IPUC 2020 Annual Report.pdf

Idaho Public Utilities Commission
2020 Annual Report
11331 W. Chinden Boulevard, Building 8
Suite 201-A
Boise, ID 83714
www.puc.idaho.gov

Idaho Public Utilities Commission

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Table of Contents

COMMISSIONERS ................................................................................... 4
FINANCIAL SUMMARY FUND 0229* ............................................................. 7
Fiscal Years 2016 – 2020 ......................................................................... 7
COMMISSION STRUCTURE AND OPERATIONS .................................................. 8
Administration ................................................................................... 10
Legal .............................................................................................. 11
Utilities Division ................................................................................. 11
Railroad and Pipeline Safety Section ......................................................... 12
WHY CAN’T YOU JUST TELL THEM NO? ..................................................... 13
ELECTRIC ......................................................................................... 14
Avista ............................................................................................. 15
Idaho Power ...................................................................................... 16
Rocky Mountain Power ......................................................................... 20
WATER…………………………………………………………………………………………………………………………….23
TELECOMMUNICATION…………………………………………………………………………………………………..25
NATURAL GAS .................................................................................... 28
CONSUMER ASSISTANCE ........................................................................ 33
REGULATING IDAHO’S RAILROADS ........................................................... 34
REGULATING IDAHO’S PIPELINES ............................................................. 35

Idaho Public Utilities Commission

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Idaho Public Utilities Commission

Contact us: 208-334-0300 Website: www.puc.idaho.gov
Commission Secretary 1-208-334-0338
Public Information 1-208-334-0339
Utilities Division 1-208-334-0367
Legal Division 1-208-334-0324
Rail Section and Pipeline Safety 1-208-334-0330
Consumer Assistance Section 1-208-334-0369
Outside Boise, Toll-Free Consumer Assistance 1-800-432-0369

Idaho Telephone Relay Service (statewide)
Voice: 1-800-377-3529
Text Telephone: [phone]
TRS Information: 1-800-368-6185

This report and all the links inside can be accessed online from the Commission’s Website at www.puc.idaho.gov. Click on “File Room,” in the upper-left-hand-
corner and then on “IPUC 2020 Annual Report.”
Front cover artwork courtesy of Paul Kjellander, President, Idaho Public Utilities Commission.

Idaho Public Utilities Commission

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December 1, 2020

The Honorable Brad Little
Governor of Idaho
Statehouse
Boise, ID 83720-0034

Dear Governor Little:
It is our distinct pleasure to submit to you, in accordance with Idaho Code §61-214, the Idaho Public Utilities
Commission 2020 Annual Report. This report is a detailed description of the most significant cases, decisions
and other activities during 2020. The financial report on Page 7 is a summary of the commission’s budget
through the conclusion of Fiscal Year 2020, which ended June 30, 2020.
It has been a privilege and honor serving the people of Idaho this past year.
Sincerely,

Paul Kjellander
President, Idaho Public Utilities Commission

Kristine Raper
Commissioner

Eric Anderson
Commissioner
Idaho Public Utilities Commission

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COMMISSIONERS

P A U L K J E L L A N D E R
Commissioner Paul Kjellander serves as President of the Idaho Public Utilities
Commission, having been appointed to his current six-year term in 2017 by
Gov. C.L. “Butch” Otter. His term expires in 2023.
It is Commissioner Kjellander’s second term in his second stint on the
Commission, having previously served from January 1999 until October 2007.
Gov. C.L. “Butch” Otter reappointed Kjellander in April 2011, following his
service as administrator of the newly created state Office of Energy Resources
(OER).
A member of the National Association of Regulatory Utility Commissioners’
(NARUC) board of directors and executive committee, Kjellander serves as
President of the association and is a member of the subcommittee on
Education and Research. He previously served on NARUC’s Committee on
Consumer Affairs and its Electricity Committee and is past Chair of the Committee on Telecommunications.
Kjellander serves as President of the National Council on Electricity Policy, which is funded by the US
Department of Energy and managed by NARUC. He is a member of the Federal Communications Commission’s
706 Joint Board and has served as chairman of the FCC’s Federal-State Joint Board on Jurisdictional Separations.
During his time at OER, which is now known as the Office of Energy and Mineral Resources, Kjellander created
an aggressive energy efficiency program funded through the federal American Recovery and Reinvestment Act
of 2009. He also served on the board of the National Association of State Energy Officials.
Before joining the Commission in 1999, Kjellander was elected to three terms in the Idaho House of
Representatives, where he served from 1994-1999. As a legislator, Kjellander served on a number of
committees, including the House State Affairs, Judiciary and Rules, Ways and Means, Local Government and
Transportation. During his final term in office, Kjellander was elected chairman of the House Majority Caucus.
Prior to his legislative service, Kjellander was director of Boise State University’s College of Applied Technology
Distance Learning, where he earned tenured faculty status and served as program head of broadcast
technology, station manager of BSU Radio Network, director of the Special Projects Unit for BSU Radio and as
BSU Radio’s director of News and Public Affairs.
Commissioner Kjellander earned undergraduate degrees in communications, psychology, and art from
Muskingum College in Ohio, and earned a master’s degree in telecommunications from Ohio University.
Idaho Public Utilities Commission

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K R I S T I N E R A P E R
Commissioner Kristine Raper was appointed to the Commission in February 2015 by Gov. C.L. “Butch”
Otter. Her term expires in 2021.
Prior to her appointment, Raper served for seven years as a deputy
attorney general assigned to the Commission. Raper managed a caseload
representing a myriad of regulatory and energy law matters, with a strong
emphasis on the federal Public Utility Regulatory Policies Act (PURPA).
Commissioner Raper has defended the Commission’s decisions at the Idaho
Supreme Court, District Court and Federal Energy Regulatory Commission.
In 2017, Raper testified before the House subcommittee on Energy and
Commerce regarding PURPA and its modern-day impacts.
Commissioner Raper currently serves on the Electricity Committee of the
National Association of Regulatory Utility Commissioners’ (NARUC). She is a
member of the Body of State Regulators for the Energy Imbalance Market
(EIM), a real-time energy market operated by the California ISO. Commissioner Raper is also a member of
the Governance Review Committee, the body responsible for governance review of the EIM as the ISO
contemplates the viability of a day-ahead market.
Commissioner Raper earned an undergraduate degree in Criminal Justice from Boise State University. She
earned her juris doctor degree from the University of Idaho College of Law.
The Commissioner and her husband, Mark, share three children.

Idaho Public Utilities Commission

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ERIC ANDERSON

Commissioner Eric Anderson was appointed to his current six-year term in
January 2019 by Gov. Brad Little. It is his second term on the Commission,
having been initially appointed in December 2015 by former Gov. C.L. “Butch”
Otter.
Commissioner Anderson serves on the National Association of Regulatory
Utilities Commissioners (NARUC) Committee on Water as well as its Committee
on International Relations. In November 2019 Commissioner Anderson was
appointed Chair of NARUC’s Committee on Water.
Before joining the Commission, Anderson served five terms in the Idaho
Legislature, from 2004-2014, and was chairman of the House Ways and Means
Committee in his final term in the state Legislature.
As a member of the Idaho House of Representatives, Anderson served on a number of committees, including
Environment, Energy and Technology, Commerce and Human Resources, Resource and Conservation, Business,
and State Affairs. He also chaired a legislative Interim Subcommittee on Renewable Energy.
Anderson received a bachelor of art degree in political science and government from Eastern Washington
University in 1979.
A general contractor and real estate broker, Anderson also served as director and vice president of Sandpoint-
based Northern Lights Inc., an electric cooperative.
He has also served as a director of the Idaho Consumer-Owned Utilities Association, the National Rural Electric
Cooperative Association and the Idaho Energy Resources Authority. He is a past member and advisor to the
Pacific States Marine Fisheries Council and the Pacific Northwest Economic Region’s Executive Council.

Idaho Public Utilities Commission

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FINANCIAL SUMMARY FUND 0229*
Fiscal Years 2016 – 2020

Description FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Personnel Costs $3,835,900 $4,070,200 $3,962,400 $3,990,800 $3,576,800
Communication Costs $28,700 $23,400 $25,000 $23,100 $45,900
Employee Development Costs $98,700 $81,400 $98,800 $95,400 $51,300
Professional Services $8,600 $11,900 $49,000 $35,800 $39,800
Legal Fees $569,100 $482,100 $537,500 $602,600 $630,000
Employee Travel Costs $159,200 $173,900 $204,300 $219,700 $140,000
Fuel & Lubricants $2,900 $4,900 $6,400 $7,700 $7,300
Insurance $2,000 $3,500 $4,500 $3,900 $7,200
Rentals & Leases $223,800 $147,000 $274,000 $76,100 $390,700
Misc. Expenditures $104,300 $114,900 $697,900 $1,663,500 $977,500
Computer Equipment $52,200 $44,700 $9,400 $5,300 $2,200
Office Equipment $8,100 $4,200 $2,100 $0 $311,900
Motorized/Non-Motorized Equip $0 $0 $0 $0 $0
Specific Use Equipment $1,700 $4,500 $2,600 $1,300 $1,700

Total Expenditures $5,095,200 $5,166,600 $5,910,300 $6,725,200 $6,182,300

Fund 0229-20 Appropriation $5,766,500 $5,902,700 $6,039,300 $8,556,700 $7,512,400
Fund 0229-20 Encumbrances $32,000 $49,200 $93,800 $393,200 $124,900

Unexpended Balance $639,300 $686,900 $35,200 $1,438,300 $1,205,200

Unexpended Balance includes carry forward funds for one-time office move that crossed both FY 2019 and FY 2020.
*This summary represents assessment funded expenses only. It does not include federal or other funds.

Idaho Public Utilities Commission

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COMMISSION STRUCTURE AND OPERATIONS

Under state law, the Idaho Public Utilities Commission supervises and regulates
Idaho’s investor-owned utilities – electric, gas, telecommunications and water –
assuring adequate service and affixing just, reasonable and sufficient rates.
The commission does not regulate publicly owned, municipal or cooperative
utilities.
The governor appoints the three Commissioners with confirmation by the Idaho Senate. No more than two
Commissioners may be of the same political party. The Commissioners serve staggered six-year terms.
The governor may remove a Commissioner before his/her term has expired for dereliction of duty, corruption or
incompetence.
The three-member commission was established by the 12th Session of the Idaho Legislature and was organized
May 8, 1913 as the Public Utilities Commission of the State
of Idaho. In 1951 it was reorganized as the Idaho Public
Utilities Commission. Statutory authorities for the
commission are established in Idaho Code Titles 61 and 62.
The IPUC has quasi-legislative and quasi-judicial as well as
executive powers and duties.
In its quasi-legislative capacity, the commission sets rates
and makes rules governing utility operations. In its quasi-
judicial mode, the commission hears and decides
complaints, issues written orders that are similar to court
orders and may have its decisions appealed to the Idaho
Supreme Court. In its executive capacity, the commission
enforces state laws and rules affecting the utilities and rail
industries.
Commission operations are funded by fees assessed on the
utilities and railroads it regulates. Annual assessments are
set by the commission each year in April within limits set by
law.
The commission president is its chief executive officer.
Commissioners meet on the first Monday in April in odd-numbered years to elect one of their own to a two-year
term as president. The president signs contracts on the commission’s behalf, is the final authority in personnel
matters and handles other administrative tasks. Chairmanship of individual cases is rotated among all three
Commissioners.

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The commission conducts its business in two types of meetings – hearings and decision meetings. Decision
meetings are typically held once a week, usually on Tuesday.
Formal hearings are held on a case-by-case basis, sometimes in the service area of the impacted utility. These
hearings resemble judicial proceedings and are recorded and transcribed by a court reporter.
There are technical hearings and public
hearings. At technical hearings, formal
parties who have been granted “intervenor
status” present testimony and evidence,
subject to cross-examination by attorneys
from the other parties, staff attorneys and
the commissioners. At public hearings,
members of the public may testify before
the commission.
In 2009, the commission began
conducting telephonic public hearings to
save expense and allow customers to
testify from the comfort of their own
homes. Commissioners and other interested
parties gather in the Boise hearing room and
are telephonically connected to ratepayers who call in on a toll-free line to provide testimony or listen in. A court
reporter is present to take testimony by telephone, which has the same legal weight as if the person testifying
were present in the hearing room. Commissioners and
attorneys may also direct questions to those testifying.
The commission also conducts regular decision meetings
to consider issues on an agenda prepared by the
commission secretary and posted in advance of the
meeting, consistent with the Idaho Open Meeting Law.
These meetings are usually held Tuesdays at 1:30 p.m.,
although by law the commission is required to meet only
once a month. Members of the public are welcome to
attend decision meetings.
Typically, decision meetings consist of the commission’s
review of decision memoranda prepared by commission
staff. Minutes of the meetings are taken. Decisions
reached at these meetings may be either final or
preliminary, but subsequently become final when the
commission issues a written order signed by a majority of
the commission. Under the Idaho Open Meeting Law, commissioners may also privately deliberate fully submitted
matters.
PUC hearing room
PUC Headquarters
11331 W. Chinden Blvd., Building 8
Suite 201-A, Boise, Idaho 83714.
Idaho Public Utilities Commission

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Commission Staff
OUR MISSION

- Determine fair, just and reasonable rates and utility practices for electric, gas,
telephone and water consumers.
- Ensure that delivery of utility services is safe, reliable and efficient.
- Ensure safe operation of pipelines and rail carriers within the state.
To help ensure its decisions are fair and workable, the commission employs a staff of about 50 people – engineers,
rate analysts, attorneys, accountants, investigators, economists, secretaries and other support personnel. The
commission staff is organized in three divisions – administration, legal and utilities.

Administration
The Administrative Division is responsible for coordinating overall IPUC activities. The division includes the three
commissioners, a policy strategist, a commission secretary, an executive director, and support personnel.

The policy strategist is an executive level position reporting directly to the commissioners with policy and
technical consultation and research support regarding major regulatory issues in the areas of electricity,
telecommunications, water and natural gas. The strategist also is charged with developing comprehensive policy
strategy, providing assistance and advice on major litigation before the commission, public agencies and
organizations.
Contact Stephen Goodson, policy strategist, at 1-208-334-0323.

The commission secretary, a post established by Idaho law, keeps a precise public record of all commission
proceedings. The secretary issues notices, orders and other documents to the proper parties and is the official
custodian of documents issued by and filed with the commission. Most of these documents are public records.
Contact Jan Noriyuki, commission secretary, at 1-208-334-0338.

The executive director has primary responsibility for the commission’s fiscal and administrative operations,
preparing the commission budget and supervising fiscal, administration, public information, personnel,
information systems, rail section operations and pipeline safety. The executive director also serves as a liaison
between the commission and other state agencies and the Legislature.
Contact Maria Barratt-Riley, executive director, at 1-208-334-0337.

The public information office is responsible for public communication between the commission, the general
public and interfacing governmental offices. The responsibility includes news releases, responses to public
inquiries, coordinating and facilitating commission workshops and public hearings and the preparation and
coordination of any IPUC report directed or recommended by the Idaho Legislature or Governor. The office also
works with Legal staff to coordinate responses to public records requests.
Contact Adam Rush, public information officer, at 1-208-334-0339.
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Legal
Five deputy attorneys general are assigned to the commission from the Office of the Attorney General and have
permanent offices at IPUC headquarters. The IPUC attorneys represent the staff in all matters before the
commission, working closely with staff accountants, engineers, investigators and economists as they develop their
recommendations for rate case and policy proceedings.

In the hearing room, IPUC attorneys coordinate the presentation of the staff’s case and cross-examine other
parties who submit testimony. The attorneys also represent the commission itself in state and federal courts and
before other state or federal regulatory agencies.
Contact Karl Klein, legal division director, at 1-208-334-0320.
Utilities Division
The Utilities Division, responsible for technical and policy analysis of utility matters before the commission, is
divided into four sections.

The staff analyzes each petition, complaint, rate increase request or application for an operating certificate
received by the commission. In formal proceedings before the commission, the staff acts as a separate party to
the case, presenting its own testimony, evidence and expert witnesses. The commission considers staff
recommendations along with those of other participants in each case - including utilities, public, agricultural,
industrial, business and consumer groups.
Contact Terri Carlock, utilities division administrator, at 1-208-334-0356.

The accounting section of five auditors audits utility books and records to verify reported revenue, expenses and
compliance with commission orders. Staff auditors present the results of their findings in audit reports as well as
in formal testimony and exhibits. When a utility requests a rate increase, cost-of-capital studies are performed to
determine a recommended rate of return. Revenues, expenses and investments are analyzed to determine the
amount needed for the utility to earn the recommended return on its investment.
Contact Donn English, accounting section program manager, at 1-208-334-0362.

The engineering section of two engineers and two utility analysts reviews the physical operations of utilities. The
staff of engineers and analysts develops computer models of utility operations and compares alternative costs to
repair, replace and acquire facilities to serve utility customers. The group establishes the price of acquiring
cogeneration and renewable generation facilities and identifies the cost of serving various types of customers.
They evaluate the adequacy of utility services and frequently help resolve customer complaints.
Contact Mike Louis, engineering section program manager, at 1-208-334-0316.
The technical analysis section of four utility analysts determines the cost effectiveness of all Demand Side
Management (DSM) programs including energy efficiency and demand response. They identify potential for new
DSM programs and track the impact on utility revenues. They review utility forecasts of energy, water and natural
gas usage with focus on residential self-generation and rate design.
Contact Donn English, technical analysis program manager, at 1-208-334-0362.

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The consumer assistance section includes three compliance investigators who resolve conflicts between utilities
and their customers. Customers faced with service disconnections often seek help in negotiating payment
arrangements. Consumer Assistance may mediate disputes over billing, deposits, line extensions and other
service problems. Consumer Assistance monitors Idaho utilities to verify they are complying with commission
orders and regulations. Investigators participate in general rate and policy cases when rate design and customer
service issues are brought before the commission. The consumer assistance section includes the
telecommunications section. This section oversees tariff and price list filings, area code oversight, Universal
Service, Lifeline and Telephone Relay Service. The telecommunications section also assists and advises the
commission on technical matters that include advanced services, 911 and other matters as requested.
Contact Daniel Klein, consumer program manager, at 1-208-334-0352.
Railroad Safety Section
The railroad safety section oversees the safe operations of railroads that move freight in and through Idaho and
enforces state and federal regulations safeguarding the transportation of hazardous materials by rail in Idaho.
The commission’s rail safety inspectors inspect railroad crossings and rail clearances for safety and maintenance
deficiencies. The Rail Section partners with the Federal Railroad Authority, inspecting hazardous materials
containers being moved and stored in trains throughout Idaho.
As part of its regulatory authority, the commission evaluates the discontinuance and abandonment of railroad
service in Idaho by conducting an independent evaluation of each case to determine whether the abandonment
of a particular railroad line would adversely affect Idaho shippers and whether the line has any profit potential.
Should the commission determine abandonment would be harmful to Idaho interests, it then represents the state
before the federal Surface Transportation Board, which has authority to grant or deny line abandonments.
Contact Wayne Andrews, rail inspector, at 1-208-334-0317.
Pipeline Safety Section
The pipeline safety section oversees the safe operation of the intrastate natural gas pipelines in Idaho.

The commission’s pipeline safety personnel verify compliance with state and federal regulations by on-site
inspections of intrastate pipeline distribution systems. Part of the inspection process includes a review of record-
keeping practices and compliance with design, construction, operation, maintenance and drug/alcohol abuse
regulations.

Key objectives of the program are to monitor accidents and violations, to identify their contributing factors and to
implement practices to avoid accidents. All reportable accidents are investigated and appropriate reports filed
with the U.S. Department of Transportation in a timely manner.
Contact Darrin Ulmer, pipeline safety program manager, at 1-208-334-0321.
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WHY CAN’T YOU JUST TELL THEM NO?

One of the most frequently asked questions the PUC receives after a utility files a rate increase
application is, “Why can’t you just tell them no?” Actually, we can, but not without evidence.
For more than 100 years, public utility regulation has been based on this regulatory compact
between utilities and regulators: Regulated utilities agree to invest in the generation,
transmission and distribution necessary to adequately and reliably serve all the customers in
their assigned territories. In return for that promise to serve, utilities are guaranteed recovery of
their prudently incurred expense along with an opportunity to earn a reasonable rate of return.
The rate of return allowed must be high enough to attract investors for the utility’s capital-
intensive generation, transmission and distribution projects, but not so high as to be
unreasonable for customers.
In setting rates, the commission must consider the needs of both the utility and its customers. The commission serves the
public interest, not the popular will. It is not in customers’ best interest, nor is it in the interest of the State of Idaho, to have
utilities that do not have the generation, transmission and distribution infrastructure to be able to provide safe, adequate
and reliable electrical, natural gas and water service. This is a critical, even life-saving, service for Idaho’s citizens and
essential to the state’s economic development and prosperity.
Unlike unregulated businesses, utilities cannot cut back on service as costs increase. As demand for electricity, natural gas
and water grows, utilities are statutorily required to meet that demand. In Idaho recently, and across the nation, a continued
increase in demand as well as a number of other factors have contributed to rate increases on a scale we have not witnessed
before. It is not unusual now for Idaho’s three major investor-owned electric utilities to file annual rate increase requests.
In light of these continued requests for rate increases, the commission walks a fine line in balancing the needs of utilities to
serve customers and customers’ ability to pay.
When a rate case is filed, our staff of auditors, engineers, analysts, consumer investigators and attorneys will take up to six
months to examine the request. During that period, other parties, often representing customer groups, will “intervene” in
the case for the purpose of conducting discovery, presenting evidence and cross-examining the company and other parties to
the case. The commission staff, which operates independently of the commission, will also file its own comments that result
from its investigation of the company’s request. The three-member commission will also conduct technical and public
hearings.
Once testimony from the company, commission staff and intervening parties is presented and testimony from hearings and
written comments is taken, all of that information is included in the official record for the case. It is only from the evidence
contained in this official record that the commission can render a decision.
If the utility has met its burden of proof in demonstrating that the additional expenditure it incurred was 1) necessary to
serve customers and 2) prudently incurred, the commission must allow the utility to recover that cost. The commission can --
and often does -- deny recovery of some or all the expenditures utilities seek to recover from customers if the commission is
confident it has the legal justification to do so. Utilities and parties to a rate case have the right to petition the commission
for reconsideration. Following reconsideration, utilities or customer groups can appeal the commission’s decision to the state
Supreme Court.
In the end, the commission’s job is to ensure that customers are paying a reasonable rate and are receiving adequate and
reliable service and that utilities are allowed to recover their prudently incurred expenses and earn a fair rate of return.
Idaho Public Utilities Commission

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ELECTRIC

Avista Utilities
2019 Average Number of Customers/Avg. Revenue/kwh*
345,064 Residential Customers/$0.09801
42,930 Commercial Customers/$0.10018
1,305 Industrial Customers/$0.05594

Idaho Power Company
2019 Average Number of Customers/Avg. Revenue/kwh*
477,404 Residential Customers/$0.1020
72,855 Commercial Customers/$0.0735
131 Industrial Customers/$0.0545

Rocky Mountain Power
2019 Average Number of Customers/Avg. Revenue/kwh*
PacifiCorp/Rocky Mountain Power
67,163 Residential Customers/$0.1046
9,901 Commercial Customers/$0.0830
6,455 Industrial Customers/$0.0666

*The information above shows each regulated electric utility’s average number of customers per customer class
and the average revenue per kilowatt-hour (kWh) for 2019.

Idaho Public Utilities Commission

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Avista
Virtual public workshop on Avista’s 2020 electric Integrated Reso urce Plan
will be held July 9
Staff for the Idaho Public Utilities Commission will host a virtual public workshop on July 9 regarding Avista’s
electric Integrated Resource Plan (“IRP”).
The workshop is intended to provide the public the opportunity to hear an overview from Commission Staff of the
Company’s 20 year plan, staff’s analysis of Avista’s 2020 electric IRP and to allow Commission Staff to hear
concerns and address questions from the public.
The public workshop is from 4:00 p.m. to 6:00 p.m. (MDT) on Thursday, July 9. Those interested in participating
can do so by calling 1-415-655-0001, and entering access code 133 529 9901. Customers can also participate
online by visiting idahogov.webex.com, and entering the number 133 529 9901. At the next window, please enter
your name, e-mail address and the password: July9Meeting.
The IRP is a biennial status report on the utility’s ongoing and evolving plans to adequately and reliably serve its
customers at the lowest system cost and least risk over the next 20 years. Avista develops its plan through a
public process involving customers, Commission Staff, the Northwest Power and Conservation Council, consumer
advocates, academics, environmental groups, utility peers, government agencies and other interested parties.
Avista submits its IRP to the Idaho Public Utilities Commission for acknowledgment. Commission acknowledgment
of the IRP does not mean the Commission approves of any specific conclusions or results, but rather
acknowledges the company adequately addressed the matters required by the Commission’s prior orders.
For additional information on Avista’s IRP, please visit www.puc.idaho.gov, click on “Electric,” then “Open Cases”
and select case number AVU-E-19-01. Those interested in the IRP can also visit https://www.myavista.com/about-
us/integrated-resource-planning.
ldaho Public Utilities Commission approves settlement with Avista Utilities that will result
in rate decrease
The ldaho Public Utilities Commission has approved a proposed settlement with Avista Utilities that decreases
annual base electric revenues by $7.18 million, or 2.84 percent.
The settlement takes effect Dec. 1, 2019. A residential electric customer who uses an average of 900 kilowatt-
hours per month will see a decrease in their bill of $0.86, or a 1 percent decrease for a revised monthly bill of
$84.45.
Avista's original proposal called for an increase in electric base revenues of $5.25 million, or 2.1 percent, The
Spokane-based company said its original request was prompted by an increase in net plant investment (including
return on investment, depreciation and taxes, and offset by the tax benefit of interest) from that currently
authorized. ln addition, net power supply expense is reduced from the currently authorized level, offsetting the
company's overall increase as originally requested.
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ldaho state law allows regulated utilities to recover prudently incurred expenses and earn a reasonable rate of
return. The rate of return is established by the ldaho Public Utilities Commission. A utility has the burden of proof
to demonstrate that additional capital investment was necessary to serve customers and, if so, that the expenses
were prudently incurred.
Based on the settlement, there will be several reductions to the company's original proposal. For Avista's electric
operations, those changes include a $2.2 million decrease to the company's proposed 2019 revenue requirement
tied to a reduction in return on common equity, a reduction of nearly $774,000 through the elimination of officer
incentive pay and salary increases and a reduction in nonofficer incentives and salary increases. There also is a
reduction of approximately $6.4 million due to reduced power supply costs.
The revenue decreases are based on a 9.5-percent return on equity, down from a 9.9-percent return on equity in
Avista's original proposal. The settlement agreement was reached between parties to the case after a settlement
conference in September. Those parties included commission staff, Clearwater Paper Corporation, ldaho
Conservation League, ldaho Forest Group, the Community Action Partnership Association of ldaho, and Walmart,
lnc.

Idaho Power
Commission declines proposed Idaho Power net metering settlement agreement,
grandfathers existing customers into current program

State regulators at the Idaho Public Utilities Commission have rejected a proposed settlement agreement
that would change how Idaho Power customers who installed solar panels or other on-site generation
systems are compensated.

The proposed settlement agreement involves net metering, where Idaho Power customers pay an
independent contractor to have solar panels or other systems installed on their homes or property and
then receive credit from Idaho Power for the surplus energy they deliver to the company.

Under the proposed agreement, energy production and consumption would have been netted hourly.
Under Idaho Power’s current program, production and consumption are netted on a monthly basis. The
settlement agreement also would have paid existing on-site generation customers an export credit rate for
net energy exported to Idaho Power’s grid. Under the company’s current program, net excess energy is
compensated at a 1:1 kilowatt hour credit, meaning the value of the net energy exports is equal to the
value of the energy consumed. The settlement agreement also transitioned new and existing customers
who have on-site generation to a new pricing structure over an eight-year period. In addition, Idaho Power
would provide a non-export option for customers who want to interconnect to Idaho Power’s grid without
exporting excess energy back to the company.

The proposed agreement covered Schedule 6 and Schedule 8 Idaho Power customers. Schedule 6
customers are residential customers. Schedule 8 customers are small, general service customers. The
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agreement was reached after a year of negotiations involving Idaho Power, staff with the commission, the
Idaho Clean Energy Association, Idaho Conservation League, Vote Solar, the Idaho Irrigation Pumpers
Association, Inc., Idahydro, the City of Boise, Idaho Sierra Club, Industrial Customers of Idaho Power, and
Russell Schiermeier.

In the commission’s order that rejected the settlement agreement, the commission found that the record
created from the settlement proceedings was insufficient to support the settlement. The commission also
found the public was not adequately notified or aware that the agreement might result in significant
changes to Idaho Power’s net metering program.

The commission also addressed the issue of grandfathering for existing Idaho Power net-metering
customers. Numerous comments that were submitted expressed concern that proposed changes to Idaho
Power’s net metering program would make it difficult for homeowners who invested in solar panels to
recoup the cost of their investments. The commission found it reasonable and just to grandfather existing
customers under rules in place as of the service date of the commission’s order.

In its order, the commission directed Idaho Power to conduct a study of the costs and benefits of
distributed on-site generation to its system. The order requires the study to use the most current data
possible and that the data be readily available to the public. The order also requires the study to be
designed in coordination with the parties that participated in settlement talks as well as all stakeholders.
Other requirements are that the study is written so it is understandable to an average customer while its
analysis can withstand expert scrutiny. In addition, commission staff and Idaho Power will host public
workshops to provide information and perspectives on Idaho Power net-metering program design as well
as the design of the study before it is conducted.

The commission’s order also requires an opportunity for public comment on the design of the study and
public comment on net-metering program design.

During public hearings on the proposed agreement, the commission listened to thirteen hours of public
testimony over two days. The commission also received more than 1,000 written comments.

To access documents filed in this case, please visit the commission’s website at www.puc.idaho.gov, and
click on “Open Cases” under the “Electric” heading. Scroll down to case number IPC-E-18-15.

Commission issues decision on requests for reconsideration in Idaho Power Net
Metering case

The Idaho Public Utilities Commission issued its decision on Wednesday regarding petitions for
reconsideration in an Idaho Power Net Metering case.

The commission had received eight petitions for reconsideration and/or clarification on an order it issued
on Dec. 20, 2019. That order involved how current and future Idaho Power customers who install solar
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panel systems would be compensated for surplus energy their systems give back to Idaho Power’s electric
grid.

In its decision issued Wednesday, the commission largely followed the order it released on Dec. 20, with a
few exceptions.

The commission determined it would be more appropriate to grandfather customers by system site, as
opposed to by customer. Because the grandfathered status now goes with the system, when a customer
sells their house with a grandfathered system, the new homeowner and all future owners of the home will
continue to receive 1:1 monthly netting until Dec. 20, 2045. After that, they will be eligible to participate in
Idaho Power’s net-metering program in place at that time.

The commission also clarified that a customer who has a grandfathered system can put an additional
system on their property without losing the grandfathered status of the first system, as long as the energy
from those systems is separately measured. The additional system would not have a grandfathered status.

To view the commission’s order on the petitions for reconsideration, please visit
https://puc.idaho.gov/PublicDocs/Orders and click on Reconsideration Order No. 34546.PDF.

Live-streamed public workshop scheduled for Idaho Power’s application to change
metering requirement and grandfather existing commercial, industrial, and irrigation
customers with on-site generation

Staff with the Idaho Public Utilities Commission will host a livestreamed public workshop to discuss Idaho
Power’s application that proposes changes to its net metering program for large commercial, industrial,
and irrigation customers with on-site generation.

Idaho Power filed an application with the commission seeking to replace the existing two-meter
requirement with a single-meter requirement as of Dec. 1, 2020, require large commercial, industrial and
irrigation customers who sign up for the net metering program on or after Dec. 1, 2020, to be subject to
any future Commission-approved changes to the billing methodology and compensation structure for
those groups of customers and grandfather customers who have applied to take service under Schedule 84
before Dec. 1, 2020, to the present terms in Schedule 84 for 10 years.

The commission is located at 11331 W. Chinden Boulevard, Building 8, Suite 201-A. Because of health
concerns regarding Covid-19, the public is encouraged to participate through the livestreamed workshop
instead of in person. The workshop is on Monday, Sept. 28, from 6:00 p.m. to 8:00 p.m. (MDT).
Commission staff will share information on the application and answer questions from the public.
Representatives from Idaho Power will also be available to address customer questions and concerns.
Those interested in participating online can do so by visiting idahogov.webex.com and entering number
133 703 0485. At the next window, enter your name, e-mail address and the password MondayHearing28.
Those interested in participating can also do so via phone by calling 1-415-655-0001, and entering the
access code 133 703 0485.
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For additional information on Idaho Power’s application, please visit
https://puc.idaho.gov/case/Details/6523.

Telephonic public hearing scheduled for Idaho Power’s application to change
metering requirement and grandfather existing commercial, industrial, and irrigation
customers with on-site generation

The Idaho Public Utilities Commission will host a telephonic public hearing to take testimony on Idaho
Power’s application that proposes changes to its net metering program for large commercial, industrial,
and irrigation customers with on-site generation.

Idaho Power filed an application with the commission seeking to replace the existing two-meter
requirement with a single-meter requirement as of Dec. 1, 2020, require large commercial, industrial and
irrigation customers who sign up for the net metering program on or after Dec. 1, 2020, to be subject to
any future commission-approved changes to the billing methodology and compensation structure for
those groups of customers and grandfather customers who have applied to take service under Schedule 84
before Dec. 1, 2020, to the present terms in Schedule 84 for 10 years.

The telephonic hearing is on Tuesday, Oct. 13, and starts at 6:00 p.m. (MDT). Participation can be
accomplished by calling 1-800-920-7487 and entering 6674832# when prompted. Those planning on
testifying are encouraged to start calling in to the hearing at 5:30 p.m. (MDT) on Oct. 13. In the interest of
public health and safety, and consistent with guidance from both the CDC and Central District Health
regarding mitigation of exposure to Covid-19, the hearing will be telephonic only.

To identify callers and manage the hearing efficiently, those interested in testifying are encouraged to
contact Adam Rush at [e-mail] or call 1-208-334-0339 and provide their name and the
telephone number they will be calling in on. Please provide this information no later than 4:00 p.m. (MDT)
on Tuesday, Oct. 13, 2020. Additional callers will not be prohibited from testifying, but will be
accommodated after the identified callers have testified.

Written comments on the application are due by Tuesday, Oct. 27, 2020.

PUC will host online public workshop to share information on Idaho Power
application to establish tariff schedule

The Idaho Public Utilities Commission will hold an online, livestreamed public workshop to share
information regarding an Idaho Power application to establish tariff Schedule 68, Interconnections to
Customer Distributed Energy Resources.

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Idaho Power filed the application after being directed by the commission to file proposed smart inverter
requirements with the commission within 60 days of the final adoption of Institute of Electrical and
Electronics Engineers standards 1547 and 1547.1, and to study the implementation of a non-export option.
Smart inverters can enable a more efficient integration of distributed energy resources, and they convert
the direct current output of solar panels into the alternating current that can be used by consumers in
their homes and businesses. The Institute of Electrical and Electronics Engineers standard 1547 is intended
to provide a set of criteria and requirements for the interconnection of distributed generation resources
into the power grid.

Staff with the Idaho Public Utilities Commission will host the online, live-streamed public workshop on
Tuesday, Nov. 10, from 1:00 p.m. to 5:00 p.m. (MST), or until the parties involved in the case decide to
adjourn. Commission staff and Idaho Power representatives will be available to answer questions during
the workshop. Those interested in attending the online workshop can do so in two ways. To participate
online, please visit idahogov.webex.com, and enter the number 133 559 2825. At the next window, enter
your name, e-mail address and the password TuesdayWorkshop. To participate by phone, please dial 1-
415-655-0001 and enter access code 133 559 2825.

The workshop is intended to provide the parties an opportunity to discuss the issues in the case. Members
of the public with or without technical expertise related to the subject matter are invited to participate.

To learn more about Idaho Power’s application, please visit: https://puc.idaho.gov/case/Details/6541.

Rocky Mountain Power
Rocky Mountain Power files application to change its net metering program
On April 23, 2020, the Idaho Public Utilities Commission received a Supplemental Application from Rocky
Mountain Power to change how its customers who participate in its net metering program are compensated.
The original application was filed June 14, 2019.
In its Supplemental Application, Rocky Mountain Power is asking for permission to close its current net metering
program (Schedule 135) to new participants as of July 31, 2020. Customers on Schedule 135 would remain on
that schedule, sometimes referred to as “grandfathering”, until July 31, 2030 and receive the retail rate for
compensation. New customers who apply to participate in the net metering program after July 31, 2020, would
do so under a new schedule, Schedule 136. This schedule would compensate customers for exported energy at
an export credit rate, rather than the retail rate. Rocky Mountain Power estimates that the current retail rate
paid to Schedule 135 customers is about 12.5 cents per kilowatt-hour and the proposed export credit rate for
Schedule 136 is 2.4 cents per kilowatt-hour.
Rocky Mountain Power proposes to use three components to determine its export credit rate for customers: an
energy component, an avoided line losses component, and an integration cost component. Rocky Mountain
Power proposes to use the surrogate avoided resource (SAR) method, with on-peak and off-peak pricing, to
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determine the energy value in the export credit rate. The method is used by the public utilities commission to
calculate published avoided cost prices under the Public Utility Regulatory Policies Act of 1978. This method
reflects the costs the utility would incur if it were to build, operate and maintain a natural gas fired combined
cycle combustion turbine. Based on 2019 data and the proposed surrogate avoided resource rates set to take
effect on June 1, 2020, Rocky Mountain Power calculates the average value of the SAR-based energy component
at $22.34 per MWh. Rocky Mountain Power calculates the avoided line losses to be $3.36 per MWh and
integration costs to be $0.25 per MWh.
Rocky Mountain Power also proposes to charge customers a one-time, non-refundable application fee of $85
that would be submitted with customers’ applications for on-site generation.
The changes to the net metering program, including the proposed export credit rate, will be analyzed by the
company in a comprehensive study that examines the costs and benefits of net metering. The study process will
be conducted in two steps: a study design phase and study review phase, with opportunities for public input
during both phases.
The study design phase provides the parties and the public the opportunity to comment on the scope and
methods of the comprehensive study. Following the study design phase, the commission will issue an order
establishing the scope, and methods of the study. Rocky Mountain Power will then conduct the comprehensive
study and file it with the commission. After Rocky Mountain files the study, the commission will issue an order
establishing the procedure and schedule for the study review phase. The study review phase will allow parties
and the public to comment on whether the study was conducted in a credible and fair manner and whether the
study is sufficiently comprehensive to support a well-informed decision regarding Rocky Mountain Power’s net
metering program.
A workshop on the proposed changes to the net metering program will be held Thursday, June 18, from 6:00
p.m. to 9:00 p.m. The Commission updated its platform subscription to allow more participants and updated log-
in and dial-in credentials to be more user friendly.
Those interested in participating can access the virtual public workshop two ways:
1) Online: go to idahogov.webex.com and enter the number 133 265 3962. At the next window, enter your
name, e-mail address, and the password ThursdayMeeting.
2) By phone: dial 1-415-655-0001 and enter access code 133 265 3962.
The public workshop is intended to allow Commission Staff to discuss its preliminary views of the Supplemental
Application, as reflected in Staff’s preliminary comments filed on May 26, 2020, and to receive feedback from
the public. See Order No. 34661.
Staff and other parties in this case filed preliminary comments in the study design phase and grandfathering on
May 26, 2020. Revised comments are due July 16 and are intended to reflect public input gathered at the public
workshop.
A telephonic public customer hearing will be held on Monday, June 22, at 3:00 p.m. (MDT). Those wishing to
offer verbal comments or listen can dial 1-800-920-7487, and enter passcode 6674832#.
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Those interested in submitting written comments on the study design or grandfathering have until July 16, 2020,
to do so. Written comments must contain a statement of reasons supporting them, and those who would like a
technical hearing on the study design phase must specifically request a technical hearing in their written
comments.
Comments must contain the case number (PAC-E-19-08). Those wishing to submit comments electronically may
do so by accessing the Commission’s home page located at www.puc.idaho.gov. Click on the “Case Comment
Form” under “Consumers” and complete the form using the case number, PAC-E-19-08.
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WATER
Regulated water companies

Company No. of Customers Nearest city/town
Algoma Water Company 27 Sand Point
Aspen Creek 47 Fish Haven
Bitterroot Water System, Inc. 160 Coeur d'Alene
Capitol Water 2,941 Boise
CDS Stoneridge Utilities, LLC 375 Blanchard
Eagle Water Company, Inc. 4,177 Eagle
Falls Water Company, Inc. 6,193 Ammon
Gem State Water 400 Coeur d'Alene
Grouse Point Water 24 Kuna
Happy Valley Water System 27 Athol
Island Park Water Company 362 Island Park
Kootenai Heights Water System, Inc. 11 Kootenai
Mayfield Springs Water Company 101 Kuna
Morning View Water Company, Inc. 118 Rigby
Picabo Livestock Company 35 Picabo
Ponderosa Terrace Estates Water System, Inc. 22 Sandpoint
Resort Water Company 449 Sandpoint
Rocky Mountain Utility Company, Inc. 112 Rigby
Schweitzer Basin Water LLC 464 Sandpoint
Suez Water Idaho Inc. 97,029 Boise
Sunbeam Water Company 22 American Falls
Teton Water and Sewer Company, LLC 297 Driggs
Troy Hoffman Water Corporation 147 Coeur d'Alene

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Public workshop, hearing will be held Jan. 8 on Morning View request to increase water
rates
State regulators with the ldaho Public Utilities Commission will hold a public workshop and hearing on Jan. 8 in
Rigby regarding a request from the Morning View Water Company to increase its rates and charges for water
service.
ln June of 2019, Morning View applied to the commission to increase rates. The company said the increase was
needed because of decreased water usage during the summer months, an inadequate rate of return established
in the company's previous rate case and unanticipated expenses such as water testing and pipeline repairs.
The public workshop and hearing will be Wednesday, Jan. 8, in the upstairs meeting room (annex) at the
Jefferson County Courthouse in Rigby, 210 Courthouse Way, Suite 240. The public workshop starts at 5:30 p.m.
Morning View customers and others interested in the proposed rate changes will have the opportunity to ask
commission staff about Morning View's application to increase rates and what staff recommends.
Representatives from Morning View also will be available.
The public hearing starts at 7:00 p.m. Commissioners with the PUC will take testimony from those wishing to
submit verbal comments.
Written comments are due Wednesday, Jan. 8. Comments should contain Case No. MNV-W-19-01 and this text:
"ln the Matter of Morning View Water Company's Application for Authority to lncrease its Rates and Charges for
Water Service in ldaho." Comments can be mailed to: Commission Secretary, ldaho Public Utilities Commission,
P.O. Box 83720, Boise, lD 83720-0074. The commission's address for express mail is: 11331 W. Chinden
Boulevard, Building 8, Suite 201-A, Boise, lD 83714. Comments also should be mailed to Nolan Gneiting, Morning
View Water Company, P.O. Box 598, Rigby, lD 83442, or emailed to [e-mail]. Comments
also can be e-mailed to the ldaho Public Utilities Commission. Please visit www.puc.idaho.gov and click on the
"Consumers" tab, then click on the "Utility Case Comment or Question Form" and complete the comment form
using case number MNV-W-19-01.
For additional information on Morning View's application, please visit www.puc.idaho.gov and click on the Open
Cases link underneath the Water heading. Scroll down to MNV-W-19-01.

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TELECOMMUNICATIONS
Regulated telecommunications companies

Company Location
Albion Telephone Corp. Albion
Cambridge Telephone Co. Cambridge
CenturyLink* Boise
CenturyTel of Idaho, Inc.* Salt Lake City, UT
CenturyTel of the Gem State* Salt Lake City, UT
Citizens Telecommunications Company of
Idaho* Beaverton, OR
Columbine, dba Silver Star Communications Freedom, WY
Direct Communications Rockland, Inc. Rockland
Fremont Telecom, Inc. Missoula, MT
Frontier Communications Northwest,Inc.* Beaverton, OR
Inland Telephone Co. Roslyn, WA
Midvale Telephone Company Midvale
Oregon-Idaho Utilities, Inc. Nampa
Pine Telephone System, Inc. Halfway, OR
Potlach Telephone Company* Kendrick
Rural Telephone Company Glenns Ferry

* These companies are no longer rate regulated; however, they are still regulated for customer service.

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TELECOMMUNICATIONS CASES
Commission raises TRS surcharge
The Idaho Public Utilities Commission has approved the 2019 reports and this year’s budgets for the state’s
Telecommunications Relay Service and the Idaho Telecommunications Service Assistance Program.

The Telecommunications Relay Service (TRS) program allows those who are hearing, or speech impaired, to
participate in telephone communications “in a manner functionally equivalent to that of individuals without
hearing or speech impairments.” The Idaho TRS service provider is Hamilton Telecommunications. Hamilton
operates the relay center where verbal conversations are converted or “relayed” to text-type and vice versa. The
relay center also provides speech-to speech, Spanish-to-Spanish, video, and Internet relay services.

The program is supported by assessments on local telephone (residential and business) lines and on billed
intrastate long-distance minutes.

The service’s report for 2019 offers information on the amount of calls handled in minutes, expenses, and
information on revenues and allocations. In addition to approving the report for 2019 and the budget for 2020,
the commission approved an increase in the charges the relay service relies on in order to operate. The line
charge will be raised from $0.02 cents per line to $0.03 cents, and the MTS/WATS minute rate from $0.0002 per
minute to $0.0008 per minute effective May 1, 2020.

The increase in the line charge and MTS/WATS minute rate does not apply to cell phone or Internet service. The
surcharge is paid by telephone companies. Idaho Code does not allow companies to pass the surcharge on to
their customers.

Commission waives ITSAP surcharge for 4th straight year
State regulators in April suspended a surcharge that helps Idahoans afford basic telephone service.
The decision marks the third consecutive year the Commission has waived the surcharge that funds the Idaho
Telecommunications Service Assistance Program (ITSAP) as the number of recipients and contributors continues
to decline. The ITSAP provides a monthly discount of $2.50 to qualified applicants, for landline and cell phone
service. The program is funded through a small surcharge on all phone lines - business, residential and wireless.
The Commission determines the surcharge and the Idaho Department of Health and Welfare administers the
program.
As the number of Idahoans receiving financial assistance from ITSAP has declined, so has the amount of the
surcharge, from 13 cents per month for each line in 1998, to 7 cents in 2013, and 3 cents in 2014.
In May 2017, the Commission suspended the surcharge for the 2017 budget year after the number of ITSAP
recipients dropped 42 percent from the previous year.
The trend continued over the past year as the number of ITSAP recipients dropped by 18 percent.
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There was also a decline in the number of land lines in 2019 - 12 percent from the previous year - and a 2-percent
drop in the number of wireless phone lines.
The ITSAP administrator said the number of wireless lines reported for 2019 is likely not accurate, however,
because some companies did not provide counts due to the suspension of the surcharge.
As a result, the Commission’s order suspending the surcharge for the 2020 budget year calls for the ITSAP
administrator to notify telecommunications companies of their reporting requirements.
USF Surcharge Unchanged
Faced with declining revenue as Idahoans increasingly abandon land line phone service, in August 2017 the
Commission raised a monthly surcharge on land lines and questioned the sustainability of the Idaho Universal
Service Fund (IUSF).
The fund was established in 1988 to ensure all Idahoans have access to local telephone service at reasonable
rates.
This is accomplished by taking revenue collected from a surcharge on land-line users and long-distance call
minutes, and distributing it to telecommunications carriers that meet eligibility requirements.
Over the last several years, however, revenue has been insufficient to cover distributions. The trend prompted
the Commission to raise the monthly surcharge on each residential line to 25 cents, up from 12 cents, and to 44
cents for each business line, up from 20 cents.
The change took effect Sept. 1, 2017.
The cost for each minute of a long-distance call also increased, from ½ cent per minute to 0.9 cents per minute.
The changes have allowed the fund to meet its obligations for the 2019 fiscal year, and has momentarily stabilized
the fund.
The Commission made a minor change last year to the rates associated with the IUSF. The Commission lowered
the per minute surcharge of a long-distance call from 0.9 cents to 0.7 cents and determined that the IUSF
surcharges should be maintained at 25 cents per residential line, and 44 cents per business line. This year the
long-distance surcharge was maintained at 0.7 cents per minute.
The Idaho Public Utilities Commission establishes the surcharges each fall, and they remain in effect for a 12-
month period beginning Oct. l.
The IUSF was created through the Idaho Telecommunications Act of 1988 in order to ensure all Idahoans have
access to phone service at reasonable rates. Disbursements from the fund allow rural telephone companies to
keep their rates at no more than 25 percent above rates in more urban areas.
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NATURAL GAS

Consumption increased and prices remained low in FY20201

In Idaho, natural gas is supplied to customers by Avista Corporation, Dominion Questar Gas, and Intermountain
Gas Company. Idaho is fortunate to be located between two large natural gas producing basins: The Rocky
Mountain Basin (Rockies) and the Western Canadian Sedimentary Basin (WCSB).

These basins are connected through the Williams Northwest Pipeline and TransCanada’s GTN pipelines, allowing
the utility companies serving Idaho to take advantage of capacity and of pricing at both basins.

Individual Idaho Gas Utility Profiles

FY 2020 Statistics Total Residential Commercial Industrial Transportation2
Avista Corporation
Customers 86,917 77,662 9,157 89 9
% of Total 100% 89.35% 10.54% 0.10% 0.01%
Therms (millions) 157.94 55.88 31.22 2.57 68.27
% of Total 100% 35.38% 19.77% 1.63% 43.23%
Revenue (millions) $65.0 $45.03 $18.26 $1.13 $0.57
% of Total 100% 69.29% 28.10% 1.74% 0.88%
Dominion Questar Gas
Customers 2,316 2,058 256 0 2
% of Total 100% 88.86% 11.05% N/A 0.09%
Therms (millions) 0.28 0.1555 0.1083 N/A 0.0151
% of Total 100% 55.74% 38.81% N/A 5.45%
Revenue (millions) $1.9 $1.21 $0.68 N/A $0.02
% of Total 100% 63.24% 35.78% N/A 0.97%
Intermountain Gas
Customers 380,788 346,612 34,042 28 106
% of Total 100% 91.02% 8.94% 0.01% 0.03%
Therms (millions) 769.1 261 129 10 369
% of Total 100% 33.89% 16.78% 1.29% 48.04%
Revenue (millions) $237.08 $157.33 $66.82 $3.27 $9.66
% of Total 100% 66.36% 28.18% 1.38% 4.08%

1 The Idaho Public Utilities Commission’s fiscal year is July 1st through June 30th.
2 Transportation is nonutility owned gas transported for another party under contractual agreement.
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NATURAL GAS
Consumption
In 2019, overall consumption of natural gas in Idaho increased approximately 15 percent. Residential and
commercial segments consumed roughly 10 percent more natural gas than the previous year. Industrial
consumption increased just under 10 percent and consumption of gas for electric generation increased over 25
percent. Use of natural gas as a vehicle fuel increased slightly over 5 percent.

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NATURAL GAS
Demand
The Northwest Gas Association (NWGA) forecasts demand for natural gas in the Northwest to grow at a rate of
approximately 1.0% per year.3 Forecast demand growth in the residential and commercial sectors is slightly less,
while industrial demand growth has dropped by half (from 0.5 to 0.2 percent/yr.). Demand for natural gas to
generate electricity is forecast to grow slightly, mostly when coal-fired generation plants are retired in the
region.
Several factors could impact demand for natural gas:
• Retirement of coal fired generation and increased use for generating electricity.
• LNG and petrochemical production and exports.
• Energy policies, regulations, and legislation.

Prices
Over the last decade, the commodity price of natural gas has continued to decline (see Figure 1). The Northwest
Power and Conservation Council (NPCC) forecasts show that commodity prices are expected to remain below
$5/Dth through 2050 (see Figure 2) at hubs where the Pacific Northwest sources its gas.

FIGURE 1. Idaho Historical Natural Gas Price

3 Northwest Gas Association 2020 Pacific Northwest Gas Market Outlook
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FIGURE 2. Pacific Northwest Natural Gas Price Forecast Comparisons

Production
There was approximately 1,033 Mcf of natural gas produced by Snake River Oil and Gas Group in Idaho in 2019.4
In prior years, gas was produced by Alta Mesa/High Mesa. Snake River Oil and Gas Group purchased Alta
Mesa/High Mesa wells and production facilities in December 2019.

As of January 2020, Snake River Oil and Gas Group operations include:
• Processing facility located at Willow Creek near Payette, Idaho.
• Six wells capable of producing natural gas, condensate, oil, and other liquids in the Willow Creek
drainage.
• Four wells including the state’s only oil well have been shut-in and are no longer producing.
• Two wells drilled in Fruitland are shut-in waiting for construction of connecting pipelines to the
Willow Creek processing facility.

4 Source EIA Natural Gas Summary https://www.eia.gov/dnav/ng/ng_sum_lsum_dcu_SID_a.htm
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Renewable Natural Gas (RNG)

RNG is pipeline-quality biomethane produced from biogas. Biogas is the mixture of gases produced by the
breakdown of organic matter in the absence of oxygen (anaerobically), primarily consisting of methane and
carbon dioxide. It can be produced from raw materials such as agricultural waste, manure, municipal waste,
plant material, sewage, or food waste. It is interchangeable with natural gas and compatible with the U.S.
natural gas infrastructure. In the past, RNG projects in the state consumed gas produced in their operations or
used the gas to generate electricity. Recently, a number of biomass operations in the state have pursued
development of capabilities to produce sufficient volumes of RNG for export onto pipeline infrastructure. On a
per therm basis, RNG is more expensive to produce than traditional natural gas. Given current state and federal
government policies and programs, some RNG projects have the potential to achieve profitability.

Natural gas utility companies in the state are monitoring RNG production activity and government policies to
participate in development of this resource.

Summary

Idaho residential, commercial, industrial, and transportation users of natural gas continue to benefit from low
natural gas prices and plentiful supply.

-by Kevin Keyt, IPUC Staff Analyst

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CONSUMER ASSISTANCE
Commission issues annual consumer assistance report

The Consumer Assistance staff responded to 1,038 complaints and inquiries in fiscal year 2020, 98 percent of
which were from residential customers.

The chart below illustrates the complaints and inquiries by industry.

The chart below summarizes the types of issues reported to the Commission. While the Consumer Assistance
staff is able to respond to most inquiries without extensive research, about 75 percent of complaints required
investigation by the staff. Approximately 52 percent of investigations resulted in reversal or modification of the
utility’s original action. Payment terms were negotiated in 11 percent of the investigations.

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REGULATING IDAHO’S RAILROADS

The Commission conducts inspections of Idaho’s railroads to determine compliance with state and federal laws,
rules and regulations concerning the transportation of hazardous materials, locomotive cab safety and sanitation
rules, and railroad/highway grade crossings.
Hazardous material inspections are conducted in rail yards.
In 1994, Idaho was invited to participate in the Federal Railroad Administration’s State Participation Program. The
commission has a State Program Manager and one FRA certified hazardous material inspector.
The commission inspects railroad-highway grade crossings where incidents occur, investigates citizen complaints
of unsafe or rough crossings and conducts railroad-crossing surveys.
The commission also plays a role when rail lines are abandoned.
More than 900 miles of railroad track in Idaho have been abandoned since 1976.
Federal law governs rail line abandonments, and the federal Surface Transportation Board (STB), formerly the
Interstate Commerce Commission, decides the final outcome of abandonment applications.
Under Idaho law, however, after a railroad files its federal notice of intent to abandon, the Idaho commission
must determine whether the proposed abandonment would adversely affect the public interest. The commission
then reports its findings to the STB.
In reaching a conclusion, the Commission considers whether abandonment would adversely affect the service
area, impair market access or access of Idaho communities to vital goods and services, and whether the line has a
potential for profitability.

Railroad Activity Summary

Rail Safety Category Totals
Idaho Railroad Track Miles 1710/996 Class I *
Hazmat Inspections 332
Rail Cars inspected 16,455
Railcar Violations 24
Railcar Defects 637
Railroad Grade Crossings Inspected 170
Crossing Accidents Investigated 2
Crossing Complaints Investigated 3
Crossing Complaints Validated 7
Locomotives Inspected 3
Locomotive defects 0
*Source: ITD `(2017)
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REGULATING IDAHO’S PIPELINES

Idaho Code 61-515 empowers the Commission to require every utility to “maintain and operate its line, plant,
system, equipment, apparatus, and premises in such a manner that promote and safeguard the health and safety
of its employees, customers and the public.”
Pursuant to 49 U.S.C. Section 60105, Chapter 601, the Commission is a certified partner with the U.S. Department
of Transportation Pipeline Hazardous Material Safety Administration.
The federal/state partnership provides the statutory basis for the pipeline safety program and establishes a
framework for promoting pipeline safety through federal delegation to the states for all or part of the
responsibility for intrastate natural gas pipeline facilities under annual certification.
Under the certification, Idaho assumes inspection and enforcement responsibility with respect to more than
8,300 miles of intrastate natural gas pipelines over which it has jurisdiction under state law. With the certification,
Idaho may adopt additional or more stringent standards for intrastate pipeline facilities provided the standards
are compatible with federal regulations. The Idaho Commission has a state program manager and three trained
and certified pipeline safety inspectors who conduct records audits and field installed equipment inspections on
all intrastate natural gas pipeline operators under its jurisdiction.

Pipeline Summary Activity

Regulating Idaho’s Pipelines
Standard inspection days 146.5
Compliance inspection days 4
Damage prevention inspection days 7.5
Construction inspection days 125
Operator Qualification inspection days 5
Integrity Management Program inspection days 10.5
Incident/Accident inspection days 0
Operator Training inspection days 28

Compliance Enforcement Actions
Notice of probable violation 17
Notice of amendment 0
Warning letters 0

Idaho Public Utilities Commission

Page 36

This report satisfies Idaho Code 61-214; this is a “full and complete account” of the most significant cases to come before the commission
during the 2020 calendar year. (The financial report on Page 7 covers Fiscal Year July 1, 2016 through June 30, 2020.) Anyone with access
to the Internet may also review the commission’s agendas, notices, case information and decisions by visiting the IPUC’s Web site at:
www.puc.idaho.gov. Commission records are also available for public inspection at the commission’s Boise office, 11331 W. Chinden Blvd.,
Monday through Friday, 8 a.m. to 5 p.m.
The Idaho Public Utilities Commission, as outlined in its Strategic Plan, serves the citizens and utilities of Idaho by determining fair, just and
reasonable rates for utility commodities and services that are to be delivered safely, reliably and efficiently. During the period covered by
this report, the commission also had responsibility for ensuring all rail services operating within Idaho do so in a safe and efficient manner.
The commission also has a pipeline safety section that oversees the safe operation of the intrastate natural gas pipelines and facilities in
Idaho.

Costs associated with this publication are available from the Idaho Public Utilities Commission in accordance with Section 60-202, Idaho Code, PUC 12-100-
2019.