HomeMy WebLinkAbout20141107Decision Memo.pdfDECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: KARL KLEIN
DEPUTY ATTORNEY GENERAL
DATE: NOVEMBER 5, 2014
SUBJECT: INTERMOUNTAIN GAS COMPANY’S APPLICATION TO INCREASE
ITS DEPRECIATION AND AMORTIZTION RATES, CASE NO. INT-G-
14-02
On November 4, 2014, Intermountain Gas Company asked to increase its: (1)
composite depreciation rate from 3.07% (3.06% when weighted by December 31, 2010 assets) to
3.12%; and (2) total General Plant account amortizations from $1,749,970 to $2,598,813. The
Company proposes the changes—which would not increase the rates it charges to provide natural
gas to customers—because the Company’s most recent studies show it under-depreciates its
assets and under-amortizes General Plant Account Nos. 391, 393, 394, 395, 397 and 398. The
Company proposes a January 1, 2015 effective date, and asks the Commission to process the
case by Modified Procedure.
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Application and Notice of
Intervention Deadline with a 14-day intervention period. After the intervention period, Staff, the
Company, and any intervening parties would informally meet in an attempt to settle any
outstanding issues. Staff would then report back to the Commission, and a Notice of Modified
Procedure could be issued, if necessary.
COMMISSION DECISION
Should the Commission issue a Notice of Application and Notice of Intervention
Deadline?
Karl T. Klein
Karl T. Klein
Deputy Attorney General
M:INT-G-14-02_kk