20220920_Advice_No_2202_cs.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: CLAIRE SHARP, DEPUTY ATTORNEY GENERAL
CURTIS THADEN

DATE: SEPTEMBER 20, 2022

RE: INTERMOUNTAIN GAS COMPANY TARIFF ADVICE NO. 22-02
REVISION TO RATE SCHEDULE FT (FRANCHISE FEE/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 thirty (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 11, 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 2
Commission accept the Company’s proposed revision to Rate Schedule FT (Franchise Fee/Tax
Adjustment), Sheet No. 15, as filed. Staff recommends an effective date of October 1, 2022, and
the Company agrees.
This matter was on the Commission’s August 23, 2022, Agenda where the Commissioners
moved to “approve” the proposed revision to Rate Schedule FT (Franchise Fee/Tax Adjustment),
Sheet No. 15, as filed, with an effective date of October 1, 2022. Because Idaho Code Section 50-
329A is self-executing, franchise fees are to be “accepted for filing” rather than “approved.”
COMMISSION DECISION
Does the Commission wish to accept Intermountain Gas 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?

___________________________________
Claire Sharp
Deputy Attorney General

I:\Legal\GAS\Advice No 22-02_memo_cs.docx