20081128Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: WELDON STUTZMAN
DEPUTY ATTORNEY GENERAL

DATE: NOVEMBER 25, 2008

SUBJECT: INTERMOUNTAIN GAS COMPANY’S APPLICATION FOR APPROVAL
TO CHANGE ITS COMPOSITE DEPRECIATION RATE,
CASE NO. INT-G-08-05

On November 21, 2008, Intermountain Gas Company filed an Application requesting
approval to change its composite depreciation rate. Intermountain’s currently effective
depreciation rate of 3.35% was approved by the Commission in February 2006. The
Commission directed the Company to update its depreciation study and submit it to the
Commission for review no later than three years from entry of the February 2006 Order.
Intermountain subsequently retained a consultant to update its 2005 Depreciation Study. The
consultant’s study indicated a decrease in the composite rate from 3.35% to 2.96% is
appropriate. The effect of the lower rate would be a decrease in the Company’s annual
depreciation accrual by $1,462,205. The Company asked that its new composite depreciation
rate be effective January 1, 2009.
Intermountain requests that its Application be processed by Modified Procedure.
Staff believes that Modified Procedure may be appropriate, but recommends the Commission
initially issue only a Notice of Application and Notice Opportunity to Intervene. Following the
intervention period, Staff and the Company and any other parties will convene informal
workshops to attempt to resolve Intermountain’s request by agreement. Modified Procedure can
commence following conclusion of the workshops.
DECISION MEMORANDUM 2
COMMISSION DECISION
Should the Commission issue a Notice of Application and Notice of Opportunity to
Intervene in Case No. INT-G-08-05?

Weldon B. Stutzman
Deputy Attorney General

bls/M:INT-G-08-05_ws