20150826notice_of_application_order_no_33364.pdf

Office of the Secretary
Service Date
August 26,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF INTERMOUNTAIN )
GAS COMPANY’S APPLICATION FOR )CASE NO.INT-G-15-02
AUTHORITY TO DECREASE ITS PRICES )
(2015 PURCHASED GAS COST )NOTICE OF APPLICATION
ADJUSTMENT).)
)NOTICE OF
)MODIFIED PROCEDURE
)
______________________________
)ORDER NO.33364
On August 7,2015,Intermountain Gas Company (the “Company”)filed its annual
Purchased Gas Cost Adjustment (“PGA”)Application.With this Application,the Company
proposes a PGA that would decrease overall prices for customers and decrease the Company’s
annualized revenues by $15.3 million (5.69%).The Company asks that the Commission process
the Application by Modified Procedure,with the new rates to take effect October 1,2015.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the PGA adjusts rates each year to reflect
changes in the Company’s costs to buy natural gas from suppliers—including transportation,
storage,and other related costs.See Order No.26019.A change in the PGA does not affect the
Company’s earnings.But a PGA change can cause customer rates to go up or down.With this
PGA Application,the Company proposes to pass through to customers gas-related cost changes
that would decrease the average bill of:(1)residential customers who use natural gas for space
heating and water heating,by $3.12/month (6.11%);(2)customers who use gas for space heating
only,by $1.36/month (3.56%);and (3)commercial customers by $12.15/month (5.66%).
YOU ARE FURTHER NOTIFIED that the proposed gas-related cost changes result
from:(1)transportation costs billed to the Company by Northwest Pipeline GP (“Northwest”or
“Northwest Pipeline”);(2)a decrease in the Company’s weighted average cost of gas
(“WACOG”);(3)an updated customer allocation of gas-related costs under the Company’s PGA
provision;(4)the inclusion of temporary surcharges and credits for one year relating to natural
gas purchases and interstate transportation costs from the Company’s deferred gas cost accounts;
and (5)benefits resulting from the Company’s management of its storage and firm capacity
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33364 1
rights on various pipeline systems.The Company also seeks to eliminate the temporary
surcharges and credits included in its current prices during the past 12 months,pursuant to Case
No.INT-G-14M1.
YOU ARE FURTHER NOTIFIED that the Company states that its proposed price
changes incorporate all changes in costs relating to the Company’s firm interstate transportation
capacity including,but not limited to,any price changes or projected cost adjustments
implemented by the Company’s pipeline suppliers as well as any volumetric adjustments in
contracted transportation agreements which have occurred since the Company’s last PGA filing,
Case No.INT-G-14-01.
YOU ARE FURTHER NOTIFIED that the Company’s Application includes $1.4 million
related to the acquisition of additional Plymouth LNG storage capacity on Northwest’s delivery
system.The Company acquired incremental Plymouth capacity of 378,900 MMBtu with a daily
deliverability of 41,975 MMBtu.The Company states that the Plymouth facility has been a
valuable asset given its ability to help ensure supply and delivery to customers.
YOU ARE FURTHER NOTIFIED that the Company proposes decreasing the
WACOG from the currently approved $0.39482 per therm to $0.32764 per therm.The Company
states that shale reserves in North America continue to be significant which,combined with slow
growth of the nation’s economy,have contributed to the decrease in the Company’s WACOG.
The Company notes,however,that natural gas supplies combined with significant storage
balances have kept natural gas prices lower than they were just a year ago.
YOU ARE FURTHER NOTIFIED that the Company states that it has entered into
fixed price agreements to lock in the price for significant portions of its underground storage and
other winter “flowing”supplies.
YOU ARE FURTHER NOTIFIED that the Company seeks to pass through to its
customers,as per therm credits,$3.9 million that will be generated from the management of its
transportation capacity.The Company also proposes to temporarily adjust prices for 12 months
—until September 30,2016 —to allocate deferred gas costs from its Account No.191,including:
(1)a fixed gas cost debit of $1.1 million;(2)a variable gas cost debit of $0.7 million;and (3)a
Lost and Unaccounted For Gas (LAUF Gas)credit of $76,166.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33364
YOU ARE FURTHER NOTIFIED that the Company states that the proposed overall
price changes reflect a just,fair,and equitable pass through of changes in gas-related costs to the
Company’s customers.The Company states that it has notified customers about the Application
and price changes through a formal Customer Notice and a Press Release,and that it has made
the Application available to the public on its website at wwjgç.
YOU ARE FURTHER NOTIFIED that the Application 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 website at
wliipgy.Click on the “File Room”tab at the top of the page,scroll down to
“Natural Gas Cases,”and 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 Commission’s 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 31.01.01.000 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.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on the
Company’s Application may file a written comment in support or opposition with the
Commission no later than September 16,2015.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 Application shall be mailed to the
Commission and the Company at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33364 3
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:
Ronald L.Williams
472 W.Washington Street Williams Bradbury PC
Boise,ID 83702-5918 1015 W.Hays St
Boise,Idaho 83702
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.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 the Company shall file reply comments,if
necessary,no later than September 23,2015.
YOU ARE FURTHER NOTIFIED that if no Titten 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 September 16,2015.The Company
may file a reply,if any,no later than September 23,2015.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33364 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2015.
PAUL KJEL A ER,PRESIDENT
MARSHA H.SMITH,COMMISSIONER
KRITINE RAPER,COMMISSIONER
ATTEST:
J1n D.JewelU
Commission Secretary
O:INTG-1 5M2_kk
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33364 5