20081028Application.pdf

EXECUTIVE OFFICES
INTERMOUNTAIN GAS COMPANY RECEIVED
555 SOUTH COLE ROAD. P.O. BOX 7608. BOISE, IDAHO 83707 · [phone] · FAX: 377-60elOߣ1 80eT 27 PH 1.: 33
IDAHO PUBLICOctober 27,2008 UTlUTIES COMM¡.~~lri¡,!..,1TrVl ,,~1
Ms. Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington St.
P.O. Box 83720
Boise, 10 83720-0074
RE: Intermountain Gas Company
Case No. I NT -G-08-04
Dear Ms. Jewell:
Enclosed for filing with this Commission are a signed original and seven copies of
Intermountain Gas Company's Application and supporting Exhibits for Authority to
Decrease its Prices on December 1 , 2008.
Please acknowledge receipt of this filing by time stamping and returning a photocopy of this
Application cover letter to us.
If you have any questions or require additional information regarding this Application,
please contact me at [phone].
Vèry~,
IChaelp~~~
Director
Gas Supply & Regulatory Affairs
MPM/sc
Enclosures
cc: K.F. Morehouse
E.N. Book
M.W. Richards
RECE!VED
28080C127 PH".
INERMOUNTAI GAS CO~o P ie · 33
IES CO iss
IONCASE NO. INT -G-08-04
APPLICATION
AND
EXHIBITS
In the Matter of the Application of INTERMOUNTAIN GAS COMPAN
for Authority to Decrease Its Prices on December 1, 2008
(December 1, 2008 Purchased Gas Cost Adjustment Filing)
MorganW. Richards, Jr., ISB NO.1913
RICHARS LAW OFFICE
804 East Pennsylvania Lane
Boise, Idaho 83706
Telephone: [phone]
Facsimile: [phone]
Attorney for Intermountain Gas Company
RECEIVED
ZOU8 OCT 27 PHi": 33
IDAHO PUBLiCUTfLfTfES COMMiSSiON
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
In the Matter of the Application of
INTERMOUNAI GAS COMPAN
for Authority to Decrease Its Prces
Case No. INT ~G-08-04
APPLICATION
Intermountain Gas Company ("Intermountain"), an Idaho corporation with general offices
located at 555 South Cole Road, Boise, Idaho, hereby requests authority, pursuant to Idaho Code
Sections 61-307 and 61-622, to place into effect December 1,2008 new rate schedules which will
decrease its December 1, 2008 to September 30, 2009 revenues by $28.7 millon, pursuant to the
Rules of Procedure of the Idaho Public Utilities Commission ("Commission"). Because of changes
in Intermountain's commodity gas costs, as described more fully in this Application,
Intermountain's earnngs will not be decreased as a result of the proposed decrease in prices and
revenues. Intermountain's current rate schedules showing proposed changes are attached hereto as
Exhibit NO.1 and are incorporated herein by reference. Intermountain's proposed rate schedules are
attached hereto as Exhibit NO.2 and are incorporated herein by reference.
Communications in reference to this Application should be addressed to:
Michael P. McGrath
Director - Gas Supply & Regulatory Affairs
Intermountain Gas Company
Post Office Box 7608, Boise, ID 83707
and
Morgan W. Richards, Jr.
Richards Law Office
804 East Pennsylvania Lane
Boise, ID 83706
In support of this Application, Intermountain does allege and state as follows:
APPLICATION - 2
I.
Intermountain is a gas utility, subject to the jursdiction of the Idaho Public Utilities
Commission, engaged in the sale of and distrbution of natual gas withn 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 provides natual gas service to the following Idaho communties and counties
and adjoining areas:
Ada County - Boise, Eagle, Garden City, Kuna, Meridian, and Star;
Bannock County - Chubbuck, Inom, Lava Hot Springs, McCammon, and Pocatello;
Bear Lake County - Georgetown, and Montpelier;
Bingham County - Aberdeen, Basalt, Blackfoot, Firth, Fort Hall, Moreland/Riverside, and Shelley;
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 Ferr, Hammett, and Mountain Home;
Fremont County - Parker, and St. Anthony;
Gem County - Emmett;
Gooding County - Gooding, and Wendell;
Jefferson County - Lewisvile, 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, Murugh, and Twin Falls;
Washington County - Weiser.
Intermountain's properties in these locations consist of transmission pipelines, a liquefied
natual gas storage facility, distrbution mains, services, meters. and regulators, and general plant
and equipment.
II.
Intermountain seeks with this Application to pass through to each of its customer classes a
decrease in gas commodity costs resulting from a decrease in Intermountain's Weighted Average
Cost of Gas, or "WACOG". The aforementioned changes would result in an overall price decrease
to Intermountain's RS-1, RS-2, GS-1 and LV-1 customers.
APPLICATION - 3
These price changes are applicable to service rendered under rate schedules affected by and
subject to Intermountain's Purchased Gas Cost Adjustment ("PGA"), initially approved by ths
Commission in Order No. 26109, Case No. IN-G-95-1, and additionally approved through
subsequent proceedings.
Exhibit No. 3 sumarzes the decrease in Intermountain's W ACOG. Exhibit NO.3 is
attached hereto and incorporated herein by reference.
III.
The current prices of Intermountain are those approved by this Commission in Order
No. 30649, Case NO.IN-G-08-03.
IV.
The WACOG reflected in Intermountain's proposed prices is $0.67482 per therm, as
shown on Exhibit No.3, Line 3, Column (b). The W ACOG incorporates supplier contracts and
estimated prices that wil be in effect during the PGA period December 1, 2008 through
September 30, 2009.
Domestic supplies for natural gas remain strong. This proposed $0.11002/therm decrease
in the proposed W ACOG reflects the downward pricing pressures on domestic supplies of
natural gas.
Intermountain believes that the W ACOG proposed in this Application, subject to the
effect of actual supply and demand in the marketplace, wil likely materialize durng the
remainder of the current PGA period. Intermountain will employ, in addition to those natural gas
hedges already in place for the upcoming winter season, cost effective financial instruents to
further secure those prices embedded within the fied W ACOG when and if those pricing
opportunities materialize in the marketplace.
V.
Intermountain has allocated the proposed price changes to each of its customer classes
based upon Intermountain's PGA provisions.
VI.
Exhibit NO.4 is an analysis of the overall price changes by class of customer. Exhibit NO.4
is attached hereto and incorporated herein by reference.
APPLICATION - 4
VII.
The proposed overall pnce changes herein requested among the classes of service of
Intermountain reflects a just, fair, and equitable pass-through of changes in gas commodity costs to
Intermountain's customers.
VIII.
This Application is filed pursuant to the applicable statutes and the Rules and Regulations
of the Commission. This Application has been brought to the attention of Intermountain's
customers through a Customer Notice and by a Press Release sent to daily and weekly newspapers,
and major radio and television stations in Intermountain's service area. The Press Release and
Customer Notice are attached hereto and incorporated herein by reference. Copies of this
Application, its Exhibits, and Workpapers have been provided to those paries regularly intervening
in hitermountain's rate proceedings.
IX.
Intermountain requests that this matter be handled under modified procedure pursuant to
Rules 201-204 of the Commission's Rules of Procedure. Intermountain stands ready for immediate
consideration of this matter.
APPLICATION - 5
WHREFORE, Intermountain respectfully petitions the Idaho Public Utilities Commssion
as follows:
a. That the proposed rate schedules herewith submitted as Exhbit No. 2 be approved
without suspension and made effective as of December 1, 2008 in the manner shown on Exhibit
NO.2.
b. That this Application be heard and acted upon without hearng under modified procedure,
and
C. For such other relief as this Commission may determine proper herein.
DATED at Boise, Idaho, this 27th day of October, 2008.
INTERMOUNTAI GAS COMPAN Morgan W. Richards, Jr.
By N1~ tJ. ~ L.
Morgan W~ards, Jr (f
Attorney for Intermountain Gas Company
h
pply & Regulatory Affairs
APPLICATION - 6
CERTIFICATE OF MAING
I HEREBY CERTIFY that on this 27th day of October, 2008, I served a copy of the
foregoing Case No. !N -G-08-04 upon:
Paula Pyron
Northwest Industrial Gas Users
4113 Wolf Berr Cour
Lake Oswego, OR 97035-1827
Edward A. Finlea
Cahle Huston Benedict Haagensen & Lloyd LLP
1001 SW Fifth Avenue, Suite 2000
Portland, Oregon 97204-1136
R. Scott Pasley
J. R. Simplot Company
PO Box 27
Boise, ID 83707
Steven Gray
J. R. Simplot Company
POBox 27
Boise, ID 83707
Conley E. Ward, Jr.
Givens, Pursley, Webb & Huntley
277 N. 6th 81., Suite 200
PO Box 2720
Boise, ID 83701
by depositing true copies thereof in the United States Mail, postage prepaid, in envelopes addressed
to said persons at the above addresses.
APPLICATION - 7