20091218Decision Memo.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KEMPTON
COMMISSIONER SMITH
CO MMISSI 0 NER RED FORD
COMMISSION SECRETARY
COMMISSION STAFF
FROM:MA TT ELAM
DATE:DECEMBER 18, 2009
SUBJECT:COMPLIANCE FILING OF INTERMOUNTAIN GAS COMPANY FOR
AUTHORITY TO DECREASE ITS HOOK-UP FEE ALONG ITS SUN
VALLEY LATERAL; TARIFF ADVICE NO. 09-, CASE NO. INT -09-01.
On December 11 2009, pursuant to Commission Order 30908 per Case No. INT-09-
Intermountain Gas Company filed compliance tariffs reflecting the actual costs of the Ketchum
Uprate Project.
THE APPLICATION
The Company originally proposed, and the Commission accepted, that the Hook-up Fee
initially be set based on the estimated cost of construction of the Ketchum Uprate Project -
$640 000. The Ketchum Uprate Project is estimated to provide for 16 000 therms per day of
incremental distribution capacity to new Ketchum and Sun Valley, Idaho customers.
Intermountain Gas has completed the Ketchum Uprate Project, accounted for its actual
costs and through this filing, seeks to update the Rate Schedule H-I to reflect the lower actual
costs of the Ketchum Uprate Project. As included in the Company s original filing, and ordered by
the Commission, Intermountain Gas will refund to any applicable customers the difference in the
Hook-up Fee as calculated at the estimated cost vs. the actual cost included in the tariff. The
Incremental Distribution Capacity Cost (or "ICC") and other related figures shown on Rate
Schedule H-I have been updated. The Company also corrected a clerical error in its original filing
pertaining to the sheet number of Schedule H -
DECISION MEMORANDUM DECEMBER 18, 2009
ST AFF RECOMMENDATION
Staff has reviewed the Compliance Filing and recommends that the changes to Rate
Schedule H -1 be approved.
COMMISSION DECISION
Does the Commission wish to approve the changes to Rate Schedule H-
Matt Elam
i:udmemos/intgO901 Sun Valley dm.doc
DECISION MEMORANDUM DECEMBER 18 , 2009