20080529notice_of_application_order_no_30562.pdf

Office of the Secretary
Service Date
May 29, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN GAS COMPANY
FOR AUTHORITY TO CANCEL ITS
EXISTING T-l AND T-2 TRANSPORTATION
TARIFFS AND IMPLEMENT A T 5 TARIFF.
CASE NO. INT -08-
NOTICE OF APPLICATION
NOTICE OF
INTERVENTION DEADLINE
ORDER NO. 30562
On May 7, 2008, Intermountain Gas Company filed an Application with the
Commission seeking authority to cancel its existing T-l and T-2 Transportation Tariffs and place
into effect an Industrial Transportation Tariff (T-5 Tariff). The Company requests that the
Application be processed by Modified Procedure and that the tariff changes become effective July
2008.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company asserts that it is necessary to
cancel the T-l and T-2 tariffs in order to ensure continued compliance with the applicable rules
and regulations pertaining to Northwest Pipeline s interstate pipeline system. Northwest's FERC
Gas Tariff requires that a shipper have sole title to the natural gas transported on Northwest's
system. The shipper must have concurrent title to both the gas molecule as well as the interstate
transportation transporting that same gas molecule. Intermountain Gas maintains that there are
two fundamental attributes of its T-l and T-2 tariffs at odds with Northwest's regulation
requirement: (1) the Company s T-l and T-2 tariffs are "bundled" transportation services to
include the use, and compensation for, the Company s firm capacity on Northwest's system; and
(2) the tariffs require that customers procure their own supply of natural gas from a third-party
marketer.
YOU ARE FURTHER NOTIFIED that, concurrent with the elimination of its T-l and
2 tariffs, Intermountain Gas intends to offer each T-l and T-2 customer the opportunity to
choose from the menu of remaining unbundled industrial transportation services; specifically those
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30562
services as offered under the Company s T-3 and T4 tariffs, and, if approved by the Commission
the proposed T -5 tariff.
YOU ARE FURTHER NOTIFIED that, in order to help facilitate a customer s option
to elect the T-4 tariff, the Company seeks Commission approval to waive the T-4 tariffs Exit Fee
provIsIOn.
YOU ARE FURTHER NOTIFIED that, according to the Company s Application, T-
customers have had the option of selecting an unbundled version of the T -I tariff - it is the T-
tariff. T-2 tariff customers have had no equivalent unbundled tariff option. Therefore, the
proposed T-5 rate schedule is an unbundled version of the Company s T-2 tariff. Intermountain
Gas asserts that the T-5 customer s burner-tip price "should be economically equivalent" to that
provided under the bundled T-2 service.
YOU ARE FURTHER NOTIFIED that the Company has asked that its Application be
processed under Modified Procedure, IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the Application, supporting workpapers and
exhibits have been filed with the Commission and are available for public inspection during
regular business hours at the Commission offices. The Application and other workpapers are also
available on the Commission s Website at www.puc.idaho.gov under the "File Room" and then
Gas Cases.
DEADLINE FOR INTERVENTION
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter for
the purpose of presenting evidence or cross-examining witnesses at hearing must file a Petition to
Intervene with the Commission pursuant to the Commission s Rules of Procedure 72 and 73
IDAPA 31.01.01.072 and .073. Persons intending to participate at hearing must file a Petition to
Intervene no later than 14 days from the service date of this Order. Persons seeking intervenor
status shall also provide the Commission Secretary with an electronic mail address to facilitate
further communications in this matter.
YOU ARE FURTHER NOTIFIED that persons desiring to present their views without
parties' rights of participation and cross-examination are not required to intervene and may present
their comments without prior notification to the Commission or to other parties.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30562
YOU ARE FURTHER NOTIFIED that once the deadline for intervention has passed
the Commission Secretary shall issue a Notice of Parties. The Notice of Parties shall assign
exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that after the Notice of Parties is issued, the
Commission anticipates that the parties will informally convene to devise a recommended
schedule to process this case. In addition to the schedule, the parties may discuss discovery
logistics, electronic service, and other scheduling matters.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter pursuant to Title 61 of the Idaho Code and specifically Idaho Code 99 61-116, 61-117, 61-
129, and 61-307. 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.
SUSPENSION OF PROPOSED EFFECTIVE DATE
Due to the limited time between when the Company filed its Application and when it
requests that the changes become effective, the Commission finds that it cannot resolve
Intermountain Gas Company s requested tariff changes before the proposed effective date of July
, 2008. Pursuant to Idaho Code 99 61-622 and 61-623, the Commission hereby suspends the
proposed changes for a period of thirty (30) days plus five (5) months from May 29 2008, or until
such time as the Commission enters an Order accepting, rejecting or modifying the request in this
matter.
ORDER
IT IS HEREBY ORDERED that the proposed changes to its transportation tariffs
submitted by Intermountain Gas Company in this matter are suspended for a period of thirty (30)
days plus five (5) months from May 29, 2008 , or until such time as the Commission enters an
Order accepting, rejecting or modifying the request in this matter.
IT IS FURTHER ORDERED that persons desiring to intervene in this case for the
purpose of presenting evidence or cross-examination at hearing shall file a Petition to Intervene
with the Commission no later than fourteen (14) days from the service date of this Order.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30562
IT IS FURTHER ORDERED that after the Notice of Parties is issued, the Staff shall
informally convene with the parties to discuss the processing of this case.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this .;l9-rh
day of May 2008.~6_
MACK A REDFORD :ENT
MARSHA H. SMITH, COMMISSIONER
Iir/ JI KEMPTON;'C OM ISSIONER
ATTEST:
~lQ.Je D. Jewell
Commission Secretary
O:INT-O8-
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30562