20211123_CT1MCB.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:CURTIS THADEN
DATE:NOVEMBER 19,2021
RE:INTERMOUNTAIN GAS COMPANY TARIFF ADVICE NO.21-03REVISIONTORATESCHEDULEFT(FRANCHISEFEE/TAXADJUSTMENT)
BACKGROUND
On October 15,2021,Intermountain Gas Company ("Company")submitted Tariff
Advice No.21-03 to revise Rate Schedule FT (Franchise Fee/TaxAdjustment),Sheet No.15,to
reflect a new ordinancenumber for Sugar City.The existing three percent franchise fee remains
unchanged.The new agreement will remain in effect for twenty (20)years from the effective
date,unless amended in the manner set forth in Ordinance No.369_2021.Copies of the 1)
Ordinance,which sets forth the City Franchise Agreement with the Company,and 2)a copy of
the proposed revision to Sheet No.15 is attached.
The proposed franchise fee agreement was approved by the City of Sugar City on
September 23,2021,as authorized in the attached Sugar City Ordinance No.369_2021.The
agreement was accepted by the Company on September 27, 2021.
Idaho Title 50,Chapter 3,§50-329A allows cities to establish franchise fees assessed
upon a public service provider up to one percent without the consent of the public service
provider or the approval of a majorityof voters of the city voting on the question at an election.
Franchise fees up to three percent are allowed with the consent of the public service provider or
the approval of a majority of voters of the city voting on the question at an election.
Staff has reviewed the proposed tariff change,the franchise agreements,and the franchise
fee requirements under Idaho Title 50,Chapter 3 §50-329A.Staff recommends that the
Commission accept the Company's proposed revision to Rate Schedule 2021 (Franchise Fee/Tax
Adjustment),Sheet No.15.Staff recommends an effective date of December 1,2021 and the
Company agrees.
COMMISSION DECISION
Does the Commission wish to accept IntermountainGas Company's proposed revision to
Rate Schedule FT (Franchise Fee/TaxAdjustment),Sheet No.15 with an effective date of
December 1,2021?
Curtis Thaden
lPUC Gas Tar if Idaho Public Utilities CommissionRateSchedulesOfficeoftheSecretaryRev.sioñ 2×1.0 Sheet No 5 :Page of :ACCEPTED FOR FILING
Na e Intermountain Gas Company Boise, Idaho
Rate Schedule FT
FRANCHISE FEEITAX ADJUSTMENT
APPLICABILITY:
To all charges for natural gas service rendered within the junsdiction imposing a fee.tax.or chargeasprovidedinSectionAparagraph44oftheCompany's General Service Provisions
ADJUSTMENT:
The rates and charges shal De increased by an adjustment eauwalent to the amount of the chargeimposedbythejurisaictionThefolowingcitieschargea 3 francaise fee
CITY ORDINANCENO.CITY ORDINANCENO.Aberdeer 295 Kuna 39;Arnerican Fals 628 Lava Hc:S;nees 1985-3AmmonA63LexsAe01-95Aomo<Malta 28Bancroft210McCarimon955Basalt125Menan396Bellevue95-04 Mend:an 462Blackícot214CMidd:eton 532Boise6444Montpeler593Buhl981MountainHome1064Buriey1210Mu1augh94-68Caldwell3036Nampa2006Chubbuck380NewPlymcato170Decio23Parker"2EagleI'S Parria 579Emmett780Pau2006-1FlerSSLPayette961F:Ah 13,Pocatehe 2802Fruitland35ëRevooro954GardenCity849-Cõ R goy 2015-576Georgetown52R:ne 136GlennsFerry375Rupert06-507Gooding699StAntmomyOLO4Grace2016-1 Sheiley 324Greenleaf84Suoshore496Hadey1190SoaaSonops654Hansen121Star66Heyburn581SugarCuya 369 2021Homedale345SunValley514IdanoFals3052Tw:n Fals 2165inkom85-166 Ucon 117fona62Weser067Jerome688Wendel493Ketchum1134Wider365Kimberly409
issuec by intermountain Gas Company
By Lon A Blattner Titie Ekeo:or --Regulatory AffærsEffectiveEct;aa:j ;November 1,2021
I.P.U.C.Gas Tariff
Rate Schedules
Sixth Revision Sheet No.15 (Page 1 of 1)
,$Intermountain Gas Company
Rate Schedule FT
FRANCHISE FEEITAX ADJUSTMENT
APPLICABILITY:
To all charges for natural gas service rendered within the jurisdiction imposing a fee,tax,or chargeasprovidedinSectionA,paragraph 4.4 of the Company's General Service Provisions.
ADJUSTMENT:
The rates and charges shall be increased by an adjustment equivalent to the amount of the chargeimposedbythejurisdiction.The following cities charge a 3%franchise fee:
CITY ORDINANCE NO.CITY ORDINANCE NO.
Aberdeen 295 Kuna 397AmericanFalls628LavaHotSprings1985-3Ammon463Lewisville01-95Arimo4Malta28Bancroft210McCammon255Basalt125Menan396Bellevue95-04 Meridian 462Blackfoot2140Middleton532Boise6444Montpelier593Buhl981MountainHome1064Burley1210Murtaugh94-68Caldwell3036Nampa2006Chubbuck380NewPlymouth170Declo123Parker72Eagle715Parma579Emmett780Paul2006-1Filer554Payette961Firth131Pocatello2802Fruitland358Rexburg954GardenCity849-06 Rigby 2015-576Georgetown52Ririe136GlennsFerry375Rupert06-507Gooding699St.Anthony 01-04Grace2016-1 Shelley 324Greenleaf84Shoshone496Hailey1190Soda Springs 654Hansen121Star66Heyburn581SugarCity369_2021Homedale345SunValley514IdahoFalls3052Twin Falls 2165Inkom85-166 Ucon 117lona62Weiser957Jerome688Wendell493Ketchum1134Wilder365Kimberly409
Issued by:Intermountain Gas Company
By:Lori A.Blattner Title:Director -Regulatory AffairsEffective:November 1.2021
CITY OF SUGAR CITY,IDAHO
ORDINANCENO.369 2021
AN ORDINANCE OF THE CITY OF SUGAR CITY,IDAHO,GRANTING TOINTERMOUNTAINGASCOMPANYATWENTY(20)YEAR EXTENSION TO ITSFRANCHISETOCONSTRUCT,MAINTAIN AND OPERATE A GAS TRANSMISSIONANDDISTRIBUTIONSYSTEM;PROVIDING FOR THE USE OF STREETS AND ALLEYS,AND RULES GOVERNING THE SAME,SUBJECTING THE GRANTEE TO ALL POWERSOFTHECITY;SETTING FORTH THE RULES OF THE FRANCHISE AND GRANT;PROVIDING FOR THE RIGHT OF INSPECTION BY THE CITY OF GRANTEE'S PLANS,ACCOUNTS,AND BOOKS;REQUIRINGGRANTEE TO FURNISH CERTAIN MAPS;SETTING FORTH THE QUARTERLYPAYMENT TO THE CITY,AND THE FILING OFQUARTERLYREPORTSWITHTHECITY;REQUIRINGGRANTEE TO INDEMNIFYCITY,AND FILE EVIDENCE OF INSURANCE;REQUIRINGCOMPLIANCE WITHSAFETYREGULATIONS;SETTING FORTH AN AGREEMENT NOT TO COMPETE,RESERVING POWER OF EMINENT DOMAIN;PROVIDING FOR SURRENDER OFFRANCHISE;GRANTING RIGHT TO SALVAGE;REQUIRINGWRITTENACCEPTANCE;PROVIDING FOR CONSENT TO SALE OR ASSIGNMENT;PROVIDING FOR PAYMENTOFPUBLICATIONCOSTS;SETTING FORTH PENALTIES AND FORFEITURES,SEPARABILITYAND REPEAL.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF SUGARCITY,IDA HO.
SECTION I -GRANT OF AUTHORITY
There is hereby granted to Intermountain Gas Company,a corporation,its successors andassigns(hereinafter collectively referred to as "Grantee")a twenty (20) year extension to therightandauthoritytoconstruct,install,maintain and operate a gas transmission and distributionsystem,including mains,pipes,conduits,services and other necessary structures and appliancesappertainingin,under,upon,over,across and along the streets,alleys,bridges and public placeswithinthepresentandfuturecorporatelimitsoftheCityofSugarCity,Idaho (hereinafterreferredtoas"City") for the furnishing,transmission,distribution and sale of gas,whetherartificial,natural,mixed or otherwise, for heating,domestic,industrial and other purposes andfortransmittinggasinto,through and beyond said City.The City represents that it has the solepowerandauthoritytomakethis grant of authorityand agrees to notify Grantee in writing if theCityshouldceasetohavethispower.
SECTION II-USE OF STREETS AND RULES GOVERNING SAME
Grantee shall secure a permit for any opening it shall make in the streets,alleys andpublicplacesintheCityandshallbesubjecttoall applicable ordinances, but no fee shall berequiredofGranteeforany such permit.The location or relocation of all facilities shall be madeunderthesupervisionandwiththeapprovalofsuchrepresentativeasthegoverningbody of theCitymaydesignateforsuchpurpose,but not so as unreasonably to interfere with the properoperatingofGrantee's facilities and service.Whenever the City shall pave or repave any street
Ordinance -1-
or shall change the grade or line of any street or public place or shall construct or reconstruct anyconduit,water main,sewer or water connection or other City public works or City utility,it shallbethedutyoftheGranteewhensoorderedby the City to change its mains,services and otherpropertyin the streets or public places at its own expense so as to conform to the establishedgradeorlineofsuchstreetorpublicplaceandsoasnottointerferewiththeconduits,sewers andothermainsoftheCityasconstructedorreconstructed;however,the Grantee shall not berequiredtorelocatepipes,mains and appurtenances when the street,alley or public ground inwhichtheyarelocatedisvacatedfortheconvenienceofabuttingpropertyownersandnotasanincidentto the public improvement,unless the reasonable cost of such relocation and the loss andexpensesresultingtherefromisfirstpaidtoGrantee.The City will avoid the need for suchmovingorchanging whenever possible.In the event Federal,State or other funds are availableinwholeorin part for utility relocating purposes, the City shall apply for such funds and theGranteewillbereimbursedto the extent any such funds are actually obtained.Whenever theCitygrantsapermitforanexcavationinastreetoralleyorotherpublicgroundandtheworkcontemplatedbythepermitmayexposegaspipes,mains and appurtenances of the Grantee, theCityshallfurnishacopyofthepermittoGranteeatleast 48 hours prior to such work.
SECTION III-GRANTEE SUBJECT TO ALL POWERS OF CITY;RULESGOVERNINGREPAIRANDRECONSTRUCTIONOFSTREETS
The exercise of privileges herein granted shall be subject at all times to all of the powersoftheCityandallregulatoryordinancesadopted pursuant thereto.The Grantee shall notunnecessarilyorunreasonablyobstruct the use of or damage any street or alley,and shall within
a reasonable time and as early as practicable upon completion of any construction or repair work,restore all City streets and alleys to the same order and condition as they were before theexcavationwasmadeinsofarasreasonably possible.The Grantee shall maintain,repair andkeep in good condition for a period of three years from the date of acceptance by the City,allportionsofstreetsandalleysdisturbedbyitor its agents. The Grantee shall be responsible foranyobstructioninanystreet,alley or other public place caused by it in the operation andmaintenanceofitspropertiesoccurringatanytimeandshallpromptlyremovesuchobstruction.Any such obstruction which,after proper notice to Grantee demanding removal is not promptlyremovedbytheGranteemaybetakencareofbytheCityandthecoststhereofshallbechargedagainstGranteeandmaybeenforcedasalienuponanyofitspropertiesorassets.
SECTION IV -TERM OF FRANCHISE AND GRANT
The right,authority and grant herein and hereby made to said Grantee,its successor andassigns,is granted for,and limited in time to,a period of twenty (20)years from November 1,2021 through and includingOctober 31, 2041
SECTION V -CITY RIGHT TO INSPECTION OF GRANTEE'S PLANS,ACCOUNTS AND BOOKS -GRANTEETO FURNISHCERTAINMAPS
The City shall have access at all reasonable hours to all of the Grantee's plans,contractsandengineering,accounting,finance,statistical,customer and service records relating to thepropertyandoperationsofGranteewithintheCity.The Grantee shall furnish,upon request,the
Ordinance-2-
City with a complete set of maps,including plans and profile of the distribution system of the
Grantee and anyfutureextensions.
SECTION VI-PAYMENT TO CITY AND FILING OF QUARTERLYWRITTEN
REPORT WITH THE CITY
As consideration for this franchise and grant said Grantee,its successors and assigns,during the franchise period,shall pay to the City three percent (3%)of the gross quarterly
receipts received from all sales of gas by Grantee within the corporate limits of the City through
use,operation or possession ofthis franchise and grant.
Such quarterly payments shall be in lieu of taxes,fees or charges (other than ad valorem
taxes)related to easements,franchises,rights-of-way,utility lines and equipment installation,maintenance and removal during the term of the public service provider's franchise with the city,which the City may impose for the rights and privileges herein granted or for the privilege ofdoingbusinesswithintheCity.
The Grantee shall file 30 days after the end of each calendar quarter with the City a reportfortheprecedingcalendarquarter,which report shall contain a statement of all the gross receiptsarising from all sales of gas by said Grantee within the City for the calendar quarter preceding
such report,and at the same time the Grantee shall pay to the City the stipulated percentage of
the gross quarterly receipts due for the calendar quarter which said report is made and filed.
SECTION VII -GRANTEE LIABILITY -INDEMNIFICATION
It is expressly understood and agreed by and between the Grantee and the City that the
Grantee shall save the City harmless from all loss sustained by the City on account of any suit,judgment,execution, claim or demand whatsoever,resulting from negligence on the part of the
Grantee in the construction, operation or maintenance of its gas system in the City.The City
shall notify the grantee's representative in the City within ten (10)days after the presentation ofanyclaimordemand,either by suit or otherwise,made against the City on account of anynegligenceasaforesaidonthe part ofthe Grantee.
SECTION VIII -INSURANCE
Upon acceptance of this franchise by Grantee and before Grantee shall have any rights
hereunder, Grantee shall file with the City Clerk a certificate evidencing the insurance of the
Grantee against property damage in an amount not less than $1,000,000.00 and bodily injurywithlimitsofnotlessthan$1,000,000.00 per person and $2,000,000.00 total for each
occurrence.Provided,however,the minimum limits of insurance as set forth herein shall beautomaticallyincreasedatanytimetheliabilitylimitsoftheCityareincreasedpursuanttotheIdahoTortClaimsAct(Idaho Code Section 6-901 et.Seq.)or any similar legislation.
SECTION IX -SAFETY REGULATION COMPLIANCE
Grantee shall comply with and conform to all safety regulations promulgated by theUnitedStates,State of Idaho or City of Sugar City,or any regulatory body having jurisdiction
thereof.
Ordinance-3-
SECTIONX -AGREEMENT NOT TO COMPETE
RESERVE TO CITY POWER OF EMINENT DOMAIN
In consideration if Grantee's undertaking hereunder as evidenced by its acceptancehereoftheCityagreesnot to engage in the business of distributing and selling gas during the lifeofthisfranchiseoranyextensionthereofincompetition with the Grantee,its successor andassigns;but nothing herein contained shall be construed or deemed to prevent the City fromexercisingatanytimeanypowerofeminentdomaingrantedtoitunderthe laws of the State ofIdaho.
SECTION XI -SURRENDER OF FRANCHISE
In the event natural gas at any time shall cease to be available to Grantee for thedistributionandsalehereunder,Grantee reserves the right to surrender this franchise and in theeventofsuchsurrenderpriortoanyexpirationortermination of this franchise,or in any of suchevents, Grantee reserves the right to salvage all of its plant,works and facilities,and will restoreCity's streets and alleys damaged by such salvage operation.
SECTION XII-WRITTEN ACCEPTANCE
The Grantee shall within thirty (30) days after the passage and publication of thisordinance, file with the City Clerk its acceptance of this franchise in writing signed by its properofficersandattestedbyitscorporateseal.
SECTION XIII -SALE OR ASSIGNMENT OF FRANCHISE
No sale or assignment of this franchise shall be effective until it is approved by the City,provided,however, that nothing herein contained shall be construed as to require consent or topreventtheGranteeofthisfranchiseand grant from including it in a mortgage or trust deedexecutedforthe purpose of obtaining money for corporate objects.
SECTION XIV -PUBLICATION COSTS
The Grantee shall assume the cost of publication of this franchise as such publication isrequiredbylaw.
SECTION XV -FORFEITURE
Any violation by the Grantee,its vendee,lessee or successors of the provisions of thisordinance,franchise and grant or any material portions thereof or the failure promptlyto performany of the provisions thereof shall be cause for the forfeiture of this franchise and grant and allrightshereunderbytheCityaftersixty(60)days written notice to the Grantee and thecontinuanceofsuchviolation,failure or default;however,this provision shall not prevent theGranteefromsubmittingsuchquestionofforfeituretopropercourtdetermination.
Ordinance -4-
SECTION XVI -SEPARABILITY
ifanypart or parts ofthis ordinance shall be adjudged by the courts to be unconstitutionalorinvalid,the same shall not affect the validityof any other part or parts hereof which can begiveneffectwithoutthepartorpartsadjudgedtobeunconstitutionalorinvalid.The Citydeclaresthatitwouldhavepassedtheremainingpartsofthisordinanceifithadbeenknownthatsuchotherpartofpartsthereofwouldbedeclaredunconstitutionalorinvalid.
SECTION X VII -REPEAL
All ordinances and parts of ordinances of the City in conflict herewith shall be,and thesamearehereby repealed.
PASSED BY THE CITY COUNCIL OF THE CITY OF SUGAR CITY,IDAHOANDAPPROVEDBYTHEMAYORTHIS23"DAY OF SEPTEMBER,2021.
Steven Adams,Mayor
ATTEST:
Wendy Mc aughlin A
City Clerk-Treasurer
(SEAL)
Ordinance-5-
ACCEPTANCE
INTERMOUNTIAN G A S COMPANY,as the fi·anchisee,accepts the fianchise set forth
in the above Ordinance and agrees to abide by the terms and conditions thereof.
DATED this 27th day of September ,202 I
INTERMOUNTAIN GAS COMPANY
Its:VicePresident-
Field Operations
ATTEST:
Karen Edwards
Ordinance -6-