20051123notice of application order no 29917.pdf

Office of the Secretary
Service Date
November 23, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN GAS COMPANY
FOR APPROVAL TO PLACE INTO EFFECT
A CHANGE IN ITS COMPOSITE
DEPRECIATION RATE
CASE NO. INT -O5-
NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 29917
On October 28, 2005, Intermountain Gas Company (Intermountain Gas, Company)
filed an Application to change its composite depreciation rate with the Commission. The
Company requested that its Application be processed by Modified Procedure. With this Order
the Commission authorizes the use of Modified Procedure and establishes a deadline for the
submission of written comments.
THE APPLICATION
YOU ARE HEREBY NOTIFIED that the Commission set Intermountain Gas
Company s current composite depreciation rate at 3.93% in Case No. INT-02-4. Order No.
29187. The Company was directed to submit an updated depreciation study three years from
entry of that Order. !d. The Company states it has contracted the services of AUS Consultants
to perform an update to the 2002 depreciation study. According to the Application, the results of
this study indicate that the current composite rate is over depreciating the Company s assets.
Consequently, Intermountain Gas is requesting a decrease in its composite depreciation rate from
93% to 3.37%. This would decrease Intermountain Gas s annual depreciation accrual by
998 923. The Company does not seek to change its prices as a result of this Application.
YOU ARE FURTHER NOTIFIED that the Company states that the current study
addresses, among other things, lengthening the depreciation lives of its mains and services and
the corresponding adjustment to net salvage of that same plant. The Application states that the
continued use of plastic in the Company s mains and services, coupled with the increasing
evidence of the benefits of plastic s longer service life and lower costs vs. steel, necessitates the
proposed change in mains and services.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29917
YOU ARE FURTHER NOTIFIED that the Company states that the study update was
based upon the books and records of the Company as of September 30, 2004. The Company
requests that the decrease in the annual composite depreciation rate be made effective at the
beginning of its fiscal year, October 1 2005. The Company attached a summary of the study as
Exhibit 1 to its Application. The Company states that a copy of the current depreciation study
working papers, which is voluminous, is available for inspection at the Company s general
business office.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
testimonies and exhibits (if any), have been filed with the Commission and are available for
public inspection during regular business hours at the Commission offices. The Application and
testimonies are also available on the Commission s website at www.puc.idaho.gov under the
File Room" icon.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filing of
record in Case No. INT-O5-3. 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 , by written
submission rather than by hearing. IDAPA 31.01.01.201-204. In so doing, the Commission
notes that Modified Procedure and written comments 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. IDAPA 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 ofthe written positions before it. IDAPA 01.01.01.204.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29917
NOTICE OF COMMENTIPROTEST 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-05-3 is January 24, 2006. 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 the 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
Paul R. Powell
Intermountain Gas Company
PO Box 7608
Boise, ID 83707
Morgan W. Richards, Jr.
804 East Pennsylvania Lane
Boise, ID 83706
E-mail: mwrlaw(8),cableone.net
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 homepage located at www.puc.idaho.gov. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document.
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 specifically
Idaho Code 9 61-525. 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, IDAPA 31.01.01.000 et seq.
FINDINGS/CONCLUSIONS
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. IDAP A 31.01.01.201-204. In so doing, the Commission notes that
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29917
Modified Procedure and written comments have proven to be an effective means for obtaining
public input and participation.
ORDER
IT IS HERBY ORDERED that this case be processed under Modified Procedure.
Persons interested in submitting written comments regarding this case or protesting the use
Modified Procedure should do so no later than January 24, 2006.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this bJ.. ;-J..
day of November 2005.
ARSHA H. SMITH, COMMISSIONER
ATTEST:
~A\
. '1f.D. Jewell
Commission Secretary
O:INT-05-03 dw
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29917