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Home My WebLink About20230314Staff Workshop.pdfWorkshop Participation Online: To open chat in WebEx, please select the icon. Type questions and comments in the chat box; Please use the “all panelists” option when using chat to ensure your message will be seen. To speak, click on the hand in the lower right corner. On the phone: *3 is the command to raise and lower your hand; When your line has been un-muted, you will hear an announcement indicating that. This PowerPoint is available on the commission’s homepage at puc.idaho.gov. *This workshop is being recorded* 1 2 3 Introduction Purpose of Public Workshop Informational session to learn about the case •Present Intermountain Gas Company’s application. •Explain Staff’s role. Provide customers an opportunity to meet Commission Staff. Ask questions and learn how to submit written public comments. This Public Workshop is not part of the official case record. 4 •Established in 1913. Idaho Code Sections 61 and 62. •The Commission regulates Idaho’s investor-owned utilities, ensuring adequate service and reasonable rates. •The Commission is made up of three commissioners appointed by the Governor and confirmed by the Senate. The Commissioners make the decisions in each case. •Commission Staff is made up of Auditors, Consumer Compliance Investigators, Engineers, Technical Analysts, and Admin. •Staff is conducting this workshop. Staff is one of the Parties in the rate case and providing testimony to the Commissioners. What is the Idaho Public Utilities Commission? 5 Application Process Customers may want the Commission to reject Intermountain Gas Company’s request to raise rates, but state law requires that the Commission: •Consider the evidence that is on the record, which includes the Intermountain Gas Company’s Application, testimony from Staff & Parties, and customers’ written comments or oral testimony at public customer hearings. •Meet the statutory public interest standard that ensures customers have adequate, safe, and reliable service at just and reasonable rates. Important Points to Consider: •It is not in the public interest to have a utility that cannot adequately serve all the customers in its assigned territory now and in the future. •All Commission decisions must withstand Idaho Supreme Court appeals from either utility or customer groups. 6 Application Process Additional Point to Consider: •Regulated utilities are not like any other business. They are assigned service territories and must serve every customer in that territory. What they charge customers is determined by state regulators. In exchange for their guarantee to provide adequate, safe, and reliable service, the state must provide utilities the opportunity to: •Recover prudently incurred expenses necessary to serve customers, and; •Earn a reasonable rate of return on their investment. 7 8 Application Filed December 1, 2022. Requested rate increase effective January 1, 2023. •On December 21, 2022, the Commission suspended the effective date by 30 days and five months. 9 Application Initial filing, proposed a 3.2% overall revenue increase. •Increase of $11.3 million. On March 9, 2023, Company filed an amended Application. •Adjusted increase of $6.8 million. •Proposed overall revenue increase of 1.9%. 10 Rate Case Drivers Last rate case was in 2016. Since last rate case: Net capital investments (Net Plant In Service) $150 million since 2016. Infrastructure such as transmission and distribution mains, service lines, meters, and cybersecurity, and software systems. 11 Rate Case Drivers, cont. Operating Expense increases Includes increases in software, labor, benefits, and taxes. Adjustment to depreciation rates. Other adjustments: Projects added to Plant in Service. 12 Rate Case Drivers, cont. Intermountain Gas Company maintains the increase is needed to: Provide sufficient capital dollars to maintain & improve quality of service; Provide adequate operation and maintenance coverage; and, Maintain a sound financial position. 13 14 Revenue Requirement The amount that Intermountain Gas Company needs to meet its expenses, cover depreciation, and offer a sufficient rate of return to attract investors. Components: Operating Expenses; Taxes; Depreciation; Return on Investments. 15 Expenses Must be prudent Must be used for service Taxes Properly Calculated Depreciation Properly Calculated Based only on Plant that is in Service. 16 Return on Investments Plant in Service: Used and Useful in serving customers. Must be prudent. Rate of Return: Calculated based on Debt and Equity Costs; and, Must be able to access the capital needed to maintain the system and to provide safe & reliable service to customers. 17 18 Rate Structure Overview 19 Company’s Revenue Requirement is recovered through two types of charges: Customer Charge Fixed amount paid on each monthly bill ($/month) Distribution Charge. Rate based on amount of consumption ($/therm) Company is proposing to increase amount of recovery of Revenue Requirement through the Customer Charge and decrease the amount in the Distribution Charge. Proposed Customer Charge Per Month ($/month) 20 Rate Class Current Charge Proposed Charge Change in $ Percent Change Residential $5.50 $9.00 $3.50 63.64% Residential –Interruptible $5.50 $8.00 $2.50 45.46% General Service $9.50 $15.00 $5.50 57.89% General Service –Interruptible $9.50 $12.50 $3.00 31.58% Large Volume $0.00 $150.00 $150.00 Transport Service –Firm $0.00 $150.00 $150.00 Transport Service –Interruptible $0.00 $300.00 $300.00 Proposed Distribution Charge Residential & General Service1 ($/therm) 21 Rate Class Current Charge Proposed Charge Percent Change Residential $0.16305 $0.12811 -21.43% General Service –First 200 Therms $0.18465 $0.17281 -6.41% General Service –Next 1,800 Therms $0.16117 $0.15083 -6.42% General Service –Next 8,000 Therms $0.13850 $0.12962 -6.41% General Service –Over 10,000 Therms $0.06994 $0.06545 -6.42% 1 General Service, Irrigation Customers, and Small Commercial Interruptible have same declining tiered block distribution rates and proposed decreases. Proposed Distribution Charge Large Volume –($/therm) 22 Rate Class Current Charge Proposed Charge Percent Change Demand Charge $0.30 $0.32 6.67% Overrun Demand $0.30 $0.32 6.67% Block 1 –First 250,000 Therms $0.03000 Block 2 –Next 500,000 Therms $0.01211 Block 3 –Over 750,000 Therms $0.00307 Proposed Block 1 –First 35,000 Therms $0.03000 Proposed Block 2 –Next 35,000 Therms $0.01483 Proposed Block 3 –Over 70,000 Therms $0.01190 Proposed Distribution Charge Transport –Firm ($/therm) 23 Rate Class Current Charge Proposed Charge Percent Change Demand Charge $0.30000 $0.32000 6.67% Overrun Demand Charge $0.30000 $0.32000 6.67% Block 1 –First 250,000 Therms $0.02395 $0.02271 -5.20% Block 2 –Next 500,000 Therms $0.00847 $0.00803 -5.20% Block 3 –Over 750,000 Therms $0.00260 $0.00246 -5.20% Proposed Distribution Charge Transport –Interruptible ($/therm) 24 Rate Class Current Charge Proposed Charge Percent Change Block 1 –First 100,000 Therms $0.03853 $0.03727 -3.27% Block 2 –Next 50,000 Therms $0.01569 $0.01518 -3.27% Block 3 –Over 150,000 Therms $0.00578 $0.00559 -3.27% Average Bill Impact Per Month 25 Average Residential Bill Impact 60 Therms. Increase $1.40 or 2.83%. Average General Service Bill Impact 300 Therms. Increase $2.10 or 0.90%. 26 Consumer Assistance •Utility Compliance Investigators assist customers to resolve issues and/or disputes with the Company. •Investigators monitor compliance with laws, commission rules, and the Company’s tariff. •In a rate case, investigators review issues from previous cases, review previous complaints, review submitted comments from customers, and investigate consumer issues raised in the case. 27 Consumer Issues As of this week, the PUC has received 6 Customer Comments •All of the comments were against the increase; •The amount of the increase is too much; •The economy and high cost of living. 28 CUSTOMER COMMENTS Customer written comments are due prior to the Commission closing the record on the case. (Reference Case Number INT-G-22-07) •Internet Website Address –puc.idaho.gov •Select -Case Comment Form (once comments are submitted, they become part of public record) •Email –Address: secretary@puc.idaho.gov •Mail –IPUC, PO Box 83720, Boise, ID 83720-0074oBlank Customer Comments sheets are available here tonight to be mailed in or left with Staff. •Public Customer Hearing –TBD COMMENTS ONLY (QUESTIONS WILL NOT BE ADDRESSED) 29 Idaho Public Utilities Homepage 30 Comments Form Page 31 PUC Home Page 32 Natural Gas Page 33 Open Natural Gas Cases Page 34 Case Summary Page 35 36 Event Date Location Case Filed December 1, 2022 Public Workshop Today (March 15, 2023)11 a.m. Pocatello Public Workshop Today (March 15, 2023)6 p.m. Twin Falls Public Workshop March 21, 2023, at 6:00 PM MST Boise, ID Staff Testimony April 26, 2023 Written Public Comments File Now (Deadline TBD) Company Rebuttal Testimony May 17, 2023 Public Customer Hearing TBD TBD Technical Hearing TBD TBD Close of Case Final Order Proposed Effective Date Final Order •Customers can subscribe to the Commission’s RSS feed to receive updates about all cases via email. •Continue submitting your comments. •Public Customer Hearing, date is TBD. •The Commission will issue a final order which will close the case. Where do we go from here? 37 38 39 Workshop Participation Online: To open chat in WebEx, please select the icon. Type questions and comments in the chat box; Please use the “all panelists” option when using chat to ensure your message will be seen. To speak, click on the hand in the lower right corner. On the phone: *3 is the command to raise and lower your hand; When your line has been un-muted, you will hear an announcement indicating that. This PowerPoint is available on the commission’s homepage at puc.idaho.gov. *This workshop is being recorded* 40