Application.pdf

INTERMOUNTAIN GAS COMPANY
CASE NO. INT-G-00-02
APPLICATION,
EXHIBITS,
AND
WORKPAPER
In the Matter of the Application of INTERMOUNTAIN GAS COMPANY
for Authority to Increase Its Prices on December 1, 2000
(December 1, 2000 Purchased Gas Cost Adjustment Filing)
APPLICATION - 2
Morgan W. Richards, Jr.
MOFFATT, THOMAS, BARRETT, ROCK & FIELDS, CHARTERED
PO Box 829, Boise, Idaho 83701
Telephone [phone]
MTBR&F 11-500.290
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
In the Matter of the Application of
INTERMOUNTAIN GAS COMPANY
for Authority to Increase Its Prices
Case No. INT-G-00-
APPLICATION
Intermountain Gas Company ("Intermountain"), an Idaho corporation with general offices
located at 555 South Cole Road, Boise, Idaho, hereby requests authority, pursuant to Idaho Code
Sections 61-307 and 61-622, to place in effect December 1, 2000 new rate schedules which will
increase its revenues for the December 1, 2000 to June 30, 2001 period by approximately $35.8
million, pursuant to the Rules of Procedure of the Idaho Public Utilities Commission
(“Commission”). Because of changes in Intermountain’s commodity gas costs, as described more
fully in this Application, Intermountain’s earnings will not be increased as a result of the proposed
increase in prices and revenues. Intermountain’s current rate schedules showing proposed changes
are attached hereto as Exhibit No. 1 and are incorporated herein by reference. Intermountain’s
proposed rate schedules are attached hereto as Exhibit No. 2 and are incorporated herein by
reference.
Communications in reference to this Application should be addressed to:
Michael E. Huntington
Vice President – Marketing & External Affairs
Intermountain Gas Company, Post Office Box 7608, Boise, ID 83707
and
Morgan W. Richards, Jr.
Moffatt, Thomas, Barrett, Rock & Fields, Chartered
Post Office Box 829, Boise, ID 83701
In support of this Application, Intermountain does allege and state as follows:
APPLICATION - 3
I.
Intermountain is a gas utility, subject to the jurisdiction of the Idaho Public Utilities
Commission, engaged in the sale of and distribution of natural gas within the State of Idaho under
authority of Commission Certificate No. 219 issued December 2, 1955, as amended and
supplemented by Order No. 6564, dated October 3, 1962.
Intermountain provides natural gas service to the following Idaho communities and counties
and adjoining areas:
Ada County - Boise, Eagle, Garden City, Kuna, Meridian, and Star;
Bannock County - Chubbuck, Inkom, Lava Hot Springs, McCammon, and Pocatello;
Bear Lake County - Georgetown, and Montpelier;
Bingham County - Aberdeen, Basalt, Blackfoot, Firth, Fort Hall, Moreland/Riverside, and Shelly;
Blaine County - Bellevue, Hailey, Ketchum, and Sun Valley;
Bonneville County - Ammon, Idaho Falls, Iona, and Ucon;
Canyon County - Caldwell, Greenleaf, Middleton, Nampa, Parma, and Wilder;
Caribou County - Bancroft, Conda, Grace, and Soda Springs;
Cassia County - Burley, Declo, Malta, and Raft River;
Elmore County - Glenns Ferry, Hammett, and Mountain Home;
Fremont County - Parker, and St. Anthony;
Gem County - Emmett;
Gooding County - Gooding, and Wendell;
Jefferson County - Lewisville, Menan, Rigby, and Ririe;
Jerome County - Jerome;
Lincoln County - Shoshone;
Madison County - Rexburg, and Sugar City;
Minidoka County - Heyburn, Paul, and Rupert;
Owyhee County – Bruneau, Homedale;
Payette County - Fruitland, New Plymouth, and Payette;
Power County - American Falls;
Twin Falls County - Buhl, Filer, Hansen, Kimberly, Murtaugh, and Twin Falls;
Washington County - Weiser.
Intermountain's properties in these locations consist of transmission pipelines, a compressor
station, a liquefied natural gas storage facility, distribution mains, services, meters and regulators,
and general plant and equipment.
II.
Intermountain seeks with this Application to pass through to each of its customer classes an
increase in gas commodity costs resulting from: 1) an increase in Intermountain's Weighted
Average Cost of Gas, or “WACOG”, and 2) the inclusion of a temporary surcharge for seven
months relating to under collected gas commodity costs from Intermountain's deferred gas cost
APPLICATION - 4
account. The aforementioned changes would result in an overall price increase to Intermountain’s
RS-1, RS-2, GS-1 and LV-1 customers.
These price changes are applicable to service rendered under rate schedules affected by and
subject to Intermountain's Purchased Gas Cost Adjustment ("PGA"), approved by this Commission
in Order No. 26019, Case No. INT-G-95-1.
Exhibit No. 3 summarizes the price changes in: 1) Intermountain's WACOG, and 2) the
temporary surcharge flowing through to Intermountain's direct sales customers. Exhibit No. 3 is
attached hereto and incorporated herein by reference.
III.
The current prices of Intermountain are those approved by this Commission in Order
No. 28426, Case No. INT-G-00-1.
IV.
The WACOG reflected in Intermountain's proposed prices is $0.42296 per therm, as shown
on Exhibit No. 3, Line 3, Column (b). The WACOG incorporates supplier contracts and estimated
prices that will be in effect during the PGA period December 1, 2000 through June 30, 2001. While
energy costs have risen dramatically over the last 18 months and have caused home heating prices
nationally to rise commensurately, the cost for natural gas supplies delivered into the Northwest
have also increased dramatically including those gas costs that were reflected in Case No. INT-G-
00-1.
The effect of the increased commodity prices have been mitigated however by several cost-
effective measures taken by Intermountain. These measures include the management of storage
operations whereby natural gas is injected into storage during the summer when prices are low and
utilized in the winter when other market prices have increased. Additionally, Intermountain’s
customers continue to benefit from the revenues generated by the segmentation of Intermountain’s
interstate capacity as well as the cost savings from interstate capacity purchased at a discount from
the full tariffed rate. Intermountain has also been able to manage the distribution cost component
of its tariff price such that it has not been increased in over 15 years.
APPLICATION - 5
V.
Intermountain proposes to allocate deferred gas costs from its Account No. 186 balance
to its customers through a temporary price adjustment effective during the 7-month period ending
June 30, 2001. Intermountain has been deferring in its Account No. 186 deferred gas cost debits
of approximately $9,300,000 [Exhibit No. 3, Line 5, Col. (b)], attributable to variable gas costs.
Intermountain proposes to collect this debit balance via a per therm surcharge, as shown on
Exhibit No. 3, Line 7.
VI.
Intermountain has allocated the proposed price changes to each of its customer classes
based upon Intermountain's PGA provision.
VII.
Exhibit No. 4 is an analysis of the overall price changes by class of customer. Exhibit No. 4
is attached hereto and incorporated herein by reference.
VIII.
The proposed overall price change herein requested among the classes of service of
Intermountain will not affect Intermountain's earnings, and is just, fair, and equitable.
IX.
This Application is filed pursuant to the applicable statutes and the Rules and Regulations
of the Commission. This Application has been brought to the attention of Intermountain's
customers through a Customer Notice and by a Press Release sent to daily and weekly newspapers,
and major radio and television stations in Intermountain's service area. The Press Release and
Customer Notice are attached hereto and incorporated herein by reference. Copies of this
Application, Exhibits and Workpaper have been provided to those parties regularly intervening in
Intermountain's rate proceedings.
X.
The public interest does not require a hearing on this Application and Intermountain,
therefore, requests that this matter be handled under modified procedure pursuant to Rules 201-204
of the Commission's Rules of Procedure. Intermountain stands ready for immediate consideration
of this matter.
APPLICATION - 6
WHEREFORE, Intermountain respectfully petitions the Idaho Public Utilities Commission
as follows:
a. That the proposed rate schedules herewith submitted as Exhibit No. 2 be approved
without suspension and made effective as of December 1, 2000 in the manner shown on Exhibit
No. 2.
b. That this Application be heard and acted upon without hearing under modified
procedure, and
c. For such other relief as this Commission may determine proper herein.
DATED at Boise, Idaho, this 27th day of October, 2000.
INTERMOUNTAIN GAS COMPANY MOFFATT, THOMAS, BARRETT, ROCK
& FIELDS, CHARTERED
By /s/ Michael E. Huntington By /s/ Morgan W. Richards, Jr.
Michael E. Huntington Morgan W. Richards, Jr.
Vice President
Marketing & External Affairs
Of the Firm
Attorneys for Intermountain Gas Company
APPLICATION - 8
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on this 27th day of October, 2000, I served a copy of the
foregoing Case No. INT-G-00- upon:
John R. Hammond, Jr.
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington St., PO Box 83720
Boise, ID 83720-0074
Edward A. Finklea
Energy Advocates LLP
526 NW 18th Avenue
Portland, OR 97209
R. Scott Pasley
J. R. Simplot Company
PO Box 27
Boise, ID 83707
David Hawk
J. R. Simplot Company
PO Box 27
Boise, ID 83707
Conley E. Ward, Jr.
Givens, Pursley, Webb & Huntley
277 N. 6th St., Suite 200
PO Box 2720
Boise, ID 83701
Paula E. Pyron, Executive Director
Northwest Industrial Gas Users
4113 Wolf Berry Court
Lake Oswego, OR 97035
Wendell M. Phillips
615 South Phillippi Street
Boise, ID 83705
by depositing true copies thereof in the United States Mail, postage prepaid, in envelopes addressed
to said persons at the above addresses.
/s/ Michael P. McGrath
Michael P. McGrath
Director
Market Services and Regulatory Affairs