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HomeMy WebLinkAbout20051031Application.pdfEXECUTIVE OFFICES t~CEi\! " ' INTERMOUNTAIN GAS COMPANY r..' ' ,.. 555 SOUTH COLE ROAD. P.O. BOX 7608. BOISE, IDAHO 83707 . (208) 377-6000. FAX: 377"'6J!~ri 28 Pf'I 1.;: 'T;; ; ;~:; J~,iS: .. "' ",' , , ,1" """' ' ("1 "... !!ri )\.)! t.. October 28 , 2005 Ms. Jean Jewell Idaho Public Utilities Commission 472 W. Washington Street O. Box 83720 Boise, ID 83720-0074 RE:Intermountain Gas Company Case No. INT -05- Dear Ms. Jewell: Enclosed for filing with this Commission is an original and seven (7) copies of Intermountain Gas Company s Application seeking approval to place into effect a change in its Composite Depreciation Rate, effective October 1 , 2005. Please acknowledge receipt of this filing by stamping and returning a photocopy of this Application cover letter to us. If you have any questions or require additional information regarding the attached, please contact me at 377-6168 Very truly yours irector Gas Supply and Regulatory Affairs CC:Bill Glynn Paul Powell Mike Rich Eldon Book MPM/blf EJ ED " ,; ;,~.. OCT 20 ("; L:: "f L. j fiY(~ U f~t /.~:,~- -,-, Uriiv)'lSs,, nINTERMOUNTAIN GAS COMPANY CASE NO. INT-G-OS- APPLICATION and EXHIBIT In the Matter of the Application of INTERMOUNTAIN GAS COMPANY for Approval to Place into Effect a Change in Its Composite Depreciation Rate Morgan W. Richards , Jr. ISB#1913 804 East Pennsylvania Lane Boise, Idaho 83706 Telephone (208) 345-8371 Attorney for Intermountain Gas Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION I n 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-05- APPLICATION COMES NOW Intermountain Gas Company Clntermountain" or "Applicanf') 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 a change in its composite depreciation rate. Communication in reference to this Application should be addressed to: Paul R. Powell Executive Vice President and CFO Intermountain Gas Company PO Box 7608 Boise, ID 83707 and Morgan W. Richards, Jr. 804 East Pennsylvania Lane Boise, Idaho 83706 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-1 034-120 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 , , Iona, 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 3.930/0 was approved by this Commission in Case No. INT-02-, Order No. 29187, dated February , 2003. The Commission states in its Order No. 29187 "that the Company submit an updated depreciation study in three years. IV. With each update of the Company depreciation parameters and associated rates , special circumstances regarding Intermountain s recovery rates are addressed. The current study addresses , among other things , the lengthening of its mains and services depreciation lives and the corresponding adjustment to net salvage of that same plant. The continued use of plastic in the Company s mains and services, coupled with the increasing evidence of the benefits of plastics longer service life and lower costs vs. steel necessitates the proposed change in mains and services. Intermountain has contracted the services of AUS Consultants, the same outside consultant employed as part of Case Nos. INT-94-, INT-96-, INT-99-2 and INT- 02-, to perform an update to the 2002 depreciation study. The results of this study indicate that the Intermountain s current composite rate is overdepreciating its assets. Therefore, Intermountain requests a decrease in its composite depreciation rate from 930/0 (3.980/0 when weighted by 09/30/04 assets) to 3.370/0. The effect of the lower rate would be to decrease Intermountain annual depreciation accrual by $1 998,923 annually. VI. Intermountain does not seek a change in its prices as a result of this Application. VII. The current definition of depreciation used by the Federal Energy Regulatory Commission and the National Association of Regulatory Commissioners is as follows: II 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 APPLICATION - 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, 2004. 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 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 $280,990 082 to $327 259 429 , as shown in Column d , Line 25, on Page of Exhibit No.1 and the accumulated reserve increased from $143,992 182 , to $176 363 745, as shown in Column e , Line 25, on Page 1 of Exhibit No.1. The current study would require an annual accrual of $11 036 164 of depreciation expense to be APPLICATION - 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 a decrease is needed in the composite rate from the current rate of 3.930/0 (3.980/0 when weighted by 09/30/04 assets) to 3.370/0 a decrease of 61 % (0.0061). This decrease 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 in this Application. XI. Intermountain asks that the decrease to the annual composite depreciation rate be consistent with the Commission s past practice and therefore be made effective at the beginning of the Applicant's fiscal year or, in this instance, October 1 , 2005. 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 decrease the current composite depreciation rate on an 'account by account basis from 3.930/0 (3.980/0 when weighted by 09/30/04 assets) to 3.370/0 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 decrease in the annual composite depreciation rate effective at the beginning of the Applicant's current fiscal year or October 1 2005. (4)For such other relief as this Commission deems just. DATED at Boise, Idaho, this 28th, day of October 2005. INTERMOUNTAIN GAS COMPANY Paul R. Powell Executive Vice President and CFO Morgan W. Richards , Jr. BY Y'\ R.JJ,,9.... Morgan . Richards, Jr. Attorney for Intermountain Gas Company APPLICATION - EXHIBIT NO. CASE NO. INT -O5- 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 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 (D e p r e c i a t i o n L I f e & R a t e 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 4 Pr e s e n t Pr o os e d 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 l V e d Pe r c e n t An n u a l An n u a l um b e r Nu m b e r Ca t e a o l V Ac c o u n t N a m e Ba l a n In v e s t m e n t Re s e l 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) (k ) (e ) / ( d ) (d ) * (g ) (d ) * (i) (j ) - ( h ) 36 3 . LN G LN G P l a n t 72 2 26 5 03 9 27 9 10 4 . 1 % 29 % 61 7 61 % 12 4 32 8 71 1 Su b t o t a l S t o r a g e P l a n t 72 2 26 5 03 9 27 9 1 0 4 . 1 % 29 % 99 , 61 7 61 % 12 4 32 8 24 , 71 1 36 5 , RO W Ri g h t o f W a y 60 0 , 05 9 18 8 97 3 31 . 00 % 00 2 10 % 60 1 (5 , 4 0 1 ) 36 7 . TM N Tr a n s m i s s i o n M a i n s 92 9 , 75 8 33 5 , 27 2 76 . 96 % 94 5 , 12 1 04 % 97 0 66 5 25 , 54 4 36 8 , TC S Co m p r e s s o r E q u i p m e n t 97 8 , 11 9 03 1 59 5 52 . 67 % 59 7 61 % 71 , 4 1 0 18 7 ) 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 73 3 , 90 1 10 2 . 84 % 00 1 53 % 78 7 21 4 ) Su b t o t a l T r a n s m i s s i o n P l a n t 22 2 , 37 6 26 , 28 9 74 1 74 . 96 % 04 1 72 1 01 % 05 8 46 3 74 2 37 4 . LR T La n d R i g h t s 33 2 29 3 18 9 71 2 57 . 05 % 81 2 94 % 44 6 (3 6 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 18 , 52 6 98 , 04 % 19 6 82 % 15 5 (4 1 ) 37 6 . MN S Ma i n s 11 2 44 0 64 4 83 7 62 2 55 , 02 % 52 0 11 4 16 % 55 3 , 12 4 (9 6 6 99 0 ) 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 41 0 , 08 9 89 4 77 5 55 . 35 % 11 4 23 8 09 % 10 5 37 2 (8 , 86 6 ) 38 0 , SV C Se r v i c e s 10 0 83 8 55 2 52 , 31 8 92 1 51 , 54 % 57 8 , 07 0 3. 4 0 % 3, 4 2 8 , 51 1 14 9 55 9 ) 38 1 , MT R Me t e r s 49 7 79 5 10 6 12 1 34 , 81 % 57 5 , 98 8 77 % 56 7 78 9 19 9 ) 38 1 , ER T ER T U n i t s 78 0 , 00 6 97 1 90 5 12 . 63 % 51 5 , 81 4 63 % 51 5 81 4 38 2 . MT I Me t e r I n s t a l l a t i o n s 05 1 53 8 85 7 82 1 35 , 80 % 22 5 , 4 4 3 92 % 23 5 , 1 0 5 66 2 38 2 , ER I ER T I n s t a l l a t i o n s 28 0 , 49 4 17 6 35 2 13 . 63 % 89 7 58 % 25 7 (6 4 0 ) 38 3 , HR G Ho u s e R e g u l a t o r s 89 2 , 94 3 70 3 93 0 43 . 67 % 10 3 94 2 64 % 10 2 77 4 16 8 ) 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 38 4 44 0 82 7 66 8 24 . 85 % 96 , 4 5 7 90 % 14 9 69 2 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 68 7 , 31 6 78 4 54 4 49 . 01 % 30 8 26 1 72 % 28 5 96 8 (2 2 29 3 ) "' d - (1 t I ' j :: t ~ g.. . (f Q ( ' ! ) CIJ 26 9 , 61 4 97 4 13 4 68 7 89 7 50 . 13 % 1 1 13 0 23 2 33 % 98 3 , 4 6 4 14 6 76 8 ) ('! ) S (' ! ) c : r ' Su b t o t a l D i s t r i b u t i o n P l a n t .. . . . . . . Z, . . . . . " ... . . . ~ ~ ~ Z 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 38 4 79 0 32 6 , 11 0 51 . 83 % 23 7 29 0 65 % 22 2 19 7 (1 5 , 09 3 ) :: t 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 37 8 , 09 2 62 2 69 6 48 , 10 % 48 9 , 4 0 6 11 . 00 % 59 1 59 0 1 0 2 18 4 ,. . . . . . . . . . . , ... . . . . . :: J I 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 93 6 93 2 39 8 02 2 42 , 93 % 82 1 99 % 56 , 12 2 19 , 30 1 CI J Su b t o t a l G e n e r a l P l a n t 14 , 69 9 81 4 34 6 82 8 50 , 19 % 76 3 , 51 7 92 % 86 9 90 9 10 6 , 39 2 (1 'f 1 0 0 S w To t a l D e p r e c i a b l e P l a n t 32 7 , 25 9 , 4 2 9 17 6 36 3 74 5 53 . 98 % 1 3 03 5 , 08 7 37 % 03 6 16 4 99 8 , 92 3 ) :: J 0.. . . : : : : 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 e 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 4 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 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 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 Ba l a n c e Di s er s i o n Lif e Lif 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 ) (n ) (e ) / ( d ) (1 - ( f ) - ( I ) ) / ( k ) (m ) * (d ) 36 3 . LN G LN G P l a n t 72 2 26 5 03 9 , 27 9 10 4 . 1 % R5 . 37 . 27 . 10 . 4 20 . 80 % 61 % 12 4 , 32 8 Su b t o t a l S t o r a g e P l a n t 72 2 , 26 5 03 9 27 9 10 4 , 1 % 37 , 27 . 10 . 4 20 . 80 % 61 % 12 4 32 8 36 5 , RO W Ri g h t o f W a y 60 0 , 05 9 18 8 , 97 3 31 , R5 . 41 . 32 . 00 % 10 % 60 1 36 7 . TM N Tr a n s m i s s i o n M a i n s 31 , 92 9 , 75 8 33 5 , 27 2 76 . S5 , 48 , 26 . 23 . 47 . 00 % 04 % 97 0 , 66 5 36 8 , TC S Co m p r e s s o r E q u i p m e n t 97 8 , 11 9 03 1 , 59 5 52 . R3 . 28 . 13 . 16 . 10 . 00 % 61 % 71 , 4 1 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 73 3 , 90 1 10 2 . R3 , 25 , 23 . 4 00 % 53 % 78 7 Su b t o t a l T r a n s m i s s i o n P l a n t 35 , 22 2 , 37 6 26 , 28 9 , 74 1 74 , 45 . 25 . 22 . 41 , 31 % 01 % 05 8 , 4 6 3 37 4 . LR T La n d R i g h t s 33 2 , 29 3 18 9 , 71 2 57 . R5 , 49 . 27 , 22 . 00 % 1. 9 4 % 6, 4 4 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 18 , 52 6 98 . R5 , 46 . 38 . 00 % 82 % 15 5 37 6 . MN S Ma i n s 11 2 , 44 0 , 64 4 62 , 83 7 62 2 55 . R4 . 51 . 18 , 33 . 63 . 00 % 16 % 55 3 , 12 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 3, 4 1 0 , 08 9 89 4 , 77 5 55 . R3 , 33 . 17 . 17 , 10 . 00 % 09 % 10 5 , 37 2 38 0 . SV C Se r v i c e s 10 0 , 83 8 , 55 2 31 8 , 92 1 51 . R3 . 45 . 14 . 32 . 4 62 . 00 % 3. 4 0 % 3, 4 2 8 , 51 1 38 1 . MT R Me t e r s 20 , 4 9 7 , 79 5 10 6 , 12 1 34 . R4 . 33 , 11 , 23 , 00 % 77 % 56 7 , 78 9 38 1 , ER T ER T U n i t s 78 0 , 00 6 97 1 , 90 5 12 . R3 , 15 . 13 , 00 % 63 % 51 5 , 81 4 38 2 . MT I Me t e r I n s t a l l a t i o n s 05 1 53 8 85 7 82 1 35 . R3 . 34 . 13 . 22 . 00 % 92 % 23 5 , 10 5 38 2 . ER I ER T I n s t a l l a t i o n s 1 , 28 0 , 49 4 17 6 , 35 2 13 , R3 . 15 , 13 . 00 % 58 % 84 , 25 7 38 3 . HR G Ho u s e R e g u l a t o r s 89 2 , 94 3 70 3 , 93 0 43 . R3 . 34 . 14 , 21 . 00 % 64 % 10 2 , 77 4 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 38 4 , 44 0 82 7 , 66 8 24 . R3 , 33 , 26 . 00 % 90 % 98 , 14 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 68 7 , 31 6 78 4 , 54 4 49 . R2 . 26 . 14 , 15 . ~5 . 00 % 72 % 28 5 , 96 8 tP " ~ 0 tT j Cf Q ( D Su b t o t a l D i s t r i b u t i o n P l a n t 26 9 , 61 4 , 97 4 13 4 , 68 7 , 89 7 50 . 41 . 15 , 28 . 42 . 97 % 33 % 98 3 , 46 4 cr : Z" ' " .. . . . . . :: ; ~ 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 38 4 79 0 32 6 , 11 0 51 , R2 . 32 , 18 , 16 . 4 00 % 65 % 22 2 19 7 .j : ; . . 52 0 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 37 8 , 09 2 62 2 , 69 6 48 . L4 , 00 % 11 . 00 % PJ 59 1 , 59 0 .. . . . .. . . . , . . . . . . 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 93 6 , 93 2 39 8 02 2 42 . R4 . 13 , 15 . 00 % 99 % 56 , 12 2 t: j I Cl C l Su b t o t a l G e n e r a l P l a n t 69 9 , 81 4 34 6 , 82 8 50 . 92 % 86 9 , 90 9 0 0 To t a l D e p r e c i a b l e P l a n t 32 7 25 9 , 4 2 9 17 6 , 36 3 , 74 5 53 . 37 % 03 6 , 16 4 S w 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 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 (D e p r e c i a t i o n l i f e & R a t e 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 4 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 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 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 Sa l v a g e Sa l v a g e Li f e Lif 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) (j) (k ) (I ) (m ) (e ) / ( d ) (1 - ( g ) ) - ( ( 1 - ( h ) ) * (i ) / ( j ) ) (k ) * (d ) (I ) - ( e ) 36 3 , LN G LN G P l a n t 72 2 26 5 03 9 27 9 10 4 . 1 % 20 . 80 % 20 . 80 % 10 . 4 37 . 87 . 75 5 , 43 7 28 3 , 84 2 ) Su b t o t a l S t o r a g e P l a n t 72 2 26 5 03 9 , 27 9 1 0 4 . 1 % 20 . 80 % 20 . 80 % 10 . 4 37 , 87 , 75 5 , 4 3 7 28 3 84 2 ) 36 5 , RO W Ri g h t o f W a y 60 0 05 9 18 8 , 97 3 31 . 00 % 00 % 32 , 41 . 6 - 21 . 12 9 , 79 3 (5 9 , 18 0 ) 36 7 . TM N Tr a n s m i s s i o n M a i n s 92 9 75 8 33 5 , 27 2 76 , 47 . 00 % 47 . 00 % 23 . 48 . 76 . 29 5 , 35 3 (3 9 , 91 9 ) 36 8 , TC S Co m p r e s s o r E q u i p m e n t 97 8 11 9 03 1 59 5 52 , 10 , 00 % 10 . 00 % 16 , 28 . 48 . 95 8 , 59 6 (7 2 99 9 ) 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 73 3 90 1 1 0 2 , -5 , 00 % 00 % 25 , 87 . 62 5 , 63 5 (1 0 8 26 6 ) Su b t o t a l T r a n s m i s s i o n P l a n t 35 , 22 2 37 6 26 , 28 9 , 74 1 74 , 41 . 31 % 41 , 31 % 22 . 45 . 73 , 00 9 , 37 7 (2 8 0 36 4 ) 37 4 . LR T La n d R i g h t s 33 2 29 3 18 9 , 71 2 57 , 00 % 00 % 22 , 49 , 55 , 18 3 02 7 68 5 ) 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 52 6 98 . 00 % 00 % 46 . 86 . 4 % 16 , 30 2 22 4 ) 37 6 . MN S Ma i n s 11 2 , 4 4 0 64 4 83 7 62 2 55 , 63 , 00 % 63 , 00 % 33 . 51 . 55 . 62 9 43 9 (2 0 8 18 3 ) 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 3, 4 1 0 08 9 89 4 77 5 55 . 10 , 00 % 10 , 00 % 17 . 33 , 51 . 75 6 53 7 (1 3 8 , 23 8 ) 38 0 , SV C Se r v i c e s 10 0 , 83 8 , 55 2 31 8 92 1 51 . 62 . 00 % 62 , 00 % 32 . 4 45 . 45 . 26 4 72 8 05 4 19 3 ) 38 1 , MT R Me t e r s 49 7 79 5 10 6 12 1 34 . 00 % 00 % 23 , 33 , 30 . 14 3 18 9 (9 6 2 93 2 ) 38 1 , ER T ER T U n i t s 78 0 00 6 97 1 90 5 12 . 00 % 00 % 13 . 15 . 12 . 93 3 60 1 (3 8 30 4 ) 38 2 , MT I Me t e r I n s t a l l a t i o n s 05 1 53 8 85 7 82 1 35 . 00 % 00 % 22 . 34 . 35 . 86 3 93 2 11 1 38 2 . ER I ER T I n s t a l l a t i o n s 28 0 49 4 17 6 , 35 2 13 . 00 % 00 % 13 . 15 . 12 . 16 2 23 9 (1 4 11 3 ) 38 3 , HR G Ho u s e R e g u l a t o r s 89 2 94 3 70 3 93 0 43 , 00 % 00 % 21 . 3 34 . 38 , 1, 4 8 9 , 4 4 0 (2 1 4 , 4 9 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 38 4 44 0 82 7 , 66 8 24 . 00 % 00 % 26 , 33 . 22 . 4 % 75 7 77 6 (6 9 89 2 ) "' d I - ( ( ' ) t r : 1 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 68 7 31 6 78 4 54 4 49 . 00 % 00 % 15 , 26 , 45 , 3, 4 6 7 74 8 (3 1 6 79 6 ) S. ~ 5 - (J ' q ( 1 ) Cf) (1 ) S (1 ) 5 " Su b t o t a l D i s t r i b u t i o n P l a n t 26 9 , 61 4 97 4 13 4 68 7 89 7 50 , 42 , 97 % 42 , 97 % 28 . 41 . 47 . 12 6 66 7 95 8 01 9 , 93 9 ) Z, . . . . . . ... . . . . ~ ~ ~ Z 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 38 4 79 0 32 6 11 0 51 . 6 % 00 % 00 % 16 . 4 32 , 46 , 92 0 72 8 (4 0 5 38 2 ) ~ ~ 52 0 ,.. . . . . . . . , ... . . . . 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 37 8 09 2 62 2 , 69 6 48 . 00 % 00 % 51 . 77 6 , 70 9 15 4 01 3 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 93 6 93 2 39 8 , 02 2 42 , 15 , 00 % 15 , 00 % 13 , 40 , 38 0 , 67 5 (1 7 34 7 ) Cf ) Su b t o t a l G e n e r a l P l a n t 69 9 81 4 34 6 , 82 8 50 . 75 % 75 % 16 , 48 . 07 8 11 2 (2 6 8 , 71 6 ) (' ) Y ' 0 0 S w 'i : j To t a l D e p r e c i a b l e P l a n t 32 7 25 9 , 4 2 9 17 6 36 3 74 5 53 . 36 . 96 % 36 . 96 % 25 , 39 , 50 , 16 6 51 0 , 88 4 (9 , 85 2 86 1 ) 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 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 (D e p r e c i a t i o n L i f e & R a t e 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 4 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 Di s io n Lif e Aa e Li f e Sa l v a 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 72 2 26 5 03 9 , 27 9 1 0 4 . 1 % R5 , 37 , 24 . 15 . 20 . 80 % 29 % 99 , 61 7 Su b t o t a l S t o r a g e P l a n t 72 2 , 26 5 03 9 27 9 10 4 . 1 % 37 . 24 . 15 . -2 0 . 80 % 29 % 61 7 36 5 . RO W Ri g h t o f W a y 60 0 , 05 9 18 8 97 3 31 , R5 . 32 , 1 . 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 92 9 75 8 33 5 27 2 76 , R4 , 44 . 25 , 20 . 32 , 00 % 96 % 94 5 , 12 1 36 8 . TC S Co m p r e s s o r E q u i p m e n t 97 8 , 11 9 03 1 59 5 52 , R3 , 28 , 12 , 17 . 10 . 00 % 67 % 72 , 59 7 37 0 . TC E , C o 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 73 3 90 1 10 2 . R3 , 24 , 20 . 4 -5 , 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 35 , 22 2 37 6 28 9 74 1 74 . 42 . 23 , 20 . 28 . 54 % 96 % 04 1 72 1 37 4 . LR T La n d R i g h t s 33 2 29 3 18 9 , 71 2 57 . R5 . 48 , 30 . 19 . 00 % 05 % 81 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 18 , 52 6 98 . R5 , 46 , 35 , 10 . 4 00 % 04 % 19 6 37 6 . MN S Ma i n s 11 2 , 4 4 0 , 64 4 83 7 , 62 2 55 . R4 . 44 . 17 , 27 . 4 60 , 00 % 02 % 52 0 , 11 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 41 0 , 08 9 89 4 77 5 55 . R3 . 32 . 17 . 18 , 10 , 00 % 35 % 11 4 23 8 38 0 . SV C Se r v i c e s 10 0 , 83 8 55 2 31 8 92 1 51 . R3 . 36 , 13 , 24 . 60 . 00 % 54 % 57 8 , 07 0 38 1 , MT R Me t e r s 20 , 4 9 7 79 5 10 6 , 12 1 34 , R3 . 34 . 4 14 , 21 . 4 00 % 81 % 57 5 98 8 38 1 , ER T ER T U n i t s 78 0 00 6 97 1 90 5 12 , R3 . 15 , 12 , 00 % 63 % 51 5 81 4 38 2 , MT I Me t e r I n s t a l l a t i o n s 05 1 , 53 8 85 7 82 1 35 . R3 . 34 . 11 . 23 , 00 % 80 % 22 5 , 4 4 3 38 2 , ER I ER T I n s t a l l a t i o n s 28 0 , 49 4 17 6 , 35 2 13 . R3 , 15 . 12 . 00 % 63 % 89 7 38 3 . HR G Ho u s e R e g u l a t o r s 89 2 94 3 70 3 93 0 43 , R3 , 34 . 4 14 . 21 . 00 % 67 % 10 3 , 94 2 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 38 4 , 4 4 0 82 7 66 8 24 . R3 , 33 , 25 , 00 % 85 % 45 7 '" d ~ nt T 1 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 68 7 31 6 78 4 54 4 49 . R2 , 26 . 13 , 15 . 4 00 % 01 % 30 8 26 1 ~ ~ ~ (f Q ( I I e n (I I S (I I c r ' Su b t o t a l D i s t r i b u t i o n P l a n t 26 9 , 61 4 , 97 4 13 4 68 7 , 89 7 50 . 36 . 14 , 23 . 43 . 60 % 13 % 11 , 13 0 23 2 +: - . Z. . . . . . ~ ~ ? Z 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 38 4 79 0 32 6 , 11 0 51 . R2 , 31 , 18 . 16 , 00 % 83 % 23 7 29 0 +:- ' ... . . . ... . . . . 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 37 8 , 09 2 62 2 69 6 48 , L4 , 15 . 00 % 10 % 48 9 40 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 93 6 93 2 39 8 02 2 42 , R4 , 15 . 15 . 00 % 93 % 82 1 Su b t o t a l G e n e r a l P l a n t 69 9 , 81 4 34 6 82 8 50 . 16 . 12 . 12 . 1 0 % 19 % 76 3 51 7 n " f 0 0 S w 17 6 36 3 74 5 53 , 35 . 15 , 21 . 36 . 29 % 98 % 13 , 03 5 08 7 '" d To t a l D e p r e c i a b l e P l a n t 32 7 25 9 , 4 2 9