Nonh Carolinq Oregon, Texas, Utah, and \fiashington. . Reading has more than 30 years experience in the field of economics. He in the development of indices reflecting economic trends, GNP rates, foreign exchange markets, the money supply, stock market inflation. He has analyzed such public policy issues as the minimum wage, spending and ta:ration, and import /export balances. Dr. Reading rs one four economists providingyearly forecasts of statewide personal income to State of Idaho for purposes of establishing state personal income tal( rates. the field of telecommunications, Dr. Reading has provided expert the issues of and measured service. Dr. and Firm Exhibit 501 Case No. INT-G-16-02 Dr. Reading, Amalgamated Sugar Company LLC Page 1 NO ?OI EXHIBlT I I a e prepared a $ate-specific study of the price elasticity of demand for local uelephone service in Idaho and recently conducted research for, and directed tht preparation of, a report to the Idaho legislature regarding the status of telecommunications competition in that state. . Reading's areas of expertise in the field of electric power include demand long-range planning, price elasticity, margind and average cost production-simulation modeling, and econometric modeling. Among recent cases w.ls an electric rate design analysis for the Industrial Customers Idaho Power. Dr. Reading is currently a consultant to the Idaho Committee on Electric Restructuring. 1999 Dr. Reading has been affiliated with the Climate Impact Group G) at the University of \U(ashington. His work with the CIG has in andysis of the impact of Global \Tarming on the hydo facilities on the It also includes an investigation into water markets in the Nonhwest Florida. In addition he has analyzed the economics of snowmaking for 's impacted by Global \farming. Dr. Reading's recent projects are a FERC hydropower relicensing the Skokomish lndian Tribe) and an analysis of Northern States Power's Dakota rate design proposals affecting large industrid customers (forJ Company). Dr. Reading has also performed analysis for the Idaho s Office of the impact on the Northwest Power Grid of various increase salmon runs in the Columbia River Basin. Reading has prepared econometric forecasts for the Southeast Idaho Governments and the Revenue Projection Committee of the Idaho State He has dso been a member of several Northwest Power Planning Statistical Advisory Committees and was vice chairman of the s Economic Research Council in Idaho at Idaho State University, Dr. Reading performed demographic studies a cohort/survival model and severd economic impact studies using output analysis. He has also provided expert testimony in cases loss of income resulting from wrongful death, injury, or discrimination. He is currently a adjunct professor of Boise State University (Idaho economic history, urban/regional economics labor economic.) . Reading has recently completed a public interest water rights transfer case. has also just completed an economic impact analysis of the 2001 salmon in ldaho. o Exhibit 501 Case No. INT-G-16-02 Dr. Reading, Amalgamated Sugar Company LLC Page 2 o