20230109INT to Staff 1-47.pdf

RESPONSE TO FIRST PRODUCTION REQUEST OF COMMISSION STAFF PAGE 1 OF 2
Preston N. Carter, ISB No. 8462
Blake W. Ringer, ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, Idaho 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
INTERMOUNTAIN GAS COMPANY FOR
AUTHORITY TO INCREASE ITS RATES AND
CHARGES FOR NATURAL GAS SERVICE IN
THE STATE OF IDAHO
Case No. INT-G-22-07
INTERMOUNTAIN GAS COMPANY’S
RESPONSES TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF
In response to the First Production Request of the Commission Staff to Intermountain
Gas Company dated December 16, 2022, Intermountain Gas Company, (“Intermountain,”
“Applicant,” or “Company”), submits the following responses. Responsive documents are
available for download using the link provided in the accompanying email. Confidential
responses and documents are subject to the protective agreement in this case, and are available
for download using a password-protected link that will be provided separately by email. The
password will be provided in a third email.
Intermountain Gas has obtained an extension to respond to the remaining requests, which
will be provided within fourteen days.
DATED: January 6, 2023.
GIVENS PURSLEY LLP
Preston N. Carter
Attorney for Intermountain Gas Company
RECEIVED
Monday, January 9, 2023 9:51:29 AM
IDAHO PUBLIC
UTILITIES COMMISSION
RESPONSE TO FIRST PRODUCTION REQUEST OF COMMISSION STAFF PAGE 2 OF 2
CERTIFICATE OF SERVICE
I certify that on January 6, 2023, a true and correct copy of the foregoing was served
upon all parties of record in this proceeding via electronic mail as indicated below:

Commission Staff Via Electronic Mail
Jan Noriyuki, Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise, ID 83714

[e-mail]
Dayn Hardie
Deputy Attorney General
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise, ID 83714
[e-mail]

Chad M. Stokes
Cable Huston LLP
1455 SW Broadway, Ste. 1500
Portland, OR 97201
Attorneys for Alliance of Western Energy
Consumers
[e-mail]

Marie Callaway Kellner
710 N. 6th Street
Boise, ID 83702
Attorneys for Idaho Conservation League
[e-mail]

Brad Heusinkveld
Idaho Conservation League, Energy Assoc.
710 N. 6th Street
Boise, ID 83702
[e-mail]

Preston N. Carter

INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted
Dedden/ Nicole Kivisto
REQUEST NO. 1:
Please provide a copy of the Company’s Chart of Accounts.
RESPONSE NO. 1:
Please see attached RFP 1 Chart of Accounts.xlsx
INT-G-22-07
IPUC DR1
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted Dedden/Nicole Kivisto
REQUEST NO. 3:
Please provide all contracts, agreements and other related and underlying documents that
establish the services provided and received, and the costs charged and paid between the
affiliated companies for 2017 through 2022 to date.
RESPONSE NO. 3:
The Cost Allocation Manual (see RFP 3 Cost Allocation Manual 2022.pdf) provides an
overview of the different types of allocations and the processes employed to direct costs to the
proper business unit and Company. This manual is what is used to allocate the charges on
affiliate invoices. Cost of Service spreadsheets (see Folder RFP 3 ICG Cost of Service) show
how IGC affiliate accounts receivable are calculated to bill affiliated companies each month. In
addition, Cascade Printing Cost spreadsheets (see Folder RFP 3 Cascade Printing Costs) show
how much to bill IGC’s affiliate, Cascade Natural Gas, each month for bill printing services.
Due to the voluminous nature of this request, a listing of the costs charged and paid between
affiliated companies between 2017-2022 can be found within RFP 3 Affiliate Transaction.xlsx.
Tab ‘2340’ are affiliate accounts payable transactions and tab ‘1460’ are affiliate accounts
receivable transactions. If specific invoices need to be viewed, the Company can provide a
digital copy upon request.
See attached:
RFP 3 Cost Allocation Manual 2022.pdf
RFP 3 Affiliate Transactions.xlsx
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Folder RFP 3 Cascade Printing Costs
Folder RFP 3 IGC Cost of Service
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted Dedden
REQUEST NO. 4:
Please provide copies of any internal or external reviews and reports associated with the
allocation of costs between Intermountain Gas and any affiliated companies. In your response,
please include any reviews, reports and other documents performed or created by or for any other
regulatory commissions.
RESPONSE NO. 4:
The cost allocation manual is updated periodically and is reviewed by management. See
the Response to Production Request No. 3 to view the cost allocation manual.
INT-G-22-07
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Kim Ukestad
REQUEST NO. 5:
Please provide a list of all leased items in 2017 through 2022 to date. Please separate
capital leases from operating leases and show the dates, terms, amounts, and accounts used for
each lease.
RESPONSE NO. 5:
Please see “RFP 5 – Lease Listing.xlsx” for a listing of the Company’s leases from 2017
through 2022 to date.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Kim Ukestad/Patrick
Darras
REQUEST NO. 6:
Please provide a list of all property that the Company leases to others. Please provide
copies of all lease contracts
RESPONSE NO. 6:
Please see “RFP 6 – Lessor Summary.xlsx” for a listing of property the Company leases
to others. Additional exhibits for copies of the contracts include:
RFP 6 Hailey Office Contract.pdf
RFP 6 Nampa Field Lease.pdf
INT-G-22-07
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Lori Blattner/Jacob
Darrington
REQUEST NO. 7:
Please provide an estimate of the rate case expenses the Company expects to incur.
Please supplement your response as additional information becomes available.
RESPONSE NO. 7:
Through December 15, 2022, the Company has incurred the rate case expenses included
in the following table. The table represents expenses through the filing phase of the case. The
Company will continue to update these costs throughout the remaining phases of the case and
will be able to provide a final estimate once it is known whether the case can be settled or if it
will be fully litigated.
General Rate Case Costs
Through 12/15/22
Weather Normalization 8,180$
Return on equity 39,306
Cost of Service 166,128
Legal 12,092
Total 225,706$
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted
Dedden/Jacob Darrington
REQUEST NO. 11:
Please summarize all of the Company's penalties or fines paid for the period of January 1,
2016, through 2022 to date. Please show all account numbers and the amount booked to each by
occurrence and date.
RESPONSE NO. 11:
FERC account 426.3 includes payments by the Company for penalties or fines for
violation of any regulatory statues by the Company or its officials. Please note that any costs
with an account number ending in 4261 through 4265 are below the line expenses and have not
been included in the Company’s filed case. Please see the attached document RFP 11 Penalties
and Fines.pdf.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Craig Pulley/ Kirsti
Hourigan
REQUEST NO. 12:
Please provide the following direct labor related information as recorded for December
31, 2017, through 2022 to date. Information, where applicable, should be listed by O&M
expense, other expense, construction, and other account groups (listed by functional categories,
i.e., storage, transmission, distribution, customer, A&G, etc.). Please provide the information on
a system-wide basis. The response should include wages and salaries for each employee category
(officer, exempt, non-exempt, and union), paid time-off, overtime, bonuses, incentive pay, and
overheads for pension, benefits, and payroll taxes. Please also include average and year-end
number of employees by employee category. Include part-time and temporary employees as full-
time equivalents.
RESPONSE NO. 12:
Please see Excel attachment RFP 12 Labor Costs 2017 – 2022.xlsx.
Below are the average and year-end employee numbers by employee category.
Please note that the Excel attachment includes allocated labor costs related to parent or
sister company employees, whereas, the table below only provides customer counts for
Intermountain employees.
Officer Exempt Non-Exempt Union
AVG 2017 3 70 39 126
YE 2017 3 71 35 124
AVG 2018 3 74 36 128
YE 2018 0 68 34 129
AVG 2019 0 68 34 128
YE 2019 0 69 32 127
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AVG 2020 0 64 36 129
YE 2020 0 64 38 128
AVG 2021 0 65 37 130
YE 2021 0 65 37 131
AVG 2022 0 65 37 136
NOV 2022 0 64 37 139
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Craig Pulley/Kirsti
Hourigan
REQUEST NO. 13:
Please provide the quantifiable savings from any cost/workforce reduction programs
during the past five years. Please provide a summary of any additional workforce reduction
programs planned for 2022 and 2023.
RESPONSE NO. 13:
Intermountain Gas Company (IGC) has not implemented any workforce reduction
programs in the past five years. As stated in Ms. Hourigan’s Direct Testimony, the headcount at
IGC has remained relatively consistent. IGC’s headcount at the end of 2017 was 235 employees.
The headcount increased to 240 employees by the end of November 2022. This was primarily
related to growth in IGC’s service areas. No workforce reductions are planned in 2022 or 2023.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Craig Pulley
REQUEST NO. 14:
Please summarize all benefit and retirement plans provided to any classification of
Company employees. Please also include any changes that have occurred to the benefits/accruals
during the past five years.
RESPONSE NO. 14:
All Intermountain Gas Company (IGC) regular non-union employees working a
minimum of 30 hours per week are eligible for the same benefit options. All IGC regular union
employees working a minimum of 30 hours per week are eligible for the same benefit plan
options as nonunion employees except for the retirement plan.
All regular employees working a minimum of 30 hours per week are eligible for the
following:
Medical
Dental
Vision
Accidental Death & Dismemberment Insurance
Business Travel
Life Insurance
Flexible Spending Account
Health Spending Account (HSA medical plan participants only)
Employee Assistance Plan
401(k) Plan (no company match for union)
Sick Leave
Vacation (union accrual rate differs from non-union accrual)
Holiday pay
All IGC regular union employees participate in the Idaho Plumbers and Pipefitters
Pension Plan which is a multiemployer pension plan that is not administered by IGC. More
information regarding the plan is provided in the response to Request No. 15.
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Benefit offerings have remained constant between 2017 and 2022 with one change to the
medical plan offering. For the period 2017 – 2019, the company offered two HSA medical plan
options along with a traditional medical plan option. Beginning in 2020, the company eliminated
the traditional medical plan option as continued funding of that plan became increasingly cost
prohibitive. This information is also available in the direct testimony of Ms. Hourigan (pages 8
and 9).
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Craig Pulley/Kirsti
Hourigan
REQUEST NO. 15:
Please provide copies of the Company's pension and actuarial reports for the years 2017
through 2022 to date. Also, please provide any actuarial calculations and documentation that
shows the development of FAS 87 expenses (ASC 715 Compensation Retirement Benefits as
codified), Company contributions, balances, and assumptions.
RESPONSE NO. 15:
Intermountain Gas Company (IGC) union employees participate in a multiemployer
pension plan sponsored by the Idaho Plumbers and Pipefitters. The Company makes a monthly
contribution to the plan for each eligible hour the employee is compensated. The amount
contributed per hour is an agreed upon amount as outlined in “Article 29. Pension Benefits” of
the collective bargaining agreement. Each contract period, the members vote on the amount of
compensation per hour the Company will defer from the negotiated wage. The attachment “RFP
15 Pension Article.pdf” is provided for further detail of the period requested which consists of
two contract cycles.
Because the Company does not administer or sponsor the plan it does not generate
actuarial reports. The Idaho Plumbers and Pipefitters Pension Trust does provide an Annual
Funding Notice to all participating employers in the trust. Copies of these annual notices are
attached:
RFP 15 2017 Annual Funding Notice.pdf
RFP 15 2018 Annual Funding Notice.pdf
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RFP 15 2019 Annual Funding Notice.pdf
RFP 15 2020 Annual Funding Notice.pdf
RFP 15 2021 Annual Funding Notice.pdf
RFP 15 2022 Annual Funding Notice.pdf
RFP 15 Pension Article.pdf
INT-G-22-07
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Kim Ukestad/Jacob
Darrington
REQUEST NO. 18:
Please provide a schedule of the Company's "Property Held for Future Use" through
2022. Please consider this an ongoing request and provide updates to this schedule whenever
actuals are updated. Please provide worksheets in Excel format with formulas intact.
RESPONSE NO. 18:
The Company’s “Property Held for Future Use” consists of a portion of the land and
building at its Customer Service Center in Meridian, Idaho. Please see attached RFP 18 Plant
Held For Future Use.xlsx.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted Dedden/Jacob Darrington
REQUEST NO. 20:
Please describe the method by which the Company recorded and allocated materials and
supplies to its accounting records in 2021 and 2022 to date. Please include within your response
the method to record and update the "Materials and Supplies Inventory," as well as expensing
and other transactions related to materials and supplies.
RESPONSE NO. 20:
Intermountain Gas Company assigns individual material codes to the majority of
inventory. The inventory is recorded in FERC Account 154 – Plant Materials & Operations
Supplies. IGC uses the weighted average cost method to value its inventory. The weighted
average cost is recalculated by JD Edwards (IGC’s ERP system) as items are received or
issued/returned to and from inventory at each warehouse. The inventory is either expensed or
applied to a capital project at the time it’s issued from the warehouse based on the type of work
involved.
Material used for operation or maintenance work is coded to the Department/Object
Code/FERC Account. For example, materials issued from the Boise District warehouse for
operation or maintenance work is coded to 48536.5300.28920 where:
48536 = Boise District
5300 = Materials
28920 = Maintenance of Services
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In the case of materials issued to capital projects, the coding is Company/Object
Code/Work Order #. For example, materials issued from the Boise District warehouse for work
done on a capital project would be coded to 48.0300.123456 where:
48 = Intermountain Gas Co.
0300 = Materials
123456 = Capital Work Order Number
Intermountain Gas Company records other inventory expense in FERC account 163.
Expenses typically consist of unidentified freight, invoice price variance, inventory adjustments,
and small non-coded items.
Costs captured in the FERC Account 163 are distributed to CWIP and O&M through two
separate processes via Materials Overhead. For capital projects the overhead is applied to CWIP
inventory issues monthly through our Fixed Asset Accounting System, PowerPlan. For
operating projects Materials Overhead is applied to O&M inventory issues quarterly based on
warehouse issues, per JD Edwards. The loading rate is evaluated on a quarterly basis.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted Dedden/Jacob Darrington
REQUEST NO. 21:
Please provide a copy of all adjusting, or closing, entries for 2017 through 2022 to date in
the general ledger, and the related explanation for each entry.
RESPONSE NO. 21:
At year end there are multiple routine clearing journal entries that must be made.
Clearing accounts are monitored throughout the year and then the remaining balances at the end
of the year are allocated to the appropriate Company business units and expense/capital accounts.
Please see supporting documentation in folder “RFP 21 Clearing Entries”
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Lori Blattner/Lori
Blattner
REQUEST NO. 22:
Please indicate if there have been any FERC investigations since 2016. If so, please
provide a list with dates, descriptions, and outcomes.
RESPONSE NO. 22:
There have not been any FERC investigations of the Company since 2016.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted Dedden/Nicole Kivisto
REQUEST NO. 24:
Please provide the Internal Audit schedule of planned audit reviews for 2023 and 2024.
Please include within your response a description of each planned audit review and the
underlying reason for each one.
RESPONSE NO. 24:
Please see Excel spreadsheet RFP 24 2023—2024 Audits.xlsx
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted Dedden/Nicole Kivisto
REQUEST NO. 25:
Please provide all reports and letters prepared by the Company's Internal Audit staff that
document areas reviewed by them from December 1, 2020 through 2022 to date.
RESPONSE NO. 25:
Please see Excel spreadsheet RFP 25 Audit Completed.xlsx.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted
Dedden/Nicole Kivisto
REQUEST NO. 28:
Please provide a copy of the 2017 through 2022 shareholder annual report and proxy
statement.
RESPONSE NO. 28:
Please see attached reports:
RFP 28 2017-Annual-Report,-10-K-2018-Proxy.pdf
RFP 28 2018-Annual-Report,-10-K-2019-Proxy.pdf
RFP 28 2019-Annual-Report-10-K-2020-Proxy.pdf
RFP 28 2020-Annual-Report-10-K-2021-Proxy.pdf
RFP 28 2021-Annual-Report-10-K-2022-Proxy.pdf
Note: The 2022 annual report will be available mid-February 2023.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted Dedden/Nicole Kivisto
REQUEST NO. 29:
Please provide copies of any accounting issues identified during the last external audit
but that were "passed on" and either not proposed as an adjustment or proposed but not recorded.
Please explain why each adjustment or issue was "passed on."
RESPONSE NO. 29:
There were no accounting issues identified during the last external audit process that
were “passed on”.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted Dedden/Jacob Darrington
REQUEST NO. 30:
Please provide a list of "out-of-period adjustments" and "extraordinary items" for the
years 2017 through 2022 to date.
RESPONSE NO. 30:
There are several adjustments to Other Comprehensive Income (OCI) which include state
tax rate changes and true ups to SISP/SERP. See folder RFP 30 Out of Period adjustments.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Byron Pfordte/Lori Blattner
REQUEST NO. 32:
Please provide copies of all billing inserts for 2017 through 2022 to date and indicate the
date they were sent. Please also provide a schedule showing the amount and account numbers
charged for all costs to produce, print, and distribute the inserts.
RESPONSE NO. 32:
Copies of all billing inserts are included in the folder “RFP 32 Bill Inserts.zip” by year. The
excel file “igc_2017-2022_insert_cost_details.xls” contains the requested cost information.
Insert dates for the attached inserts are as follows:
2017
o January: 01.05.2017 - 02.01.2017
o February: 02.02.2017 - 03.06.2017
o March: 03.07.2017 - 04.03.2017
o April: 04.04.2017 - 05.03.2017
o May: 05.04.2017 - 06.06.2017
o June: 06.07.2017 - 07.03.2017
o July: 07.05.2017 - 08.04.2017
o August: 08.07.2017 - 09.01.2017
o September: 09.05.2017 - 10.04.2017
o October: 10.05.2017 - 11.01.2017
o November: 11.02.2017 - 12.04.2017
o December: 12.05.2017 - 01.04.2018
2018
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o January: 01.05.2018 - 02.01.2018
o February: 02.02.2018 - 03.05.2018
o March: 03.06.2018 - 04.03.2018
o April: 04.04.2018 - 05.03.2018
o May: 05.04.2018 - 06.05.2018
o June: 06.06.2018 - 07.04.2018
o July: 07.05.2018 - 08.06.2018
o August: 08.07.2018 - 09.05.2018
o September: 09.06.2018 - 10.04.2018
o October: 10.05.2018 - 11.01.2018
o November: 11.02.2018 - 12.04.2018
o December: 12.05.2018 - 01.04.2019
2019
o January: 01.07.2019 - 02.04.2019
o February: 02.05.2019 - 03.04.2019
o March: 03.05.2019 - 04.03.2019
o April: 04.04.2019 - 05.03.2019
o May: 05.06.2019 - 06.04.2019
o June: 06.05.2019 - 07.03.2019
o July: 07.05.2019 - 08.05.2019
o August: 08.06.2019 - 09.04.2019
o September: 09.05.2019 - 10.04.2019
o October: 10.07.2019 - 11.01.2019
o November: 11.04.2019 - 12.04.2019
o December: 12.05.2019 - 01.06.2020
2020
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o January: 01.07.2020 - 02.03.2020
o February: 02.04.2020 - 03.04.2020
o March: 03.05.2020 - 04.03.2020
o April: 04.06.2020 - 05.04.2020
o May: 05.05.2020 - 06.03.2020
o June: 06.04.2020 - 07.07.2020
o July: 07.08.2020 - 08.04.2020
o August: 08.05.2020 - 09.02.2020
o September: 09.02.2020 - 10.02.2020
o October: 10.05.2020 - 10.30.2020
o November: 11.02.2020 - 12.04.2020
o December: 12.07.2020 - 01.05.2021
2021
o January: 01.06.2021 - 02.02.2021
o February: 02.03.2021 - 03.04.2021
o March: 03.05.2021 - 04.05.2021
o April: 04.06.2021 - 05.03.2021
o May: 05.04.2021 - 06.03.2021
o June: 06.04.2021 - 07.02.2021
o July: 07.06.2021 - 08.04.2021
o August: 08.05.2021 - 09.02.2021
o September: 09.03.2021 - 10.04.2021
o October: 10.05.2021 - 11.01.2021
o November: 11.02.2021 - 12.03.2021
o December: 12.06.2021 - 01.04.2022
2022
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o January: 01.05.2022 - 02.01.2022
o February: 02.02.2022 - 03.04.2022
o March: 03.07.2022 - 04.04.2022
o April: 04.05.2022 - 05.03.2022
o May: 05.04.2022 - 06.02.2022
o June: 06.03.2022 - 07.01.2022
o July: 07.05.2022 - 08.04.2022
o August: 08.05.2022 - 09.02.2022
o September: 09.06.2022 - 10.04.2022
o October: 10.05.2022 - 11.01.2022
o November: 11.02.2022 - 12.05.2022
o December: 12.06.2022 - 01.04.2023
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Kim Ukestad/Patrick
Darras
REQUEST NO. 33:
Please provide a schedule and journal entries of all additions and retirements to Plant in
Service since the beginning of 2017, including installation date, account, installed cost, and
estimated depreciable life.
RESPONSE NO. 33:
Please see “RFP 33 – Plant in Service Transactions.xlsx” for schedules of the Company’s
additions and retirements, as well as the transactional information. The Excel file contains four
tabs reflecting the requested information as follows:
1.“Additions” Tab – This table reflects all additions to Plant in Service, by year, since the
beginning of 2017 through November 2022. Also reflected in this table are the estimated
depreciable lives of each FERC utility account.
2.“Retirements” Tab – This table reflects all retirements from Plant in Service, by year,
since the beginning of 2017 through November 2022.
3.“Additions Transactions” Tab – This is a data dump of all the additions transactions since
the beginning of 2017 through November 2022. Columns that contain the requested
information including installation date (eng_in_service_year), account (utility_account),
and installed cost (activity_cost) are highlighted in green.
4.“Retirement Transactions” Tab – This is a data dump of all the retirement transactions
since the beginning of 2017 through November 2022. Columns that contain the requested
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information including installation date (eng_in_service_year), account (utility_account),
and installed cost (activity_cost) are highlighted in green.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Kim Ukestad/Patrick
Darras
REQUEST NO. 34:
Please provide an analysis of any sales of land and/or plant for the years 2017 through
2022 to date, if any. Please show gains, losses, and supporting documentation including
accounting entries for removal of items from rate base.
RESPONSE NO. 34:
Please see “RFP 34 – Salvage_GL.xlsx” for an analysis of the Company’s sales of land
and plant for the years 2017 through November 2022. The first tab within the file “Req 34” is a
summary of the sale or trade transactions that resulted in the Company receiving salvage or
recording a gain/loss. The second tab “Transactions” is a transactional data dump showing the
recording of the retirement of the assets, the recognition of any salvage received, and any
gain/loss on the transaction.
The majority of the salvage the company receives is for its vehicles and work equipment
upon sale or trade-in. When retirements are recorded the company credits plant and debits
reserve, thereby removing this amount from rate base. When salvage is received it is recorded as
a credit to reserve which in turn reduces the net book value or the Company’s plant assets as well
as its rate base.
Some of the Company’s general plant assets are set to auto-retire at the end of their
estimated depreciable life. In the summary there are three lines in which salvage was recorded
for assets that auto retire. Therefore, no specific retirement transaction is noted for these salvage
amounts as the asset would have retired from plant at a different time.
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The gain/loss transaction noted in 2017 for FERC 385 did not truly result in the
recognition of a gain or loss. During the processing of this retirement, an incorrect transaction
code was selected resulting in PowerPlan, the Company’s fixed asset accounting software,
recognizing the gain/loss on that transaction. This was subsequently corrected through an entry
in the depreciation module to reverse the gain/loss and record the retirement of the full asset to
reserve.
The gain/loss recorded in 2018 for FERC 389 also did not result in the Company
recognizing a gain or loss. This system recognized gain/loss that resulted from the recording of
salvage received for the sale of land was subsequently reversed and recorded to the reserve
account of 390 Structures.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Kim Ukestad
REQUEST NO. 35:
Please provide details of any planned sales of land and/or plant for the remainder of 2022.
Please include within your response the estimated date of these sales and planned accounting
treatment.
RESPONSE NO. 35:
There are no planned sales of land and/or plant for the remainder of 2022.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted Dedden/Jacob Darrington
REQUEST NO. 37:
Please provide a listing of all organizations the Company participates in and the costs of
participating in those organizations (e.g. GRI, etc.). Please identify any costs that are allocated
between utility and non-utility operations.
RESPONSE NO. 37:
Please see the file RFP 37 Organizations.xlsx for amounts charged to accounts 5912 –
Company Organizational Dues and 5811 – Professional/Organization Dues through November
2022. Please note that any costs with an account number ending in 4261 through 4265 (ex.
48542.5912.4264) are below the line expenses and have not been included in the Company’s
filed case.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted
Dedden/ Tammy Nygard
REQUEST NO. 39:
Please list all the Company's long-term debt issuances. Please include the following:
dates of issuance and expiration, amounts, premiums or discounts, interest rates, dates of pre-
payment, and payment schedules for each issuance.
RESPONSE NO. 39:
Please see the attached report RFP 39 Long-Term Debt Issuance.xlsx.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Kathleen Campbell/Patrick Darras
REQUEST NO. 40:
Please describe the Company's methodology for developing, managing, executing, and
completing Capital Projects in a least cost manner. Please provide a copy of all Company
policies and procedures documenting the process.
RESPONSE NO. 40:
Intermountain Gas Company’s (“Intermountain” or “Company”) capital projects are
chosen based on growth, system reinforcements, capacity constraints and system replacements,
with the large projects identified and vetted through the Company’s Integrated Resource
Planning process. Capital projects are vetted using alternative analysis to ensure that the most
cost-effective solution to solve a system deficit or safety related condition is selected. Engineers
work with management on selecting and budgeting projects into Intermountain’s five-year
capital budget. Per Intermountain approval authorization (AD-100.4) capital projects over
$150,000 require executive summaries with justification for the project.
As part of Intermountain’s budgeting process, capital projects are reviewed and approved
by Directors and Vice Presidents of the Utility Group. After final budget changes are made the
capital budget is reviewed and approved by the Utility Group President and is then submitted to
the MDU Resources Board of Directors for approval. At each stage of the review and approval
process a project (or projects) can be challenged for appropriateness and removed from the
capital budget or moved to another year within the five-year budget.
Once projects are approved in the capital budget, projects are managed and executed in
the least cost manner. To get the best price on material, procurement will get multiple quotes
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from vendors for cost mitigation. To get the best price on contractor labor, projects over $1
million dollars will be competitively bid by Intermountain’s approved contractor list. Projects
under $1 million with approval from regional directors will typically be given to Intermountain’s
distribution contractor. Intermountain’s gas distribution contract is awarded regionally and
generally put out to bid every few years to get the most competitive contractor pricing. To track
and manage project costs, if project costs on a project under $1 million dollars come in over
$100,000 or if projects over $1 million dollars exceed 10% of the actual project cost a written
variance is required per AD-100.4. All project spending (Purchase orders, invoices, land
acquisitions payments, etc.) is routed and approved per AD-100.4.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Kalle Godel/Lori Blattner
REQUEST NO. 41:
Please summarize all of the Company's environmental cleanup costs for the period of
January 1, 2016, through 2022 to date. Please show all account numbers and the amount booked
to each sub account by occurrence and date.
RESPONSE NO. 41:
We have identified no environmental cleanups costs incurred from January 1, 2016
through 2022 for Intermountain Gas Company.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Lori Blattner/Lori
Blattner
REQUEST NO. 44:
Please provide spreadsheets, workpapers and any other underlying source information
and documentation demonstrating that working capital will be provided by the Company, and not
by its customers (through the payment of the new rates to maintain plant, and similar expenses).
RESPONSE NO. 44:
The Company is not requesting working capital in the rate base in this case. Because of
that, there are no spreadsheets or workpapers related to working capital.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Kim Ukestad
REQUEST NO. 45:
For the period January 1, 2015, through December 31, 2021, please provide a breakdown
of Capital Expenditures by existing rate classes in FERC accounts 380, 381,382, 383, 384, and
385.
RESPONSE NO. 45:
The Company does not track these FERC accounts by rate class. However, in the current
general rate case the test year balances of these accounts are allocated to the various rate classes
as demonstrated in the cost of service exhibits of Mr. Ron Amen.
Please see “RFP 45 Capital Expenditures FERCs 380-385.xlsx” for a breakdown of
capital expenditures for the requested FERC accounts for the period January 1, 2015, through
December 31, 2021.
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted Dedden/Jacob Darrington
REQUEST NO. 46:
Please provide a detailed schedule of the "Advances in Aid of Construction" received by
the Company from 2017 through 2022 to date. Please include within your response the names,
dates, amounts and accounts posted. Please consider this a continuing request and provide
updates to this schedule at the same time actuals are updated. Please provide worksheets in Excel
format with formulas intact.
RESPONSE NO. 46:
Please see the attached reports:
RFP 46 ADVANCES RECON 2017.xlsx
RFP 46 ADVANCES RECON 2018.xlsx
RFP 46 ADVANCES RECON 2019.xlsx
RFP 46 ADVANCES RECON 2020.xlsx
RFP 46 ADVANCES RECON 2021.xlsx
RFP 46 ADVANCES RECON 2022.xlsx
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INTERMOUNTAIN GAS COMPANY
CASE INT-G-22-07
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Ted Dedden/Nicole Kivisto
REQUEST NO. 47:
Please provide a matrix identifying the major capital expenditure approval levels that
includes the dollar level of authorization by employee title, division, and company. Please
include within your response the dollar level at which the individual capital expenditures require
approval by the Board of Directors. Please include the following in your response: cost/benefit
analysis, internal rates of return, or similar analysis for each capital project.
RESPONSE NO. 47:
Please see RFP 47 CapEx Approval Authorization Policy.pdf for a description of the
capital expenditure approval process and matrix.
Analysis for each project with a cost estimate exceeding $150K must include an
Executive Summary describing the project backgound, proposal, benefits, alternatives and
timing.
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IPUC DR 47
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