20021115Notice of Application - Order No 29153.pdf

Office of the Secretary
Service Date
November 15 2002
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
INTERMOUNTAIN GAS COMPANY FOR
AUTHORITY TO INCREASE ITS COMPOSITEDEPRECIATION RATE.
CASE NO. INT-O2-
NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
NOTICE OF COMMENT/
PROTEST DEADLINE
ORDER NO. 29153
YOU ARE HEREBY NOTIFIED that Intermountain Gas Company (Intermountain;
Company) filed an Application with the Commission on October 18 , 2002, requesting authority
to increase its composite depreciation rate from 3.71 % (3.93% when weighted by 9/30/01 assets)
to 4.08%. The Company stated that this 0.15% increase is necessary to accrue the proper dollars
over the remaining service life of the Company s property. If approved, the higher rate would
increase Intermountain s annual depreciation accrual and decrease Intermountain s ratebase by
$428 482 annually. Although the Company s depreciation expense would increase under its
proposal the present Application did not request a related increase in customer rates
Intermountain s current composite depreciation rate of 3.71 % was approved by the
Commission on March 29 2000 in Case No. INT-99-2. At that time, the Commission found
that "the Company s depreciation rates and methodology should be revisited in three years.
Order No. 28311 at 6. In compliance with the Commission s Order, the Company solicited an
updated depreciation study (study) by AUS Consultants. Based upon the study s findings, the
Company concluded that the current rate is under-depreciating its assets. A four-page summary
of the depreciation study was included with the Company s Application. The complete
depreciation study with workpapers, which the Company stated are voluminous, is available for
inspection at Intermountain s general business office, which is located at 555 South Cole Road
Boise, Idaho (208-377-6097).
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
ORDER NO. 29153
Based upon Intermountain s books and records as of September 30, 2001 , the updated
depreciation study determined that the original cost of depreciable property increased from
$234 093 752 to $280 990 082 during the three-year period. Likewise, the accumulated reserve
increased from $116 479 251 to $143 992 182. If its findings were approved by the
Commission, the study would require an annual depreciation and amortization expense accrual
of $11 462 932 for the remaining life of the Company s property.
The updated depreciation study also addressed Intermountain s planned deployment
of electronic meter reading equipment and recovery of the associated investment by
recommending unique depreciation parameters and rates for that investment. The study also
discussed the service life and estimated removal cost of the Company s liquefied natural gas
(LNG) facilities.
Intermountain Gas Company requested that its Application be processed pursuant to
the Commission s Rules of Procedure, i., by written submission rather than by hearing.
IDAPA 31.01.01.201-204. The Company also asked that the increase to the annual composite
depreciation rate and amortizations be made effective at the beginning of the Company s fiscal
year, October 1 2002.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the Company
Application. The Commission has preliminarily found that the public interest regarding the
Company s proposal to increase its composite depreciation rate may not require a hearing to
consider the issues presented and that the Application may be processed under Modified
Procedure , by written submission rather than by hearing. IDAPA 31.01.01.201-204. In so
doing, the Commission notes that Modified Procedure and written comment have proven to be
an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that the Commission will not hold a hearing in
this proceeding unless it receives written protests or comments opposing the use of Modified
Procedure and stating why Modified Procedure should not be used. IDAP A 31.01.01.203.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission will consider the matter on its merits and enter its
Order without a formal hearing. If comments or protests are filed within the deadline, the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
ORDER NO. 29153
Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order on the basis of the written positions before it. IDAP A
31.01.01.204.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and that the
Commission may enter any final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAP A 31.01.01.000 et seq.
NOTICE OF COMMENT DEADLINE
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to the Application and the Commission s use of Modified Procedure in
Case No. INT-02-4 is Wednesday, January 15, 2003.Persons desiring a hearing must
specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that the deadline for Intermountain Gas Company
to file written reply comments with respect to this case is Wednesday, January 22, 2003.
YOU ARE FURTHER NOTIFIED that written comments concerning this
Application must be mailed to the Idaho Public Utilities Commission and Intermountain Gas
Company at the following addresses:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
Street Address for Express Mail:
MICHAEL E. HUNTINGTON
VICE PRESIDENT
MARKETING & EXTERNAL AFFAIRS
INTERMOUNTAIN GAS COMPANY
PO BOX 7608
BOISE, ID 83707
Email: mhunting0J,int!?as. com
472 W WASHINGTON ST
BOISE, ID 83702-5983 MORGAN W. RICHARDS, JR., ESQ.
Moffatt, Thomas, Barrett, Rock & Fields, Chartered
PO BOX 829
BOISE, ID 83701
Email: mwr0J,moffatt.com
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.state.id.under the "Comments and Questions
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
ORDER NO. 29153
Icon. Once at the "Comments and Questions" icon fill in the case number as it appears on the
front of this document, and enter your comments. These comments must also be sent to the
Applicant at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Application and a four page summary of
the depreciation study have been filed with the Commission and are available for inspection
during regular business hours at the Commission offices. You are further notified that the
complete depreciation study with workpapers, are available for inspection at Intermountain
general business office, which is located at 555 South Cole Road, Boise, Idaho [phone].
In addition, the Application (excluding exhibits) is available on the Commission s Web site at
www.puc.state.id.under "File Room
ORDER
IT IS HEREBY ORDERED that the foregoing scheduling be adopted.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /5.,+0.
day of November 2002.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Je D. Jewell
Commission Secretary
O:INTGO204 In
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
ORDER NO. 29153