20060630notice_of_filing_order_no_30090.pdf

Office of the Secretary
Service Date
June 30, 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF INTERMOUNTAIN GAS
COMPANY'S 2007-2011 INTEGRATED RESOURCE PLAN
CASE NO. INT -06-
NOTICE OF FILING
NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 30090
YOU ARE HEREBY NOTIFIED that on May 1 2006, Intermountain Gas Company
Intermountain" or "Company ) filed its 2006 Integrated Resource Plan (IRP) for the years
2007-2011 with the Commission. In the Executive Summary of the Company s IRP, the
Company states that the IRP is meant to describe the currently anticipated conditions from 2007-
2011. It further states that the document is meant to present strong guidelines rather than be "
prescription for all future energy resources." IRP at 1. The Company is the sole distributor of
natural gas in southern Idaho, serving 275 800 customers in 74 communities during the first half
of fiscal year 2006. Its system contains over 10 000 miles of transmission, distribution and
service lines. Id. In fiscal year 2005, over 446 miles of distribution and service lines were added
in response to new customer additions and to maintain service for the growing customer base.
Id.
YOU ARE FURTHER NOTIFIED that Intermountain s two major markets are the
residential/commercial market (the "core market") and the industrial market. Id. Intermountain
saw an increase of 5% in average residential and commercial customers during the first half of
fiscal year 2006. Id. Forty-four percent (44%) of the throughput on Intermountain s system
during fiscal year 2005 was attributable to industrial sales and transportation. Id.
YOU ARE FURTHER NOTIFIED that, according to the IRP, the peak day send-out
studies and load duration curves were developed under design weather conditions to determine
the magnitude and timing of future deficiencies in firm peak day delivery capability.
Residential, commercial and industrial peak day load growth on the Company s system is
forecast to grow at an annual average rate of 4% over the next five years. The Company
calculated the growth for the system as a whole as well as for the separate regions in which the
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30090
Company operates. When forecasted peak day send-out is matched against existing resources, a
peak day delivery deficit occurs during January 2007 and increases at a rate of 38%. According
to the Company s calculations, a deficit of firm capacity begins to occur near the peak day
beginning in the winter of 2009. IRP at 4. The IRP sets forth the following abbreviated analysis
of the Company s main service regions:
Idaho Falls Lateral Rezion
The Idaho Falls Lateral (IFL) region serves many cities between Pocatello to the
south and St. Anthony to the north. The residential, commercial and industrial load served off
the IFL represents approximately 15% of the total Company customers and 18% of the
Company s total winter send-out during December of 2005. Id. When forecasted peak day
send-out on the IFL is matched against the existing peak day distribution capacity, a peak day
delivery deficit occurs during 2007 and increases thereafter. Id. Intermountain believes that
small, short direction peak day distribution delivery deficits in the future can be mitigated by
working with customers who have the potential to cut their peak day consumption by switching
to fuel oil during extreme cold temperatures. IRP at 5. However, the Company states that the
projected delivery deficits are of such magnitude that "looping" of the existing system is
warranted to add necessary firm delivery capability to the area.
Sun Vallev Lateral Rezion
The Company s residential, commercial and industrial customers in the Sun Valley
Lateral (SVL) region account for 4% of the total customer base and 4% of the Company s total
winter send-out during December of 2005. Id. When forecasted peak day send-out on the SVL
is matched against the existing peak day distribution capacity, a peak day delivery deficit occurs
during 2009 and increases thereafter. The tourism industry-related industrial load on the SVL is
limited in size and does not currently have the capability to switch to alternative fuels in order to
mitigate peak day send-out. IRP at 6. The Company believes that the growth in the SVL will
warrant future upgrades to the existing pipeline system, and the Company plans to increase the
delivery capability and capacity on the SVL through a series of cost-effective system upgrades.
Id.
Canyon County Region
Fourteen percent (14%) of the Company s residential, commercial and industrial
load is served off the Canyon County Lateral (CCL) region, and it accounted for 13% of the
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30090
Company s total winter send-out during December of 2005. Id. When forecasted peak day
send-out on the CCL is matched against the existing peak day distribution capacity, a peak day
delivery deficit occurs during 2007 and increases thereafter. Id. The industrial customer base in
the CCL region does not currently have the capability to switch to alternative fuels as a means of
mitigating peak day send-out and the Company states that it is currently exploring optional
means of enhancing the distribution capability in this region. IRP at 7.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filing in
this case and has preliminarily determined that the public interest in this matter may not require a
hearing to consider the issues presented, and that the issues raised by the Application may be
processed under Modified Procedure , by written submission rather than by hearing.
IDAP A 31.01.01.210-204. 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 the deadline for filing written comments or
protests with respect to Intermountain s IRP and the use of Modified Procedure in this case is
twenty-one (21) days from the service date ofthis Order. The comment must contain a statement
of reasons supporting the comment. Persons desiring a hearing must specifically request a
hearing in their written comments. Written comments concerning this Application shall be
mailed to the Commission and the Applicant at the address reflected below:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
Michael P. McGrath
Director, Gas Supply and Regulatory Affairs
Intermountain Gas Company
555 South Cole Road
PO Box 7608
Boise, ID 83707
Mail: mmcgrath~intgas.com
472 W. Washington Street
Boise, ID 83702-5983
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
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30090
Commission s home page 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. These comments must also be sent to the Intermountain Gas at the e-mail address
listed above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission may consider the matter on its merits and may
enter its Order without a formal hearing. If written comments or protests are received within the
deadline, the Commission will consider them and in its discretion may set the matter for hearing
or may decide the matter and issue its Order based on the written comments before it. IDAP
31.01.01.204.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
and exhibits have been filed with the Commission and are available for public inspection during
regular business hours at the Commission offices or on the Commission s website
www.puc.idaho.gov
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter pursuant to Title 61 of the Idaho Code.
ORDER
IT IS HEREBY ORDERED that this matter, Case No. INT-06-, be processed by
Modified Procedure IDAPA 31.01.01.201-204. Persons interested in submitting written
comments in this matter must do so no later than twenty-one (21) days from the service date of
this Order.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30090
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :30-t4-
day of June 2006.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Je D. Jewell
Commission Secretary
O:INT-06-
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30090