20220830_TariffAdvice_ct1jo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:CURTIS THADEN
CLAIRE SHARP
DATE:AUGUST 30,2022
RE:INTERMOUNTAIN GAS COMPANY TARIFF ADVICE NO.22-02
REVISION TO RATE SCHEDULE FT (FRANCHISEFEE/TAX
ADJUSTMENT)
BACKGROUND
On August 19,2022,Intermountain Gas Company ("Company")submitted Tariff Advice
No.22-02 to revise Rate Schedule FT (Franchise Fee/Tax Adjustment),Sheet No.15,to reflect a
new ordinance number for City of Chubbuck.The existing three percent franchise fee remains
unchanged.The new agreement will remain in effect for twenty(30)years from the effective
date,unless amended in the manner set forth in Ordinance No.849.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 Chubbuck on July 20,
2022,as authorized in the attached City of Chubbuck Ordinance No.849.The agreement was
accepted by the Company on August l 1,2022.
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 majority of 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
DECISION MEMORANDUM -1 -AUGUST 30,2022
Commission accept the Company's proposed revision to Rate Schedule FT (Franchise Fee/Tax
Adjustment),Sheet No.15,as filed.Staffrecommends an effective date of October 1,2022,and
the Company agrees.
COMMISSION DECISION
Does the Commission wish to accept IntermountainGas Company's proposed revision to
Rate Schedule FT (Franchise Fee/Tax Adjustment),Sheet No.15,as filed,with an effective date
of October 1,2022?
Curtis Thaden
Udmemos/Decision Memo Advice No.22-02
DECISION MEMORANDUM -2 -AUGUST 30,2022
I.P.U.C.Gas Tariff
Rate Schedutes Idaho Public Utilities CommissionSixthRevisionSeventhSheetNo.15 (Page 1 of 1)Office of the Secretary
Name ACCEPTEDFOR FILING
orutnity Intermountain Gas Company
Boise,Idaho
Rate Schedule FT
FRANCHISE FEEITAX ADJUSTMENT
APPLICABILITY:
To all charges for natural gas service rendered within the jurisdiction imposing a fee,tax,or charge
as provided in Section A,paragraph4.4 of the Company's General Service Provisions.
ADJUSTMENT:
The rates and charges shall be increased by an adjustment equivalent to the amount of the charge
imposed by the jurisdiction.The following cities charge a 3%franchise fee:
CITY ORDINANCENO.CITY ORDINANCE NO.
Aberdeen 295 Kuna 397
American Falls 628 Lava Hot Springs 1985-3
Ammon 463 Lewisville 01-95
Arimo 4 Malta 28
Bancroft 210 McCammon 255
Basalt 125 Menan 396
Bellevue 95-04 Meridian 462
Blackfoot 2140 Middleton 532
Boise 6444 Montpelier 593
Buhl 981 Mountain Home 1064
Burley 1210 Murtaugh 94-68
Caldwell 3036 Nampa 2006
Chubbuck 880 E New Plymouth 170
Declo 123 Parker 72
Eagle 715 Parma 579
Emmett 780 Paul 2006-1
Filer 554 Payette 961
Firth 131 Pocatello 2802
Fruitland 358 Rexburg 954
Garden City 849-06 Rigby 2015-576
Georgetown 52 Ririe 136
Glenns Ferry 375 Rupert 06-507
Gooding 699 St Anthony 01-04
Grace 2016-1 Shelley 324
Greenleaf 84 Shoshone 496
Hailey 1190 Soda Springs 654
Hansen 121 Star 66
Heyburn 581 Sugar City 369_2021
Homedale 345 Sun Valley 514
Idaho Falls 3052 Twin Falls 2165
Inkom 85-166 Ucon 117
lona 62 Weiser 957
Jerome 688 Wendell 493
Ketchum 1134 Wilder 365
Kimberly 409
Issued by:Intermountain Gas Company
By:Lori A Blattner Title:Director -Regulatory Affairs
Effective:October 1.2022
I.P.U.C.Gas Tariff
Rate Schedules
Seventh 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 charge
as provided in Section A,paragraph4.4 of the Company's General Service Provisions.
ADJUSTMENT:
The rates and charges shall be increased by an adjustment equivalent to the amount of the charge
imposed by the jurisdiction.The following cities charge a 3%franchise fee:
CITY ORDINANCENO.CITY ORDINANCENO.
Aberdeen 295 Kuna 397
American Falls 628 Lava Hot Springs 1985-3
Ammon 463 Lewisville 01-95
Arimo 4 Malta 28
Bancroft 210 McCammon 255
Basalt 125 Menan 396
Bellevue 95-04 Meridian 462
Blackfoot 2140 Middleton 532
Boise 6444 Montpelier 593
Buhl 981 Mountain Home 1064
Burley 1210 Murtaugh 94-68
Caldwell 3036 Nampa 2006
Chubbuck 849 New Plymouth 170
Decio 123 Parker 72
Eagle 715 Parma 579
Emmett 780 Paul 2006-1
Filer 554 Payette 961
Firth 131 Pocatello 2802
Fruitland 358 Rexburg 954
Garden City 849-06 Rigby 2015-576
Georgetown 52 Ririe 136
Glenns Ferry 375 Rupert 06-507
Gooding 699 St.Anthony 01-04
Grace 2016-1 Shelley 324
Greenleaf 84 Shoshone 496
Hailey 1190 Soda Springs 654
Hansen 121 Star 66
Heyburn 581 Sugar City 369_2021
Homedale 345 Sun Valley 514
Idaho Falls 3052 Twin Falls 2165
Inkom 85-166 Ucon 117
lona 62 Weiser 957
Jerome 688 Wendell 493
Ketchum 1134 Wilder 365
Kimberly 409
Issued by:Intermountain Gas Company
By:Lori A.Blattner Title:Director -Regulatory Affairs
Eflective:October 1,2022
CITY OF CHUBBUCK,IDAHO
ORDINANCE NO:
AN ORDINANCE OF THE CITY OF CHUBBUCK,IDAHO,GRANTING TOINTERMOUNTAINGASCOMPANYATHIRTY(30)YEAR EXTENSION TO ITS
FRANCHISE TO CONSTRUCT,MA1NTAIN AND OPERATE A GAS TRANSMISSIONANDDISTRIBUTIONSYSTEM;PROVIDINGFOR THE USE OF STREETS AND ALLEYS,AND RULES GOVERNINGTHE SAME,SUBJECTING THE GRANTEE TO ALL POWERS
OF THE CITY;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;REQUIRING GRANTEE TO FURNISH CERTAIN MAPS;SETTING FORTH THE QUARTERLY PAYMENT TO THE CITY,AND THE FILING OFQUARTERLYREPORTSWITHTHECITY;TO ADDITIONAL RIGHT PAYMENTS TOCITY;REQUIRING GRANTEE TO INDEMNIFY CITY,AND FILE EVIDENCE OFINSURANCE;REQUlRING COMPLIANCE WITH SAFETY REGULATIONS;SETTINGFORTHANAGREEMENTNOTTOCOMPETE,RESERVING POWER OF EMINENTDOMAIN;PROVIDING FOR SURRENDER OF FRANCHISE;GRANTING RIGHT TOSALVAGE;REQUIRING WRITTEN ACCEPTANCE;PROVIDING FOR CONSENT TO
SALE OR ASSIGNMENT;PROVIDING FOR PAYMENT OF PUBLICATION COSTS;SETTING FORTH PENALTIESAND FORFEITURES,SEPARABILITYAND REPEAL.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OFCHUBBUCK,IDAHO.
SECTION I -GRANT OF AUTHORITY
There is hereby granted to Intermountain Gas Company,a corporation,its successors and
assigns (hereinafter collectivelyreferred to as "Grantee")a thirty(30)year extension to the right
and authority to construct,install,maintain and operate a gas transmission and distributionsystem,including mains,pipes,conduits,services and other necessary structures and appliances
appertaining in,under,upon,over,across and along the streets,alleys,bridges and public placeswithinthepresentandfuturecorporatelimitsoftheCityofChubbuck,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 solepowerandauthoritytomakethisgrantofauthorityandagreestonotifyGranteeinwritingiftheCityshouldceasetohavethispower.
Ordinance -1-
SECTION TI-USE OF STREETS AND RULES GOVERNINGSAME
Grantee shall secure a permit for any opening it shall make in the streets,alleys and
public places in the City and shall be subject to all applicable ordinances,but no fee shall be
required of Granteefor any such permit.The location or relocation of all facilities shall be made
under the supervision and with the approval of such representative as the governing body of the
City may designate for such purpose,but not so as unreasonably to interfere with the proper
operating of Grantee's facilities and service.Whenever the City shall pave or repave any street
or shall changethe grade or line of any street or public place or shall construct or reconstruct any
conduit,water main,sewer or water connection or other City public works or City utility,it shall
be the duty of the Grantee when so ordered by the City to change its mains,services and other
property in the streets or public places at its own expense so as to conform to the established
gradeor line of such street or public place and so as not to interfere with the conduits,sewers and
other mains of the City as constructed or reconstructed;however,the Grantee shall not be
required to relocate pipes,mains and appurtenanceswhen the street,alley or public ground inwhichtheyarelocatedisvacatedfortheconvenienceofabuttingpropertyownersandnotasanincidenttothepublicimprovement,unless the reasonablecost of such relocation and the loss and
expenses resulting there from is first paid to Grantee.The City will avoid the need for such
moving or changing whenever possible.In the event Federal,State,or other funds are availableinwholeorinpartforutilityrelocatingpurposes,the City shall apply for such funds and theGranteewillbereimbursedtotheextentanysuchfundsareactuallyobtained.Grantee and theCityshallcomplywithIdahoDamagePreventionStatutes,Idaho Code,Title 55,Chapter22.
SECTION III-GRANTEE SUBJECT TO ALL POWERS OF CITY;RULES
GOVERNINGREPAIR AND RECONSTRUCTION OF STREETS
The exercise of privileges herein granted shall be subject at all times to all of the powersoftheCityandallregulatoryordinancesadoptedpursuantthereto.The Grantee shall not
unnecessarily or unreasonably obstruct the use of or damageany street or alley,and shall within
a reasonabletime 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 theexcavationwasmadeinsofarasreasonablypossible.The Grantee shall maintain,repair and
keep in good condition for a period of three years from the date of acceptance by the City,allportionsofstreetsandalleysdisturbedbyitoritsagents.The Grantee shall be responsible for
any obstruction in any street,alley or other public place caused by it in the operation andmaintenanceofitspropertiesoccurringatanytimeandshallpromptlyremovesuchobstruction.Any such obstruction which,after proper notice to Granteedemanding removal is not promptlyremovedbytheGranteemaybetakencareofbytheCityandthecoststhereofshallbecharged
against Granteeand may be enforcedas a lien upon any ofits properties or assets.
Ordinance -2-
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SECTION IV -TERM OF FRANCHISEAND GRANT
The right,authority and grant herein and hereby made to said Grantee,its successor and
assigns,is granted for,and limited in time to,a period of thirty (30)years from September 1*,
2022,through and including August 31*,2052.
SECTION V -CITY RIGHTTO INSPECTION OF GRANTEE'S PLANS,
ACCOUNTS AND BOOKS -GRANTEE TO FURNISHCERTAINMAPS
Upon reasonable advancenotice,the City shall have access to Grantee's records only to
the extent necessary to verify the accuracy of the Franchise fee payments required berein.The
Grantee shall fumish,upon request from the City a complete set of maps,including plans andprofileofthedistributionsystemoftheGranteeandanyplannedfutureextensions.
SECTION VI-PAYMENT TO CITY AND FILING OP QUARTERLYWRITTEN
REPORT WITH THE CITY
As consideration for this franchise and grant said Grantee,its successors,and assigas,
during the franchise period,shall pay to the City three percent (3%)of the gross quarterly
receipts received from all sales of gas by Granteewithin the corporate limits of the City through
use,operation or possession of this 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,
maintenanceand removal during the term of the public service provider's franchisewith the city,which the City may impose for the rigbts and privileges herein granted or for the privilege of
doing business within the City.
The Grantee shall file 30 days after the end of each calendar quarter with the City a report
for the preceding calendar quarter,which report shall contain a statement of all the gross receiptsarisingfromallsalesofgasbysaidGranteewithintheCityforthecalendarquarterpreceding
such report,and at the same time the Grantee shall pay to the City the stipulated percentageof
the gross quarterly receipts due for the calendar quarter which said report is made and filed.
SECTION VII-RIGHT TO ADDITIONAL PAYMENTSTO CITY
In the event that Grantee shall in conjunction with any other franchise agreement,pay
any other city within the State of Idaho any percentagegreater than hereinbefore provided,then
and in such event,the City shall be entitled to collect from Grantee such higher percentage of
gross annual sales,based upon Grantee's gross annual sales within the city for the same period of
time for which such other city is entitled to receive such higher percentage,
SECTION VIII-GRANTBE 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 theGranteeintheconstruction,operation or maintenance of its gas system in the City.The City
shall notify the grantee's representativein the City within ten (10)days after the presentation of
Ordinance -3-
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any claim or demand,either by suit or otherwise,made against the City on account of any
negligence as aforesaid on the part of the Grantee.
SECTION IX -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 be
automatically increased at any time the liability limits of the City are increased pursuant to theIdahoTortClaimsAct(Idaho Code Section 6-901 et.Seq.)or any similar legislation.
SECTION X -SAFETY REGULATION COMPLIANCE
Grantee shall comply with and conform to all applicable safety regulations promulgated
by the United States,State of Idaho or City of Chubbuck,or any regulatory body having
jurisdiction thereof.
SECTION XI-AGREEMENTNOT TO COMPETE
RESERVE TO CITY POWER OF EMINENT DOMAIN
In consideration if Grantee's undertaking hereunder as evidenced by its acceptance
bereof the City agrees not to engage in the business of distributing and selling gas during the lifeofthisfranchiseoranyextensionthereofincompetitionwiththeGrantee,its successor and
assigns;but nothing herein contained shall be construed or deemed to prevent the City from
exercising at any time any power of eminent domain granted to it under the laws of the State of
Idabo.
SECTION XII -SURRENDER OF FRANCHISE
In the event natural gas at any time shall cease to be available to Grantee for thedistributionandsalehereunder,Granteereserves the right to surrender this franchise and in the
event of such surrender prior to any expiration or termination of this franchise,or in any of such
events,Grantee reserves the right to salvage all its plant,works and facilities,and will restore
City's streets and alleys damagedby such salvage operation.
SECTION XIII-WRITTEN ACCEPTANCE
The Grantee shall within thirty (30)days after the passage and publication of this
ordinance,file with the City Clerk its acceptance of this franchise in writing signed by its proper
officers and attested by its corporate seal.
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Ordinance -4-i
SECTION XIV-SALE OR ASSIGNMENTOF FRANCHISE
No sale or assignmentof this franchise shall be effective until it is approved by the City,
provided,however,that nothing herein contained shall be construedas to require consent or to
prevent the Grantee of this franchise and grant from including it in a mortgage or trust deed
executed for the purpose of obtaining money for corporate objects.
SECTION XV -PUBLICATION COSTS
The Grantee shall assume the cost of publication of this franchise as such publication is
required by law.
SECTION XVI-FORFEITURE
Any violation by the Grintee,its vendee,lessee or successors of the provisions of this
ordinance,franchise and grant or any material portions thereof or the failure promptly to perform
any of the provisions thereof shall be cause for the forfeiture of this franchise and grpnt and all
rights hereunder by the City after sixty (60)days written notice to the Grantee and the
continuance of such violation,failure or default;however,this provision shall not prevent the
Granteefrom submitting such question of forfeiture to proper court determination.
SECTION XVII-SEPARABILITY
If any part or parts of this ordinance shall be adjudgedby the courts to be unconstitutional
or invalid,the same shall not affect the validity of any other part or parts hereof which can be
given effect without the part or parts adjudged to be unconstitutional or invalid.The City
declares that it would havepassed the remaining parts of this ordinance ifit had been loown that
such other part of parts thereof would be declaredunconstitutional or invalid.
SECTION XVIII-REPEAL
All ordinances and parts of ordinances of the City in conflict herewith shall be,and the
same are herebyrepealed.
Ordinance -5-
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PASSED BY THE CITY COUNCIL O THE CITY OF CHUBBUCK,IDAHO
AND APPROVED BY THE MAYOR THIS 20 DAY OF 3 ,2022.
Mayor
ATTEST:
ACCEPTANCE
INTERMOUNTIAN GAS COMPANY,as the franchisee,accepts the franchise set forth
in the aboveOrdinance and agrees to abideby the terms and conditions thereof.
DATED this Ñdayof 3 f ,2022
INTERMOUNTAIN GAS COMPANY
Eric Martuscelli (It's:Vice President,Field Operations
ATTEST:
Ordinance -6-