20150309_4603.pdf

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER RAPER
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: KARL KLEIN
DEPUTY ATTORNEY GENERAL

DATE: MARCH 5, 2015

SUBJECT: INTERMOUNTAIN GAS COMPANY’S APPLICATION TO INCREASE ITS
DEPRECIATION AND AMORTIZTION RATES, CASE NO. INT-G-14-02
On November 4, 2014, Intermountain Gas Company applied to increase its: (1) composite
depreciation rate from 3.07% (3.06% when weighted by December 31, 2010 assets) to 3.12%; and (2)
total General Plant account amortizations from $1,749,970 to $2,598,813. The Company requests the
changes because it has been under-depreciating its assets and under-amortizing General Plant account
Nos. 391, 393, 394, 395, 397 and 398. If these accounting changes are approved, the Company’s books
would reflect them as of January 1, 2015, consistent with the start of the Company’s financial reporting
period. The proposed changes would not increase customer rates.
On November 12, 2014, the Commission issued a Notice of Application and set a November
26, 2014 intervention deadline. No one intervened, and no public comments have been filed to date.
Staff and the Company have met several times to discuss the Application.
STAFF RECOMMENDATION
For the Company to apply any approved changes to the reporting period beginning January 1,
2015, the Commission’s Accounting Order must issue by the end of March. Given the meetings between
Staff and the Company, and the lack of intervenors and public comments, Staff recommends the
Commission issue a Notice of Modified Procedure setting a March 19, 2015 comment deadline. A reply
deadline probably is unnecessary. The Company concurs with this recommendation.
COMMISSION DECISION
Should the Commission issue a Notice of Modified Procedure setting a March 19, 2015
comment deadline?

/s/ Karl Klein
Karl T. Klein
Deputy Attorney General

M:INT-G-14-02_kk2