20080703notice_of_filing_order_no_30590.pdf

Office of the Secretary
Service Date
July 3, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF INTERMOUNTAIN
GAS COMPANY'2009-2013 INTEGRATED
RESOURCE PLAN
NOTICE OF FILING
CASE NO. INT -08-
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 30590
On May 30, 2008, Intermountain Gas Company filed its 2008 Integrated Resource
Plan (IRP) for the years 2009-2013. In its Executive Summary, the Company states that the IRP
is meant to describe the currently anticipated condition from 2009-2013. It further states that the
document is meant to describe conditions based on current expectations for various demand
scenarios rather than be "a prescription for all future energy resource decisions." IRP at
YOU ARE HEREBY NOTIFIED that Intermountain Gas Company is the sole
distributor of natural gas in southern Idaho, serving over 300 000 customers in 74 communities
during fiscal year 2008. Its system contains over 10 000 miles of transmission, distribution and
service lines. Id. In fiscal year 2007, over 421 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 large volume, contract customer
industrial") market. Id. Intermountain experienced an increase of 5% in average residential
and commercial customers during the first half of fiscal year 2008. Id. Forty-three percent
(43%) of the throughput on Intermountain s system during fiscal year 2007 was attributable to
industrial sales and transportation. Id.
YOU ARE FURTHER NOTIFIED that, according to the Company s filing, peak day
send-out" (delivery) 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.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30590
The Company calculated the growth for the system as a whole as well as for the separate regions
in which Intermountain Gas operates. The Company s main service regions are the Idaho Falls
Lateral, Sun Valley Lateral, and Canyon County. When forecasted peak day delivery is matched
against existing resources, there are no peak day delivery deficits. IRP at 3.
YOU ARE FURTHER NOTIFIED that 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 16% of the total
Company customers and 21 % of the Company s total winter delivery during December of 2009.
Id. When forecasted peak day delivery on the IFL is matched against the existing peak day
distribution capacity of 1 000 000 therms, there are no peak day deficits throughout the five-year
IRP Plan. Id. Intermountain believes that small, short-duration 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 4.
However, since there are no deficits, no industrial alternative fuel use is required.
YOU ARE FURTHER NOTIFIED that the Company s residential, commercial and
industrial customers in the Sun Valley Lateral (SVL) region account for 3.5% of the total
customer base and 3.3% of the Company s total winter delivery during December of 2007. Id.
When forecasted peak day delivery on the SVL is matched against the existing peak day
distribution capacity, a peak day delivery deficit occurs during 2009 and increases thereafter.
The primary industrial load on the SVL is tourism and medical services. No industrial customers
on the SVL have the capability to switch to alternative fuels so using industrial fuel to mitigate
peak day consumption is not an option. However, the industrial peak day throughput is
relatively small. IRP at 5. The optimization model indicated that the most cost-effective method
to increase delivery capability on the SVL is the addition of a compressor station prior to FYII.
While there are some small deficits in FY09 and FYIO, the rebuilding of the primary gate station
that serves the SVL and the use oflinepackl should be able to cover small, short-duration deficits
until the new capacity comes on line for the FYIl heating season. Id.
I Linepack - The ability of a natural gas pipeline to effectively "store" small quantities of gas on a short-term basis
by increasing the operating pressure of the pipe. Most pipelines use linepack as a resource to help manage the load
fluctuations on their systems, building up linepack during periods of decreased demand and drawing it down during
periods of increased demand.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30590
YOU ARE FURTHER NOTIFIED that 15% 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 Company s total winter delivery during December of 2007. IRP at 6.
When forecasted peak day delivery on the CCL is matched against the existing peak day
distribution capacity, a peak day delivery deficit occurs during 2012 and increases thereafter. Id.
The industrial customers in the CCL region do not currently have the capability to switch to
alternative fuels as a means of mitigating peak day consumption. However, the Company states
that it is currently exploring optional means of enhancing the distribution capability in this
region. Id. The optimization model selected a pipeline-looping project with an in-service of
FYI2 as the best solution to this capacity deficit.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER 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
Intermountain s IRP may file a written comment in support or opposition with the Commission
no later than sixty (60) 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 Intermountain s IRP shall be
mailed to the Commission and Intermountain Gas at the addresses 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 83702-5918
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30590
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 form, using the case number as it appears on the front of this document.
These comments must also be sent to 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 A
31.01.01.204.
YOU ARE FURTHER NOTIFIED that Intermountain s IRP has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices or on the Commission s web site at www.puc.idaho.gov under "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.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons may file written comments no later than sixty (60) days from the service date
of this Order.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30590
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this n!l.
day of July 2008.
~~
MAC~. RE
- -
lDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
II
Commission Secretary
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30590