20171116INT to Staff 1-23.pdf

EXECUTIVE OFFICES
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555 SOUTH COLE ROAD . P.O. BOX 7608 . BOISE, |DAHO 83707 . [phone] o FAX: [phone] RECEIVED
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RE:
November 16,2017
Ms. Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472 W . Washington Street
P.O. Box 83720
Boise, ID 83720-0074
First Production Request of the Commission Staff to Intermountain Gas Company
Case No. INT-G-I7-04
Dear Ms. Hanian:
In regard to the above reference case, enclosed for filling with this Commission are the original
and seven (7) copies of Intermountain Gas Company's response to the First Production Request
of the Commission Staff.
Please acknowledge receipt of this filing by stamping a copy of this cover letter and returning the
stamped copy to us.
Should you have any suggestions regarding the attached, please don't hesitate to contact me at
[phone].
Very truly yours,
Michael P. McGrath
Director, Regulatory Affairs
Intermountain Gas Company
Enclosure
Mark Chiles
Ron Williams
cc:
Ronald L. Williams, ISB No. 3034
Williams Bradbury, P.C.
802 W Bannock, Suite 900
Boise, ID 83702
Telephone: [phone]
Email: [e-mail]
RECEIVED
2BI? li0y I 6 pil 3: tr5
!1.1:r,j;:i;:;lic:"IiLl I trr Cl,\in{lSSl0N
Attorney for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF INTERMOUNTAIN GAS
COMPANY'S 2017.202 1 INTEGRATED
RESOURCE PLAN.
CASE NO. INT-G-17.04
FIRST PRODUCTION
REQUEST OF THE
COMMISSION STAFT TO
INTERMOUNTAIN GAS
COMPANY
COMES NOW, Intermountain Gas Company, and in response to the First Production
Request of the Commission Staff dated Thursday, October 26,2017, herewith submits the following
information:
REQUEST NO. 1: On page 77 of the IRP, the Company describes collaboration with GTI
on a NextAire heat pump project. Please describe findings and conclusions from this project.
Please describe any additional research and development activities conducted or supported by the
Company, during the last two years.
RESPONSE TO REQUEST NO. 1:
The technical poper desuibing the details of the study referenced on page 77 are
proprietary and unavailable for public view. However, the publicly available findings and
conclusions from the project referenced on page 77 are summarized in two reports titled, "Cold
Climate Performance Evaluation of NextAirerM Gas Engine-Dr;en Heat Pul4p"and, "Cold
)
)
)
)
)
)
)
)
)
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page I
Climate Field Demonstration of the NextAirerM Gas Heat Pump." The summaries are shown on the
attached CD under the PRI folder listed as:
PR I Combined NextAire Study Summaries.pdf
Intermountain Gas Company's ("lGC") participation in GTI R&D projects is through
collaboration with other gas utilities. Many of the projects supported by the compony through
involvement with GTI over the past two years are still underway and are proprietary and
confidential. Those projects supported by IGC which have been completed and have public facing
information are listed on the attached CD under the PRI folder and are titled as follows:
PRI OTD Project List Public Summaries.pdf
PRI UTD Project List Public Summaries.pdf
RecordHolder: MikeMcGrath20S-377-6000
555 S Cole Rd. Boise. ID 83707
Sponsor/Preparer:Cheryl Imlach 208 -377 -6179
REQUEST NO. 2: Please describe the Company's efforts to obtain public and stakeholder
participation in development of the 2017 IRP. How, if at all, did these efforts differ from previous
IRP processes?
RESPONSE TO REQUEST NO. 2:
The Company continued to expand its efforts in obtaining public and stakeholder
participation.for the 2017 IRP by including an additional (fourth) presentation locationfor the IRP
team of employees. The public and stakeholder participation meetings were held twice in western
Idaho, once in central ldaho and once in eastern ldaho. The Company purchased public meeting
notifications infour major newspapers throughout the territory to advertise these meetings, and
personal invitations were sent to public fficials and interested parties, all in an effirt to continue
to increase participation.
Record Holder: Mike McGrath20S-377-6000
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page 2
Location:
REQUEST NO.3: Please describe the Company's participation in the Idaho Building
Code Collaborative over the last two years and how participation in the group has affected business
practices and energy efficiency initiatives.
RESPONSE TO REQUEST NO. 3:
Over the past few years, representatives from the Company's Safety and Training
department have attended ldaho Building Code Collaborative ("lBCC") meetings os necessary
depending on the topic. Most recently through this involvement, IGC provided support for the
Carbon Monoxide (CO) detector requirements in new homes/apartments and demonstrated steps
taken by IGC to identifu CO issues in homes during emergencies and while reinstating service.
Representatives have attended these meetings to stay up-to-date on, and provide feedback
regarding, the adoption of codes and any amendments to the International Building Codes that may
impact Company customers. The IBCC is evaluating proposed energy code changes that will go
into effect in 2018. IGC recently attended the llovember IBCC Meeting and is taking an active role
in promoting energy fficiency standards. IGC will continue this involvement goingforward. The
November IBCC meeting agenda is attached in the CD under the PR3 folder titled:
PR3 2017. I 1.1 5 ldaho Code Collaborative draft Agenda.pdf.
Location:
Sponsor/Preparer:
Record Holder:
Location:
Sponsor/Preparer
555 S Cole Rd, Boise, ID 83107
Russ Nishikawa 208-3 7 7 -6038
Mike McGrath 208-377-6000
555 S Cole Rd. Boise. ID 83707
Lance F'h :y208171 612
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page 3
REQUEST NO. 4: On page 5 of the IRP, the last sentence states that "all peak day
demands can be met over the FYl5 through FY19 forecast period:" The table on page 5 shows
years FYl7 through FY21 with no deficits. Please explain why the narrative and table do not depict
the same forecast period and if any deficits exist for FYl T through FY2l . If deficits do exist please
quantify them and explain how they will be resolved.
RESPONSE TO REQUEST NO. 4:
No deficits exist on the ldaho Falls Lateral.for the current IRP, FY17 to FY2l. The last
sentence onpage 5 of the IRP is aneruor statingthe incorrectfiscalyear dates. The Load Duration
Curve Table on page 5 represents the coruect dates and data,
Record Holder:
Location:
Sponsor/Preparer:
Mike McGrath 208-377-6000
555 S Cole Rd, Boise, ID 83707
Russ Nishikawa 208-3 7 7 -6038
REQUEST NO. 5: On page 8 of the IRP, biogas production in Canyon County is
mentioned as a method of enhancing distribution. Please explain more fully and provide
documentation that describes biogas alternatives being explored, their volumetric potential, when
they may become viable, and a description of potential costs and benefits.
RESPONSE TO REQUEST NO. 5:
The Company received various proposed biogas injection locations in the Canyon County
areafrom a potential producer. To date, there have not been publicly disclosed biogas production
volumes, a date determinedfor injection or afinal injection location communicated to the
Company. Any quantitative costs and injection quantities will not be available until afinal
injection location andvolumetric quantity are provided; although, the cost to inject and transport
biogas on Intermountain's system would be supplied by the Producer.
The statement on page 8 of the IRP mentioning potential biogas os a, " ...means of
enhancing the distribution capability in this area," continues to be investigated. To date, no biogas
producer has proven that a biogas injection onto the system is consistent enoughfor the Company
to rely on the producer as a gas supply.
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page 4
Record Holder:
Location:
Sponsor/Preparer:
Record Holder:
Location:
Sponsor/Preparer:
REQUEST NO. 6: On page 9 of the IRP, an additional 8500 therms of incremental sendout
in FY19 is listed for Industrial on the State Street lateral. Please explain why an additional 8500
therms is required, how the number of therms was determined, and how this requirement will be
satisfied.
RESPONSE TO REQUEST NO. 6:
In FYl9, the State Street Lateral industrial usage increases by 8,500 therms due to the
inclusion of existing industrial customers from Emmett, ID onto the State Street Lateral. In FY18,
the Company plans to run a new pipeline that branches from the State Street Lateral up to the
southeast side of Emmett. This new pipeline shifts existing Emmett cttstomers, previously supplied
from a separate pipeline, onto the State Street Lateral, creating an increase in the firm industrial
load. Along with an increase infirm industrial load, the State Street Loteral also experiences ct
one- time heightened core market growthfor FYl9 as the Emmett core market customers shift onto
the Lateral. This occurrence is noted on poge 88 of the IRP under growth observations for the State
Street Loteral.
Mike McG r ath 208 -37 7 - 6000
555 S Cole Rd.ID 83707
Russ Nishikawa 208-377-6038
Mike McG rath 208-37 7-6000
555 S Cole Rd. Boise. ID 83707
Russ Nishikawa 208 -3 7 7 -6038
REQUEST NO. 7: Page 28 of the IRP contains a conversion rate table with projections
from alternate fuel sources (electric, oil, coal, wood, others). Please explain how this table was
developed and how it compares to actual conversions over the last 5 years.
RESPONSE TO REQUEST NO. 7:
The table onpage 28 is developedusinga 3-year average of the annual conversionrate by
Region: Western, Central and Eastern. The conversion rate for each region is calculated by
dividing the total new conversion customers by the total new customers. The conversion rate for the
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page 5
forecast is an average ofthe most recent 3 years' conversion rate by region. Actual conversions by
region over the past 5 years are as follows
Actual Conversion Totals for past 5 years
WESTERN CEI'JTRAL EASTERN
REGIOT'J DIVISIOI.J REGION CO.YEAR SALES S.ALES SALES TOTAL
F1?
F13
F"1,1
F15
Fl rj
778
871
s01
701
705
320
284
257
2S4
n.t A
127
.to,l
2tl3
3Ei8
13S
16rl
120
11+
'113
Actual Conversion Percentfor past 5 years and 3-year average
T\,ESTERT'I CEI'ITRAL EASTER]"I
REGI0H DtVtStOr"J REGtOr.t C0.YEAR SALES SA.LES S,ALES TOTAL
F12
F13
F14
F15
F16
3 yr avg
11.67s,6
14.854/o
13.319b
c oogt-
7.CI59o
9.0896
30.22%
26.8 58t
24.5S%
17.43dh
2Cr.00?:,
20.670,{
37.12ch
21.1396
27.07clo
23.S69i3
17.58%
22 87Vt
'19t.'11%
1,1.83%
17.26%
11.12c4
s.sg 9/,,
12.8S%
Record Holder:
Location:
Sponsor/Preparer:
Record Holder:
Location:
Sponsor/Preparer:
REQUEST NO. 8: On page 46 of the IRP, the Company states that7l%o of its supply is
from the Western Canadian Sedimentary Basin (WCSB). Please provide a ten year historical view
of purchases by basin to include volumes, prices, and percentages of total by basin.
RESPONSE TO REQUEST NO. 8:
See Spreadsheet response included in the CD under the file PR 8 titled:
PRB Data Request.xlsx
Mike McG rath 208 -37 7 - 6000
555 S Cole Rd. Boise. ID 83701
Cheryl Imlach 208-37 7 -6179
Mike McGrath 208-377-6000
Eric Wood 208-377-6134
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page 6
555 S Cole Rd, Boise. ID 83707
REQUEST NO. 9: On page 5l of the IRP, the Company says it has obtained the maximum
amount of available Rockies capacity. Please explain why obtaining Rockies capacity is the best
economic alternative for the Company and its customers compared to other supply regions.
RESPOSNE TO REQUEST NO. 9:
The Company began securing its portfulio of additional Rockies capacity on Northwest
Pipeline LLC ("Northwest") in the early 1990's. The purpose for this was twofold. First, at the
time, gos supplies purchased out of the Rockies supply basins were some of the lower cost gos
supplies available and second, it provided the Company with a well-balanced and diversified
portfulio of overall transportation, providing qccess to the three primary supply basins (British
Columbia, Alberta and Rockies) andfirm transportation capacity for the Company's growing
residential and commercial markets at the time andfor the future. Also, having this diversified
portfolio of transportation capacity, when coupled with the unique operating conditions that occur
on Northwest from time to time allows the Company to access lower cost gas supplies thot arise at
basins other than the Rockies. The Company has 8,413,500 MMBtu offirm storage capacity at the
Clay Basin storage facility with 70,I I4 MMBtu per day offirm storage withdrawal rights. The
Company's Rockies transportation capacity thus allows for the firm primary corridor rights to take
gas from Clay Basin and deliver it to the Company's city gate locations in Southern ldaho during
the winter demand months. Within the Company's transportation portfolio is 9,000 MMBtu per day
offirm transportation with a primary receipt point at the Southernmost end of the Northwest system
and delivery point at Clay Basin coupled with 9,000 MMBtu per day offirm transportation capacity
with a receipt point of Clay Basin and a delivery point of Longview. Both paths provide access to
Rockies gas supplies. These two paths allow the Company to use the former component to deliver
gas in the summer for injection into the Clay Basin storage account while at the same time
maintaining an additional 9,000 per day offirm delivery capacity into the Company's distribution
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page 7
system in ldaho. As mentioned, having the Company's transportation portfolio diversified has the
advantages mentioned above. A secondary benefit also arises from the bilateral flow nature of the
Northwest system. By way of example, f the lowest cost gas supplies originate in the provinces of
Alberta or British Columbia, the Company does have a significant amount offirm transportation
capacity allowing primary access to these supply basins. To provide the greatest amount of access
to these lower cost supplies, the Company can alternate orJlex the receipt point(s) of its various
transportation components and still provide secondary firm transportation rights delivering gas
into Southern ldaho. Thus, it is possible to take a receipt point of, say, Wyoming Pool and request
it as a secondary receipt point at Stanfield (or Alberta gas supplies) or Sumas (for British
Columbia gas supplies). Because of the unique bilateral flow nature of the pipeline this then allows
access to these lower cost Canadian gas supplies by using the Company's Rockies capacity as a
secondary path.
Record Holder:
Location:
Sponsor/Preparer:
Record Holder:
Location:
Sponsor/Preparer
REQUEST NO. 10: On pages 52 and 53 of the IRP, the Company describes its supply
portfolio. Please provide a5 year historical view of the portfolio mix by volume using the five
types (long-term, short-term, spot, winter baseload, Citygate delivery) listed on page 53.
RESPONSE TO REQUEST NO. 10:
See Spreadsheet response included in the CD under the file PR10 titled:
PRI0 Data Request.xlsx
Mike McGrath 208-377-6000
Eric Wood 208-377-6134
Mike McGrath 208-377-6000
555 S Cole Rd. Boise. lD 83707
Eric Wood 208-377-6134
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page 8
555 S Cole Rd. Boise. ID 83707
REQUEST NO. 11: On page 54 of the IRP, the Company refers to its Gas Supply
Committee. Please describe the committee's charter, deliverables, members, meeting structure and
schedules. Please provide committee meeting minutes for the last two years.
RESPONSE TO REQUEST NO. 11:
On the separate CD filed in response to Request No. I l, please fined the Intermountain Gas
Company Gas Supply Risk Management Program Objectives, Policy, Guidelines & Procedures
which serves as the company's charter. In addition to addressing the needs for economical and
reliable natural gas supply, transportation, and storage the document provides guidelines for risk
mqnagement andfinancial instruments available to IGC.
Starting on page 2 of the document the Gas Supply Oversight Committee's ("GSOC")
responsibilities and deliverables are identffied with members of the GSOC identified in Appendix
A. In addition to the members identified in the attached document, Tammy Nygard - Controller for
IGC and Hart Gilchrist - Vice President of Operations for IGC have been added as voting
members. The Committee attempts to meet, at a minimum, quarterly with additional meetings
scheduled as changing market conditions dictate. An agenda is sent out prior to scheduled
meetings and minutes are taken and distributed after the meetings have taken place. Please also
see the aforementioned CD for the agendas and minutes of the meetings for years 2015, 2016, and
2017 WD.
Record Holder:
Location:
Sponsor/Preparer
Mike McGrath 208-37 7-6000
555 S Cole Rd. Boise. ID 83707
Bob Morm on 7 0l -222-7 87 0
REQUEST NO. 12: On page 59 of the IRP, the Company states; "In the long run, many
forecasts predict tightening price differentials across the continent." Please provide documents and
sources supporting this statement.
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page 9
RESPONSE TO REQUEST NO. 12:
Historically, the Company has focused on the regional spread between Rockies and Sumas
and has not kept data nationally on the spreads between other indices across the country. Since the
Company is captive to Canadian and Rockies supply basins, the other indices are of lesser
importance at this time. In looking at the data, the Sumas and Rockies spread has tightened greatly
over theyears. Lookingbackto the 2007 timeframe, the average absolute spreadvaluewas $2.69.
The spreadvalues continued to dropfor the next several years reaching a low $0.1475 for the
average in 201 l. The forward curve values show a flat spread curve between the two indices, with
the average spreadvalue at $0.2855 for 2018-2022. While the spreads haveJlattened out in the
forward curve, there is still a very tight market looking out into the future showing less volatility
between the indices as shown in the dota table and chart below.
Year
20o7
2008
2009
2010
28L2
2013
2014
2015
2016
2017
2018
201.9
?.020
2021
2022
Spread
Absolute Value
$ z.osoo
s 2.0800
$ o.s3oo
S 0.3s42
I s.rqzs
S 0.1833
S s.zrzs
S o.uez
$ o.rsso
$ o.rzzs
$ o.zna
$ o.szzg
S 0.279s
S o.z+:s
s 0.307s
s o.27so
Spread Absolute Value
s3.0000
5:.s000
S?.oooo
sr.5000
51.0000
$0.5000
s-
?00720G8 2099 2010 2Ct1 2012 ?013:0142015:016 2017 2018201920:0 2C21 30?2
Record Holder:
Location:
Sponsor/Preparer:
Mike McGrath 208-377-6000
555 S Cole Rd,Boise. ID 83707
Eric Wood 208-377-6134
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page 10
REQUEST NO. 13: On page 62 of the IRP, the Company talks about industrial use of
alternate fuels. The Company state; "More specifically, only industrial customers located along the
Idaho Falls Lateral (IFL) have the ability to use any of these non-traditional resources to offset firm
demand throughout a system." Please describe what non-traditional resources are currently
available, resources that may become available within the planning horizon, and the extent to which
each resource could offset demand.
RESPONSE TO REQUEST NO. 13:
The non-traditional resources determined available to supplement traditional supply
resources during peak demandfor the IRP are diesel/fuel oil, wood chips, and coal. Diesel/fuel oil
could potentially ffiet demand up to 33,000 therms per day. The non-traditional resource of wood
chips could potentially ffiet demand up to 7,500 therms per day. Coal is no longer an alternative
fuel option on the ldaho Falls Lateral; although, since the start of this IRP process it has now been
determined there is potential for two coal alternative locations throughout the Company's service
territory. A final natural gas demand offiet from coal substitution has not been determinedfrom the
Company's customer qt this time.
There qre no additional non-troditional resources the Company is aware of that will become
avoilable within this IRP planning horizon.
Record Holder:
Location:
Sponsor/Preparer:
Mike McGrath 208-377-6000
555 S Cole Rd, Boise, ID 83707
Russ Nishikawa 208-3 7 7 -6038
REQUEST NO. 14: On page 65 of the IRP, the Company discusses biogas and
construction of an anaerobic digester. Please provide details on when a digester could become
viable and how much gas it could produce.
RESPONSE TO REQUEST NO. 14:
To date no anaerobic digester operator has entered into an agreement with Intermountain
Gas to transport biogas on the Company's system; however, there are multiple, potential biogas
producers that are looking at the possibility of transporting on Intermountain's system. A number
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page I I
of potential producers could enter into tronsport agreement as soon as 2018, and these potential
facilities are capable of producing an estimatedfive thousand (5,000) to forty-five thousand
(45,000) therms of biogas per day.
As a side note, the Company is aware of six anaerobic digesters located in ldaho that are
currently in operation, but none of these digesters are transporting biogas on Intermountain's
system.
See spreadsheet included in the CD under PRl4 folder titled:
PRL4 Biogas Digester Database (AgSTAR).xlsx
Record Holder: Mike McGrath20S-377-6000
Location:
Sponsor/Preparer:Russ Nishikawa 208-3 7 7 -6038
REQUEST NO. 15: On page 72 of the IRP, the Company discusses the State Street
enhancement achieved through a pipeline retest. Please provide a detailed description of the project
phases including cost and time estimates for each phase of the project.
RESPONSE TO REQUEST NO. 15:
The planned enhancementfor the State Street Lateral area of interest is a two-phase
pipeline retest that will increase operating pressure of the existing, large diameter pipeline. Phase
one of the retest is scheduledfor planning in FY20l8, with execution in FY2019. The estimated cost
of Phase one is $2,000,000.
Phase two of the State Street Lateral retest is curuently outside of the IRPfive-yearforecast,
and a timeline and cost estimate hove not yet been developed.
Record Holder:
Location:
Sponsor/Preparer:
Mike McGrath 208 -37 7-6000
555 S Cole Rd, Boise, ID 83707
Russ Nishikawa 208-3 7 7 -6038
REQUEST NO. 16: On page 73 of the IRP, the Company discusses Canyon County
enhancements. Please provide cost and time estimates for the project.
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page 12
555 S Cole Rd. Boise. ID 83707
RESPONSE TO REQUEST NO. 16:
The Canyon County enhancement is a I 2 " pipeline loop in Caldwell, scheduled for
installation in FY 2018 for an estimated cost of $1.9 Million.
Record Holder: Mike McGrath20S-377-6000
Location:555 S Cole Rd se. ID 83707
Sponsor/Preparer: RussNishikawa208-377-6038
REQUEST NO. 17: On page 73 the Company mentions that compression has been retired
on the Idaho Falls lateral. Please describe when compression was installed, what equipment was
used, cost of the equipment, and when equipment was retired.
RESPONSE TO REQUEST NO. 17:
Compression equipment was initially installed on the Idaho Falls Lateral in 1965 near Fort
Hall. The original compression equipment was two Wite Superior natural gas fired, eight-cylinder
engines capable of 750 horsepower on each unit. The engines powered two sets of 10" White
compression cylinders. Accounting records indicate the equipment purchased in 1965 cost
$229,055.
A third compressor was installed at the same location on the ldaho Falls Lateral in 199l,
and provided an additional 1,100 horsepower through a Superior SGTLB engine driving a Superior
SW62 compressor. Accounting records indicate the equipment purchased in 199I cost
approximately $ 9 2 7, 4 I 8.
All compression on the ldaho Falls Lateral became obsolete as new operating pressures on
the Lateral began to exceed the working pressures of the compression equipment. The compressor
stations were physically removedfrom the Lateral in 2007.
Record Holder: Mike McGrath20S-377-6000
Location 555 S Cole Rd" Boise. ID 83707
Russ Nishikawa 208-3 7 7 -6038Sponsor/Preparer
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page 13
REQUEST NO. 18: On page 77 of the IRP, the Company mentions participation in energy
conservation seminars. Please provide details for each conservation seminar the Company attended
over the last five years including seminar neunes, topics covered, and company attendees.
RESPONSE TO REQUEST NO. 18:
Allison Spector, who co-authored the recently adopted DSM program has been an active
participant in Seminars related to energy fficiency. The list of seminars ond topics from 2012-2017
are shown on the attached CD under the PRl S folder titled:
P Rl 8 Spector Seminars _Topics.pdf.
In 2015, Brad Ware, Consumer Sales Rep, attended the ldaho Energy and Green Building
Conference. Workshops attended include :
. Enerq! Efficiency: A changing world and a role for cities
o Stote of Renewable Energy in ldaho
o Clif Bar: Sustainable Mandacturing in ldaho
Individuals in various departments have attended numerous webinars conducted by the Energy
Solutions Center. The list of attendees, the date of the webinar and the Topic(s) covered are shown
on the attached CD under the PRlSfolder titled:
PRlS ESC Webinar Attendance.pdf.
Record Holder: Mike McGrath20S-377-6000
Location:
Sponsor/Preparer
555 S Cole Rd. Boise. ID 83707
Cheryl Imlach 208-377 -6179
REQUEST NO. 19: On page I l0 of the IRP, the Company describes the Rexburg Snake
River crossing. Please provide supporting detail including project cost and timing.
RESPONSE TO REQUEST NO. 19:
Replacement of the existing Snake River pipeline crossing near Rexburg, ID is tentatively
plannedfor FY2l for an estimated cost of $4.a Million. The replacement project is not growth
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page 14
driven, so the installation timeline may change depending on capital budget planning and
c ons truc t i o n w orkl o ad.
Record Holder:
Location:
Sponsor/Preparer:
Location:
Sponsor/Preparer
REQUEST NO. 20: Please describe in detail peak shaving benefits of the Nampa and
Rexburg LNG facilities including areas that can be served and maximum duration.
RESPONSE TO REQUEST NO. 2o:
Details of the Nampa LNG Plant are described in the response to Production Request No.
23.
The Rexburg LNG facility provides peak shaving benefits to the entire ldaho Falls Lateral
by providing a second supply in an ideal location at the northern end of the Lateral. The LNG
facility supplants gas normally suppliedfrom the Northwest Pipeline's gate located south of
Pocatello, and reduces pressure loss and gas velocity on the Lateral, allowing the gate to move
additional gas onto the system that normally would not be possible. The Rexburg LNG facility has
onsite storage designed to hold two or more days of peak shaving LNG, and the facility is able to
accept LNG ffioadedfrom tanker trailers while in operation.
Record Holder: Mike McGrath20S-377-6000
Mike McGr ath 208 -37 7-6000
555 S Cole Rd. Boise. ID 83707
Russ Nishikawa 208-3 7 7 -6038
555 S Cole Rd. Boise. ID 83707
: Russ Nishikawa 208-371-6038
REQUEST NO. 21: On page 7 of the IRP, the Company states that"a peak day delivery
deficit does not occur during this IRP period." Please explain why the Load Duration Curve chart
on page 8 does not identify a deficit in FY19 since total peak day sendout (872,410) exceeds
distribution transport capacity (860,000) by 12,410 therms.
RESPONSE TO REQUEST NO.21:
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page l5
In the process of reviewing this request, it was discovered that there was an eruor in the
data included in the table referenced on Page 8 of the IRP. The data for the column titled
Distribution Transport Capacity for the row FYI9 should reflect 930,000 instead of the 860,000
referenced. This new capacity amount was not re/lected appropriately. This new copacity amount is
based on a project that is referenced on Page 73 of the IRP, and is also explained in greoter detail
under Request No. 16.
Record Holder: Mike McGrath 208-377-6000
Location: 555 S Cqle Rd, Boise, ID 83107
Sponsor/Preparer:Eric Wood 208-377-6134
RBQUEST NO.22: On page 56 of its application, the Company explains that "Nampa
LNG withdrawals go directly into the Company's distribution system." Please provide a map
showing the Nampa LNG facility and its interconnections with the Company' distribution system.
Identify the portions of the Company's distribution network that can be supplied directly from the
Nampa LNG facility.
RESPONSE TO REQUEST NO. 22:
The Nampa LNG Plant is connected directly to the largest demand, high pressure pipeline
system owned by the Company, which provides an ideal LNG injection location. A map showing
the system supplied directly from the Nampa LNG Plant would include detailed locations of miles of
high pressure pipeline, which the Company must consider confidential ond exempt from public
review; although, on August 20, 2016, the Companyfiled an electronic pipeline and gas storoge
infrastructure map with the IPUC Pipeline Safety Division that can be reviewed internally by
certain IPUC staff.
Record Holder:
Location:
Sponsor/Preparer:
Mike McGrath 208-377-6000
555 S Cole Rd. Boise. lD 83707
Russ Nishikawa 208-3 7 7 -6038
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page 16
REQUEST NO. 23: On page 56 of its application, the Company explains that "liquid
storage will serve as a needle peak supply." Please explain why it is preferable to use liquefied gas
from the Nampa LNG facility, rather than compressed gas from the Williams pipeline, to supply gas
during needle peak. Please discuss the benefits of using the LNG facility to supply gas during
needle peak for each of the Company's customer classes (RS, GS, LV, T3 and T4).
RESPONSE TO REQUEST NO. 23:
The Nampa LNG Facility plays a vital role in the overall gas supply portfolio of the
Company. LNG is necessary for Peak Shaving during events such as an Artic Express type of event.
The Nampa LNG facility is "behind the gate" meoning that this facility is within the direct
distribution side of the Intermountain system and requires no upstream capacity requirements and
costs as would be neededfor other types of resources. This also provides a secure method of
deliveringthat gas onapeakdaywhere there is no chance of upstream constraints or supply cuts.
In the event of an Operational Flow Order ("OFO" l), the Nampa LNG facility can mitigate the
risks of supply cuts due to OFO's or Force Majeure situations where contractedJlowing gas from
suppliers can be disrupted. In addition, LNG is a very quick delivery method, meaning that the
vaporization of LNG can occur at a rapid rate and can provide 60,000 DTH of natural gas injected
into the system daily during a peak event, ultimately providing the needed supply during high
demand.
The Nampa LNG Facility benefits all rate classes within Intermountain' s Largest Demand
Area. This .facility can provide a quick reliable method of delivering gas needed for the Boise,
Nompa and Meridian qreas. The gas delivered to this area also frees up other resources for other
parts of the system, along with the needed upstream capacity requirements. While the T-3 and T-4
customers are required to provide their own upstream capacity and supply resources as part of
their contract with Intermountain, they do benefit from the LNG plant. In the event a curtailment
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page 17
mqy be needed, the supply of the LNG plant would mitigate the risk of curtailment to T-3 and T-4
customers.
Record Holder:
Location:
Sponsor/Preparer:
Mike McGrath 208-377-6000
555 S Cole Rd, Boise, ID 83707
Eric Wood 208-377-6134
IGC RESPONSE TO FIRST REQUEST FOR PRODUCTION Page l8