20160620_5002.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:BEVERLY BARKER
KEVIN KEYT
DATE:JUNE 17,2016
RE:INTERMOUNTAIN GAS’PROPOSAL TO REVISE SEVERAL RATE
SCHEDULES TO INCLUDE A BREAKDOWN OF BILLING COMPONENTS
(TARIFF ADVICE NO.16-0 1)
On June 8,2016,the Commission received Tariff Advice No.16-01 from Intermountain
Gas Company.The Company proposes to revise several rate schedules to provide a detailed
breakdown of costs that,when added together,equal the total per therm charge identified on
customers’bills.This filing does not change the rates customers are charged.
As proposed,the cost of gas is broken down into three components:(I)temporary
purchased gas cost adjustment (PGA);(2)weighted average cost of gas (WACOG);and (3)gas
transportation cost.These three components will be itemized on bills,along with a distribution
cost that varies by time period.Rate Schedules RS-1 (Residential Service),RS-2 (Residential
Service-Space and Water Heating),GS-1 (General Service),IS-R (Residential Interruptible
Snowmelt Service),IS-C (Small Commercial Interruptible Snowmelt Service and LV-1 (Large
Volume Firm Sales Service)are being revised.A marked up and clean copy of Rate Schedule
RS-2 is attached to provide an example of the proposed changes.The Company did not request a
specific effective date in its filing.
BACKGROUND
In Intermountain Gas’most recent PGA case (Case No.INT-G-15-02),Staff expressed
concern about changes in how the Company itemized charges on its newly-revised billing
statements,noting that the new billing components did not match costs identified in the
Company’s tariff Staff confirmed that customers were billed the correct amount per therm,but
DECISION MEMORANDUM 1 JUNE 17,2016
Staff was unable to verify the accuracy of two new cost components -labeled as (a)pipeline
costs and temporaries and (b)distribution charge -that are now shown on customer bills.See
attached copy of a RS-2 customer bill.
After the final order was issued in that case,Staff and Intermountain Gas worked to reach
agreement on the most appropriate way to provide customers with a detailed cost breakdown.
The Company and Staff also reached agreement on how to revise the tariff and bill statements to
reflect those cost components.
BILLING STATEMENTS
The Company indicated that it would be able to have the necessary programming changes
completed so that bills will reflect the new line items by August jSL The customer information
provided on the back of bills,which includes a description of the charges shown on the front of
the bill,is pre-printed.Staff and the Company agree that the most economic approach is to
exhaust the 5-week supply it keeps in stock before printing a revised version that is consistent
with the new line items.To prevent customer confusion,it makes sense to revise both the front
and back of the bill at the same time.Prompt approval of the proposed rate schedules would
allow the Company adequate time to use its current stock and work with Staff on the description
of the new line items.
STAFF RECOMMENDATION
Staff recommends that the Commission approve the new tariff schedules as proposed by
Intermountain Gas with an effective date of July 1,2016.
COMMISSION DECISION
Does the Commission wish to approve the revised Rate Schedules RS-1,RS-2,GS-1,
IS-R,IS-C and LV-1 as proposed by Intermountain Gas?
B rlyBar
Udme,nos/lntermountath Gas Tariff Advice No.16-01 dcc memo
DECISION MEMORANDUM 2 JUNE 17,2016
R5tSOhedU IDAHO PUBLIC UTILITIES COMMISSION
R,-t Nh,th Revised Fiftieth j Sheet No.02 (Page 1 of 1)Approved Effective
Sept.29,2045 OL 1,ZOIS
Intermountain Gas Company Pt,rO.N.33388
____________________________________________________
Jean 0.JeweIl Secretary
Rate Schedule RS-2
RESIDENTIAL SERVICE-SPACE AND WATER HEATING
APPLICABILITY:
Applicable to any customer using natural gas for residential purposes,which must include at a
minimum,both natural gas water heating and natural gas space heating.
RATE:
Monthly minimum charge is the customer charge.
For billing periods ending April through Noember
Customer Charge -$2.50 per bill
PerTherm Cuuiuday Charge -$0.71185 pa thcrrn
____________________________________________________
lncludes the following:
For billing periods ending December throuoh March
Cost of Gas:1)Temporary purchased gas cost adjustment ($0.0a968)
Customer Charge -$6.50 per bill 2)weighted average cost of gas $032764
___________
3)Gas transportation cost $019789PerThermcuii’iuu;ty Charge -$067822 pec-The+m
Distribution Cost:April through November $019600
l’iUudt.E—Decemberthrough March 50.16237
cIIIpUIIy fruILni000u LUL duJuLIIIctIL UI U.UUUU)
I ...
PURCHASED GAS COST ADJUSTMENT;
This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company’s
Purchased Gas Cost Adjustment Schedule.
SERVICE CONDITIONS:
All natural gas ser4ce hereunder is subject to the General Sen4ce ProAsions of the Company’s Tariff,
of which this rate schedule is a part.
lssuedby:Intermountaln Gas Company
By:Michael P.McGrath Title:Director —Regulatory Affairs
Effectie:O..tcber 1,2Q1&August 1,20161
I.P.U.C.Gas Tariff
Rate Schedules
Fiftieth Revised Sheet No.02 (Page 1 of 1)
Intermountain Gas Company
Rate Schedule RS-2
RESIDENTIAL SERVICE-SPACE AND WATER HEATING
APPLICABILITY:
Applicable to any customer using natural gas for residential purposes which must include at a minimum,
both natural gas water heating and natural gas space heating.
RATE:
Monthly minimum charge is the customer charge.
For billing periods ending April through November
Customer Charge -$2.50 per bill
Per Therm Charge -$0.71 185*
For billing periods ending December through March
Customer Charge -$6.50 per bill
Per Therm Charge -$0.67822*
includes the following:
Cost of Gas:1)Temporary purchased gas cost adjustment ($000968)
2)Weighted average cost of gas $032764
3)Gas transportation cost $0.19789
Distribution Cost:April through November 50.19600
December through March 60.16237
PURCHASED GAS COST ADJUSTMENT:
This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company’s
Purchased Gas Cost Adjustment Schedule.
SERVICE CONDITIONS:
All natural gas service hereunder is subject to the General Service Provisions of The Company’s Tariff,of
which this rate schedule is a part.
Issued by:Intermountain Gas Company
By:Michael P.McGrath Title:Director —Regulatory Affairs
Effective:August 1,2016
SERVICE FOR ACCOUNT NUMBER DATE DUE PAGE 1 sf2
A TMONTAIN°*1702.2602
A SuZSia7ctMDURe5cwtes mc.
In the Community to Serve’www.intgas.com
BILL DATE
Feb 22,2016
Mar 11,2016
AMOUNT DUE
S56.00
F’..EASE KEEP TH:s PCRTiCN FOR YCJR REZCRSS
aEASE RET1*A flea PrfaJWTH YOUR PAYMENT.MA’(jN3 LIME10€RS1.MNADORESS SHOWS IN 10€EF,WLOFE V.000W.
ACCOUNT NUMBERAINTERMOUNTAIN®
fl GAS COMPANY
A SubstebjyofMOOResents Essp.mc
In the Community In Servr
CUSTOMER SERVICE &EMERGENCY SERVICE
208—377-6840-Bolseffreasure Valley
1 -8005483879 -All Other
Emergencies:24 hours a day
Non-emergencies:Mon-Fri,7am.-7p.m.
Email:[e-mail]
Mall:Intermountain Gas Company.
Attn:Customer ServIce,P0 Box 7608,BoIse,10
83707-1605.Please Include your account number.Payment Due AYourpaymentwi//beCALLBEFOREYOUDIG811automalic&/yded_ad
your bank account on or e.er
this date.
Nate:Charges for current services are due and payable
upon receipt of bill and are past due as noted.This bill
does not extend the due date of past bills.
ACCOUNT SUMMARY
Previous Balance
Payment Received 2/1/2016 Thank you
Current Level Pay Plan Amount
$56.00
-56.00
56.00
March
2e 29 22 23 24 25 26
27 20 29 30 39AmountDueon3111116$56.00
UTILITY SUMMARY
Previous Balance -$50.72
Payments Received -56.00
Current Gas Charges 94.03
Current Utility Balance -$12.69
Gas Charges USAGE HISTORY (Therms)
BILLING PERIOD DAYS 209
1/21/16-2/19/16
METER NUMBER 6048202062740
METER READ DATE
2119116
Next scheduled read 3123/ta a a a a
RATE Feb15 Feb ‘16RS-2 Residential Average Datly Therms 350 4,17
Average regional temp 35
Days In biting period 30 30
CURRENT PREVIDUS USAGE GIWHG THERMSREAOINGAEAOINGItOCUFTFACTORBILLED
1443 -1320 =123 xl.017000 =125
customer Charge 6.50
Weighted Average Cost of Gas 125 Therms x 50.32764 40.96
Pipeline Costs and PGA Adjustment 125 Therms x 50.18821 23.53
Distribution charge 125 Therms x 50.16237 20.30
Municipal Franchise Fee 2.74
Total Gas Charges $94.03
MESSAGECENTER
DATE OF BANK DRAFT
Mar 4,2016
AMOUNT DUE
lIlIllIIIlIlIIIlIlllI IlhlIIhhIIllIIhIulhhl Iii lhuhIhhIIIlIII 111111
BOISE ID 83702-2602
9942 EIU
$56.00
Thank you for using the Intermounlsin Gas Company
AutoPay
000 00000 0000
Page 2
Customer Service:Boise/Treasure Valley 208-377-6840 •Other Areas:1-800-548-3679
7 a.m.-7 p.m.Monday-Friday •www.intgas.com
Call volume generally is higher on Mondays;for faster service,please cal/Tuesday-Friday.
Ways to Pay Your Bill participating Weslern Union Convenience Pays locations.To locate a payment location
Online:Go to www.inlgas.com for our free online payment service.Once you have near you,vis:t our website w.intgas.oom for a complete up-to-date list.Western
registered,simply log in each month to make your payment using any active u s.Union charges a $1 convenience fee for each payment Payments made at a payment
checking account It’s an easy and secure wayto view and/or pay your gas bill online location are not credited to your account until they are received by Intermountain Gas.
2411.By Mail:Mail your payment along with your bill stub no Intermountain Gas Company,
AutoPar Automatically pay your bit each month by having Intermountain Gas wkhdraw p.O.Box 54,Boise,ID 83732-03.Be sure to aCow time for mating so that your payment
your preauthorized payment from your financial institution 00 calendar days following is received by the due date.
your bill date (or the next business day thereafter).Enroll electronically by logging into Level Pay:This billing plan levels out your monthly bill so you can reduce fluctuations
your account online and completing the online form,brought on by changes in the weather and the cost of energy.If interested,contact us
By Phone:Our self-service automated telephone system allcws you to pay your gas through your account using Online Account Services at www.intgas.cem or call our
bill or deposit anytime it is convenient—2411.To make a debit,credit card or check-custcmer service number
by-phone payment,simply call our customer service number and follow the prompts Payment Due Date:Your bill is past due if payment is not received by the due dace
to be connected with our independent service provider A convenience fee for each shown on the front of this billing statement If you are paying with a credit card or
transaction will apply.paying at one of our payment locations in response to a Disconnection of Service
Payment Locations:Pay by cash,check or money order at one of our authorized Notice,please contact Intermountain Gas at 1-BOO-54t-3679 end let us know that
paymenthas been made,
Billing Ternis and Definitions Municinal Franchise Fee:Cities charge a franchise fee to operate in most of the municipalities weserve.lie customer lives outside the city limits,this lea does not apply,
Hates:The rates reflected on the bill have been approved by the Idaho Public Utilities Commission.Copies of current rate schedules are available at www.intgas.com.
Type ol Rate:lden:ites the charges used to calculate your bi:I.AS 1:ResientiaI service for customers who o not have both natural gas space and waterheatinc.
AS 2 fl’esiden:aI service fe’customers us’ng,at a minimum,both natural gas space andwaterheating.Osi:General Servicel Smat commercial or Ught industrial business usage that does no:exceed 2C1herms per day.
IS-R lnlerrupWe Snowme:oflesdertiat
IS-C:Interruptible Snowmelt Comrrer&a!,
Industrial:See specifIc contract
Therms:Identifies the heating capacity provided by natural gas.One therm equals the healingcapacityof100,000 British Thermal Units (BTU}.A STU is the quantity of heat required to raise onepoundofwateronedegreeFahrenheit,
Important Customer Information
Intermountain Gas is willing to make satisfactory payment arrangements.If you cannot pay
your bill at this time,please call customer service at 208-377-5840 or 1-600-543-3579 between
7 am,and 7p.m.Monday-Friday and arrange a payment plan.
Financial Assistance:Low-income households may qualify for assistance through federal
and community assistance funds.Intermountain Gas customer service can refer you to
assistance funds and agencies in your area or you may call the Idaho Careline at 2-1-1 or
1 -800-926-2533.
Payments marked with a resrrictive legend (Paid in Full,for exampie/will not act as an
accordand satisfaction without our express prior written approval When you provide a
check as payment you authorize us to use information from your check either to make a
one-time electronic fund transfer (ER’)from youraccount or to process the payment as a
check transaction.When we use information from your check to make an ER’funds may
be withdrawn from your account as soon as the same day we receive your payment.The
transaction will appear on your bank statement as EFF and you will not receives copy or an
image of your check from your financial institution.
Exclusions
Suspension of service may be postponed thirty (30)days upon receipt of a certificate from
a licensed physician or a public health official,stating there is a serious illness or medical
emergency in the household or that loss of service may create one.
A complaint concerning the suspension may be filed with the company or the Idaho Public
Utilities Commissien,Consumer Assistance,P.O.Box 63720,Boise,1083720-0074
(Beiseifreasure Valley 334-0359,all other areas 1-800-432-0369)or via the website at
vAW1.puc.idcho.gov.Sariioe will not be interrupted prior to the resolution ci such fled cowpain:.
It buried gas piping exists between Intenmountain Gas Company’s meterend your natural gas
appliances,you are responsible forthe maintenance of this pipe.If this pipe isnotmaintained,
it may be subject to the potential hazards of corrosion and leaks.Buried piping should be:
I)Periodically inspecteddor leaks.2)Periodically inspected ferconroson if piping ismetaflic).
3)Repaired H anyunsaie condition is found.4)boated poor to excavation 5)Excavated by
hand.Please call your local plumber for assistance if you have buried gas piping downstream
of your meter.
Save a Stamp!Receive,view and pay your bill online at www.intgas.com.
Moving?To avoid being bifled for service you have not used,please contact us at leasttwo business days before you want service disconnected.
Has your mailing/email address
or phone number changed?
Please provide details here and check the box on the front of this stub.
Account No.:
Name:
Mailing Address:
City:State:
____________
ZIP:
A INTERMOUNTAIN5
GAS COMPANY
•nS’347 0nut,F,‘jutes Civ&s.F:
In the Communih’to Serve’
Billing Factor:A caloulation comprised of atmospheric pressure,delivery pressure.-temperature and BTU quality of gas.The consumption of natural gas is metered in cuh:oleetandabillingfaototThebithngtacwr,when muftiphedbythe cor.sumplion of gas tncubicfeatequalsthenumberofthermtbilled.
Customer Charge:The ousromer charge hetps to t000var a smat portion of oha costs incurred todelivernamralgastoyourhomeorbusiness.•April through November:5250 Iresidentiall,$2.00 (commercial).
-December through March:$6.50 fresidentiall,$950 Icommeroialf.
Weighted Average Cost of Gas:A charge to recover the toso of the natsrai gas molecules (see‘Therms).
Pipeline Costs A charge no recover the interstate ni&ine and storage relaned costs incurred todel,ver the netral gas molecules to Intarmou’.tein s system.
PGA Adiustment:The P5A Purchased Gas Cost Adjustment)is a method of recunciling or“truing-up”the prices lntermountein pays for purchasing and transporting natural gas to ourcustomersascomparedtothetariffratescurrentlyineffect.
Distribution Charge:A oharqe to recover the remaining costs incurred to move natural gasthroughIntermeuntain’s local distribution system.If feD think you are on the wrong rate or being assessed a fee in error,please oentaot customerservice,
Payments made by check or electronically that are dishonored by the bank vAil be assessed e’--
a$20 rewrned payment fee.Your Gas Pipirm
Phone:I )_____________________EmaiL