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HomeMy WebLinkAbout20160812Darrington Exhibit 16.pdfRonald L. Williams, ISB No. 3034 Williams Bradbury, P.C. 1015 W. Hays St. Boise, ID 83702 Telephone: (208) 344-6633 Email: ron@williamsbradbury.com Attorneys for Intermountain Gas Company BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICATION OF INTERMOUNTAIN GAS COMPANY FOR THE AUTHORITY TO CHANGE ITS RATES AND CHARGES FOR NATURAL GAS SERVICE TO NATURAL GAS CUSTOMERS IN THE STATE OF IDAHO ) ) ) ) ) ) ) Case No. INT-G-16-02 EXHIBIT 16 Line No.Description Amount (a)(b) 1 Rate Base[2]236,926,497$ 2 Operating Income at Present Rates[3]11,494,687 3 Earned Rate of Return[4]4.852% 4 Cost of Capital[5]7.420% 5 Operating Income at Proposed Rates[6]17,579,946 6 Operating Income Deficiency[7]6,085,259 7 Gross Revenue Conversion Factor[8]1.67055 8 Deficiency in Operating Revenue[9]10,165,700$ NOTES Intermountain Gas Company Deficiency in Operating Revenue For the Test Year Ending December 31, 2016[1] [1] Test Year ending December 31, 2016 is composed of actual financial data from January 1 - June 30, 2016 and forecasted financial data from July 1, 2016 - December 31, 2016. [2] See Exhibit No. 12, Page 1, Column (d), Line 10. [8] See Exhibit No. 16, Page 2, Column (c), Line 9. [9] Line 6 x Line 7. [3] See Exhibit No. 14, Page 1, Column (d), Line 25. [4] Line 2 / Line 1. [5] See Table 7 - Proposed Return on Rate Base sponsored by Company Witness Chiles. [6] Line 1 x Line 4. [7] See Line 5 - Line 2. Exhibit No. 16 Case No. INT-G-16-02 J. Darrington, IGC p. 1 of 2 Li n e Gr o s s R e v e n u e No . De s c r i p t i o n Ra t e Co n v e r s i o n F a c t o r (a ) (b ) (c ) 1 Op e r a t i n g R e v e n u e s ( w i t h o u t a d d - o n t a x e s ) 1. 0 0 0 0 0 2 Co m m i s s i o n F e e s [2 ] 0. 1 8 7 7 % 0. 0 0 1 8 8 3 Un c o l l e c t i b l e s E x p e n s e 0. 3 5 9 4 % 0. 0 0 3 5 9 4 St a t e T a x a b l e I n c o m e [3 ] 0. 9 9 4 5 3 5 St a t e I n c o m e T a x [4 ] 7. 4 0 % 0. 0 7 3 6 0 6 In c o m e B e f o r e F e d e r a l I n c o m e T a x [5 ] 0. 9 2 0 9 3 7 Fe d e r a l I n c o m e T a x [6 ] 35 . 0 0 % 0. 3 2 2 3 3 8 Op e r a t i n g I n c o m e A f t e r T a x e s [7 ] 0. 5 9 8 6 1 9 Gr o s s R e v e n u e C o n v e r s i o n F a c t o r [8 ] 1. 6 7 0 5 5 NO T E S [2 ] P e r C o m m i s s i o n O r d e r 3 3 4 9 8 . [3 ] L i n e 1 - L i n e 2 - L i n e 3 . [4 ] L i n e 4 x C o l u m n ( b ) , L i n e 5 . [5 ] L i n e 4 - L i n e 5 . [6 ] L i n e 6 x C o l u m n ( b ) , L i n e 7 . [7 ] L i n e 6 - L i n e 7 . [8 ] 1 / L i n e 8 . In t e r m o u n t a i n G a s C o m p a n y Gr o s s R e v e n u e C o n v e r s i o n F a c t o r Fo r t h e T e s t Y e a r E n d i n g D e c e m b e r 3 1 , 2 0 1 6 [1 ] [1 ] T e s t Y e a r e n d i n g D e c e m b e r 3 1 , 2 0 1 6 i s c o m p o s e d o f a c t u a l f i n a n c i a l d a t a f r o m Ja n u a r y 1 - J u n e 3 0 , 2 0 1 6 a n d f o r e c a s t e d f i n a n c i a l d a t a f r o m J u l y 1 , 2 0 1 6 - De c e m b e r 3 1 , 2 0 1 6 . Exhibit No. 16 Case No. INT-G-16-02 J. Darrington, IGC p. 2 of 2