20030115Reply Comments.pdf

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EXECUTIVE OFFICES
INTERMOUNTAIN GAS COMPANY HECEJVED
555 SOUTH COLE ROAD. P.O. BOX 7608. BOISE, IDAHO 83707. (208) 377-600d7.tt\1Q')77-6097
January 15 , 2003 20G3 JAN \ Pt~ 4: 23
Ms. Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington St.
O. Box 83720
Boise, Idaho 83720-0074
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Re:COMMENTS OF THE COMMISSION STAFF
IPUC Case No. INT-02-
Dear Ms. Jewell:
Intermountain Gas Company respectfully submits the following remarks in response to the
Comments of the Commission Staff filed as part of the above referenced Case.
The purpose of the Company s Application submitted to the Commission as part of the above
referenced Case was to update the depreciation parameters and rates established in Case No.
INT -99-2. The depreciation rates proposed by the Company are those appropriate to be
applied to the Company s plant in service to enable recovery of its investment, adjusted for
net salvage, over the plants useful life.
While the Company believes that its proposed depreciation parameters are supported by the
study filed as part of the above referenced Case, the Company also acknowledges the
concerns raised by the Staff in their Comments. Pursuant to Commission Order No. 28311
Intermountain Gas Company files an updated depreciation study with this Commission on a
three (3) year cycle. Intermountain believes the next filed study will not only shore up many
of the parameters filed with this Case, but will also provide the Staff with an added measure
of confidence in the Company s recommendations. Therefore, Intermountain respectfully
suggests that the Commission adopt the changes as proposed by the Staff.
Intermountain Gas Company appreciates the opportunity to respond to the Comments of the
Commission Staff and requests that the Commission considers the Company s remarks when
making their final decision in this Case. We would like to thank the Commission Staff for
their insightful dialog with the Company in dealing with such a technically challenging aspect
of our business.
Sincerely,
Michael P. McGrath
Director
Market Services & Regulatory Affairs