20100113notice_of_workshop_order_no_30979.pdf

Office of the Secretary
Service Date
January 13 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF INTERMOUNTAIN
GAS COMPANY'S APPLICATION FOR
AUTHORITY TO ESTABLISH
INTERRUPTIBLE SNOWMELT TARIFFS NOTICE OF WORKSHOP
CASE NO. INT -09-
ORDER NO. 30979
On November 5, 2009, Intermountain Gas Company filed an Application requesting
authority to implement new rate schedules. Application at 2. Specifically, the Company
proposes new rate schedules that would require any new residential or small commercial
customer installing new natural gas equipment, or any existing residential or small commercial
customer performing remodeling work that includes modification of equipment and piping, for
the purpose of melting snow on sidewalks, driveways, or other similar appurtenances
Snowmelt"), to receive interruptible service for such Snowmelt either under the Company
proposed Rate Schedule IS-R or Rate Schedule IS-C. A Notice of Application and Notice of
Modified Procedure was issued on December 3, 2009 , setting a December 23, 2009, comment
deadline and suspending the Company s proposed effective date. Order No. 30957.
THE APPLICATION
Intermountain asserts that natural gas-fired Snowmelt equipment has increased in
popularity over the past decade. The Company explains that while Snowmelt usage can be
beneficial during off-peak periods to more efficiently use otherwise unused distribution capacity,
it can negatively impact system pressures when firm sales and transportation customers require
peak-day deliveries.
The Company maintains that most Snowmelt equipment uses an inordinate amount
of natural gas compared to a standard space or water heating application. The Company states
that during periods of peak-day throughput, Snowmelt usage competes with firm customers for
the finite amount of available natural gas that can flow through the Company s distribution
system, potentially degrading service to firm customers. Intermountain explains that because
Snowmelt customers use large amounts of natural gas for only a few days or weeks during the
winter, it creates an inefficient use of the Company s distribution system and does not allow for
NOTICE OF WORKSHOP
ORDER NO. 30979 1 .
cost recovery of the added capacity. Therefore, Intermountain proposes that Snowmelt use be
considered an interruptible service.
Intermountain proposes that all new Snowmelt applications have individual metering
facilities, separate and distinct from any metering providing any other natural gas service. At its
sole discretion, Intermountain will manually or remotely turn off all Snowmelt meters in affected
regions of its system when system integrity is at issue. The Company believes that interruptions
will be short in duration and will depend on weather and snowfall conditions.Existing
Snowmelt users will be given the option to convert to the terms and conditions of the proposed
rate schedules.
The proposed rate schedules include a Facility Reimbursement Charge to recover the
capital investment required to provide Snowmelt service to new customers.However, the
proposed schedules include a provision that would exempt existing Snowmelt customers from
the one-time Facility Reimbursement Charge.
Intermountain asserts that customers have been notified regarding Intermountain
Application through a press release in the Company s service area where customers would be
impacted by the proposed schedules. Intermountain states that the proposed schedules are just
fair, and equitable.
NOTICE OF WORKSHOP
YOU ARE HEREBY NOTIFIED that the Commission will convene a workshop on
THURSDAY. FEBRUARY 4. 2010. AT 9:30 A.M. IN THE COMMISSION HEARING
ROOM. 472 WEST WASHINGTON STREET. BOISE. IDAHO The purpose of the
workshop is to explore in greater detail the issues raised in comments filed with the Commission
regarding the Company s Application. Specifically, the Commission directs the Company to
address the ramifications of interruption on Snowmelt customers, Snowmelt systems, and the
natural gas distribution system as a whole. The duration of potential interruptions and the
outlook for automation of remote shut-offs will also be discussed.
1 During periods of peak-day throughput, interruptible customers can be required to cease using natural gas for
Snowmelt to help ensure the needs of fIrm sales and transportation customers are met.
2 The Company has already negotiated voluntary agreements with existing large volume Snowmelt users thatprovide for cessation of Snowmelt upon notice by the Company.
NOTICE OF WORKSHOP
ORDER NO. 30979
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be held in
facilities meeting the accessibility requirements of the Americans with Disabilities Act (ADA).
Persons needing the help of a sign language interpreter or other assistance in order to participate
in or to understand testimony and argument at a public hearing may ask the Commission to
provide a sign language interpreter or other assistance at the hearing. The request for assistance
must be received at least five (5) working days before the hearing by contacting the Commission
Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
Mail: secretaryC0puc.idaho.gov
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and that 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.
ORDER
IT IS HEREBY ORDERED that a workshop be held on Thursday, February 4, 2010
at 9:30 a.m. in the Commission Hearing Room.
NOTICE OF WORKSHOP
ORDER NO. 30979
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /3
day of January 2010.
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JI KEM PRE DENT
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MARSHA H. SMITH, COMMISSIONER
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MACK A. REDFORD, C~~ISSIONER
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ATTEST:
*'tDje D. Jewell
Commission Secretary
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NOTICE OF WORKSHOP
ORDER NO. 30979