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HomeMy WebLinkAbout20021018Application.pdfINTERMOUNTAIN GAS COMPANY CASE NO. INT-G-O2- tJ1./ APPLICATION and EXHIBIT In the Matter of the Application of INTERMOUNTAIN GAS COMPANY for Approval to Place into Effect an Increase in Its Composite Depreciation Rate RECEIVED mfiLED Morgan W. Richards, Jr. lDSlOCT 18 Pf13: 31 MOFFATT, THOMAS, BARRETT, ROCK & FIELDS , CHARTEREDPo~t Office Box 829 UTiLlT g~D d~~~l~S'ONBoise, Idaho 83701 Telephone (208) 345-2000 MTBR&F 11-500.283 Attorneys for Intermountain Gas Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION In the Matter of the Application of INTERMOUNTAIN GAS COMPANY for) Approval to Place into Effect an Increase in Its Composite Depreciation Rate Case No. INT-02- APPLICATION COMES NOW Intermountain Gas Company ("Intermountain" or "Applicant") and pursuant to Idaho Code , Title 61 , and Rules 6.2 and 23 of the Rules of Practice and Procedure of the Idaho Public Utilities Commission ("Commission ), makes an application seeking approval to place into effect an increase in its composite depreciation rate. Communication in reference to this Application should be addressed to: Michael E. Huntington Vice President - Marketing and External Affairs Intermountain Gas Company PO Box 7608 Boise , 1083707 and Morgan W. Richards, Jr. Moffatt, Thomas, Barrett, Rock & Fields , Chartered PO Box 829 Boise , 1083701 In support of this Application , Intermountain does allege and state as follows: APPLICATION - Intermountain is an Idaho corporation , whose principal place of business is 555 South Cole Road , Boise, Idaho, and is qualified to do business in the state of Idaho. II. Intermountain is a gas utility, subject to the jurisdiction of the Idaho Public Utilities Commission , engaged in the sale 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 Articles of Incorporation and amendments thereto are on file with this Commission in Case No. U-1034-120 to which reference is hereby made. 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 , lona , 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 - Bliss , 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. APPLICATION - III. Intermountain currently effective composite depreciation rate of 3.71% was approved by this Commission in Case No. INT-99-, Order No. 28311 , dated March , 2000. The Commission states in its Order No. 28311 "that the Company depreciation rates and methodology be revisited in three years. IV. With each update of the Company s depreciation parameters and associated rates , special circumstances regarding Intermountain s recovery rates are addressed. The last study in Case No. INT-99-2 addressed the update of the parameters and the conversion of a number of support asset accounts to amortizations. In this study, Intermountain s planned deployment of electronic meter reading equipment and the recovery of the associated investment has been addressed by establishing unique depreciation parameters and rates for that investment. Also, the service life and estimated removal cost of the Company s LNG facilities, which have not been addressed in the last two depreciation study cycles, have been addressed. Intermountain has contracted the services of AUS Consultants , the same outside consultant employed as part of Case Nos. INT-94-, INT-96-7 and INT-99-, to perform an update to the 1998 depreciation study. The results of this study indicate that the Intermountain s current rate is underdepreciating its assets. Therefore , Intermountain requests an increase in its composite depreciation rate from 3.71 % (3.93% when weighted by 09/30/01 assets) to 4.08%. The effect of the higher rate would be to increase Intermountain s annual depreciation accrual and to decrease Intermountain ratebase by $428 482 annually. VI. Intermountain does not seek an increase in its prices at this time to recover the proposed increase in depreciation expense. APPLICATION - VII. The current definition of depreciation used by the Federal Energy Regulatory Commission and the National Association of Regulatory Commissioners is as follows: Depreciation " as applied to depreciable utility plant, means the loss in service value not restored by current maintenance, incurred in connection with the consumption or prospective retirement of utility plant in the course of service from causes which are known to be in current operation and against which the utility is not protected by insurance. Among the causes to be given consideration are wear and tear, decay, action of the . elements inadequacy, obsolescence , changes in the art, changes in demand , and requirements of public authorities. The American Institute of Certified Public Accountants in its Accounting Terminology Bulletin #1 defines depreciation accounting as follows: Depreciation accounting is a system of accounting which aims to distribute cost or other basic value of tangible capital assets , less salvage (if any), over the estimated useful life of the unit (which may be a group of assets) in a systematic and rational manner. It is a process of allocation , not of valuation. The prescription of depreciation rates is an important element of the regulatory process because it must allocate the full cost of an asset over the life of the property items in a rational manner. VIII. The depreciation study update filed with this case was based upon the books and records of the Company as of September 30, 2001. The calculation of the amount of the annual depreciation expense required per year was calculated on an individual account basis. The methods used in the calculation were the Simulated Plant Record Balances Method and the Simulated Plant Retirement Method. These Methods both use the "Iowa Curves" type mortality distribution. The current study was conducted using the Company s data and the "Iowa Curves" as described in the NARUC publication of July 25, 1984 , " Depreciation Practices for Small Gas Distribution Companies . The current study is summarized and shown in Exhibit No.1 attached hereto and incorporated APPLICATION - herein by reference. A copy of the current depreciation study working papers, which is voluminous, is available for inspection at Intermountain s general business office. IX. During the recent three-year period , the original cost of depreciable property increased from $234 093 752 to $280 990 082, as shown in Column d , Line 25 , on Page 1 of Exhibit No.1 and the accumulated reserve increased from $116,479 251 , to $143 992 182, as shown in Column e , Line 25, on Page 1 of Exhibit No.1. The current study would require an annual accrual of $11,462 932 of depreciation and amortization expense to be accrued per year for the remaining life of the property as shown in Column n , Line 25 , on Page 2 of Exhibit No. The current study indicates an increase is needed to the composite rate from the current rate of 3.71 % (3.93% when weighted by 09/30/01 assets) to 4.08% an increase of 15% (0.0015). This increase is required in order to accrue the proper dollars over the remaining life of the property. Exhibit No., Pages 2 through 4, contain a summary comparison by plant function and by account of the current depreciation rates and the proposed and requested depreciation rates and amortizations in this Application. XI. Intermountain asks that the increase to the annual composite depreciation rate and amortizations be made effective at the beginning of the Applicant's fiscal year or October 1 2002. XII. Intermountain asks that this matter be processed pursuant to the Commission Rules of Modified Procedure. Applicant stands ready to respond to any requests for information. APPLICATION - XIII. WHEREFORE , Applicant respectfully petitions this Commission for relief as follows: (1 )That Applicant be authorized to increase the current composite depreciation rate on an account by account basis from 3.71% (3.93% when weighted by 09/30/01 assets) to 4.08% as shown in Column (i), on Exhibit No., page 1. (2)That the Applicant's current prices remain unchanged as a result of this Application. (3)That Applicant be authorized to record the increase in the annual composite depreciation rate effective at the beginning of the Applicant's fiscal year or October 1 2002. (4)For such other relief as this Commission deems just. DATED at Boise, Idaho, this 18th , day of October 2002. INTERMOUNTAIN GAS COMPANY /JuJd ~~~ Michael E. Huntington Vice President - Marketing & External Affairs MOFFATT, THOMAS, BARRETT, ROCK & FIELDS , CHARTERED BY jI\.(~u. organ W. ichards, Jr. - Of th irm Attorneys for Intermountain Gas Company APPLICATION - EXHIBIT NO. CASE NO. INT -O2- INTERMOUNTAIN GAS COMPANY (Depreciation Study) (4 pages) In t e r m o u n t a i n G a s C o m p a n y Su m m a r y o f P r e s e n t a n d P r o p o s e d De p r e c i a t i o n P a r a m e t e r s Ne t C h a n g e i n A n n u a l A c c r u a l s De p r e c i a t i o n A c c r u a l P a r a m e t e r s a n d E x p e n s e s (V i n t a g e L I f e G r o u p P r o c e d u r e s ) St u d y D a t e S e p t e m b e r 3 0 , 2 0 0 1 9/ 3 0 / 2 0 0 1 9/ 3 0 / 2 0 0 1 9/ 3 0 / 2 0 0 1 Pr e s e n t Pr o li n e Ac c o u n t St u d y In v e s t m e n t Re s e r v e d Pe r c e n t An n u a l An n u a l Nu m b e r N u m b e r Ac c o u n t N Ba l a n c e In v e s t m e n t Re s e r v e d Ac c r u a l An n u a l Ac c r u a l An n u a l Ne t Ba l a n c e Ra t e Ac c r u a l s Ra t e Ac c r u a l s Ch a n g e (a ) (b ) (c ) (d ) (e ) (f ) (g ) (h ) (i ) (e ) / ( d ) d . 36 3 , LN G LN G P l a n t 66 4 62 4 , 77 8 , 80 7 10 1 , 10 % 31 1 69 % 12 9 53 2 45 , 22 1 Su b t o t a l S t o r a g e P l a n t 66 4 , 62 4 77 8 , 80 7 10 1 . 10 % 31 1 69 % 12 9 53 2 22 1 36 5 . RO W Ri g h t o f W a y 60 0 , 05 9 13 0 , 94 6 21 , 67 % 02 2 00 % 00 2 (4 , 02 0 ) 36 7 , TM N Tr a n s m i s s i o n M a i n s 30 , 31 0 , 72 5 21 , 4 3 0 , 4 6 6 70 , 57 % 08 2 09 3 26 % 29 1 , 23 7 20 9 , 14 4 36 8 , TC S Co m p r e s s o r E q u i p m e n t 96 5 , 57 0 91 3 , 4 1 3 46 , 63 % 71 , 35 0 67 % 13 6 78 6 37 0 , TC E Co m m u n i c a t i o n E q u i p m e n t 71 4 , 4 4 0 71 5 54 2 10 0 . 89 % 35 9 84 % 00 1 (3 5 8 ) Su b t o t a l T r a n s m i s s i o n P l a n t 33 , 59 0 79 4 23 , 19 0 , 36 7 69 . 52 % 18 1 82 4 13 % 38 7 37 6 20 5 , 55 2 37 4 , LR T La n d R i g h t s 27 8 , 84 5 16 9 , 00 3 60 . 12 % 91 2 05 % 71 6 (1 9 6 ) 37 5 , ST R St r u c t u r e s a n d I m p r o v e m e n t s 86 4 76 6 94 , 95 % 36 8 04 % 19 6 (1 7 2 ) 37 6 , MN S Ma i n s 10 2 , 4 4 4 87 7 03 7 28 4 49 , 60 % 68 8 , 01 6 02 % 11 8 28 4 43 0 26 8 37 8 . MR G Re g u l a t o r S t a t i o n E q u i p m e n t 19 9 28 6 57 0 , 91 6 49 , 3. 4 4 % 11 0 , 05 5 35 % 10 7 17 6 (2 , 87 9 ) 38 0 , SV C Se r v i c e s 86 , 4 5 1 68 6 41 , 02 5 , 14 3 47 , 64 % 01 1 , 35 8 54 % 92 4 , 90 7 (8 6 , 4 5 1 ) 38 1 , MT R Me t e r s 13 , 4 9 7 20 7 38 4 90 6 39 . 29 % 44 4 05 8 81 % 37 9 27 2 (6 4 , 78 6 ) 38 1 . ER T El e c t r o n i c M e t e r R e a d i n g ( E R T 29 2 , 32 4 19 7 18 . 29 % 61 7 63 % 19 , 38 1 76 4 38 2 , MT I Me t e r I n s t a l l a t i o n s 56 8 , 37 4 22 8 37 6 33 . 21 % 21 0 84 5 80 % 18 3 91 4 (2 6 , 93 1 ) 38 2 . ER I ER T I n s t a l l a t i o n s 51 9 10 , 10 8 18 . 21 % 75 0 63 % 61 5 86 5 38 3 , HR G Ho u s e R e g u l a t o r s 3, 4 0 7 11 9 1, 4 2 1 17 5 41 . 03 % 10 3 , 23 6 67 % 97 0 (1 2 , 26 6 ) 38 4 . HR I Ho u s e R e g u l a t o r s - I n s t a l l a t i o n 23 5 19 0 58 9 , 4 6 6 ' 2 6 . 4 % 18 % 07 9 85 % 63 , 70 3 (7 , 37 6 ) 38 5 , IM R Re g u l a t o r S t a t i o n - I n d u s t r i a l 02 3 , 23 1 04 4 26 6 43 , 15 % 29 1 , 4 6 4 01 % 28 1 63 2 (9 , 83 2 ) Su b t o t a l D i s t r i b u t i o n P l a n t 22 5 , 4 7 1 52 2 10 6 , 55 2 , 60 6 47 , 97 % 94 7 75 8 07 % 17 8 , 76 6 23 1 , 00 8 "' U - ~O J x co (1 ) e n : : r 39 0 , GS I St r u c t u r e s a n d I m p r o v e m e n t s 76 4 , 35 8 66 2 08 4 47 . 80 % 21 7 , 4 0 2 83 % 21 9 , 73 1 32 9 (1 ) . . . , (1 ) C ' ... 0 . 5 z ; ; + 39 2 . GT R Tr a n s p o r t a t i o n E q u i p m e n t 65 0 , 38 9 33 0 , 94 9 41 , 10 , 08 % 56 9 , 55 9 10 % 51 4 18 5 (5 5 , 37 4 ) Q c Q z 39 6 , GP E Po w e r O p e r a t e d E q u i p m e n t 84 8 39 5 47 7 36 9 56 . 96 % 59 6 93 % 34 2 (2 5 4 ) -n : J .. , . o r Z : " ' " S' - I Su b t o t a l G e n e r a l P l a n t 26 3 , 14 2 6, 4 7 0 , 4 0 2 45 . 4 % 75 % 82 0 55 7 38 % 76 7 25 8 (5 3 , 29 9 ) G) G ) OJ I 28 0 , 99 0 , 08 2 14 3 99 2 18 2 51 , 93 % 1 1 03 4 , 4 5 0 08 % 11 , 4 6 2 , 93 2 42 8 , 4 8 2 en ~ To t a l D e p r e c i a b l e P l a n t 0 ' -.: : : De p r e c i a t i o n P a r a m e t e r s In t e r m o u n t a i n G a s C o m p a n y Su m m a r y o f P r e s e n t a n d P r o p o s e d Pr o p o s e d D e p r e c i a t i o n R a t e P a r a m e t e r s (D e p r e c i a t i o n L I f e & R a t a P r o c e d u r e s ) De p r e c i a t i o n A c c r u a l P a r a m e t e r s a n d E x p e n s e s St u d y D a t e S e p t e m b e r 3 0 , 2 0 0 1 9/ 3 0 / 2 0 0 1 9/ 3 0 / 2 0 0 1 9/ 3 0 / 2 0 0 1 Li n e Ac c o u n t St u d y In v e s t m e n t Re s e r v e d Pe r c e n t Av e r a g e Av e r a g e An n u a l ou n t N a m In v e s t m e n t Re t i r e m e n t Pr o j e c t i o n Se r v i c e Av e r a g e Re m a i n i n g Ne t Ac c r u a l An n u a l so e sl o n b! ! Q Li f e Ac c r u a l s (a ) (b ) (C ) (d ) (e ) (f ) (g ) (h ) (I ) (k ) (I ) (e ) / ( d ) 36 3 . LN G LN G P l a n t 66 4 , 62 4 77 8 , 80 7 10 1 , R5 , 34 . 24 . 10 . 18 . 4 0 % 69 % 12 9 , 53 2 Su b t o t a l S t o r a g e P l a n t 66 4 62 4 77 8 , 80 7 10 1 , 34 . 24 , 10 , 18 . 40 % 69 % 12 9 , 53 2 36 5 . RO W Ri g h t o f W a y 60 0 , 05 9 13 0 , 94 6 21 , R5 , 32 , 26 . 00 % 00 % 18 , 00 2 36 7 . TM N Tr a n s m i s s i o n M a i n s 30 , 31 0 , 72 5 21 , 4 3 0 , 46 6 70 , R4 . 41 . 25 , 18 , 50 . 00 % 26 % 29 1 23 7 36 8 . TC S Co m p r e s s o r E q u i p m e n t 96 5 57 0 91 3 , 4 1 3 46 , R3 . 28 , 12 , 17 . 10 , 00 % 67 % 72 , 13 6 37 0 . TC E Co m m u n i c a t i o n E q u i p m e n t 71 4 44 0 71 5 54 2 10 0 . R3 , 24 , 20 . 00 % 84 % 00 1 Su b t o t a l T r a n s m i s s i o n P l a n t 33 . 59 0 , 79 4 23 , 19 0 , 36 7 69 . 40 . 23 . 18 , -4 4 , 06 % 13 % 38 7 , 37 6 37 4 , LR T La n d R i g h t s 27 8 , 84 5 16 9 , 00 3 60 . R5 . 48 , 30 , 19 , 00 % 05 % 71 6 37 5 . ST R St r u c t u r e s a n d I m p r o v e m e n t s 18 , 86 4 17 , 76 6 94 , R5 , 46 , 35 , 10 . 00 % 04 % 19 6 37 6 , MN S Ma i n s 10 2 44 4 87 7 51 , 03 7 , 28 4 49 , R4 , 44 , 17 . 27 . 4 60 . 00 % 02 % 11 8 , 28 4 37 8 , MR G Re g u l a t o r S t a t i o n E q u i p m e n t 19 9 , 28 6 57 0 , 91 6 49 . R3 , 32 . 17 , 18 , 10 . 00 % 35 % 10 7 , 17 6 38 0 , SV C Se r v i c e s 86 , 45 1 , 68 6 41 , 02 5 , 14 3 47 . R3 . 36 , 13 , 24 , 60 , 00 % 54 % 92 4 90 7 38 1 . MT R Me t e r s 13 , 4 9 7 , 20 7 38 4 90 6 39 , R3 , 34 . 4 14 . 21 . 4 00 % 81 % 37 9 , 27 2 38 1 . 2 0 ER T Ele c t r o n i c M e t e r R e a d i n g ( E R T 29 2 , 32 4 54 , 19 7 18 . R3 , 15 . 12 . 00 % 63 % 19 , 38 1 38 2 , MT I Me t e r I n s t a l l a t i o n s 56 8 , 37 4 22 8 , 37 6 33 . R3 . 34 , 11 , 23 , 00 % 80 % 18 3 , 91 4 38 2 . ER I ER T I n s t a l l a t i o n s 54 , 51 9 10 , 10 8 18 , R3 , 15 . 12 . 00 % 63 % 61 5 38 3 , HR G Ho u s e R e g u l a t o r s 3, 4 0 7 , 11 9 1, 4 2 1 , 17 5 41 , R3 . 34 . 4 14 , 21 . 8 00 % 67 % 90 , 97 0 38 4 , HR I Ho u s e R e g u l a t o r s - I n s t a l l a t i o n 23 5 , 19 0 58 9 46 6 26 . 4 % R3 . 33 , 25 . 00 % 85 % 63 , 70 3 38 5 , IM R Re g u l a t o r S t a t i o n - I n d u s t r i a l 02 3 , 23 1 04 4 , 26 6 43 , R2 . 26 , 13 . 15 , 00 % 01 % 28 1 63 2 Su b t o t a l D i s t r i b u t i o n P l a n t 22 5 , 47 1 , 52 2 10 6 , 55 2 60 6 47 . 38 , 15 , 24 , -4 8 , 59 % 07 % 17 8 , 76 6 39 0 , GS I St r u c t u r e s a n d I m p r o v e m e n t s 76 4 35 8 66 2 08 4 47 , R2 , 31 , 18 . 16 , 00 % 83 % 21 9 73 1 lJ - ;3 . w x 39 2 . GT R Tr a n s p o r t a t i o n E q u i p m e n t 65 0 , 38 9 33 0 , 94 9 41 , L4 . 15 , 00 % 10 % 51 4 18 5 co C D e n :: J CD " CD 6 ' 39 6 . GP E Po w e r O p e r a t e d E q u i p m e n t 84 8 , 39 5 47 7 36 9 56 . R4 . 15 . 15 . 00 % 93 % 33 , 34 2 N5 Z; : : ; : oc : o Z Su b t o t a l G e n e r a l P l a n t 14 , 26 3 , 14 2 47 0 40 2 45 . 4 % 38 % 76 7 25 8 -" : J ' 0 ~ o r Z : " " S' - - i To t a l D e p r e c i a b l e P l a n t 28 0 , 99 0 , 08 2 14 3 , 99 2 , 18 2 51 . 08 % 11 , 4 6 2 , 93 2 G) G ) W I en a 0 ' i " :: J -.. : : : In t e r m o u n t a i n G a s C o m p a n y De p r e c i a t i o n P a r a m e t e r s Su m m a r y o f P r e s e n t a n d P r o p o s e d Th e o r e t i c a l R e s e r v e A n a l y s i s (V i n t a g e L I f e G r o u p P r o c e d u r e s ) De p r e c i a t i o n A c c r u a l P a r a m e t e r s a n d E x p e n s e s St u d y D a t e S e p t e m b e r 3 0 , 2 0 0 1 9/ 3 0 / 2 0 0 1 9/ 3 0 / 2 0 0 1 9/ 3 0 / 2 0 0 1 Li n e Ac c o u n t St u d y In v e s t m e n t Re s e r v e d Pe r c e n t Fu t u r e Av e r a g e Av e r a g e Av e r a g e Th e o r e t i c a l Nu m b e r Nu m b e r Ac c o u n t N a m e Ba l a n c e In v e s t m e n t Re s e r v e d Ne t Ne t Re m a i n i n g Se r v i c e Re s e r v e Th e o r e t i c a l Re s e r v e Ba l a n c e Sa l v a g e Sa l v a g e LI f e Li f e Pe r c e n t Re s e r v e Va r i a n c e (a ) (b ) (c ) (d ) (e ) (f ) (g ) (h ) (I ) (e ) / ( d ) 36 3 , LN G LN G P l a n t 66 4 , 62 4 77 8 , 80 , 7 10 1 , 18 . 4 0 % 18 . 4 0 % 10 . 34 . 84 . 6, 4 7 4 30 8 (1 , 30 4 , 4 9 9 ) Su b t o t a l S t o r a g e P l a n t 66 4 62 4 77 8 , 80 7 10 1 , 18 . 4 0 % 18 . 4 0 % 10 . 34 . 84 . 6, 4 7 4 , 30 8 (1 , 30 4 , 4 9 9 ) 36 5 , RO W Ri g h t o f W a y 60 0 05 9 13 0 , 94 6 21 , 00 % 00 % 26 , 32 . 18 , 11 2 15 1 (1 8 , 79 5 ) 36 7 , TM N Tr a n s m i s s i o n M a i n s 31 0 , 72 5 21 , 4 3 0 , 4 6 6 70 . 50 , 00 % 50 . 00 % 18 , 41 , 83 . 4 % 25 , 28 2 , 17 6 85 1 , 71 0 36 8 . TC S Co m p r e s s o r E q u i p m e n t 96 5 , 57 0 91 3 , 4 1 3 46 , 10 , 00 % 10 , 00 % 17 , 28 . 43 , 85 8 , 75 8 (5 4 65 5 ) 37 0 , TC E Co m m u n i c a t i o n E q u i p m e n t 71 4 , 4 4 0 71 5 54 2 10 0 . 00 % 00 % 24 . 80 , 57 5 62 4 (1 3 9 , 91 8 ) Su b t o t a l T r a n s m i s s i o n P l a n t 33 , 59 0 , 79 4 23 , 19 0 , 36 7 69 . 44 . 06 % 44 . 06 % 18 , 40 , 79 . 26 , 82 8 , 70 9 63 8 , 34 2 37 4 , LR T La n d R i g h t s 27 8 , 84 5 16 9 , 00 3 60 , 00 % 00 % 19 . 48 . 60 , 16 9 , 14 7 14 4 37 5 , ST R St r u c t u r e s a n d I m p r o v e m e n t s 18 , 86 4 17 , 76 6 94 , 00 % 00 % 10 . 4 46 , 81 . 4 % 15 , 34 8 (2 , 4 1 8 ) 37 6 , MN S Ma i n s 10 2 44 4 87 7 51 , 03 7 28 4 49 . 60 , 00 % 60 , 00 % 27 . 4 44 , 61 . 62 , 98 3 , 11 0 11 , 94 5 , 82 6 37 8 , MR G Re g u l a t o r S t a t i o n E q u i p m e n t 19 9 , 28 6 57 0 , 91 6 49 , 10 . 00 % 10 , 00 % 18 . 32 . 48 . 55 4 , 53 3 (1 6 , 38 3 ) 38 0 , SV C Se r v i c e s 86 , 4 5 1 , 68 6 02 5 , 14 3 47 . 60 . 00 % 60 , 00 % 24 , 36 . 50 , 43 , 82 2 , 36 0 79 7 21 7 38 1 , MT R Me t e r s 13 , 4 9 7 20 7 38 4 , 90 6 39 , 00 % 00 % 21 . 4 34 . 4 37 , 10 0 , 59 5 (2 8 4 , 31 1 ) 38 1 . ER T Ele c t r o n i c M e t e r R e a d i n g ( E R T 29 2 32 4 54 , 19 7 18 . 00 % 00 % 12 . 15 , 18 , 19 7 38 2 . MT I Me t e r I n s t a l l a t i o n s 56 8 , 37 4 22 8 , 37 6 33 . 00 % 00 % 23 , 34 , 30 , 02 2 40 2 (2 0 5 , 97 4 ) . 38 2 . ER I ER T I n s t a l l a t i o n s 51 9 10 , 10 8 18 , 00 % 00 % 12 , 15 , 18 . 10 , 10 8 38 3 . HR G Ho u s e R e g u l a t o r s 3, 4 0 7 11 9 1, 4 2 1 17 5 41 . 00 % 00 % 21 . 34 . 4 36 . 24 8 , 02 8 (1 7 3 , 14 7 ) 38 4 , HR I Ho u s e R e g u l a t o r s . I n s t a l l a t i o n 23 5 , 19 0 58 9 , 4 6 6 26 . 4 % (J . O O % 00 % 25 , 33 , 23 , 51 8 78 8 (7 0 , 67 8 ) 38 5 , IM R Re g u l a t o r S t a t i o n - I n d u s t r i a l 02 3 , 23 1 04 4 26 6 43 , 00 % 00 % 15 . 4 26 , 42 , 00 6 , 64 5 (3 7 62 1 ) Su b t o t a l D i s t r i b u t i o n P l a n t 22 5 , 4 7 1 52 2 10 6 55 2 , 60 6 47 , -4 8 , 59 % 48 , 59 % 24 , 38 . 53 . 4 % 12 0 , 50 5 , 26 1 13 , 95 2 , 65 5 "" ' 0 - ( ) m ~r o x 39 0 . GS I St r u c t u r e s a n d I m p r o v e m e n t s 76 4 35 8 66 2 08 4 47 . 00 % 00 % 16 , 31 . 44 . 3, 4 5 5 , 91 6 (2 0 6 , 16 8 ) CD C D e n : : : r CD - ' CD C ' 39 2 . GT R Tr a n s p o r t a t i o n E q u i p m e n t 65 0 , 38 9 33 0 , 94 9 41 , 15 , 00 % 15 , 00 % 40 , 29 6 , 88 3 (3 4 06 6 ) w~ z; : : : ; : 39 6 , GP E Po w e r O p e r a t e d E q u i p m e n t 84 8 , 39 5 47 7 36 9 56 . 15 , 00 % 15 , 00 % 15 , 44 , 37 4 82 1 (1 0 2 , 54 8 ) 0 c 0 Z -' : J ' 0 ~f i ) z : " ' " Su b t o t a l G e n e r a l P l a n t 26 3 , 14 2 6, 4 7 0 , 4 0 2 45 . 4 % 12 , 33 % 12 , 33 % 15 . 43 . 12 7 62 0 (3 4 2 , 78 2 ) S' - i G) G ) ro I To t a l D e p r e c i a b l e P l a n t 28 0 , 99 0 , 08 2 14 3 , 99 2 , 18 2 51 , -4 0 , 12 % 40 . 12 % 21 , 36 , 56 . 15 9 , 93 5 , 89 8 15 , 94 3 , 71 6 en ~ () , ::J -.. . : : : In t e r m o u n t a i n G a s C o m p a n y Su m m a r y o f P r e s e n t a n d P r o p o s e d De p r e c i a t i o n P a r a m e t e r s Pr e s e n t D e p r e c i a t i o n P a r a m e t e r s (V i n t a g e L I f e G r o u p P r o c e d u r e s ) De p r e c i a t i o n A c c r u a l P a r a m e t e r s a n d E x p e n s e s St u d y D a t e S e p t e m b e r 3 0 , 2 0 0 1 9/ 3 0 / 2 0 0 1 9/ 3 0 / 2 0 0 1 9/ 3 0 / 2 0 0 1 Li n e Ac c o u n t St u d y In v e s t m e n t Re s e r v e d Pe r c e n t Av e r a g e Av e r a g e An n u a l Nu m b e r Nu m b e r Ca t e a o r v Ac c o u n t N a m e Ba l a n c e In v e s t m e n t Re s e r v e d Re t i r e m e n t Se r v i c e Av e r a g e Re m a i n i n g Ne t Ac c r u a l An n u a l Ba l a n c e Dl s o e r s i o n Li f e Li f e Sa l v a a e Ra t e Ac c r u a l s (a ) (b ) (c ) (d ) (e ) (f ) (g ) (h ) (i ) (k ) (I ) (m ) (e ) / ( d ) (I ) * (d ) 36 3 , LN G LN G P l a n t 66 4 , 62 4 77 ~ , 80 7 10 1 , R5 , 30 , 20 . 15 , 00 % 10 % 31 1 Su b t o t a l S t o r a g e P l a n t 66 4 , 62 4 77 8 80 7 10 1 , 30 , 20 . 15 . 00 % 10 % 84 , 31 1 36 5 . RO W Ri g h t o f W a y 60 0 , 05 9 13 0 , 94 6 21 . R5 . 23 , 18 , 00 % 67 % 22 , 02 2 36 7 . TM N Tr a n s m i s s i o n M a i n s 30 , 31 0 72 5 21 , 4 3 0 , 4 6 6 70 , R4 . 44 . 4 26 , 19 , 32 . 00 % 57 % 08 2 09 3 36 8 , TC S Co m p r e s s o r E q u i p m e n t 96 5 , 57 0 91 3 , 4 1 3 46 . R3 . 28 , 11 , 18 , 10 , 00 % 63 % 35 0 37 0 . TC E Co m m u n i c a t i o n E q u i p m e n t 71 4 , 4 4 0 71 5 , 54 2 10 0 . R3 , 22 . 15 , 00 % 89 % 35 9 Su b t o t a l T r a n s m i s s i o n P l a n t 59 0 , 79 4 23 , 19 0 36 7 69 . 41 , 24 , 18 , 28 , 04 % 52 % 18 1 82 4 37 4 , LR T La n d R i g h t s 27 8 , 84 5 16 9 , 00 3 60 , R5 . 48 , 27 , 20 , 00 % 12 % 91 2 37 5 . ST R St r u c t u r e s a n d I m p r o v e m e n t s 18 , 86 4 17 , 76 6 94 , R5 , 40 . 29 . 11 . 00 % 95 % 36 8 37 6 , MN S Ma i n s 10 2 , 4 4 4 , 87 7 03 7 28 4 49 . R4 , 42 , 17 , 25 . 37 , 00 % 60 % 68 8 , 01 6 37 8 , MR G Re g u l a t o r S t a t i o n E q u i p m e n t 19 9 , 28 6 57 0 , 91 6 49 . R3 . 32 . 18 , 16 , 10 , 00 % 3. 4 4 % 11 0 05 5 38 0 , SV C Se r v i c e s 86 , 4 5 1 68 6 02 5 , 14 3 47 , R2 . 36 , 12 , 26 , 60 . 00 % 64 % 01 1 , 35 8 38 1 , MT R Me t e r s 13 , 4 9 7 20 7 38 4 , 90 6 39 . R3 , 31 , 14 , 18 . 4 00 % 29 % 44 4 , 05 8 38 1 . ER T Ele c t r o n i c M e t e r R e a d i n g ( E R T 29 2 32 4 19 7 18 . R3 . 31 . 4 14 , 18 . 4 00 % 29 % 61 7 38 2 , MT I Me t e r I n s t a l l a t i o n s 56 8 , 37 4 22 8 , 37 6 33 . R3 , 31 , 11 , 21 . 00 % 21 % 21 0 , 84 5 38 2 , ER I ER T I n s t a l l a t i o n s 54 , 51 9 10 , 10 8 18 , R3 . 31 . 11 . 21 . 00 % 21 % 75 0 38 3 , HR G Ho u s e R e g u l a t o r s 3, 4 0 7 , 11 9 1, 4 2 1 17 5 41 , R3 . 31 . 4 14 . 18 , 00 % 03 % 10 3 , 23 6 38 4 , HR I Ho u s e R e g u l a t o r s - I n s t a l l a t i o n 23 5 , 19 0 58 9 , 4 6 6 26 . 4 % ' R3 . 30 , 10 . 21 , 00 % 18 % 71 , 07 9 38 5 , IM R Re g u l a t o r S t a t i o n - I n d u s t r i a l 02 3 , 23 1 04 4 , 26 6 43 . R2 . 25 . 13 , 15 . 4 00 % 15 % 29 1 , 4 6 4 Su b t o t a l D i s t r i b u t i o n P l a n t 22 5 47 1 52 2 10 6 , 55 2 , 60 6 47 . 37 . 15 , 24 . 38 , 69 % 97 % 94 7 75 8 "U S ' ( ' ) m OJ . - + O J X cc (1 ) e n : : T 39 0 , GS I St r u c t u r e s a n d I m p r o v e m e n t s 76 4 , 35 8 66 2 08 4 47 . R2 , 30 . 18 , 15 . 4 00 % 80 % 21 7 , 40 2 (1 ) . . . . (1 ) 6 ' 39 2 . GT R Tr a n s p o r t a t i o n E q u i p m e n t 65 0 , 38 9 33 0 , 94 9 41 . L4 , 20 . 00 % 10 . 08 % 56 9 , 55 9 -" " ~ oc : O Z 39 6 , GP E Po w e r O p e r a t e d E q u i p m e n t 84 8 , 39 5 47 7 36 9 56 . R4 , 14 , 10 , 00 % 96 % 33 , 59 6 -: J ' 0 -" " o r z: " " S' - i Su b t o t a l G e n e r a l P l a n t 26 3 , 14 2 6, 4 7 0 , 4 0 2 45 . 4 % 14 . 12 , 15 , 51 % 75 % 82 0 55 7 G) G ) OJ I 28 0 99 0 08 2 14 3 , 99 2 , 18 2 51 . 35 . 16 . 21 , 30 . 31 % 93 % 11 , 03 4 , 4 5 0 en ~ To t a l D e p r e c i a b l e P l a n t (' ) I -.. : : :