20221018_INT-TA-2203_me1.pdf

DECISION MEMORANDUM
TO:COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:MICHAEL ELDRED
RILEY NEWTON
DATE:OCTOBER 18,2022
SUBJECT:REVISIONS TO SECTION C OF INTERMOUNTAIN GAS COMPANY'S
GENERAL SERVICE PROVISIONS;TARIFF ADVICE NO.22-03
BACKGROUND
On September 21,2022,Intermountain Gas Company ("Company")filed Tariff Advice
No.22-03 ("Tariff Advice")requesting to revise Section C of its General Service Provisions,
Installation and Extension of Natural Gas Mains and Services for Residential and Commercial
Customers.The Company's Tariff Advice proposes to update the Allowable Investment Factors
("AIF"),the Service Line Cost per Foot ("SLCPF"),and the construction overhead charge in
accordance with Commission Order No.34735.The Company requests these revisions be
approved by November 1,2022,to become effective on December 1,2022.
STAFF ANALYSIS
Staff reviewed the proposed updates in the Tariff Advice and believes the methods used
to update Section C are consistent with the methods approved in Commission Order No.34735
and the inputs driving the updated amounts are reasonable.Staff recommends the Commission
approve the revised tariff sheet reflecting updates to the AIF,SLCPF,and the construction
overhead charge with an effective date of December 1,2022.
The Company is required by Commission Order No.34735 to file an annual tariff advice
to update the AIF,the SLCPF,and the construction overhead charge by October 1,beginning in
2021.Staff reviewed the Company's workpapers and examined the method and the change in
DECISION MEMORANDUM -1 -OCTOBER 18,2022
inputs driving the change in the amounts for the three factors.The Company's methods for
updating AIF,SLCPF,and the construction overhead charge in this tariff advice are consistent
with the methods approved in Commission Order No.34735.The major inputs driving the
increase in the AIF and SLCPF factors were related to increases in inflation,labor,and materials.
The inputs used to determine the construction overhead charge resulted in a lower overhead
charge compared to last year's annual update.Staff believes the inputs used to determine all
three factors are reasonable and conform with Commission Order No.34735.
RECOMMENDATION
Staff recommends the Commission approve the revised tariff sheet,as filed,reflecting
updates to the AIF,SLCPF,and the construction overhead charge with an effective date of
December 1,2022.
COMMISSION DECISION
Does the Commission wish to accept the Company's proposed revisions and the
submitted revised Section C tariff sheet,as filed,with an effective date of December 1,2022?
Michael Idred
Udmemos ifNT-G-TA-22-03 Deasion Memo
DECISION MEMORANDUM -2 -OCTOBER 18,2022