20060628_1592.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
DOH HOWELL
WORKING FILE
FROM:WAYNE HART
DATE:JUNE 14 2006
RE:INTERMOUNTAIN GAS TARIFF ADVICE ADDING THREE CITY
FRANCHISING FEES; TARIFF ADVICE 06-
On May 25, 2006, Intennountain Gas Company submitted a tariff advice to add three
cities to the list of cities imposing a franchise fee for natural gas service and to add the applicable
ordinance numbers for all cities to the tariff. The three new cities are Homedale, Ririe and Star.
Each city has enacted an ordinance to collect a 3% franchise fee, as agreed to by the Company,
and pursuant to Idaho Code 9 50-329A.
The Company submitted copies of the ordinance for each of the three cities and copies of
the newspaper notice provided to customers for Homedale and Star. The City ofRirie did not
publish notice of the proposed franchise fee in a newspaper, but posted the meeting agenda that
included the ordinance at City Hall and other public places. The Company requested an effective
date of July 1, 2006.
STAFF ANALYSIS:
Idaho Code 9 50-329 provides that notice of a franchise fee ordinance be published in the
official newspaper of the city. However, 9 50-901 generally allows cities to publish notice of
ordinances implementing state statues by posting the proposed ordinance in the city clerk'
office. Thus, there is a slight difference in the publishing notice requirements between the two
statutes. Because the Commission has no authority over cities' procedures and because the
franchise fee is authorized by statute, Staff believes the Commission should "accept" this tariff
advice for filing than "approve" the tariff advice.
DECISION MEMORANDUM - 1 -JUNE 14 2006
STAFF RECOMMENDATION:
Staff recommends that this tariff advice be accepted for filing.
COMMISSION DECISION:
Does the Commission wish to accept Intennountain Gas Tariff Advice No. 06-1 for
filing?
i:udmemosligc gas fTanchise fee ta dm
DECISION MEMORANDUM - 2 -JUNE 14, 2006