20090710notice_of_application_order_no_30857.pdf

Office of the Secretary
Service Date
July 10, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF INTERMOUNTAIN
GAS COMPANY'S REQUEST FOR
AUTHORITY TO ESTABLISH A HOOKUP
FEE ALONG ITS SUN VALLEY LATERAL.
CASE NO. INT -09-
NOTICE OF APPLICATION
NOTICE OF INTERVENTION
DEADLINE
ORDER NO. 30857
On June 15, 2009, Intermountain Gas Company filed an Application with the
Commission seeking authority to establish a hookup fee along its Sun Valley Lateral. The
Company requests that the Application be processed by Modified Procedure and that the hookup
fee be implemented as of July 15 2009.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Sun Valley Lateral is currently operating
near system capacity. The Company maintains that it has, and continues, to make substantial
capital upgrades to its Sun Valley Lateral in order to serve the daily natural gas needs of all its
Sun Valley Lateral customers. The next planned distribution system upgrade off the main Sun
Valley Lateral is the "Ketchum Upratel" planned to be compleJed in 2009. This upgrade will
provide for 16 000 therms per day of incremental distribution capacity to new Ketchum and Sun
Valley, Idaho customers at an estimated cost of $640 000.
YOU ARE FURTHER NOTIFIED that Intermountain Gas proposes a new rate
schedule that would require new customers whose estimated peak usage on the Company s Sun
Valley Lateral exceeds the average peak-day usage on the Lateral to pay a fee for the
disproportionate amount of incremental distribution system plant investment that these new
customers create. The customers who will be subject to the proposed hookup fee will be the
same new customers causing the need for, and who directly benefit from, additional Sun Valley
Lateral distribution system capital upgrades.
YOU ARE FURTHER NOTIFIED that the Company reports that the average peak-
day usage per customer along the Sun Valley Lateral is presently 15.5 therms per day.
I The "uprate" of a natural gas pipeline is the process required to increase the allowable operating pressure of a
pipeline segment.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30857
YOU ARE FURTHER NOTIFIED that the Company proposes that the hookup fee
initially be set based on the estimated cost of construction of the Ketchum Uprate Project -
$640 000. The Company intends to file a revised rate schedule with the Commission reflecting
the actual costs of the Ketchum Project when they become known. If actual costs of the Project
result in a lower hookup fee than that which is initially approved, and therefore charged, to
customers, the Company will issue a refund to customers who paid the inflated fee. If actual
costs result in a higher hookup fee the Company does not intend to seek the difference from
customers who paid the lower fee prior to knowledge of the actual costs.
YOU ARE FURTHER NOTIFIED that the Company insists that its earnings will not
change as a result of the proposed new rate schedule. Any collected hookup fee will be applied
as a reduction to the distribution system plant investment (rate base) provided to serve the
incremental Ketchum/Sun Valley area customers, thereby avoiding any cross-subsidies that
would otherwise occur to pay for any above average customer usage.
YOU ARE FURTHER NOTIFIED that the Company believes that failure to approve
a hookup will cause undue subsidization and upward price pressure on customers who are not
directly benefitted from the Ketchum/Sun Valley area distribution system upgrades.
YOU ARE FURTHER NOTIFIED that the Company has asked that its Application
be processed under Modified Procedure, ID AP A 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 Web site 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 , IDAP A 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
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30857
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.
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 gg 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 effectively
consider Intermountain Gas Company s requested changes before the proposed effective date of
July 15 2009. Pursuant to Idaho Code gg 61-622 and 61-623, the Commission hereby suspends
the proposed changes for a period of thirty (30) days plus five (5) months from July 15 2009, 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 implementation of Intermountain Gas
proposed hookup fee along its Sun Valley Lateral is suspended for a period of thirty (30) days
plus five (5) months from July 15 , 2009, or until such time as the Commission enters an Order
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30857
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 ofthis Order.
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 q-f4.
day of July 2009.
~4L~KEMPT N, PiI?sID ENT
MARSHA H. SMITH, COMMISSIONER
MACK A. REDFORD, COMMISSIONER
ATTEST:
O:INT-09-
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30857