20180608Comment.pdf

Diane Holt
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Friday, June B, 2018 10:56 AM
Beverly Barker; Diane Holt; Matthew Evans
Case Comment Form: Patrick Cave
Name: Patrick Cave
Case Number: AVU-E-17 -OSf f Avu.' (r- | f oS-
Email: [e-mail]
Telephone:
Address: 2502 Sunnyside Rd
Sandpoint ldaho,83864
Name of Utility Company: AVISTA
Comment: Date:08JUN18
Subj: Underserved/Unserved natural gas customers of Avista Utilities
REFR: IPUC Case AVU-E-L7-O9 vs NMGCI Case 15-00327-UI
Dear Sirs:
I respectfully submit the following "Stipulation" (CASE NO: 15-00327-UT) placed into effect on the New Mexico Gas
Company, lNC.(during NMGCI purchase/acquisition by TECO/EMERA filed on 19OCT15)
The purpose of providing the stipulation is as an example of what may be considered purchase requirements during the
potential acquisition of AVISTA UTILITIES Co's by an outside company (HYDRO ONE). Specifically, as the stipulation
applies to Natural Gas customers that are considered "Underservered, or unserved". (Please see excerpt of stipulation
below).
Over 40 of my neighbors (near/along 2502 SUNNYSIDE RD, Sandpoint, lD) have signed a petition to request
consideration of Avista's natural gas pipeline extension. A request for extension to this unserved area has been ongoing
for over 10 years and we believe the opportunity will become evermore challenged should AVISTA be purchased.
As a neighborhood representative of the petition submitted to Avista's Jim Kane on 29MAY18, we would like to request
the IPUC to schedule comments of a similar proposed stipulation. We desire the IPUC to respond to the potential
implementation of the stipulation during the upcoming public hearing scheduled at the Sandpoint High Schoolat 5PM
Wednesday 13JUN18.
I can provide a copy of the entire New Mexico Gas Co, lNC. stipulation (CASE#: 15-00327-UT or you may find it on their
website: www.nmprc.state.nm.us). click on the following path to find the Case number details on page 37L of 386 pages
in the "2016 ANNUAL REPORT". Path: Consumer Relations/Company Directory/Gas/New-Mexico-Gas-Company/Annual
Reports/2016. The title of the document is: "NMGCI-Annual Final Orders Report-Rule L7.L.2.LOB2(d) NMAC-"FlNAL
ORDERS THROUGH DECEMBER 3L,2OL6.
The important "excerpt" of the stipulation is as follows:
NMGC agrees to establish, at shareholder expense, a matching fund of S10 million for the specific purpose of extending
NMGC's natural gas infrastructure to existing communities in New Mexico that are underserved or unserved
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(community defined as greater than 10 new customers) (the "Fund"). Through the Fund, NMGC will match on a 1:1 basis
money provided by existing communities that are underserved or unserved to pay for the cost of extending NMGC's
natural gas infrastructure to the existing communities that are underserved or unserved. The Fund will have a maximum
life of five years from the later of a) Closing, b) the posting of notice of the Fund on the NMGC website, or c) the delivery
of notice of the Fund to Staff for posting to the NMPRC website ("Five-year Period"). NMGC will work with Staff on the
form and content of the notice. The Fund will terminate upon the earlier of the exhaustion of the Fund through
allocation, or the end of the Five-year Period. ln the event that at the end of the Five-year Period, less than Sg million
has been allocated for gas infrastructure expansion projects, NMGC agrees to reallocate the difference between the
amount matched and 53 million for economic development as identified in subparagraph 18c below, and any further
obligations under this paragraph shall expire. At the end of the Five-Year Period, any amounts exceeding Sg million
remaining in the Fund and not allocated for gas infrastructure expansion projects shall be retained by the shareholders.
Any funds Unopposed Stipulation 8 NMPRC Case No. 15-00327-UT NMGCO#3222833 Co expended pursuant to this
paragraph will be treated as a shareholder expense, thus, (1) NMGC will not include them in rate base and therefore will
not earn a return on the expenditures and (2) NMGC will not seek recovery of any depreciation associated with the
expenditures. ln all future base rate proceedings, revenues associated with this extended infrastructure will be
accounted for in a manner consistent with similar revenues earned by NMGC. NMGC will identify amounts expended by
the Fund in an annualcompliance filing with the Commission.
Respectful ly submitted,
Patrick W. Cave
2502 Sunnyside Rd.
Sandpoint, lD 83864
email: [e-mail]
U niq ue ldentifier: 7 2.t68.L6O.2
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