20150224notice_of_filing_order_no_33234.pdf

Office of the Secretary
Service Date
February 24,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF INTERMOUNTAIN )
GAS COMPANY’S 2015-2019 INTEGRATED )CASE NO.INT-G-15-01
RESOURCE PLAN )
)NOTICE OF FILING
)
)NOTICE OF
)MODIFIED PROCEDURE
)
______________________________
)ORDER NO.33234
On January 13,2015,Intermountain Gas Company (Company)filed its Integrated
Resource Plan (1RP)for the years 2015-2019.The Company files an IRP every two years to
describe the Company’s plans to meet its customers’future natural gas needs.The IRP must
discuss the subjects required by Commission Order Nos.25342,27024 and 27098,and Section
303(b)(3)of the Public Utility Regulatory Policies Act (PURPA),15 U.S.C.§3202.The
Commission reviews the IRP to ensure that it discusses these subjects and represents a diligent
effort by the Company to plan for the anticipated supply and demand for natural gas.
With this Order,the Commission outlines the IRP requirements,provides notice of
the IRP,sets deadlines by which interested persons may submit written comments on the IRP,
and orders that the case be processed under the Commission’s rules of Modified Procedure.
BACKGROUND
A natural gas IRP describes a company’s plans to meet its customers’future natural
gas needs.In Order No.25342,the Commission adopted IRP requirements for local gas
distribution companies in response to amended Section 303 of the Public Utility Regulatory
Policies Act of 1978 (PURPA).In Order No.27024,the Commission shortened the required
planning horizon from 20 years to at least 5 years.Order No.27098 removed any requirement
that IRPs formally evaluate potential demand-side management (DSM)programs,and instead
directed the companies to explain whether cost-effective DSM opportunities exist.In summary,
these three Orders direct gas utilities to file an IRP every two years that includes:
1.A forecast of future gas demand for each customer class,which includes
the number,type,and efficiency of gas end-users as well as effects from
economic forces on gas consumption;
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33234 1
2.An analysis of gas supply options for each customer class,which includes
a projection of spot market versus long-term purchases for both firm and
interruptible markets,an evaluation of the opportunities for using
company-owned or contracted storage or production,an analysis of
prospects for company participation in a gas futures market,and an
assessment of opportunities for access to multiple pipeline suppliers or
direct purchases from producers;
3.A comparative analysis of gas purchasing options,and an explanation of
whether or not there are cost-effective DSM opportunities;
4.The integration of the demand forecast and resource evaluations into a
long range (at least a five-year)plan describing the strategies designed to
meet current and future needs at the lowest cost to the utility and its
ratepayers;
5.A short-term (e.g.,two-year)plan outlining the specific actions to be taken
by the utility in implementing the IRP;
6.A progress report that relates the new plan to the previously filed plan;and
7.Public participation.
Additionally,in the Company’s 2013 IRP case,the Commission allowed the
Company to stop filing semi-annual lost and unaccounted for gas (LAUF Gas)reports.’Instead,
the Company was to discuss LAUF Gas in the Company’s future Purchased Gas Cost
Adjustment (PGA)cases2 and IRPs.The IRP’s LAUF Gas section must explain the Company’s
(a)framework for how it has tested for,identified,and remediated equipment measurement
errors or leaks,and (b)business process for alleviating measurement errors through its financial
accounting of nominations,scheduling,measurements,flow volume allocation,and billing.See
Order No.32855.
NOTICE OF IRP FILING
YOU ARE HEREBY NOTIFIED that the Company’s TRP filing includes a 123-page
IRP and about 800 pages of exhibits.The information summarized below is taken from the
IRP’s Executive Summary section.
LAUF Gas is the difference between the amount of natural gas delivered to the Company’s distribution system at
the city gate and amount of natural gas ultimately recorded at the customers’meters.
2 The Company files a PGA each year to adjust rates to reflect changes in the Company’s costs to buy natural gas
from suppliers—including transportation,storage,and other related costs.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33234 2
YOU ARE FURTHER NOTIFIED that the Company regularly forecasts the demand
of its growing customer base and determines how to best meet the load requirements brought on
by this demand.The Company’s IRP represents a snapshot in time of the Company’s ongoing
planning process;it describes the currently anticipated conditions over a five-year planning
horizon,the anticipated resource selections,and the process for making resource decisions.See
IRP,at2.
YOU ARE FURTHER NOTIFIED that the Company sells natural gas to two major
markets:the residential/commercial market and the industrial market.In 2013,the Company
served an average of 290,500 residential customers and 31,000 commercial customers,which is a
1.8%increase in average residential and commercial customers from 2008.Residential and
commercial customers use natural gas primarily for space and water heating.The Company’s
industrial customers use natural gas for boiler and manufacturing applications.The IRP says the
agricultural economy and the price of alternative fuels strongly influences industrial demand for
natural gas.In 2013,industrial sales and transportation accounted for 44%of the throughput on
Intermountain’s system.Id.at 2-3.
YOU ARE FURTHER NOTIFIED that the Company forecasts changes in its peak-
day loads due to customer growth under baseline,high,and low growth scenarios.In this IRP,
the Company forecasts a baseline growth scenario in which its total residential,commercial,and
industrial peak-day loads increase each year for five years by an average of 2.32%.The
Company says this increase in peak-day loads corresponds to expected growth in the Company’s
markets for residential and small commercial customers.The Company sees no peak-day
delivery deficits over the next five years when it matches its forecasted peak-day delivery against
its existing resources.Id.at 3-4.
YOU ARE FURTHER NOTIFIED that the Company also analyzes different
geographic areas so it can plan to meet any projected deficits in those areas.In this IRP,the
Company analyzed the Idaho Falls Lateral,the Sun Valley Lateral,the Canyon County Region,
the State Street Lateral,and the Central Ada Area.Id.at 4.
YOU ARE FURTHER NOTIFIED that the Idaho Falls Lateral is 104 miles long and
serves cities between Pocatello and St.Anthony in eastern Idaho.It serves about 16%of the
Company’s customers and 14%of the Company’s projected peak-day delivery for January 2015.
The Company says that matching the Idaho Falls Lateral’s forecasted peak-day delivery against
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33234 3
its existing peak-day capacity shows that the Company can meet this area’s peak-day demands
for the five-year IRP period.The Company also notes that the Company can use its portable
liquefied natural gas (LNG)facility in Rexburg to reduce system peak loads and meet customer
demand by supplementing firm capacity on the lateral during peak-day events.The Company
plans to use the Rexburg LNG facility’s additional capacity in 2017,2018,and 2019.Id.at 5-6.
YOU ARE FURTHER NOTIFIED that the Sun Valley Lateral serves about 4%of the
Company’s total customers and 4%of the Company’s projected peak-day delivery for January
2015.The Company says matching the Sun Valley Lateral’s forecasted peak-day delivery
against its existing peak-day distribution capacity (202,000 therms)shows that the Company can
meet this area’s peak-day demands for the five-year IRP period.Id.at 6-7.
YOU ARE FURTHER NOTIFIED that the Canyon County Lateral serves about 15%
of the Company’s total customers and 14%of the Company’s projected peak-day delivery for
January 2015.The Company says matching the Canyon County Lateral’s forecasted peak-day
delivery against its existing peak-day distribution capacity (790,000 therms)shows that the
Company can meet this area’s peak-day demands during the five-year IRP period.The IRP
notes that this region’s diverse industrial customer base currently lacks the ability to mitigate
peak-day delivery by switching to alternative fuels.The Company is thus exploring other ways
to enhance this area’s distribution capability.Id.at 7-9.
YOU ARE FURTHER NOTIFIED that the State Street Lateral in northwest Boise is
16.2 miles long.It primarily serves residential and commercial customers that comprise about
14%of the Company’s total customers and 12%of the Company’s projected peak-day delivery
for January 2015.The Company says matching the State Street Lateral’s forecasted peak-day
delivery against its existing peak-day distribution capacity (644,000 therms in 2016 and 695,000
therms in 2017)shows that the Company can meet this area’s peak-day demands for the five-
year IRP period.Id.at 9.
YOU ARE FURTHER NOTIFIED that the Central Ada Area in the Boise area
consists of 24 miles of high-pressure pipeline.It serves a diverse base of residential and
commercial customers that comprise about 15%of the Company’s total customers and 12%of
the Company’s projected peak-day delivery for January 2015.The Company says matching the
Central Ada Area’s forecasted peak-day delivery against its existing peak-day distribution
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33234 4
capacity (625,000 therms in 2016 and 702,000 therms in 2017)shows that the Company can
meet this area’s peak-day demands during the five-year IRP period.Id.at 10.
YOU ARE FURTHER NOTIFIED that,in summary,the IRP analyzed residential,
commercial,and industrial customer growth and its impact on the Company’s distribution
system using design weather conditions under various scenarios for Idaho’s economy.The
Company measured peak-day delivery under each customer growth scenario against the
available natural gas delivery systems to project the magnitude and timing of delivery deficits on
a total Company and regional perspective.The Company analyzed the resources needed to meet
any projected deficits within a framework of options to help determine the most cost-effective
means to manage the deficits.The Company says that these options allow its core market and
firm transportation customers to rely on uninterrupted service now and for years to come.Id.at
11.
YOU ARE FURTHER NOTIFIED that the IRP and its exhibits have been filed with
the Commission and are available for public inspection during regular business hours at the
Commission offices.These documents are also available on the Commission’s web site at
www,puc.idaho.gov.Click on the “File Room”tab at the top of the page,scroll down to
“Natural Gas Cases”and then click on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commissions jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code §61-501.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 et seq.
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 Commissions 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.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33234 5
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
IRP may file a written comment in support or opposition with the Commission no later than 60
days from the date of this Order.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 the IRP shall be mailed to the Commission and the
Company at the addresses reflected below:
Commission Secretary Michael P.McGrath
Idaho Public Utilities Commission Director —Regulatory Affairs
P0 Box 83720 Intermountain Gas Company
Boise,ID 83720-0074 P0 Box 7608
Boise,ID 83707
Street Address for Express Mail:
472 W.Washington Street
Boise,ID 83702-5918
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.gçy.Scroll to the “Consumers”tab,click
the “Utility Case Comment or Question Form,”and complete the form using the case number as
it appears on the front of this document.
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.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons may file written comments no later than 60 days from the service date of this
Order.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33234 6
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of February 2015.
PAUL KJELLANDER.PRESIDENT
MACK A.REDFORD,COMMISSIONER
-L03
KRT1NE RAPER,CMMISS1ONER
ATTEST:
Jefri D.Jewell
Commission Secretary
O:INT-G-15-Olkk
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33234 7