20120105notice_of_application_order_no_32428.pdf

Office of the Secretary
Service Date
January 5,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF INTERMOUNTAIN GAS COMPANY )CASE NO.INT-G-l1-03
FOR AUTHORITY TO DECREASE ITS )
PRICES )NOTICE OF APPLICATION
)
)NOTICE OF
)MODIFIED PROCEDURE
)
________________________________
)ORDER NO.32428
On December 22,2011,Intermountain Gas Company applied for authority to
decrease its revenues from February 1,2012 to September 30,2012 by $6.0 million.Application
at 2.The Company contends the proposed revenue decrease relates to changes in the Company’s
gas purchase costs and will decrease customer rates while not affecting the Company’s earnings.
Id.at 2.The Company asked the Commission to process the Application by Modified
Procedure,and that the new rates take effect February 1,2012.Id.at 6.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that with this Application,Intermountain Gas seeks
to pass-through to its sales customer classes a decrease in gas commodity costs resulting from a
decrease in Intermountain’s weighted average cost of gas (“WACOG”).The Company says this
would result in an overall price decrease to Intermountain’s RS-l,RS-2.GS-l,LV-l,IS-R and
IS-C customers.Application at 3.
YOU ARE HEREBY NOTIFIED that Intermountain proposes decreasing the
WACOG from the currently approved $0.45342 per therm to $0.41812 per therm because
regional natural gas prices have continued to decline since Intermountain filed INT-G-1 1-01 in
August 2011.Id.at 4.The Company attributes the decline to:(1)the continued prolific
availability of U.S.shale gas production,(2)storage balances being at or near record high levels,
(3)the lack of material hurricane activity that would typically reduce natural gas deliverability,
and (4)a mild winter that has dampened natural gas demand across the Pacific Northwest.Id.
Additionally,the Company says the domestic Ruby pipeline has displaced traditional Canadian
natural gas supplies and softened “prices at the AECO hub in Alberta which makes up a
significant portion of the Company’s gas supply portfolio.”Id.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32428 1
YOU ARE FURTHER NOTIFIED Intermountain says it has allocated the proposed
price changes to each of its customer classes based on Intermountain’s Purchased Gas Cost
Adjustment (PGA)provision.Id The Company says the proposed price changes are just,fair,
and equitable.Id.at 5.
YOU ARE FURTHER NOTIFIED Intermountain asserts that customers have been
notified regarding Intermountain’s Application through a customer notice and press release.Id.
Finally,the Company requests that this matter be handled under Modified Procedure and that its
rates become effective on February 1,2012.Id.at 6.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules
of Procedure,IDAPA 31.01.01.201 through .204.The Commission notes that Modified
Procedure and written comments have proven to be an effective means for obtaining public input
and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission no later
than January 19,2012.The comment must contain a statement of reasons supporting the
comment.Persons desiring a hearing must specifically request a hearing in their written
comments.Written comments concerning this Application shall be mailed to the Commission
and the Company at the addresses reflected below:
Commission Secretary Scott Madison
Idaho Public Utilities Commission Vice President &Chief Accounting Officer
P0 Box 83720 Intermountain Gas Company
Boise,ID 83720-0074 P0 Box 7608
Boise,ID 83707
Street Address for Express Mail:
Stephen R.Thomas
472 W.Washington Street Moffatt Thomas Barrett Rock &Fields,Chtd.
Boise,ID 83702-5918 101 S.Capitol Boulevard,Suite 1000
Boise,ID 83702
The PGA mechanism is used to adjust rates to reflect annual changes in Intermountain’s costs for the purchase of
natural gas from suppliers —including transportation,storage,and other related costs.See Order No.26019.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32428 2
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at www.puc.idaho.gov.Click the “Comments and Questions”
icon and complete the comment form using the case number as it appears on the front of this
document.
YOU ARE FURTHER NOTIFIED that the Company may file reply comments (if
necessary)by January 26,2012.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider this matter on its merits and
enter its Order without a formal hearing.If written comments are received within the time limit
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
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 by clicking on “File Room”
and then “Gas Cases.”
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code,and specifically
Idaho Code §6 1-307,61-3 13,61-503 and 61-622.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 3 1.01.01.000,etseq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and parties may file written comments by January 19,2012,and the
Company my file written reply comments,if necessary,by January 26,2012.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32428 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this h
day of January 2012.
I
MACK A.REDFORD,COMMISSIONER
ATTEST:
/1
7 kGv
Jean D.Jeweü!
immission Secretary
MARSHA H.SMITH,COMMISSIONER
O:INT-G-1 I-O3kk
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32428
PAUL
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