20111012Application.pdf

EXECUTIVE OFFICES
INTERMOUNTAIN GAS COMPANY
555 SOUTH COLE ROAD.P.O.BOX 7608.BOISE,IDAHO 83707.[phone] •FAX:[phone]
October 12,2011
PEC!:I\lr:fU";'..,.~..'!ilL.....
LOll OCT 12 AM 10:53
Ms.Jean Jewell
Idaho Public Utilities Commission
472 W.Washington Street
P.O.Box 83720
Boise,ID 83720-0074
RE:Intermountain Gas Company
Case No.INT-G-II-02
Dear Ms.Jewell:
NEW CASE
Enclosed for filing with this Commission is an original and seven (7)copies ofIntermountain
Gas Company's Application seeking approval to place into effect a change in its Composite
Depreciation Rate,effective January 1,2012.
Please acknowledge receipt of this filing by stamping and returning a copy of this Application
cover letter to us.
Ifyou have any questions or require additional information regarding the attached,please contact
me at 377-05 or Dave Swenson at 377-6118.
cc:K.F.Morehouse
D.Haider
M.Parvinen
SWM/mt
RFe!=1\1 r::0')..._·,-i,~._.
2011 OCT 12 AM 10=54
10';!cr ,-,!C;'!!INTERMOUNTAIN GAS COMPANYll~1iL'rrl";'i;i/(~'>;i;'l'f'i:I't,.,.;·1 j t--"...·v.....,.J iJ Ii.
CASE NO.INT-G-II-02
APPLICATION
AND
EXHIBIT
In the Matter of the Application of INTERMOUNTAIN GAS COMPANY
for Approval to Place into Effect
a Change in Its Composite Depreciation Rate
Stephen R.Thomas,ISB 2326
MOFFATT THOMAS BARRETT ROCK &FIELDS,CHTD.
101 S.Capitol Boulevard,Suite 1000
Boise,Idaho 83702
Telephone:[phone]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
In the Matter of the Application of
INTERMOUNTAIN GAS COMPANY for
Approval to Place into Effect a Change in
Its Composite Depreciation Rate
Case No.INT-G-II-02
APPLICATION
COMES NOW Intermountain Gas Company ("Intermountain"or "Applicant"),a subsidiary
ofMDU Resources Group,Inc.with general offices located at 555 South Cole Road,Boise,Idaho,
and pursuant to Idaho Code,Title 61,and rules 6.2 and 6.3 of the Rules ofPractice and Procedure of
the Idaho Public Utilities Commission ("Commission"),makes an Application seeking approval to
place into effect a change in its composite deprecation rate.
Communications in reference to this Application should be addressed to:
Scott Madison
Vice President &Chief Accounting Officer
Intermountain Gas Company
Post Office Box 7608
Boise,ID 83707
and
Stephen R.Thomas,ISB 2326
MOFFATT THOMAS BARRETT ROCK &FIELDS,CHTD.
101 S.Capitol Boulevard,Suite 1000
Boise,Idaho 83702
In support ofthis Application,Intermountain does allege and state as follows:
APPLICATION - 2
I.
Intennountain is an Idaho corporation,whose principal place of business is 555 South Cole
Road,Boise,Idaho,and is qualified to do business in the state ofIdaho.
II.
Intennountain is a gas utility,subject to the jurisdiction of the Idaho Public Utilities
Commission,engaged in the sale of and distribution of natural gas within 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.
Intennountain provides natural gas service to the following Idaho communities and counties
and adjoining areas:
Ada County -Boise,Eagle,Garden City,Kuna,Meridian,and Star;
Bannock County -Chubbuck,Inkom,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 Dcon;
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 Ferry,Hammett,and Mountain Home;
Fremont County -Parker,and St.Anthony;
Gem County -Emmett;
Gooding County -Gooding,and Wendell;
Jefferson County -Lewisville,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,and Homedale;
Payette County -Fruitland,New Plymouth,and Payette;
Power County -American Falls;
Twin Falls County -Buhl,Filer,Hansen,Kimberly,Murtaugh,and Twin Falls;
Washington County -Weiser.
Intennountain's properties in these locations consist of transmission pipelines,a liquefied
natural gas storage facility,distribution mains,services,meters and regulators,and general plant and
equipment.
APPLICATION -3
HI.
Intermountain's currently effective composite depreciation rate of 2.96%was approved by
this Commission in Case No.INT-G-08-05,Order No 30756,dated March 25,2009.Applicant has
traditionally reviewed and filed an update to its deprecation rate with this Commission
approximately every three years.Case INT-G-ll-02 reflects Applicant's first filing under its new
calendar year financial reporting period.
IV.
With each update of Applicant's depreciation parameters and associated rates,special
circumstances regarding Intermountain's recovery rates are addressed.The current study addresses,
among other things,adjustments to the projected lives of Electronic Read Transmitters ("ERTs"),
mains and service lines and corresponding net salvage ofthe same.
Intermountain began utilizing ERTs system-wide beginning in 2002 and the units were
expected to continue in service for 15 years.However,recent sampling studies indicate that these
devices will need to be replaced earlier than anticipated,beginning in 2012,resulting in a shortening
ofthe remaining useful life ofthis asset class.
Intermountain continues to make increased use of plastic pipe in its main and service lines.
The cost advantage of plastic pipe over steel pipe,coupled with increasing evidence for the longer
service life of plastic pipe,necessitates the proposed increase in the lives of main (from 54 to 58
years)and service (from 46 to 52 years)investment.
v.
Intermountain contracted the services of AUS Consultants,the same outside vendor
employed for the prior six (6)depreciation filings (from INT-G-94-1 through INT-G-08-05)to
perform an update of the 2008 study.The results of this study indicate that Intermountain's
current composite rate is under-depreciating its assets.Therefore,Applicant requests an increase
in its composite depreciation rate from 2.96%(2.98%when the accrual rates per Order 29975 are
weighted by December 30,2010 assets)to 3.07%.The effect of the higher rate would be to
increase Intermountain's annual depreciation accrual by $375,337.
VI.
APPLICATION - 4
Intermountain does not seek a change in its prices as a result ofthis Application.
VII.
The current definition of depreciation used by the Federal Energy Regulatory Commission
and the National Association of Regulatory Commissioners is as follows:
"Depreciation,"as applied to depreciable plant,means the loss in service value not restored
by current maintenance,incurred in connection with the consumption or prospective
retirement of utility plant in the course of service from causes which are known to be in
current operation and against which the utility is not protected by insurance.Among the
caused to be given consideration are wear and tear,decay,action of the elements,
inadequacy,obsolescence,changes in the art,changes in demand,and requirements of
public authorities.
The American Institute of Certified Public Accountants in its Accounting Terminology
Bulletin #1 defines depreciation accounting as follows:
Depreciation accounting is a system of accounting which aims to distribute cost or other
basic value of tangible capital assets,less salvage (if any),over the estimated useful life of
the unit (which may be a group of assets)in a systematic and rational manner.It is a process.
ofalloc<ition,not ofvaluation.
The prescription of depreciation rates is an important element of the regulatory process
because it must allocate the full cost of an asset over the life of the property items in a rational
manner.
VIII.
The depreciation study update filed with this Case was based upon Intermountain's books
and records as of December 31,2010.The calculation of the amount of the annual depreciation
expense required per year was calculated on an individual account basis.The methods used in the
calculation were the Simulated Plant Record Balances Method and the Simulated Plant Retirement
Method.Both Methods use the "Iowa Curves"mortality distribution.The current study was
conducted using Applicant's data and the "Iowa Curves"as described in the NARUC publication of
July 25,19~4,"Depreciation Practices for Small Gas Distribution Companies".The current study is
summarized and shown in Exhibit No.1 attached hereto and incorporated herein by reference.A
APPLICATION - 5
copy of the current depreciation study working papers,which is voluminous,is available for
inspection and examination at Intermountain's general business office located at 555 S.Cole Road
in Boise,Idaho.
IX.
Since Applicant's last depreciation filing in Case No.INT-G-08-05,the original cost of
depreciable property increased from $383,460,395 to $415,697,857 as shown in Column (d),Line
28,on Page 1 of Exhibit No.1.The accumulated reserve increased from $207,030,611 to
$240,667,847 as shown in Column (e),Line 28,on Page 1 of Exhibit No.1.The current study
necessitates an annual depreciation accrual of $12,772,130 per year over the remaining life of the
property as shown in Column 0),Line 28,on Page 2 ofExhibit No.1.
X.
The current study indicates a need to increase the current composite rate of 2.96%(2.98%
when weighted by 12/31/2010 assets)to 3.07%,an increase of 0.11%(.0011).This increase is
required in order to accrue the proper dollars over the remaining life of the property.Exhibit No.1,
Pages 2 -4,contains a summary comparison of the current depreciation rates,by plant function and
by account,versus the requested rates in the Application.
XI.
Applicant requests that the increase to the annual composite depreciation rate be effective
January 1,2012 consistent with the beginning ofIntermountain's annual financial reporting period.
Due to inflexibility of Intermountain's new accounting system and,in the event the Commission is
unable to rule on this filing in time to place new rates into effect on January 1,2012,Applicant
requests the Commission place into effect the requested depreciation rates on an interim basis
effective January 1,2012 until such time that the Commission is able to place into effect a final
Order in this proceeding.
XII.
Intermountain requests that this matter be processed pursuant to Rules 201-204 under the
Commission's Rules ofModified Procedure.Intermountain stands ready to respond to any requests
for information in this matter.
APPLICATION -6
WHEREFORE,Intermountain respectfully petitions this Commission for relief as follows:
1.That Applicant be authorized to increase·the current composite depreciation rate on an
accrual rate on an account by account basis from 2.96%(2.98%when weighted by
12/31/2010 assets)to 3.07%as shown in Column (i),on page 1 of Exhibit No.1.In the
event that this Commission is unable to place final rates into effect by January 1,2012,
Intermountain respectfully requests the Commission place into effect the proposed rates
as filed on an interim basis effective January 1,2012 until such time as the Commission
can place into effect permanent rates pursuant to a fmal Order in this Case.
2.That Applicant's current prices remain unchanged as a result ofthis Application.
3.That Applicant be authorized to record the increase in the annual composite deprecation
rate effective on January 1,2012.
4.For such other relief as this Commission may determine proper herein.
DATED at Boise,Idaho,this 12th day of October,2011.
TTROCK&
omas
Intermountain Gas Company
MOFFATT THOMAS BA
FIELDS,TD
By
Stephen
Attorney
INTERMOUNTA.u.........~,...S COMPANY
By
Sco adison
Vice President &ChiefAccounting Officer
APPLICATION - 7
EXHIBIT NO.1
CASE NO.INT-G-II-02
INTERMOUNTAIN GAS COMPANY
(Depreciation Study)
(4 pages)
Intermountain GasCompany
Summary ofPresent and Proposed Net Change In Annual Accruals
Depreciation Accrual Parameters and Expenses (Depreclldon ura"RillProcedurel)
StudyDate:Asof December 31,2010
Current Study12-31-2010 f!n§o!.~
line Account Study Investment Reserved Percent Annual Annual
~.tllI!IIIltC ~Account Name 1!iIiI!D Investment ~Accrual Annual Accrual Annual Net
~Rate Accruals Rate Accruals Change
LastStudy Last Study
(a)(b)(c)(d)(e)(f)(g)(h)(I)0)(k)
(e)f(d)(d)"(g)(d)'(I)Q)-(h)
LNG Equipment -Nampa
l'361.00 LNG Facilities 9,684,660.79 8,704,968.67 90.8%1.26%119,807 2.00%191,691 71,884
LNG Equipment -,Rexburg
2 361.20 LNG Vaporization Facilities 4,771,916.03 719,279.84 16.1%6.74%273,860 6.74%273,908 48
3 Subtotel Storage Plant 14,366,468.82 9,424,238.61 66.6%2.74%393,667 3.24%466,699 71,932
4 365.00 ROW Right of Way 678,619.53 275,357.60 40.6%2.10%.14,251 2.11%14,319 68
5 366.00 TCS Strueturesandlmprovements 77,152.11 8,521.40 11.0%3.46%2,669 6.44%4,969 2,300
6 367.00 TMN TransmlsslonMains 42,190,850.36 31,614,924.50 74.9%2.97%1,253,068 2.82%1,189,782 (53,286)
7 368.00 TCS CompreBBOr Equipment -(532,377.62)0.0%0.00%44,517 6.67%42,159 (2,358)
CompressorEqulpmenlSun
8 368.10 TCS Valley Lateral 0.0%3.81%0 4.76%0 0
9 370.00 TCE Communication Equipment 714,440.07 752,780.59 105.4%0.04%286 -0.04%(286)(572)
10 Subtotal Transmission Plant 43,681,062.07 32,019,206.47 73.3%3.01%1,314,791 2.87%1,260,943 (63,848)
11 374.00 LRT LandRights 407,749.39 237,214.91 68.2%1.86%7,684 1.79%7,299 (285)
12 375.00 STR Structures and Improvements 18,863.90 19,470.44 103.2%0.65%123 0.38%72 (51)
13 376.00 MNS Mains 138,215,690.27 85,211,545.50 61.7%2.69%3,717,999 2.66%3,538,319 (179,680)
14 378.00 MRG Regulator Station Equipment 4,498,668.46 2,076,941.48 46.2%3.11%139,905 2.79%126,610 (14,395)
16 380.00 SVC Services 126,669,872.88 73,728,908.93 58.2%2.88%3,622,758 2.42%3,085,411 (557,347)
16 381.00 MTR Meters 20,610,136.53 10,730,498.26 52.1%2.11%434,874 1.76%362,738 (72,136)
Electronlc MeterReading
17 381.20 ERT Transmilter(ERT)Unlts 15,825,976.61 4,794,178.48 30.3%6.45%1,020,776 14.22%2,260,454 1,229,679
18 382.00 MTI Meter Installations 8,626,382.40 4,203,509.70 48.7%1.97%169,939 1.85%169,588 (10,361)
19 382.20 ERI ERT Installations 2,132,626.96 813,652.86 38.1%6.39%136,258 12.63%269,338 133,070
20 383.00 HRG House Regulators 4,987,886.11 2,353,816.60 47.2%.1.94%96,766 1.89%94,271 (2,494)"'tl-nmOJ;:,OJ x21384.00 HRI House Regulators -Installation 6,341,609.45 1,581,263.98 29.6% 2.18%116,445 2.16%114,842 (1,603)C7Q rt III =r
22 386.00 IMR Regulator Station -Industrial 8,776,905.69 4,845,291.18 55.2%3.60%307,192 2.66%232,688 (74,604)f1)3"'"f1).0:....z;:;:
23 Subtotal Distribution Plant 336,111,947.66 190,596,191.11 56.7%2.91%9,770,627 3.04%10,220,430 449,803 Q,g ~z.j:>.aZ~24 390.10 aSI Structures andImprovements 15,170,425.56 5,487,553.07 36.2%2.10%316,579 2.33%353,471 34,692 OJ -i ....
25 392.00 GTR TransportationEquipment 5,607,176.21 2,964,400.82 62.7% 9.75%646,700 7.42%4'6,052 (130,648):;'G1
26 396.00 GPE Power Operated Eq!-'lpment 790,779.36 186,256.87 23:6%6.63%52,429 8.30%65,635 13,206 G')~
OJ ....
27 Subtotal General Plant 21,568,380.13 8,628,210.76 40.0%4.25%917,706 3.87%.835,158 (82,550);;6
o IV
28 Total Depreciable Plant 415,697,856.67 240,667,846.85 57.9%2.98%12,396,793 3.07%12,772,130 375,337 3
'0OJ;:,-<
'.....;..'
IntermountainGas Company
Summaryof Presentand Proposed
Depreciation Accrual Parameters and Expenses
Study Date:As ofDecember31,2010
Proposed Depreciation Rate Parameters (Depreciation Life&Rate Procedures)
'j
Une Account Study
~t!l.lml2w:~
(a)(b)
AccountName
(c)
CurrentStUdy 12-31-2010
Investment Reserved
~Investment
~
Last Study
(d)(e)
Percenl
Reserved
LastSludy
(I)
(e)l(d)
Retirement
~
(g)
Projection
Jb.
(h)
Average
Service
J.I.l§.
(I)
Average
6lm
Q)
Average
Remaining
J.I.l§.
(k)
Net
~
(I)
Annual
Accrual
.B.iI!§.
(m)
(l-(I)-(I»)I(k)
Annual
~
(n)
(m)"(d)
2
3
LNG Equipment -Nampa
361.00 LNG Facilities
LNG EqUipment -Rexburg
361.20 LNG Vaporlzation Facilities
Subtotal Storage Plant
9,584,550.79
4,771,916.03
14,356,466.82
8,704,958.67
719,279.84
9,424,238.51
90.8%
15.1%
65.6%
R5.0
R5.0
43
20
34.6
19.9
27.8
27.2
2.5
19.0
15.0 -20.80%
17.4 -15.00%
16.1 -18.11%
2.00%
5.74%
3.24%
191,691
273,908
465,599
4
5
6
7
8
9
365.00
366.00
367.00
368.00
368.10
370.00
ROW
TCS
TMN
TCS
TCS
TCE
Rlghtof Way
Structures and Improvements
Transmission Mains
Compressor Equipment
Compressor Equipment Sun
Valley Lateral
Communication Equipment
678,619.53
77,152.11
42,190,850.36
714,440.07
275,357.60
8,521.40
31,614,924.50
(632,377.62)
752,780.59
40.6%
11.0%
74.9%
0.0%
0.0%
105.4%
R5.0
R3.0
S5.0
R3.0
R3.0
L3.0
41
27
49
15
20
30
41.6
30.7
50.6
15.0
20.0
38.1
13.5
24.5
25.7
0.0
0.0
29.4
28.2
14.6
25.6
15.0
20.0
10.0
0.00%
-5.00%
-47.00%
0.00%
5.00%
·5.00%
2.11%
6.44%
2.82%
6.67%
4.75%
-0.04%
14,319
4,969
1,189,782
42,159
o
(286)
10 SubtotalTransmission Plant 43,661,062.07 32,019,206.47 73.3%50.1 25.6 25.3 -45.10%2.87%1,250,943
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
374.00
375.00
376.00
378.00
380.00
381.00
381.20
382.00
382.20
383.00
384.00
385.00
390.10
392.00
396.00
LRT
STR
MNS
MRG
SVC
MTR
ERT
MTI
ERI
HRG
HRI
IMR
GSI
GTR
GPE
Land Rights
Structures and Improvements
Mains
RegulatorStation Equipment
Services
Meters
Electronic Meter Reading
Transmitter (ERT)Units
Meter Installations
ERTInstallations
House Regulators
House Regulators -Installation
Regulator Station -Industrial
Subtotal Distribution Plant
Structures and Improvements
Transportation EqUipment
PowerOperated Equipment
Subtotal General Plant
Total Depreciable Plant
407,749.39
18,863.90
138,215,590.27
4,498,568.46
126,669,872.88
20,610,136.53
15,825,976.51
8,626,362.40
2,132,525.96
4,987,886.11
5,341,609.45
8,776,905.69
336,111,947.55
16,170,426.56
5,607,17521
790,779.36
21,668,380.13
415,697,856.57
237,214.91
19,470.44
85,211,545.50
2,076,941.48
73,728,908.93
10,730,498.26
4,794,178.48
4,203,509.70
813,552.65
2,353,815.60
1,581,263.98
4,845,291.18
190,596,191.11
5,487,553.07
2,954,400.82
186,256.87
8,628,210.76
240,667,846.85
58.2%
103.2%
61.7%
46.2%
58.2%
52.1%
30.3%
48.7%
38.1%
47.2%
29.8%
55.2%
56.7%
36.2%
52.7%
23.6%
40.0%
57.9%
R5.0
R5.0
R4.0
R3.0
R2.0
R4.0
R3.0
R3.0
R3.0
R3.0
R3.0
R2.0
R2.0
L3.0
R3.0
48
45
58
35
52
42
11
42
12
42
42
30
34
10
14
50.5
49.4
59.0
37.3
54.6
43.2
11.8
43.6
12.3
44.0
42.7
33.3
44.9
37.1
11.2
15.3
28.3
44.8
20.6
15.9
16.1
16.8
6.9
16.6
7.4
17.1
10.3
15.8
17.4
13.7
6.2
8.5
23.3
4.7
38.8
22.9
39.2
27.2
4.9
27.7
4.9
27.9
32.8
18.8
29.8
25.2
5.7
7.4
0.00%
·5.00%
-61.00%
-10.00%
-53.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-5.00%
-35.87%
5.00%'
5.00%
15.00%
1.79%
0.38%
2.56%
2.79%
2.42%
1.76%
14.22%
1.85%
12.63%
1.89%
2.16%
2.65%
3.04%
2.33%
7.42%
8.30%
3.87%
3.07%
7,299
72
3,538,319
125,510
3,066,411
382,738
2,250,454
159,588
269,338
94,271
114,842
232,588
10,220,430
353,471
416,052
65,835
835,158
12,772,130
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til:5
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Intermountain Gas Company
Summary of Present and Proposed Theoretical Reserve Analysis (Deprecladon Ule &RateProcedures)
DepreciationAccrual Parameters and Expenses
StUdy Date:As ofDecember 31,2010
Current Study12·31-2010
Une Account StUdy Investment Reserved Percent Future Average Average Average Theoretical
t!YlJlll§.(J::!Ym!l!!:~Account Name ~Investment Reserved Net Net Remaining Service Reserve Theoretical Reserve
~Salvage Salvage Lile Life Percent Reserve Variance
LastStudy Last Study
(a)(b)(c)(d)(e)(f)(g)(h)(I)0)(k)(I)(m)
(e)f(d)(1-(g»-«I-(hWQ)/O»(k)'(d)(I)-(e)
LNG Equipment-Nampa
361.00 LNG Facilities 9,584,560.79 8,704,968.67 90.8%-20.80% -20.80%15.0 34.6 68.4%6,568,708 (2,146,251)
LNG Equipment -Rexburg
2 361.20 LNG Vaporization Facilities 4,771,916.03 719,279.84 16.1%-15.00% -15.00%17.4 19.9 14.6%689,542 (29,738)
3 Subtotal Storage Plant 14,356,466.82 9,424,238.51 65.6%-18.11%-18.11%16.1 27.8 50.6%7,248,260 (2,175,989)
4 365.00 ROW Right of Way 678,619.63 275,357.60 40.6%0.00% 0.00%28.2 41.6 32.2%218,683 (56,775)
6 366.00 TCS Structures and Improvements 77,152.11 8,521.40 11.0%-5.00%-6.00%14.6 30.7 55.1%42,488 33,967
6 367.00 TMN Transmission Mains 42,190,850.36 31,614,924.50 74.9%-47.00%-47.00%25.6 50.6 72.6%30,643,215 (971,710)
7 368.00 TCS CompressorEquipment -(632,377.62)0.0%0.00% 0.00%15.0 15.0 0.0%0 632,378
Compressor EqUipmentSun
8 368.10 TCS Valley Lateral --0.0%5.00%5.00%20.0 20.0 0.0%0 0
9 370.00 TCE Communication Equipment 714,440.07 762,780.59 105.4%-5.00% -5.00%10.0 38.1 77.4%653,262 (199,519)
10 Subtotal Transmission Plant 43,661,062.07 32,019,206.47 73.3%-45.10%-45.10%25.3 50.1 72.0%31,457,548 (561,658),
11 374.00 LRT Land Rights 407,749.39 237,214.91 58.2%0.00%0.00%23.3 50.5 53.9%219,614 (17.601)
12 375.00 STR Structures and Improvements 18,863.90 19,470:44 103.2%-5.00%-5.00%4.7 49.4 95.0%17,923 (1,547)
13 376.00 MNS Mains 138,215,690.27 85,211,545.50 61.7%-61.00%-61.00%38.8 59.0 55.1%76,184,433 (9,027,113)
14 378.00 MRG Regulator Station EqUipment 4,498,568.46 2,076,941.48 46.2%-10.00%-10.00%22.9 37.3 42.5%1,910,542 (166,399)
15 380.00 SVC Services 126,669,872.88 73,728,908.93 58.2%-63.00%-63.00%39.2 54.6 43.2%54,658,050 (19,070,859)
16 381.00 MTR Meters 20,610,136.53 10,730,498.26 52.1%0.00% 0.00%27.2 43.2 37.0%7,633,995 (3,096,503)
Electronic Meter Reading
17 381.20 ERT Transmitter(ERT)Units 15,825,976.51 4,794,178.48 30.3%0.00%0.00%4.9 11.8 58.5%9,253,448 4,459,270
18 382.00 MTI Meter installations 8,826,362.40 4,203,509.70 48.7%0.00% 0.00%27.7 43.6 36.5%3,146,034 (1,057,476)
19 382.20 ERI ERT Installations 2,132,525.96 813,562.65 38.1%0.00%0.00%4.9 12.3 60.2%1,282,928 469,375
20 383.00 HRG House RegUlators 4,987,886.11 2,353,815.60 47.2%0.00%0.00%27.9 44.0 36.6%1,825,068 (528,748)"'tl-nmQl;j Ql X21384.00 HRI House Regulators-Installation 5,341,509.45 1,581,263.98 29.6%0.00% 0.00%32.8 42.7 23.2%1,238,696 (342,568)(TO (ij VI =r
22 385.00 IMR RegulatorStation-lndustrial 8,776,905.69 4,845,291.18 55.2%-5.00% -5.00%18.8 33.3 45.7%4,012,801 (832,490)I'll ""13 I'll 0:
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23 Subtotal Distribution Plant 336,111,947.55 190,596,191.11 56.7%-35.87% -35.87%29.8 44.9 48.0%161,383,532 (29,212,659)sa.g !:l z
./:loaZ!:l24390.10 GSI Structures and Improvements 15,170,425.56 5,487,553.07 36.2%5.00% 5.00%25.2 37.1 30.5%4,622,429 (865,124)Ql -I t->
25 392.00 GTR Transportation Equipment 5,607,175.21 2,954,400.82 52.7%5.00% 5.00%5.7 11.2 46.7%.2,615,747 (338,654):;.ch
26 396.00 GPE Power Operated Equipment 790,779.36 186,258.87 23.6%16.00%16.00%7.4 16.3 43.9%347,073 160,816 G)~
Ql t->VI I27SubtotalGeneralPlant21,668,380.13 8,628,210.76 40.0%5.64%5.54%14.1 22.4 35.2%7,586,249 (1,042,962)n 0oN
28 Total Depreciable Plant 416,697,866.67 240,667,846.85 57.9%-31.70%-31.70%27.1 42.3 50.0%207,674,579 (32,993,268)3
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Intermountain Gas Company
Summary of Present and Proposed Present Depreciation Parameters(DepreclaUonLife &Rate Procedures)
Depreciation Accrual Parameters and Expenses
Study Date:As of December31 ,2010
Current Study12-31-2010
Line Account Study Investment Reserved Percent Average Average Annual
~~~Account Name ~Investment Reserved Retirement Service Average Remaining Net Accrual Annual
~~l,!I§.Aw1 l,!I§~.Bm2 ~
Last Study Last StUdy
(a)(b)(c)(d)(e)(I)(g)(h)(I)0)(k)(I)(m)
(e)/(d)(I)'(d)
LNG EqUipment -Nampa
361.00 LNG Facilities 9,584,550.79 8,704,958.67 90.8%85.0 43.7 28.9 15.0 -20.80%1.25%119,807
LNG Equlpment-8exburg
2 361.20 LNG Vaporization Facilities 4,771,916.03 719,279.84 15.1%R5.0 20.0 0.0 20.0 -15.00%5.74%273,860
3 Subtotal Storage Plant 14,356,466.82 9,424,238.51 65.6%31.4 19.3 17.6 -17.78%2.74%393,667
4 365.00 80W 81ghtof Way 678,619.53 275,357.60 40.6%85.0 41.5 11.7 29.8 0.00%2.10%14,251 ,;-
5 366.00 TCS Slructuresand Improvements 77,152.11 8,521.40 11.0%R3.0 30.3 16.2 16.4 -5.00%3.46%2,569 .
6 367.00 TMN Transmission Mains 42,190,850.36 31,614,924.50 74.9%S5.0 49.8 23.2 27.1 -47.00%2.97%1,253,068 '"
7 368.00 TCS Compressor Equipment -(632,377.62)0.0%Amort 15.0 0.0 15.0 0.00% 0.00%44,517
Compressor EqUipment Sun
8 368.10 TCS Valley Lateral 0.0%83.0 27.7 0.0 27.7 0.00%3.61%0
9 370.00 TCE Communication Equipment 714,440.07 752,780.59 105.4%R3.0 35.0 26.4 9.4 -5.00%0.04%286
10 Subtotal Transmission Plant 43,661,062.07 32,019,206.47 73.3%49.3 23.1 26.7 -45.05%3.01%1,314,791
11 374.00 LRT,Land Rights 407,749.39 237,214.91 58.2%R5.0 50.0 27.5 232 0.00%1.86%7,584
12 375.00 STR Structures and Improvements 18,863.90 19,470.44 1032%R5.0 48.1 41.8 6.3 -5.00%0.65%123
13 376.00 MNS Mains 138,215,590.27 85,211,545.50 61.7%R4.0 55.0 18.8 36;6 -55.00%2.69%3,717,999
14 378.00 MRG Regulator Station Equipment 4,498,568.46 2,076,941.48 46.2%83.0 34.9 17.8 18.9 -10.00%3.11%139,905
15 380.00 SVC Services 126,669,872.88 73,728,908.93 58.2%82.0 48.5 14.4 34.9 -53.00%2.86%3,622,758
16 381.00 MTR Meters 20,610,136.53 10,730,498.26 52.1%84.0 42.8 12.4 30.9 0.00%2.11%434,874
ElectronicMeter Reading
17 381.20 ERT Transmlller(ERT)Units 15,825,976.51 4,794,178.48 30.3%83.0 15.2 4.2 11.0 0.00%6.45%1,020,775
18 382.00 MTI MeterInstallations 8,626,362.40 4,203,509.70 48.7%83.0 43.3 13.6 30.3 0.00%1.97%169,939
19 382.20 ERI ERT Installations 2,132,525.96 813,552.65 38.1%R3.0 15.2 4.1 11.1 0.00%6.39% 136,268
20 383.00 HRG House Regulators 4,987,886.11 2,353,815.60 47.2%R3.0 43.7 15.4 29.2 0.00%1.94%96,765
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21 384.00 HRI House Regulators -Installation 6,341,509.45 1,581,263.98 29.6%R3.0 42.6 8.2 34.6 0.00%2.18%116,445 ~;a ~;
22 385.00 IMR RegulatorStation-lndustrlal 8,776,905.69 4,845,291.18 55.2%R2.0 28.4 15.1 14.9 -5.00%3.50%307,192 (1)~(1)0:'
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23 Subtotal Distribution Plant 336,111,947.55 '190,596,191.11 56.7%43.8 15.5 30.2 -36.42%2.91%9,770,627 ~g !=l z
.;:.::J Z!=l24390.10 GSI Structures and Improvements 15,170,425.56 5,487,553.07 36.2%R2.0 38.6 19.6 20.5 5.00% 2.10%318,579 or -I ....
25 392.00 GTR Transportation Equipment 5,607,17521 2,954,400.82 52.7%L4.0 10.3 7.0 4.0 5.00%9.75%546,700 5'(;)
26 396.00 GPE PowerOperated Equipment 790,779.36 186,256.87 23.6%R4.0 15.3 11.2 5.2 15.00%6.63%52,429 Gl I
Dl :::27 Subtotal General Plant 21,568,380.13 8,628,210.76 40.0%21.8 16.0 10.6 5.52%4.25%917,708 II>6~N28TotalDepreciablePlant415,697,856.57 240,667,846.85 57.9%41.5 16.5 27.4 -32.19%2.98%12,396,793 3
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