20041026Notice of Filing Order No 29617.pdf

Office of the Secretary
Service Date
October 26, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MA TTER OF INTERM 0 UNT AIN
GAS COMPANY'S 2005-2009 INTEGRATED
RESOURCE PLAN
NOTICE OF FILING
CASE NO. INT -04-
NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 29617
YOU ARE HEREBY NOTIFIED that on April 30, 2004, Intermountain Gas
Company (Company) submitted its Integrated Resource Plan (IRP) for the years of 2005-2009 to
the Commission. According to the Company s IRP Executive Summary, the IRP is meant to
describe the currently anticipated conditions over the five-year planning horizon, the anticipated
resource selections, and the process for making those resource decisions.IRP at
Intermountain Gas is the sole distributor of natural gas in southern Idaho, and during fiscal year
2003 it served about 242 000 customers in 74 communities.Id.Their system contains
approximately 9 500 miles of transmission, distribution, and service lines, with over 350 miles of
those lines being added in fiscal year 2003 to accommodate new customer additions and
maintain service for the Company s growing customer base. Id.
YOU ARE FURTHER NOTIFIED that, according to the Company s IRP
Intermountain Gas has two major markets: 1) the residential/commercial market; and 2) the
industrial market. The Company s residential and commercial customers increased 5% during
the first quarter of fiscal year 2004. Id. Forty-eight percent (48%) of the throughput on the
Company s system during fiscal year 2003 was attributable to industrial sales and transportation.
Id.
YOU ARE FURTHER NOTIFIED that customer growth forecast in the IRP was
analyzed not only from a total Company perspective but also by specific geographic regions
within the Company s service territory. Id. at 2. Peak day send-out studies and load duration
curves were developed under design weather conditions to determine the magnitude and timing
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29617
of future deficiencies in firm peak day delivery capability from both a total Company interstate
mainline perspective, as well as within each specific geographic region. Id. Residential
commercial and industrial customer peak day send-out was matched against available resources
to determine which combination of new resources would be needed to meet the Company
future peak day delivery requirements at the best possible cost. Id. The IRP breaks down the
analysis as follows:
Total Company - Residential, commercial, and industrial peak day load growth on
the Company s system is forecast over the five-year period to grow at an average of 4%. Id.
When matched against existing resources, a peak day delivery deficit occurs starting in January
2007, and increases each year thereafter. Id. at 3. The projected deficits in firm deliverability
will be eliminated through one or more means including: 1) long-term firm capacity release
and/or segmentation; 2) city gate deliverable gas supply; 3) storage, together with related
mainline rights; and 4) call back opportunities. Id. at 4
Idaho Falls Lateral Region - The Idaho Falls Lateral Region serves a number of
cities between Pocatello in the south to St. Anthony in the north. Id. The residential
commercial, and industrial load served off of the Lateral represents approximately 16% of the
total Company customers and 20% of the Company s total winter send-out during the winter of
2003-2004. Id. When forecasted peak day send-out is matched against the existing peak day
distribution capacity, a peak day delivery deficit occurs in 2005 and increases each year
thereafter. Id. at 5. The Company believes that small, short duration peak day distribution
delivery deficits can be eliminated or at least mitigated by working with the region s industrial
customers to facilitate the use of fuel oil during extreme cold temperatures. Id. However, the
projected delivery deficits are of such magnitude that "looping" of the existing system is
warranted, adding the necessary firm delivery capability to that area. Id.
Sun Valley Lateral Region - The load served by this region represents approximately
4% of the total Company customers and 4% of the Company s total winter send-out during the
winter of 2003-2004. Id. A peak day delivery deficit under the IRP's forecasted peak day send-
out occurs during 2005 and increases each year thereafter. Id. at 5-6. Growth along the Sun
Valley Lateral warrants an upgrade to the existing pipeline system. Id. at 6. The tourism
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29617
industry-driven industrial load in this region is limited in size and does not currently have the
capability to switch to alternative fuels as a means of mitigating peak day send-out. Id.
Canyon County Region - The load served off of the Canyon County Lateral
represented approximately 14% of the total Company customers and 17% of the Company s total
winter send-out during the winter of 2003-2004. Id. Forecasted peak day send-out results in a
peak day delivery deficit occurring during 2006 and increasing each year thereafter. Id. at 6-
The industrial customer base served by the Canyon County Lateral does not currently have the
capability to switch to alternative fuels as a means of mitigating peak day send-out and the
Company is currently exploring optional means of enhancing the distribution capability on this
Lateral. Id.
YOU ARE FURTHER NOTIFIED that the filing in this case may be viewed online
at www.puc.state.id.by clicking on "File Room" and "Gas Cases " or it can be viewed during
regular business hours at the offices of the Idaho Public Utilities Commission, 472 West
Washington Street, Boise, Idaho.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filing of
record in this case. The Commission has preliminarily determined that the public interest may
not require a hearing to consider the issues presented in this case and that issues raised by the
Company s filing may be processed under Modified Procedure. (i., 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 may 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 protests or written comments are
received within the deadline, the Commission will consider the matter and enter its Order
without a hearing. If protests or comments are filed within the deadline, the Commission will
consider them and may, in its discretion, set the matter for hearing or decide the matter and issue
its Order on the basis of the written positions before it. IDAPA 01.01.01.204.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29617
NOTICE OF COMMENT/PROTEST 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
this case is 21 days from the service date of this Order. Persons desiring a hearing must
specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that written comments concerning this case
should be mailed to the Commission and to Intermountain Gas Company at the addresses
reflected below.
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address For Express Mail:
472 W. Washington Street
Boise, ID 83702-5983
Michael P. McGrath, Director
Market Services & Regulatory Affairs
Intermountain Gas Company
555 South Cole Road
PO Box 7608
Boise, ID 83707
E-mail: mmcgrath~intgas.com
document.
These comments should contain the case caption and case number shown on the first page of this
Persons desiring to submit comments via e-mail may do so by accessing the
Commission s homepage located at www.puc.state.id.. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to Intermountain Gas Company at the address
listed above.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Persons interested in submitting written comments regarding this case or protesting the use of
Modified Procedure should do so no later than 21 days from the service date of this Order.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29617
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;L~ f#-
day of October 2004.
ATTEST:
~~li
Commission Secretary
O:INTG0401 dw
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29617
MARSHA H. SMITH, COMMISSIONER