20151009Application.pdf

EXECUTIVE OFFICES
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555 SOUTH COLE ROAD . p.O. BOX 7608 . BO|SE, TDAHO 83707 . [phone] . FA* 377-6097
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UTILITIES EOMflISSION
RE:
October 9,2015
Jean Jewell
Idaho Public Utilities Commission
472 W. Washington St.
P. O. Box 83720
Boise,ID 83720-0074
Intermountain Gas Company
Case No.INT-G-15-03
Dear Jean:
Enclosed for filing with this Commission are an original and seven (7) copies of Intermountain
Gas Company's Application for an Accounting Order Regarding the Treatment of Certain
Regulatory Expenses.
Please acknowledge receipt of this filing by retuming a stamped copy of this letter for our
Company files.
If you have any questions or require additional information regarding the attached, please
contact me at 377-6168.
Sincerely,
4//e
ichael P. McGrath
Director - Regulatory Affairs
Intermountain Gas Company
Enclosure
cc: Scott Madison
Ron Williams
INTERMOUNTAIN GAS COMPANY
CASE NO. INT.G.15-03
APPLICATION
In the Matter of the Application of INTERMOUNTAIN GAS COMPANY
For an Accounting Order Regarding the Treatment of Certain Regulatory
Expenses
Ronald L. Williams, ISB 3034
Williams Bradbury PC
l0l5 W. Hays St.
Boise, Idaho 83702
Telephone: [phone]
Attorney for Intermountain Gas Company
BEFORE THE IDAHO PUBLTC UTILITIES COMMISSION
In the Matter of the Application of
TNTERMOT]NTAIN GAS COMPANY
For an Accounting Order Regarding the
Treatment of Certain Regulatory
nses
Intermountain Gas Company ("Intermountain" or "Company"), a subsidiary of MDU
Resources Group, Inc. with general offices located at 555 South Cole Road, Boise, Idaho, pursuant
to the Rules of Procedure of the Idaho Public Utilities Commission ("Commission"), hereby
respectfully applies for an accounting order authorizing the Company to record, as a regulatory
asset, expenses incurred by the Company in preparation for the Company's next General Rate Case.
Communications in reference to this Application should be addressed to:
Michael P. McGrath
Director - Regulatory Affairs
Intermountain Gas Company
Post Office Box 7608
Boise, ID 83707
and
Ronald L. Williams
Williams Bradbury PC
l0l5 W. Hays St.
Boise, Idaho 83702
In support of this Application, Intermountain does allege and state as follows:
Case No. INT-G-I5-03
APPLICATION
APPLICATION - 2
I.
Intermountain is a gas utility, subject to the jurisdiction of the Commission, engaged in the
sale of and distribution of natural gas within the State of Idaho under authority of Commission
Certificate No.2l9 issued December2,1955, as amended and supplemented by OrderNo. 6564,
dated October 3, 1962.
Intermountain 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 - Arimo, 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 Ucon;
Canyon County - Caldwell, Greenleaf, Middleton, Nampa, Parma, and
Caribou County - Bancroft, Grace, and Soda Springs;
Cassia County - Burley, Declo, Malta, and Raft fuver;
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
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.
Intermountain's properties in these locations consist of transmission pipelines, liquefied
natural gas storage facilities, a compressor station, distribution mains, services, meters and
regulators, and general plant and equipment.
II.
A rate-regulated utility is generally allowed to recover in rates costs that are required to
render adequate and reliable service. In general, rates are designed to recover usual and recurring
costs, however, certain items do occur that are neither usual nor routinely recurring but nevertheless
deserve recovery in rates. Expenses of a rate case are one common example of an item that is
neither usual nor routinely recurring but nevertheless deserves recovery in rates.
APPLICATION - 3
III.
Intermountain Gas Company's last request for general rate relief was filed with this
Commission on June 6, 1985 under Case No. U-1034-122. Since that time, there have been no
routinely recurring efforts by the Company to file General Rate Cases. Additionally, the staff level
maintained by the Company to address regulatory matters has been, and will be, kept to the
minimum level necessary to address those matters that do come before this Commission on a more
routine or regular basis. At such time when Intermountain determines that its eamings can no longer
support or encourage the necessary level of investrnent capital, Intermountain will come before this
Commission to file a General Rate Case. That Application is anticipated to occur within the next
twelve (12) months. In order to prepare for that future Application, the Company will unavoidably
rely on outside consultants, and incur the costs associated therewith, to help prepare and present that
Case.
IV.
Pursuant to Accounting Standards Codification ("ASC") 980 - Regulated Operations, arate-
regulated utility can create a regulatory asset for incurred costs, such as general rate case expenses,
that would otherwise be charged to expense if two criteria are met. First, it is probable that future
revenue, at least equal to the incurred cost, will occur due to the inclusion of the incurred costs in
allowable costs for rate-making purposes. Second, that the future revenue provided will be for the
purpose of allowing recovery of the particular incurred costs (instead of future similar costs). A rate
order from the Idaho Public Utilities Commission approving/requiring the creation of these
regulatory assets provides reasonable assurance to the Company's financial auditors that these
assets exist.
v.
Intermountain therefore and hereby requests an Accounting Order from this Commission
allowing for the creation of a regulatory asset to capture the expenses incurred by the Company
from outside vendors in preparation for its next General Rate Case. The Company hereby
acknowledges that any rate treatment associated with this same regulatory asset will be
determined by the Commission at a later date pursuant to some future rate proceeding.
VI.
The proposed request by Intermountain for this Accounting Order is just, fair, and
reasonable.
APPLICATION - 4
VII.
Copies of this Application have been provided to those parties regularly intervening in
Intermountain' s rate proceedings.
YIII.
Intermountain requests that this matter be handled under modified procedure pursuant to
Rules 201-204 of the Commission's Rules of Procedure. lntermountain stands ready for immediate
consideration of this matter.
APPLICATION.5
WHEREFORE, lnterrrountain respectfrrlly petitions the Ida]ro Public Utilities Commission as
follows:
a. That the requested Accounting Order be granted without stspension and made effective
as ofNovember 1,2015.
b. That this Application be heard and acted upon without hearing under modified procedure,
and
For such other relief as this Commission may determine proper herein.
DATED at Boise, Idaho, this 9th day of October, 2015.
INTERMOUNTAIN GAS COMPANY Williams Bradbury PC
By
Ronald L. Williims
Attorney for Intermountain Gas Company
APPLICATION.6
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on this 9ttr day of October, 2015,I served a copy of the
foregoing Case No. INT-G-15-03 upon:
Ed Finklea
Northwest Industrial Gas Users
326 5th St
Lake Oswego, OR 97034
R. Scott Pasley
J. R. Simplot Company
PO Box 27
Boise,ID 83707
Chad Stokes
Cable Huston et al.
1001 SW Fifth Avenue, Suite 2000
Portland, Oregon 97204-1136
Don Sturtevant
J. R. Simplot Company
PO Box 27
Boise,ID 83707
by depositing true copies thereof in the United States Mail, postage prepaid, in envelopes addressed
to said persons at the above addresses.
APPLICATION - 7