HomeMy WebLinkAbout2001611_ln.docDECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
GENE FADNESS
LOU ANN WESTERFIELD
RANDY LOBB
TERRI CARLOCK
BEVERLY BARKER
NANCY HARMAN
DAN GRAVES
ALDEN HOLM
TONYA CLARK
WORKING FILE
FROM: LISA NORDSTROM
DATE: JUNE 11, 2001
RE: IN THE MATTER OF THE APPLICATION OF INTERMOUNTAIN GAS COMPANY FOR AUTHORITY TO INCREASE ITS RATES FOR SERVICE. CASE NO. INT-G-01-3.
On May 25, 2001, Intermountain Gas Company filed an Application with the Commission for authority to place into effect new rate schedules that would result in an overall increase of approximately $27.1 million (12.9%) in revenues. The Company has requested an effective date of July 1, 2001. In its Notice of Application and Modified Procedure, Order No. 28745, the Commission established a comment deadline of June 22, 2001 and did not suspend the Application’s effective date.
Rule 102 of the Information to Customers of Gas, Electric and Water Public Utilities Rules applies to customer notices of proposed rate changes. IDAPA 31.21.02.102. Subsection 102.01 states that each gas utility that applies for a tracker rate change “shall give to each customer a statement (customer notice) announcing the utility’s application.” These customer notices may be mailed to customers as bill stuffers over the course of a billing cycle or may be contained in additional comment pages to the customer’s monthly bill. IDAPA 31.21.02.102.03.
The Company has informed Staff that the billing cycle containing the customer notices will end on June 27, 2001. Consequently, some customers will receive individual notice of the proposed rate increase after the June 22 comment deadline and the start of Commission deliberation following the June 25 decision meeting. The Company estimates that approximately 85% of customers will receive individual notice via bill stuffers as of the June 22 comment deadline. Intermountain Gas further notes that customers have also received notice of the proposed rate increase through media outlets (newspaper, radio and television) and the Company’s website.
The purpose of Rule 102 is to encourage wide dissemination to customers of information concerning proposed rate changes for utility services, but not to create individual procedural rights for notice that would give rise to a due process or other procedural claim cognizable by the Commission. IDAPA 31.21.02.102.05. Although Intermountain Gas’s mailing of customer notices technically complies with the Commission’s rules, it does not provide the notice envisioned by Idaho case law. Procedural due process is satisfied when individuals are provided with notice and an opportunity to be heard. State v. Rhoades, 121 Idaho 63, 72 (1991). The opportunity to be heard must occur “at a meaningful time and in a meaningful manner” to satisfy the due process requirement. Sweitzer v. Dean, 118 Idaho 586, 573 (1990). In the present case, customers who receive individual notice via bill stuffers after the comment deadline will arguably not have a meaningful opportunity to be heard regarding Intermountain Gas’s Application.
To allow all customers an opportunity to receive individual notice and respond accordingly, Staff recommends suspending the Application through July 13, 2001 and moving the comment deadline to Monday, July 2, 2001. The Commission may also wish to set an Intermountain Gas Reply Comment deadline of Friday, July 6, 2001 in anticipation of the July 9 decision meeting. If the Commission suspends the Application, Intermountain Gas requests that the Commission allow the Company to back date its billing to collect the rates authorized in this proceeding effective July 1, 2001.
COMMISSION DECISION
1. Does the Commission wish to suspend the Intermountain Gas Application’s effective date and modify the comment deadline set forth in Order No. 28745?
2. If so, does the Commission wish to use the above dates recommended by Staff?
____________________________
Lisa Nordstrom
M: INTG013_ln
DECISION MEMORANDUM 3