20080627notice_of_modified_procedure_order_no_30586.pdf

Office of the Secretary
Service Date
June 27, 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
MODIFIED PROCEDURE
ORDER NO. 30586
On May 7, 2008 , Intermountain Gas Company filed an Application with the
Commission seeking authority to cancel its existing T-1 and T-2 Transportation Tariffs and place
into effect a new Industrial Transportation Tariff (T -5 Tariff). More specifically, the Company
asserts that it is necessary to cancel the T-1 and T-2 tariffs in order to ensure continued
compliance with the applicable rules and regulations pertaining to Northwest Pipeline.
On May 29, 2008, the Commission issued a Notice of Application and Intervention
Deadline. Order No. 30562. Northwest Industrial Gas Users petitioned to intervene and was
granted intervention status in Order No. 30577. The Commission issued its Notice of Parties on
June 20, 2008.Following consultation with the parties, it was determined that a formal
discovery period was unnecessary to address issues raised by the Application. The parties also
jointly request a 14-day comment period in order to expedite the processing of the Company
Application.
THE APPLICATION
The Company asserts that it is necessary to cancel the T-1 and T-2 tariffs and
implement the new T-5 tariff to comply 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 rights
transporting that same gas molecule. Intermountain Gas maintains that there are two
fundamental attributes of its T -1 and T -2 tariffs at odds with Northwest's regulation requirement:
(1) the Company s T-1 and T-2 tariffs are "bundled" transportation services to include the use
I Northwest Pipeline is an interstate pipeline system utilized to transport natural gas.
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30586
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.
Concurrent with the elimination of its T-l and T-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 services as offered under the
Company s T-3 and T4 tariffs, and, if approved by the Commission, the proposed T-5 tariff. 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.
According to its Application, T -1 customers have had the option of selecting an
unbundled version the T -1 tariff - it is the T -4 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.
NOTICE OF MODIFIED PROCEDURE
YOU ARE HEREBY NOTIFIED that the Commission has determined that the
public interest may not require a formal evidentiary hearing in this matter and will proceed under
Modified Procedure pursuant to the Commission s Rules of Procedure 201 through 204, IDAPA
31.01.01.201 through .204. The Commission notes that Modified Procedure (with written
comments) has proven to be an effective means for obtaining public input and participation in
cases of this nature.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission no later
than 14 days from the date of this 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 parties at the addresses reflected below:
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30586
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Intermountain Gas Company:
Street Address for Express Mail:
Paul R. Powell
Executive Vice President &
Chief Financial Officer
Intermountain Gas Company
PO Box 7608
Boise, ID 83707472 W. Washington Street
Boise, ID 83702-5918
Stephen R. Thomas
Moffatt, Thomas, Barrett, Rock &
Fields, Chartered
PO Box 829
Boise, ID 83701-0829
Northwest Industrial Gas Users:
Edward A. Finklea
Cable Huston Benedict Haagenson & Lloyd LLP
1001 SW Fifth Avenue, Suite 2000
Portland, OR 97204-1136
E-mail: efinklea~cablehuston.com
Paula E. Pyron
Executive Director
Northwest Industrial Gas Users
4113 Wolf Berry Court
Lake Oswego, OR 97035-1827
E-mail: ppvron(fYnwigu.org
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 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. E-mail comments should also be sent to the parties at the addresses listed above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30586
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.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code ~~ 61-307, 61-313 , 61-503 , and 61-622. 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.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and the parties may file written comments no later than 14 days from the date
of this Order.
IT IS FURTHER ORDERED that the parties service their comments, if any, on each
other according to the addresses listed above. We encourage the parties to utilize electronic mail
for serving comments.
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30586
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;( 1 t/.
day of June 2008.
MACK A. REDFORD, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~EJJe D. Jewell
Commission Secretary
O:INT-O8-01 ks2
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30586