HomeMy WebLinkAbout20160812Gaske Exhibit 5.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
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Case No. INT-G-16-02
EXHIBIT 05
Intermountain Gas Company
General Economic Statistics
1984-2015
[1][2][3][4][5]
Percentage Price Changes
Consumer GDP Real Nominal Nominal
Price Implicit Price GDP GDP GDP
Year Index Deflator Growth ($ billions)Growth
1984 4.3%3.5%7.3%4,040.7
1985 3.6%3.2%4.2%4,346.7 7.6%
1986 1.9%2.0%3.5%4,590.2 5.6%
1987 3.6%2.6%3.5%4,870.2 6.1%
1988 4.1%3.5%4.2%5,252.6 7.9%
1989 4.8%3.9%3.7%5,657.7 7.7%
1990 5.4%3.7%1.9%5,979.6 5.7%
1991 4.2%3.3%-0.1%6,174.0 3.3%
1992 3.0%2.3%3.6%6,539.3 5.9%
1993 3.0%2.4%2.7%6,878.7 5.2%
1994 2.6%2.1%4.0%7,308.8 6.3%
1995 2.8%2.1%2.7%7,664.1 4.9%
1996 3.0%1.8%3.8%8,100.2 5.7%
1997 2.3%1.7%4.5%8,608.5 6.3%
1998 1.6%1.1%4.5%9,089.2 5.6%
1999 2.2%1.5%4.7%9,660.6 6.3%
2000 3.4%2.3%4.1%10,284.8 6.5%
2001 2.8%2.3%1.0%10,621.8 3.3%
2002 1.6%1.5%1.8%10,977.5 3.3%
2003 2.3%2.0%2.8%11,510.7 4.9%
2004 2.7%2.7%3.8%12,274.9 6.6%
2005 3.4%3.2%3.3%13,093.7 6.7%
2006 3.2%3.1%2.7%13,855.9 5.8%
2007 2.8%2.7%1.8%14,477.6 4.5%
2008 3.8%2.0%-0.3%14,718.6 1.7%
2009 -0.4%0.8%-2.8%14,418.7 -2.0%
2010 1.6%1.2%2.5%14,964.4 3.8%
2011 3.2%2.1%1.6%15,517.9 3.7%
2012 2.1%1.8%2.2%16,155.3 4.1%
2013 1.5%1.6%1.5%16,663.2 3.1%
2014 1.6%1.6%2.4%17,348.1 4.1%
2015 0.1%1.0%2.4%17,937.8 3.4%
Average Rate of Change [6]:
1986-2015 2.7%2.2%2.6%4.8%4.9%
1996-2015 2.2%1.9%2.4%4.3%4.4%
2006-2015 2.0%1.8%1.4%3.2%3.2%
Notes:
[1] U.S. Department of Labor, Bureau of Labor Statistics;
[1] U.S. city average, all urban consumers, all items, not seasonally adjusted
[2] U.S. Department of Commerce, Bureau of Economic Analysis,
[2] National Income and Product Accounts Tables, Table 1.1.9, Revised on March 25, 2016
[3] U.S. Department of Commerce, Bureau of Economic Analysis,
[3] National Income and Product Accounts Tables, Table 1.1.1, Revised on March 25, 2016
[4] U.S. Department of Commerce, Bureau of Economic Analysis,
[4] National Income and Product Accounts Tables, Table 1.1.5, Revised on March 25, 2016
[5] Equals annual percent change of Column [4]
[6] Nominal GDP growth rates based on geometric average rate of change Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 1, p. 1 of 4
Intermountain Gas Company
Bond Yield Averages
January 2010 - May 2016
[1][2][3][4][5][6]
30-year
U.S.
Treasury Average Public Utility Bonds Credit Spreads
Bond Corporate A-Rated Baa-Rated A-Rated Baa-Rated
2010 JAN 4.60 5.76 5.77 6.16 1.17 1.55
FEB 4.62 5.86 5.87 6.25 1.25 1.63
MAR 4.64 5.81 5.84 6.22 1.20 1.58
APR 4.69 5.80 5.81 6.19 1.12 1.49
MAY 4.29 5.52 5.50 5.97 1.21 1.68
JUN 4.13 5.52 5.46 6.18 1.34 2.05
JUL 3.99 5.32 5.26 5.98 1.26 1.98
AUG 3.80 5.05 5.01 5.55 1.20 1.74
SEP 3.77 5.05 5.01 5.53 1.24 1.76
OCT 3.87 5.15 5.10 5.62 1.23 1.75
NOV 4.19 5.37 5.37 5.85 1.18 1.67
DEC 4.42 5.55 5.56 6.04 1.14 1.62
2011 JAN 4.52 5.56 5.57 6.06 1.05 1.54
FEB 4.65 5.66 5.68 6.10 1.03 1.45
MAR 4.51 5.55 5.56 5.97 1.05 1.46
APR 4.50 5.56 5.55 5.98 1.05 1.48
MAY 4.29 5.33 5.32 5.74 1.03 1.45
JUN 4.23 5.30 5.26 5.67 1.03 1.44
JUL 4.27 5.30 5.27 5.70 0.99 1.43
AUG 3.65 4.79 4.69 5.22 1.04 1.57
SEP 3.18 4.60 4.48 5.11 1.30 1.93
OCT 3.13 4.60 4.52 5.24 1.39 2.11
NOV 3.02 4.39 4.25 4.93 1.23 1.92
DEC 2.98 4.47 4.33 5.07 1.35 2.09
2012 JAN 3.03 4.45 4.34 5.06 1.31 2.04
FEB 3.11 4.42 4.36 5.02 1.25 1.91
MAR 3.28 4.54 4.48 5.13 1.20 1.85
APR 3.18 4.49 4.40 5.11 1.21 1.93
MAY 2.93 4.33 4.20 4.97 1.27 2.03
JUN 2.70 4.22 4.08 4.91 1.38 2.21
JUL 2.59 4.03 3.93 4.85 1.34 2.26
AUG 2.77 4.09 4.00 4.88 1.23 2.11
SEP 2.88 4.09 4.02 4.81 1.14 1.93
OCT 2.90 3.97 3.91 4.54 1.01 1.64
NOV 2.80 3.92 3.84 4.42 1.03 1.61
DEC 2.88 4.05 4.00 4.56 1.12 1.67
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 1, p. 2 of 4
Intermountain Gas Company
Bond Yield Averages
January 2010 - May 2016
[1][2][3][4][5][6]
30-year
U.S.
Treasury Average Public Utility Bonds Credit Spreads
Bond Corporate A-Rated Baa-Rated A-Rated Baa-Rated
2013 JAN 3.08 4.19 4.15 4.66 1.07 1.58
FEB 3.17 4.27 4.18 4.74 1.02 1.58
MAR 3.16 4.29 4.20 4.72 1.04 1.56
APR 2.93 4.07 4.00 4.49 1.07 1.55
MAY 3.11 4.23 4.17 4.65 1.05 1.54
JUN 3.40 4.63 4.53 5.08 1.13 1.68
JUL 3.61 4.76 4.68 5.21 1.08 1.60
AUG 3.76 4.89 4.73 5.28 0.97 1.52
SEP 3.79 4.95 4.80 5.31 1.02 1.52
OCT 3.68 4.82 4.70 5.17 1.02 1.49
NOV 3.80 4.91 4.77 5.24 0.97 1.44
DEC 3.89 4.92 4.81 5.25 0.92 1.36
2014 JAN 3.77 4.76 4.63 5.09 0.86 1.32
FEB 3.66 4.68 4.53 5.01 0.87 1.35
MAR 3.62 4.65 4.51 5.00 0.89 1.37
APR 3.52 4.52 4.41 4.85 0.89 1.33
MAY 3.39 4.38 4.26 4.69 0.87 1.30
JUN 3.42 4.44 4.29 4.73 0.87 1.31
JUL 3.33 4.37 4.23 4.66 0.89 1.33
AUG 3.20 4.29 4.13 4.65 0.93 1.45
SEP 3.26 4.39 4.24 4.79 0.98 1.53
OCT 3.04 4.22 4.06 4.67 1.02 1.63
NOV 3.04 4.28 4.09 4.75 1.05 1.71
DEC 2.83 4.17 3.95 4.70 1.11 1.86
2015 JAN 2.46 3.84 3.58 4.39 1.13 1.94
FEB 2.57 3.93 3.67 4.44 1.11 1.87
MAR 2.63 3.98 3.74 4.51 1.12 1.88
APR 2.59 3.93 3.75 4.51 1.16 1.92
MAY 2.96 4.35 4.17 4.91 1.22 1.95
JUN 3.11 4.56 4.39 5.13 1.28 2.01
JUL 3.07 4.57 4.40 5.22 1.33 2.16
AUG 2.86 4.48 4.25 5.23 1.39 2.37
SEP 2.95 4.59 4.39 5.42 1.43 2.47
OCT 2.89 4.52 4.29 5.47 1.40 2.58
NOV 3.03 4.62 4.40 5.57 1.37 2.54
DEC 2.97 4.58 4.35 5.55 1.38 2.58
2016 JAN 2.86 4.56 4.27 5.49 1.41 2.63
FEB 2.62 4.44 4.11 5.28 1.49 2.66
MAR 2.68 4.33 4.16 5.12 1.47 2.44
APR 2.62 4.09 4.00 4.75 1.37 2.12
MAY 2.63 4.04 3.93 4.60 1.30 1.97 Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 1, p. 3 of 4
Intermountain Gas Company
Bond Yield Averages
January 2010 - May 2016
[1][2][3][4][5][6]
30-year
U.S.
Treasury Average Public Utility Bonds Credit Spreads
Bond Corporate A-Rated Baa-Rated A-Rated Baa-Rated
2016 AVG 2.68 4.29 4.09 5.05 1.41 2.36
Notes:
[1] Bloomberg Finance L.P., 30-Year U.S. Treasury Bond
[2] Bloomberg Finance L.P., Moody's Average Corporate Bond Index
[3] Bloomberg Finance L.P., Moody's A-Rated Utility Bond Index
[4] Bloomberg Finance L.P., Moody's Baa-Rated Utility Bond Index
[5] Equals Column [3] − Column [1]
[6] Equals Column [4] − Column [1]
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 1, p. 4 of 4
Intermountain Gas Company
Common Equity Flotation Costs of
Natural Gas Distribution Companies
2004-2016
Issuer
Date of
Offering
Number of
Shares Issue Price
Net
Proceeds Per
Share
Financing
Costs as a
Percent of
Net
Proceeds
Piedmont Natural Gas Company, Inc.1/20/2004 4,250,000 $42.500 $41.010 3.63%
MDU Resources Group, Inc.2/4/2004 2,000,000 $23.320 $22.527 3.52%
UGI Corporation 3/18/2004 7,500,000 $32.100 $30.696 4.58%
Northwest Natural Gas Company 3/30/2004 1,200,000 $31.000 $29.990 3.37%
The Laclede Group, Inc.5/25/2004 1,500,000 $26.800 $25.929 3.36%
Atmos Energy Corporation 7/13/2004 8,650,000 $24.750 $23.760 4.17%
Southern Union Company 7/26/2004 11,000,000 $18.750 $18.094 3.63%
Aquila, Inc.8/18/2004 40,000,000 $2.550 $2.451 4.04%
Atmos Energy Corporation 10/21/2004 14,000,000 $24.750 $23.760 4.17%
AGL Resources Inc.11/19/2004 9,600,000 $31.010 $30.080 3.09%
Cinergy Corporation 12/9/2004 6,100,000 $41.000 $40.510 1.21%
Southern Union Company 2/7/2005 14,910,000 $23.000 $22.300 3.14%
SEMCO Energy, Inc.8/10/2005 4,300,000 $6.320 $6.067 4.17%
Chesapeake Utilities Corporation 11/16/2006 600,300 $30.100 $28.975 3.88%
Atmos Energy Corporation 12/7/2006 5,500,000 $31.500 $30.398 3.63%
Vectren Corporation 2/22/2007 4,600,000 $28.330 $27.338 3.63%
Unitil Corporation 12/10/2008 2,000,000 $20.000 $18.950 5.54%
Unitil Corporation 5/20/2009 2,400,000 $20.000 $18.950 5.54%
CenterPoint Energy, Inc.9/10/2009 21,000,000 $12.000 $11.580 3.63%
CenterPoint Energy, Inc.6/9/2010 22,000,000 $12.900 $12.449 3.63%
NiSource Inc.9/8/2010 21,100,000 $16.500 $15.964 3.36%
Gas Natural Inc.11/10/2010 2,100,000 $10.000 $9.400 6.38%
Unitil Corporation 5/10/2012 2,400,000 $25.250 $23.988 5.26%
Gas Natural Inc.6/27/2012 700,000 $10.100 $9.494 6.38%
Piedmont Natural Gas Company, Inc.1/29/2013 4,000,000 $32.000 $30.880 3.63%
The Laclede Group, Inc.5/22/2013 8,700,000 $44.500 $42.780 4.02%
Gas Natural Inc.7/11/2013 1,500,000 $10.000 $9.425 6.10%
Gas Natural Inc.10/31/2013 1,134,155 $10.000 $9.425 6.10%
Atmos Energy Corporation 2/11/2014 8,000,000 $44.000 $42.460 3.63%
The Laclede Group, Inc.6/5/2014 9,000,000 $46.250 $44.539 3.84%
South Jersey Industries, Inc.5/12/2016 7,000,000 $26.250 $25.331 3.63%
Spire, Inc.5/12/2016 1,900,000 $63.050 $61.000 3.36%
Average 2004-2016:4.10%
Selected Flotation Costs for Cost of Equity:4.00%
Sources: SNL Financial LC
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 2, p. 1 of 1
Intermountain Gas Company
Selected Natural Gas Distribution Companies
Fiscal Year 2015 Operating Data
Company Ticker
Total Assets
($ millions)
Operating
Revenues
($ millions)
Operating
Income
($ millions)
Atmos Energy Corporation ATO 9,092.9 4,142.1 631.4 2/
Spire Inc.SR 5,290.2 1,976.4 272.5 2/
New Jersey Resources Corporation NJR 3,284.4 2,734.0 248.5 2/
Northwest Natural Gas Company NWN 3,069.4 741.8 124.2 1/
South Jersey Industries, Inc.SJI 3,471.9 959.6 156.9 1/
Southwest Gas Corporation SWX 5,358.7 2,463.6 288.3 1/
WGL Holdings, Inc.WGL 5,261.4 2,659.8 260.8 2/
High 9,093 4,142 631
Average 4,976 2,240 283
Median 5,261 2,464 261
Low 3,069 742 124
Intermountain Gas Company $236.9 $265.0 $24.3 3/
Intermountain Gas Company % of:
- Proxy Company Median 4.50%10.76%9.32%
Notes:
1/ Source: SNL Financial LC; data as of December 31, 2015
2/ Source: SNL Financial LC; data as of September 30, 2015
3/ Source: Intermountain Gas Company Rate Filing, based on proposed test year ending December 31, 2016.
For Intermountain, the figure is for Rate Base, not Total Assets.
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 3, p. 1 of 2
Intermountain Gas Company
Selected Natural Gas Distribution Companies
Credit Ratings
Company Ticker
Standard &
Poor's Moody's
Atmos Energy Corporation ATO A A2
Spire Inc.SR A-Baa2
New Jersey Resources Corporation (1)NJR AA Aa2
Northwest Natural Gas Company NWN A+A3
South Jersey Industries, Inc.SJI BBB+--
Southwest Gas Corporation SWX BBB+A3
WGL Holdings, Inc.WGL A+A3
Average A A3
Median A A3
MDU Resources, Inc.MDU BBB+--
Notes:
Source: SNL Financial LC as of May 31, 2016
(1) New Jersey Resources Corporation rating is for New Jersey Natural
Gas Company
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 3, p. 2 of 2
Intermountain Gas Company
Selected Natural Gas Distribution Companies
Dividend Yields
December 2015 - May 2016
Average
Dividend
Company Ticker Yield
Atmos Energy Corporation ATO 2.44%
Spire, Inc.SR 3.11%
New Jersey Resources Corporation NJR 2.80%
Northwest Natural Gas Company NWN 3.62%
South Jersey Industries, Inc.SJI 4.12%
Southwest Gas Corporation SWX 2.72%
WGL Holdings, Inc.WGL 2.85%
Average 3.09%
Median 2.85%
Price Annualized Dividend
Low High Average Dividend Yield
Atmos Energy Corporation ATO Dec-15 60.42 64.79 62.61$ 1.68$ 2.68%
Jan-16 60.00 69.22 64.61 1.68$ 2.60%
Feb-16 67.94 71.90 69.92 1.68$ 2.40%
Mar-16 68.60 74.60 71.60 1.68$ 2.35%
Apr-16 70.41 74.86 72.64 1.68$ 2.31%
May-16 70.84 75.10 72.97 1.68$ 2.30%
2.44%
Spire, Inc.SR Dec-15 55.24 61.04 58.14$ 1.96$ 3.37%
Jan-16 57.10 63.94 60.52 1.96$ 3.24%
Feb-16 63.31 66.43 64.87 1.96$ 3.02%
Mar-16 64.39 68.79 66.59 1.96$ 2.94%
Apr-16 62.65 68.40 65.53 1.96$ 2.99%
May-16 61.00 66.20 63.60 1.96$ 3.08%
3.11%
New Jersey Resources Corporation NJR Dec-15 28.02 34.07 31.05$ 0.96$ 3.09%
Jan-16 32.32 35.57 33.94 0.96$ 2.83%
Feb-16 33.37 36.57 34.97 0.96$ 2.75%
Mar-16 33.32 36.85 35.09 0.96$ 2.74%
Apr-16 34.55 36.88 35.71 0.96$ 2.69%
May-16 33.91 37.17 35.54 0.96$ 2.70%
2.80%
Northwest Natural Gas Company NWN Dec-15 47.78 51.85 49.82$ 1.87$ 3.75%
Jan-16 49.30 52.01 50.66 1.87$ 3.69%
Feb-16 49.41 53.88 51.65 1.87$ 3.62%
Mar-16 48.90 54.51 51.71 1.87$ 3.62%
Apr-16 49.46 54.29 51.88 1.87$ 3.60%
May-16 51.12 57.95 54.54 1.87$ 3.43%
3.62%
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 4, p. 1 of 7
Intermountain Gas Company
Selected Natural Gas Distribution Companies
Dividend Yields
December 2015 - May 2016
Average
Dividend
Company Ticker Yield
Atmos Energy Corporation ATO 2.44%
Spire, Inc.SR 3.11%
New Jersey Resources Corporation NJR 2.80%
Northwest Natural Gas Company NWN 3.62%
South Jersey Industries, Inc.SJI 4.12%
Southwest Gas Corporation SWX 2.72%
WGL Holdings, Inc.WGL 2.85%
Average 3.09%
Median 2.85%
Price Annualized Dividend
Low High Average Dividend Yield
South Jersey Industries, Inc.SJI Dec-15 21.24 24.40 22.82$ 1.06$ 4.62%
Jan-16 22.06 24.86 23.46 1.06$ 4.50%
Feb-16 24.54 26.94 25.74 1.06$ 4.10%
Mar-16 25.27 29.14 27.21 1.06$ 3.88%
Apr-16 27.17 28.55 27.86 1.06$ 3.79%
May-16 26.29 28.97 27.63 1.06$ 3.82%
4.12%
Southwest Gas Corporation SWX Dec-15 50.53 56.71 53.62$ 1.62$ 3.02%
Jan-16 53.51 58.92 56.22 1.62$ 2.88%
Feb-16 58.07 62.43 60.25 1.62$ 2.69%
Mar-16 59.49 67.29 63.39 1.62$ 2.56%
Apr-16 62.75 66.60 64.68 1.62$ 2.50%
May-16 64.39 70.51 67.45 1.80$ 2.67%
2.72%
WGL Holdings, Inc.WGL Dec-15 58.62 65.55 62.09$ 1.85$ 2.98%
Jan-16 59.99 66.81 63.40 1.85 2.92%
Feb-16 62.93 69.20 66.07 1.85 2.80%
Mar-16 67.23 74.10 70.67 1.85 2.62%
Apr-16 65.00 72.84 68.92 1.95 2.83%
May-16 63.06 70.09 66.58 1.95 2.93%
2.85%
Source: Bloomberg Finance L.P.
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 4, p. 2 of 7
Intermountain Gas Company
Selected Natural Gas Distribution Companies
Projected Earnings Retention Growth Rates
Value Line Forecast 2019-21
Company Ticker EPS DPS ROE
Retention
Rate
Retention
Growth
Atmos Energy Corporation ATO $4.00 $2.15 11.00%46.25%5.09%
Spire Inc.SR $4.20 $2.20 9.50%47.62%4.52%
New Jersey Resources Corporation NJR $1.95 $1.02 11.50%47.69%5.48%
Northwest Natural Gas Company NWN $3.15 $2.05 9.50%34.92%3.32%
South Jersey Industries, Inc.SJI $1.80 $1.40 9.50%22.22%2.11%
Southwest Gas Corporation SWX $4.50 $2.40 12.50%46.67%5.83%
WGL Holdings, Inc.WGL $3.55 $2.03 11.00%42.82%4.71%
Average 4.44%
Median 4.71%
Source: Value Line, as of June 3, 2016.
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 4, p. 3 of 7
Intermountain Gas Company
Selected Natural Gas Distribution Companies
Earnings Growth Rate Estimates
1/2 1/2
Company Ticker
Zacks 5-Yr
Earnings
Growth
Yahoo
Finance!
Earnings
Growth
Weighted
Average
Atmos Energy Corporation ATO 6.60%6.40%6.50%
Spire, Inc.SR 4.60%4.52%4.56%
New Jersey Resources Corporation NJR 6.50%6.50%6.50%
Northwest Natural Gas Company NWN 4.00%4.00%4.00%
South Jersey Industries, Inc.SJI 6.00%6.00%6.00%
Southwest Gas Corporation SWX 5.00%4.00%4.50%
WGL Holdings, Inc.WGL 7.30%8.00%7.65%
Average 5.71%5.63%5.67%
Median 6.00%6.00%6.00%
Source: Yahoo Finance! and Zacks Investment Research as of May 31, 2016.
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 4, p. 4 of 7
Intermountain Gas Company
Selected Natural Gas Distribution Companies
Blended Growth Rate Estimates
1/2 1/2
Company Ticker
Retention
Growth
Earnings
Growth
Weighted
Average
Atmos Energy Corporation ATO 5.09%6.50%5.79%
Spire, Inc.SR 4.52%4.56%4.54%
New Jersey Resources Corporation NJR 5.48%6.50%5.99%
Northwest Natural Gas Company NWN 3.32%4.00%3.66%
South Jersey Industries, Inc.SJI 2.11%6.00%4.06%
Southwest Gas Corporation SWX 5.83%4.50%5.17%
WGL Holdings, Inc.WGL 4.71%7.65%6.18%
Average 4.44%5.67%5.06%
Median 4.71%6.00%5.17%
Source: Schedule 4, page 3 of 8, and Schedule 4, page 4 of 8
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 4, p. 5 of 7
Intermountain Gas Company
Selected Natural Gas Distribution Companies
Basic DCF Calculation
Secondary
Market:
Primary
Market:
Company Ticker
Dividend
Yield
Dividend
Yield x
(1 + 0.625g)
Expected
Growth
Rate (g)
Investor
Required
Return
Flotation
Cost
Adjustment
Cost of
Capital
Atmos Energy Corporation ATO 2.44%2.54%6.50%9.04%1.04 9.40%
Spire, Inc.SR 3.11%3.20%4.56%7.76%1.04 8.07%
New Jersey Resources Corporation NJR 2.80%2.91%6.50%9.41%1.04 9.79%
Northwest Natural Gas Company NWN 3.62%3.71%4.00%7.71%1.04 8.02%
South Jersey Industries, Inc.SJI 4.12%4.27%6.00%10.27%1.04 10.68%
Southwest Gas Corporation SWX 2.72%2.80%4.50%7.30%1.04 7.59%
WGL Holdings, Inc.WGL 2.85%2.98%7.65%10.63%1.04 11.06%
High 10.63%11.06%
3rd Quartile 9.84%10.24%
2nd Quartile (Median)9.04%9.40%
1st Quartile 7.73%8.04%
Low 7.30%7.59%
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 4, p. 6 of 7
Intermountain Gas Company
Selected Natural Gas Distribution Companies
Blended Growth Rate DCF Calculation
Secondary
Market:
Primary
Market:
Company Ticker
Dividend
Yield
Dividend
Yield x
(1 + 0.625g)
Expected
Growth
Rate (g)
Investor
Required
Return
Flotation Cost
Adjustment
Cost of
Capital
Atmos Energy Corporation ATO 2.44%2.53%5.79%8.32%1.04 8.66%
Spire, Inc.SR 3.11%3.20%4.54%7.74%1.04 8.05%
New Jersey Resources Corporation NJR 2.80%2.90%5.99%8.90%1.04 9.25%
Northwest Natural Gas Company NWN 3.62%3.70%3.66%7.36%1.04 7.66%
South Jersey Industries, Inc.SJI 4.12%4.22%4.06%8.28%1.04 8.61%
Southwest Gas Corporation SWX 2.72%2.81%5.17%7.97%1.04 8.29%
WGL Holdings, Inc.WGL 2.85%2.96%6.18%9.14%1.04 9.50%
High 9.14%9.50%
3rd Quartile 8.61%8.95%
2nd Quartile (Median)8.28%8.61%
1st Quartile 7.86%8.17%
Low 7.36%7.66%
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 4, p. 7 of 7
BOND YIELD PLUS RISK PREMIUM
[1][2][3]
Average
Authorize
d Natural
Gas ROE
30-year
U.S.
Treasury
Bond
Risk
Premium
1992.1 12.42%7.84%4.58%
1992.2 11.98%7.88%4.10%
1992.3 11.91%7.42%4.49%
1992.4 11.92%7.54%4.38%
1993.1 11.75%7.01%4.74%
1993.2 11.71%6.86%4.85%
1993.3 11.40%6.23%5.17%
1993.4 11.12%6.21%4.92%
1994.1 11.12%6.66%4.46%
1994.2 10.84%7.45%3.39%1994.3 10.87%7.55%3.31%
1994.4 11.53%7.95%3.58%1995.2 11.00%6.87%4.13%
1995.3 11.07%6.66%4.40%1995.4 11.61%6.14%5.47%
1996.1 11.45%6.39%5.06%
1996.2 10.88%6.92%3.95%
1996.3 11.25%7.00%4.25%
1996.4 11.19%6.54%4.65%
1997.1 11.31%6.90%4.41%
1997.2 11.70%6.88%4.82%
1997.3 12.00%6.44%5.56%
1997.4 10.92%6.04%4.87%
1998.2 11.37%5.79%5.57%
1998.3 11.41%5.32%6.09%
1998.4 11.69%5.11%6.59%
1999.1 10.82%5.43%5.39%
1999.2 11.25%5.82%5.43%
1999.4 10.38%6.31%4.06%
2000.1 10.66%6.15%4.50%2000.2 11.03%5.95%5.08%
2000.3 11.33%5.78%5.56%2000.4 12.10%5.62%6.48%
2001.1 11.38%5.42%5.96%2001.2 10.75%5.77%4.98%
2001.4 10.65%5.21%5.44%
2002.1 10.67%5.55%5.12%
2002.2 11.64%5.57%6.07%
2002.3 11.50%4.96%6.54%
2002.4 11.01%4.93%6.08%
2003.1 11.38%4.78%6.61%
2003.2 11.36%4.57%6.80%
2003.3 10.61%5.15%5.46%
2003.4 10.84%5.11%5.73%
2004.1 11.06%4.86%6.20%
2004.2 10.57%5.31%5.27%
2004.3 10.37%5.01%5.36%2004.4 10.66%4.87%5.79%
2005.1 10.65%4.69%5.96%
2005.2 10.54%4.34%6.19%
2005.3 10.47%4.43%6.04%
2005.4 10.32%4.66%5.66%
2006.1 10.68%4.69%5.99%
2006.2 10.60%5.19%5.41%
2006.3 10.34%4.90%5.44%
2006.4 10.14%4.70%5.45%
2007.1 10.52%4.81%5.71%
2007.2 10.13%4.98%5.14%
2007.3 10.03%4.85%5.17%
2007.4 10.12%4.53%5.59%2008.1 10.38%4.34%6.04%
2008.2 10.17%4.57%5.60%
2008.3 10.55%4.44%6.12%
2008.4 10.34%3.49%6.85%
2009.1 10.24%3.62%6.63%
2009.2 10.11%4.23%5.87%
2009.3 9.88%4.18%5.70%
2009.4 10.31%4.35%5.95%
2010.1 10.24%4.59%5.65%
2010.2 9.99%4.20%5.78%
2010.3 10.43%3.73%6.70%
2010.4 10.09%4.14%5.95%
2011.1 10.10%4.53%5.57%
2011.2 9.85%4.33%5.51%
2011.3 9.65%3.54%6.11%
2011.4 9.88%3.03%6.85%
2012.1 9.63%3.12%6.51%
2012.2 9.83%2.84%7.00%
2012.3 9.75%2.68%7.07%
2012.4 10.06%2.87%7.18%
2013.1 9.57%3.12%6.45%
2013.2 9.47%3.22%6.25%
2013.3 9.60%3.67%5.93%2013.4 9.83%3.81%6.02%
2014.1 9.54%3.58%5.96%2014.2 9.84%3.38%6.45%
2014.3 9.45%3.20%6.25%2014.4 10.28%2.90%7.38%
2015.1 9.47%2.45%7.02%
2015.2 9.43%2.92%6.52%
2015.3 9.75%2.91%6.84%
2015.4 9.68%2.97%6.71%
2016.1 9.48%2.66%6.83%
2016.2 9.42%2.54%6.88%
Average 10.64%5.01%5.63%
Median 10.61%4.89%5.68%Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 5, p. 1 of 2
BOND YIELD PLUS RISK PREMIUM
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.89092
R Square 0.79373
Adjusted R Square 0.79149
Standard Error 0.00413
Observations 94
ANOVA
df SS MS F Significance FRegression10.00605 0.00605 354.02755 0.00000
Residual 92 0.00157 0.00002Total930.00762
Coefficients Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%Upper 95.0%
Intercept 0.0845 0.001558 54.26 0.00000 0.081438 0.087627 0.081438 0.087627
U.S. Govt. 30-year Treasury -0.5632 0.029932 -18.82 0.00000 -0.622637 -0.503742 -0.622637 -0.503742
[7][8][9]
30-year
U.S.
Treasury Risk
Bond Premium ROE
Current 30-day average of 30-year U.S. Treasury bond yield [4]2.65%6.96%9.61%
Near-term projected 30-year U.S. Treasury bond yield (Q2 2016 - Q3 2017) [5]3.08%6.72%9.80%
Projected 30-year U.S. Treasury bond yield (2018 - 2022) [6]4.30%6.03%10.33%
MEAN 9.91%
Notes:
[1] Source: Regulatory Research Associates
[2] Source: Bloomberg Professional, quarterly bond yields are the daily average of each trading day in the quarter
[3] Equals [1] − [2]
[4] Source: Bloomberg Professional
[5] Source: Blue Chip Financial Forecasts, Vol. 35, No. 6, June 1, 2016, at 2
[6] Source: Blue Chip Financial Forecasts, Vol. 35, No. 6, June 1, 2016, at 14
[7] See Notes [4], [5] and [6]
[8] Equals 0.084532 + (-0.563190 x [7])
[9] Equals [7] + [8]
y = -0.5632x + 0.0845R² = 0.7937
3.00%
3.50%
4.00%
4.50%
5.00%
5.50%
6.00%
6.50%
7.00%
7.50%
2.25%2.75%3.25%3.75%4.25%4.75%5.25%5.75%6.25%6.75%7.25%7.75%8.25%
Ris
k
P
r
e
m
i
u
m
30-year U.S. Treasury Bond
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 5, p. 2 of 2
Intermountain Gas Company
Market DCF Calculation as of May 31, 2016
[1][2][3][4]
Dividend
Yield
Dividend
Yield x
(1 + 0.625g)
Expected Growth
Rate (g)
Secondary
Market
Investor
Required
Return
S&P 500 2.54%2.69%9.44%12.13%
[5][6][7][8][9][10][11][12]
Company Ticker
Shares
Outstanding
(million)Price
Market
Capitalization
($million)
Percent of
Total Market
Capitalization
Current Dividend
Yield
Best Long-Term
Growth Estimate
Market
Capitalization-
Weighted
Dividend
Yield
Market
Capitalization-
Weighted Best
Long-Term
Growth
Estimate
Alcoa Inc AA 1,315.1 9.27 12,191 0.0771%1.2945%5.00%0.001%0.0039%
LyondellBasell Industries NV LYB 426.7 81.36 34,719 0.2197%4.179%5.667%0.0092%0.0125%
American Express Co AXP 951.0 65.76 62,540 0.3958%1.764%8.20%0.007%0.0325%
Verizon Communications Inc VZ 4,076.3 50.90 207,483 1.3130%4.4401%3.952%0.0583%0.0519%
Broadcom Ltd AVGO 390.4 154.36 60,270 0.3814%1.2698%15.142%0.0048%0.0578%
Boeing Co/The BA 637.0 126.15 80,359 0.5085%3.4562%12.08%0.0176%0.0614%
Caterpillar Inc CAT 583.9 72.51 42,338 0.2679%4.2477%7.225%0.0114%0.0194%
JPMorgan Chase & Co JPM 3,656.7 65.27 238,670 1.5104%2.9416%4.206%0.0444%0.0635%
Chevron Corp CVX 1,884.7 101.00 190,355 1.2046%4.2376%7.375%0.051%0.0888%
Coca-Cola Co/The KO 4,326.2 44.60 192,948 1.2210%3.139%5.72%0.0383%0.0698%
AbbVie Inc ABBV 1,617.4 62.93 101,780 0.6441%3.6231%12.009%0.0233%0.0774%
Walt Disney Co/The DIS 1,622.4 99.22 160,979 1.0187%1.4312%10.075%0.0146%0.1026%
Extra Space Storage Inc EXR 125.2 92.97 11,641 0.0737%3.3559%7.03%0.0025%0.0052%
EI du Pont de Nemours & Co DD 873.5 65.41 57,136 0.3616%2.3238%8.25%0.0084%0.0298%
Exxon Mobil Corp XOM 4,146.6 89.02 369,131 2.3360%3.37%11.523%0.0787%0.2692%
Phillips 66 PSX 525.6 80.36 42,236 0.2673%3.1359%6.803%0.0084%0.0182%
General Electric Co GE 9,195.7 30.23 277,985 1.7592%3.0433%9.98%0.0535%0.1756%
HP Inc HPQ 1,726.7 13.38 23,103 0.1462%3.707%3.763%0.0054%0.0055%
Home Depot Inc/The HD 1,244.0 132.12 164,358 1.0401%2.089%13.469%0.0217%0.1401%
International Business Machines Corp IBM 960.0 153.74 147,585 0.9340%3.6425%3.543%0.034%0.0331%
Concho Resources Inc CXO 131.6 121.34 15,962 0.0000%n/a 25.00%n/a 0.00%
Johnson & Johnson JNJ 2,750.6 112.69 309,970 1.9616%2.8396%6.036%0.0557%0.1184%
McDonald's Corp MCD 877.9 122.06 107,151 0.6781%2.9166%10.311%0.0198%0.0699%
Merck & Co Inc MRK 2,768.0 56.26 155,729 0.9855%3.2705%5.70%0.0322%0.0562%
3M Co MMM 606.5 168.32 102,089 0.6461%2.6378%9.10%0.017%0.0588%
American Water Works Co Inc AWK 177.7 74.10 13,169 0.0833%2.0243%7.34%0.0017%0.0061%
Bank of America Corp BAC 10,271.9 14.79 151,922 0.9614%1.3523%7.90%0.013%0.076%
CSRA Inc CSRA 163.3 24.77 4,045 0.0256%1.6149%10.00%0.0004%0.0026%
Pfizer Inc PFE 6,064.8 34.70 210,450 1.3318%3.4582%6.20%0.0461%0.0826%
Procter & Gamble Co/The PG 2,661.9 81.04 215,716 1.3651%3.3045%6.25%0.0451%0.0853%
AT&T Inc T 6,156.0 39.15 241,007 1.5252%4.9042%4.25%0.0748%0.0648%
Travelers Cos Inc/The TRV 292.4 114.14 33,374 0.2112%2.348%7.125%0.005%0.015%
United Technologies Corp UTX 836.9 100.58 84,172 0.5327%2.6248%9.556%0.014%0.0509%
Analog Devices Inc ADI 307.4 58.50 17,980 0.1138%2.8718%8.92%0.0033%0.0101%
Wal-Mart Stores Inc WMT 3,138.8 70.78 222,162 1.4059%2.8257%2.91%0.0397%0.0409%
Cisco Systems Inc CSCO 5,029.7 29.05 146,113 0.9247%3.58%8.767%0.0331%0.0811%
Intel Corp INTC 4,722.0 31.59 149,168 0.9440%3.2922%8.517%0.0311%0.0804%
General Motors Co GM 1,539.8 31.28 48,166 0.3048%4.8593%9.583%0.0148%0.0292%
Microsoft Corp MSFT 7,860.5 53.00 416,605 2.6364%2.717%8.46%0.0716%0.223%
Dollar General Corp DG 283.8 89.90 25,512 0.1614%1.1123%13.848%0.0018%0.0224%
Kinder Morgan Inc/DE KMI 2,231.6 18.08 40,347 0.2553%2.7655%14.65%0.0071%0.0374%
Citigroup Inc C 2,934.9 46.57 136,680 0.8650%0.4295%9.91%0.0037%0.0857%
American International Group Inc AIG 1,119.0 57.88 64,770 0.4099%2.2115%9.50%0.0091%0.0389%
Honeywell International Inc HON 762.1 113.83 86,752 0.5490%2.0908%9.32%0.0115%0.0512%
Altria Group Inc MO 1,956.4 63.64 124,507 0.7879%3.5512%7.648%0.028%0.0603%
HCA Holdings Inc HCA 391.1 78.02 30,510 0.0000%n/a 10.75%n/a 0.00%
Under Armour Inc UA 183.1 37.73 6,910 0.0000%n/a 22.567%n/a 0.00%
International Paper Co IP 411.2 42.16 17,335 0.1097%4.1746%7.50%0.0046%0.0082%
Hewlett Packard Enterprise Co HPE 1,716.6 18.47 31,705 0.2006%1.1911%6.417%0.0024%0.0129%
Abbott Laboratories ABT 1,469.2 39.63 58,222 0.3685%2.6243%11.733%0.0097%0.0432%
Aflac Inc AFL 414.0 69.46 28,756 0.1820%2.3611%4.64%0.0043%0.0084%
Air Products & Chemicals Inc APD 216.1 142.64 30,822 0.1951%2.4117%8.167%0.0047%0.0159%
Royal Caribbean Cruises Ltd RCL 215.2 77.39 16,658 0.1054%1.9382%24.867%0.002%0.0262%
American Electric Power Co Inc AEP 491.3 64.73 31,803 0.2013%3.4605%5.048%0.007%0.0102%
Hess Corp HES 316.7 59.93 18,981 0.0000%1.6686%(20.09%)0.00%0.00%
Anadarko Petroleum Corp APC 510.4 51.86 26,471 0.1675%0.3857%8.333%0.0006%0.014%
Aon PLC AON 264.9 109.27 28,948 0.1832%1.208%11.23%0.0022%0.0206%
Apache Corp APA 378.5 57.14 21,629 0.1369%1.7501%7.00%0.0024%0.0096%
Archer-Daniels-Midland Co ADM 587.6 42.77 25,131 0.1590%2.8057%6.285%0.0045%0.01%
AGL Resources Inc GAS 120.7 65.80 7,941 0.0503%3.2219%6.00%0.0016%0.003%
Automatic Data Processing Inc ADP 455.5 87.84 40,014 0.2532%2.4135%10.286%0.0061%0.026%
Verisk Analytics Inc VRSK 168.2 79.39 13,351 0.0000%n/a 12.00%n/a 0.00%
AutoZone Inc AZO 29.9 762.20 22,759 0.0000%n/a 11.93%n/a 0.00%
Avery Dennison Corp AVY 89.2 74.38 6,633 0.0420%2.2049%8.20%0.0009%0.0034%
Baker Hughes Inc BHI 437.9 46.38 20,310 0.1285%1.4661%14.00%0.0019%0.018%
Ball Corp BLL 141.8 72.30 10,252 0.0649%0.7192%4.40%0.0005%0.0029%
Bank of New York Mellon Corp/The BK 1,077.1 42.06 45,302 0.2867%1.6167%9.567%0.0046%0.0274%
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 6, p. 1 of 10
Intermountain Gas Company
Market DCF Calculation as of May 31, 2016
[1][2][3][4]
Dividend
Yield
Dividend
Yield x
(1 + 0.625g)
Expected Growth
Rate (g)
Secondary
Market
Investor
Required
Return
S&P 500 2.54%2.69%9.44%12.13%
[5][6][7][8][9][10][11][12]
Company Ticker
Shares
Outstanding
(million)Price
Market
Capitalization
($million)
Percent of
Total Market
Capitalization
Current Dividend
Yield
Best Long-Term
Growth Estimate
Market
Capitalization-
Weighted
Dividend
Yield
Market
Capitalization-
Weighted Best
Long-Term
Growth
Estimate
CR Bard Inc BCR 73.3 219.04 16,060 0.1016%0.4383%10.75%0.0004%0.0109%
Baxter International Inc BAX 552.3 43.16 23,836 0.1508%1.2048%10.50%0.0018%0.0158%
Becton Dickinson and Co BDX 212.2 166.45 35,321 0.2235%1.5861%11.507%0.0035%0.0257%
Berkshire Hathaway Inc BRK/B 1,255.6 140.54 176,462 0.0000%n/a 7.10%n/a 0.00%
Best Buy Co Inc BBY 324.1 32.17 10,426 0.0660%3.4815%10.18%0.0023%0.0067%
H&R Block Inc HRB 224.4 21.36 4,793 0.0303%3.7453%11.00%0.0011%0.0033%
Boston Scientific Corp BSX 1,356.9 22.71 30,814 0.0000%n/a 11.257%n/a 0.00%
Bristol-Myers Squibb Co BMY 1,669.3 71.70 119,689 0.7574%2.1199%20.556%0.0161%0.1557%
Brown-Forman Corp BF/B 115.5 98.07 11,329 0.0717%1.3868%6.92%0.001%0.005%
Cabot Oil & Gas Corp COG 465.0 23.97 11,146 0.0705%0.3338%40.785%0.0002%0.0288%
Campbell Soup Co CPB 309.1 60.57 18,725 0.1185%2.0604%7.315%0.0024%0.0087%
Kansas City Southern KSU 108.0 93.10 10,054 0.0636%1.4178%7.775%0.0009%0.0049%
Carnival Corp CCL 562.1 47.74 26,836 0.1698%2.9326%17.007%0.005%0.0289%
Qorvo Inc QRVO 127.5 50.97 6,500 0.0000%n/a 15.498%n/a 0.00%
CenturyLink Inc CTL 546.1 27.12 14,809 0.0000%7.9646%(1.187%)0.00%0.00%
Cigna Corp CI 256.5 128.11 32,862 0.2080%0.0312%8.623%0.0001%0.0179%
UDR Inc UDR 267.1 36.03 9,625 0.0609%3.275%6.725%0.002%0.0041%
Frontier Communications Corp FTR 1,173.1 5.17 6,065 0.0384%8.1238%11.55%0.0031%0.0044%
Clorox Co/The CLX 129.3 128.54 16,625 0.1052%2.4895%6.56%0.0026%0.0069%
CMS Energy Corp CMS 280.0 41.82 11,708 0.0741%2.9651%6.00%0.0022%0.0044%
Colgate-Palmolive Co CL 893.0 70.41 62,877 0.3979%2.2156%8.355%0.0088%0.0332%
Comerica Inc CMA 175.1 47.10 8,249 0.0522%1.8684%6.547%0.001%0.0034%
CA Inc CA 417.5 32.32 13,492 0.0854%3.1559%5.50%0.0027%0.0047%
ConAgra Foods Inc CAG 436.4 45.70 19,944 0.1262%2.1882%7.75%0.0028%0.0098%
Consolidated Edison Inc ED 304.2 73.26 22,283 0.1410%3.6582%3.14%0.0052%0.0044%
SL Green Realty Corp SLG 100.2 101.36 10,160 0.0643%2.8414%4.85%0.0018%0.0031%
Corning Inc GLW 1,075.3 20.89 22,464 0.1422%2.585%12.337%0.0037%0.0175%
Cummins Inc CMI 170.4 114.47 19,501 0.1234%3.407%4.26%0.0042%0.0053%
Danaher Corp DHR 688.7 98.36 67,740 0.4287%0.6507%11.975%0.0028%0.0513%
Target Corp TGT 589.3 68.78 40,530 0.2565%3.2568%10.352%0.0084%0.0266%
Deere & Co DE 314.3 82.29 25,860 0.1637%2.9165%7.44%0.0048%0.0122%
Dominion Resources Inc/VA D 616.2 72.25 44,522 0.2817%3.8754%6.45%0.0109%0.0182%
Dover Corp DOV 155.1 66.75 10,356 0.0655%2.5169%10.475%0.0016%0.0069%
Dow Chemical Co/The DOW 1,122.8 51.36 57,668 0.3649%3.5826%6.00%0.0131%0.0219%
Duke Energy Corp DUK 688.8 78.23 53,884 0.3410%4.2183%4.71%0.0144%0.0161%
Eaton Corp PLC ETN 458.0 61.63 28,227 0.1786%3.6995%8.417%0.0066%0.015%
Ecolab Inc ECL 293.3 117.24 34,387 0.2176%1.1941%12.357%0.0026%0.0269%
PerkinElmer Inc PKI 109.0 54.75 5,969 0.0378%0.5114%19.783%0.0002%0.0075%
EMC Corp/MA EMC 1,953.2 27.95 54,592 0.3455%1.6458%10.78%0.0057%0.0372%
Emerson Electric Co EMR 643.4 52.02 33,467 0.2118%3.6524%7.325%0.0077%0.0155%
EOG Resources Inc EOG 550.3 81.36 44,771 0.0000%0.8235%(16.56%)0.00%0.00%
Entergy Corp ETR 178.7 75.92 13,570 0.0859%4.4784%0.75%0.0038%0.0006%
Equifax Inc EFX 119.0 125.73 14,964 0.0947%1.0499%12.233%0.001%0.0116%
EQT Corp EQT 172.7 73.25 12,653 0.0801%0.1638%25.00%0.0001%0.02%
XL Group PLC XL 283.4 34.35 9,734 0.0616%2.329%9.00%0.0014%0.0055%
FedEx Corp FDX 268.4 164.97 44,282 0.2802%0.6062%13.056%0.0017%0.0366%
Macy's Inc M 308.4 33.21 10,242 0.0648%4.5468%9.667%0.0029%0.0063%
FMC Corp FMC 133.8 47.49 6,352 0.0402%1.3898%9.533%0.0006%0.0038%
Ford Motor Co F 3,902.0 13.49 52,638 0.3331%4.4477%6.67%0.0148%0.0222%
NextEra Energy Inc NEE 461.4 120.12 55,429 0.3508%2.8971%6.423%0.0102%0.0225%
Franklin Resources Inc BEN 584.9 37.35 21,847 0.1383%1.9277%6.19%0.0027%0.0086%
Freeport-McMoRan Inc FCX 1,252.1 11.08 13,874 0.0000%n/a (146.00%)n/a 0.00%
TEGNA Inc TGNA 217.6 22.96 4,996 0.0316%2.439%8.033%0.0008%0.0025%
Gap Inc/The GPS 397.9 17.99 7,158 0.0453%5.114%8.05%0.0023%0.0036%
General Dynamics Corp GD 305.6 141.87 43,362 0.2744%2.1428%7.65%0.0059%0.021%
General Mills Inc GIS 594.4 62.78 37,317 0.2362%2.9309%10.16%0.0069%0.024%
Genuine Parts Co GPC 149.6 96.92 14,501 0.0918%2.7136%6.325%0.0025%0.0058%
WW Grainger Inc GWW 61.3 228.35 14,003 0.0886%2.1371%9.36%0.0019%0.0083%
Halliburton Co HAL 859.3 42.18 36,244 0.2294%1.707%13.15%0.0039%0.0302%
Harley-Davidson Inc HOG 181.1 46.39 8,401 0.0532%3.0179%11.08%0.0016%0.0059%
Harman International Industries Inc HAR 70.6 78.24 5,520 0.0349%1.7894%17.50%0.0006%0.0061%
Harris Corp HRS 124.7 78.77 9,825 0.0000%2.539%n/a 0.00%n/a
HCP Inc HCP 467.1 32.87 15,353 0.0972%6.9973%1.215%0.0068%0.0012%
Helmerich & Payne Inc HP 108.0 61.15 6,607 0.0000%4.4971%(1.40%)0.00%0.00%
Hershey Co/The HSY 152.8 92.85 14,183 0.0898%2.5116%9.175%0.0023%0.0082%
Synchrony Financial SYF 833.9 31.20 26,018 0.0000%n/a 7.163%n/a 0.00%
Hormel Foods Corp HRL 529.9 34.41 18,234 0.1154%1.6856%5.90%0.0019%0.0068%
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 6, p. 2 of 10
Intermountain Gas Company
Market DCF Calculation as of May 31, 2016
[1][2][3][4]
Dividend
Yield
Dividend
Yield x
(1 + 0.625g)
Expected Growth
Rate (g)
Secondary
Market
Investor
Required
Return
S&P 500 2.54%2.69%9.44%12.13%
[5][6][7][8][9][10][11][12]
Company Ticker
Shares
Outstanding
(million)Price
Market
Capitalization
($million)
Percent of
Total Market
Capitalization
Current Dividend
Yield
Best Long-Term
Growth Estimate
Market
Capitalization-
Weighted
Dividend
Yield
Market
Capitalization-
Weighted Best
Long-Term
Growth
Estimate
Arthur J Gallagher & Co AJG 177.1 48.33 8,561 0.0542%3.145%9.163%0.0017%0.005%
Starwood Hotels & Resorts Worldwide Inc HOT 169.5 73.43 12,449 0.0788%2.0428%7.256%0.0016%0.0057%
Mondelez International Inc MDLZ 1,552.1 44.49 69,051 0.4370%1.5284%12.986%0.0067%0.0567%
CenterPoint Energy Inc CNP 430.6 22.53 9,702 0.0614%4.5717%4.00%0.0028%0.0025%
Humana Inc HUM 149.0 172.51 25,710 0.1627%0.6724%13.138%0.0011%0.0214%
Willis Towers Watson PLC WLTW 138.4 128.02 17,723 0.1122%1.4998%21.467%0.0017%0.0241%
Illinois Tool Works Inc ITW 359.4 106.03 38,104 0.2411%2.0749%7.85%0.005%0.0189%
Ingersoll-Rand PLC IR 257.5 66.81 17,201 0.1089%1.9159%9.625%0.0021%0.0105%
Foot Locker Inc FL 136.1 55.92 7,610 0.0482%1.9671%10.438%0.0009%0.005%
Interpublic Group of Cos Inc/The IPG 402.4 23.90 9,617 0.0609%2.5105%8.00%0.0015%0.0049%
International Flavors & Fragrances Inc IFF 79.7 129.00 10,283 0.0651%1.7364%10.50%0.0011%0.0068%
Jacobs Engineering Group Inc JEC 121.9 50.69 6,180 0.0000%n/a 6.553%n/a 0.00%
Johnson Controls Inc JCI 648.4 44.15 28,626 0.1812%2.6274%9.20%0.0048%0.0167%
Hanesbrands Inc HBI 377.5 27.07 10,219 0.0647%1.6254%16.575%0.0011%0.0107%
Kellogg Co K 350.0 74.37 26,033 0.1647%2.6893%5.823%0.0044%0.0096%
Perrigo Co PLC PRGO 143.2 95.84 13,726 0.0869%0.6052%9.76%0.0005%0.0085%
Kimberly-Clark Corp KMB 360.1 127.04 45,751 0.2895%2.8967%7.64%0.0084%0.0221%
Kimco Realty Corp KIM 419.6 28.18 11,826 0.0748%3.6196%5.673%0.0027%0.0042%
Kohl's Corp KSS 185.2 36.04 6,673 0.0422%5.5494%3.75%0.0023%0.0016%
Oracle Corp ORCL 4,149.9 40.20 166,825 1.0557%1.4925%7.69%0.0158%0.0812%
Kroger Co/The KR 953.8 35.76 34,107 0.2158%1.1745%9.904%0.0025%0.0214%
Legg Mason Inc LM 105.4 34.50 3,636 0.0230%2.5507%18.36%0.0006%0.0042%
Leggett & Platt Inc LEG 134.3 50.26 6,751 0.0427%2.7059%10.00%0.0012%0.0043%
Lennar Corp LEN 183.4 45.57 8,358 0.0529%0.3511%8.75%0.0002%0.0046%
Leucadia National Corp LUK 362.3 18.10 6,558 0.0415%1.3812%18.00%0.0006%0.0075%
Eli Lilly & Co LLY 1,103.8 75.03 82,821 0.5241%2.7189%11.517%0.0143%0.0604%
L Brands Inc LB 287.0 68.55 19,674 0.1245%3.5011%10.94%0.0044%0.0136%
Lincoln National Corp LNC 239.0 45.85 10,958 0.0693%2.181%11.80%0.0015%0.0082%
Loews Corp L 339.0 40.48 13,723 0.0000%0.6176%n/a 0.00%n/a
Lowe's Cos Inc LOW 886.1 80.13 71,004 0.4493%1.7472%16.558%0.0079%0.0744%
Host Hotels & Resorts Inc HST 747.3 15.40 11,509 0.0728%5.1948%5.00%0.0038%0.0036%
Marsh & McLennan Cos Inc MMC 521.2 66.07 34,438 0.2179%2.0584%11.618%0.0045%0.0253%
Masco Corp MAS 332.7 32.64 10,861 0.0687%1.1642%14.476%0.0008%0.0099%
Mattel Inc MAT 340.4 31.88 10,853 0.0687%4.7679%10.15%0.0033%0.007%
S&P Global Inc SPGI 264.6 111.81 29,585 0.1872%1.2879%10.00%0.0024%0.0187%
Medtronic PLC MDT 1,401.0 80.48 112,756 0.7136%1.8887%8.752%0.0135%0.0625%
CVS Health Corp CVS 1,074.0 96.45 103,589 0.6556%1.7626%14.04%0.0116%0.092%
Micron Technology Inc MU 1,037.0 12.72 13,191 0.0000%n/a 6.10%n/a 0.00%
Motorola Solutions Inc MSI 174.6 69.27 12,095 0.0765%2.3675%5.275%0.0018%0.004%
Murphy Oil Corp MUR 172.2 30.91 5,323 0.0000%4.5293%n/a 0.00%n/a
Mylan NV MYL 508.4 43.34 22,033 0.0000%n/a 9.417%n/a 0.00%
Laboratory Corp of America Holdings LH 102.4 127.95 13,102 0.0000%n/a 11.293%n/a 0.00%
Newell Brands Inc NWL 478.0 47.69 22,794 0.1442%1.5936%13.77%0.0023%0.0199%
Newmont Mining Corp NEM 530.5 32.41 17,195 0.1088%0.3085%6.133%0.0003%0.0067%
Twenty-First Century Fox Inc FOXA 1,095.7 28.88 31,645 0.2003%1.0388%13.838%0.0021%0.0277%
NIKE Inc NKE 1,331.5 55.22 73,524 0.4653%1.159%13.912%0.0054%0.0647%
NiSource Inc NI 321.5 23.86 7,672 0.0000%2.7661%n/a 0.00%n/a
Noble Energy Inc NBL 429.6 35.75 15,358 0.0972%1.1189%10.00%0.0011%0.0097%
Norfolk Southern Corp NSC 295.7 84.06 24,860 0.1573%2.8075%11.767%0.0044%0.0185%
Eversource Energy ES 317.2 55.24 17,523 0.1109%3.2223%7.125%0.0036%0.0079%
Northrop Grumman Corp NOC 180.5 212.67 38,377 0.2429%1.6928%7.54%0.0041%0.0183%
Wells Fargo & Co WFC 5,077.0 50.72 257,508 1.6296%2.9968%9.878%0.0488%0.161%
Nucor Corp NUE 317.9 48.51 15,423 0.0976%3.0921%8.20%0.003%0.008%
PVH Corp PVH 81.0 93.80 7,602 0.0481%0.1599%6.355%0.0001%0.0031%
Occidental Petroleum Corp OXY 763.7 75.44 57,617 0.3646%3.9767%8.00%0.0145%0.0292%
Omnicom Group Inc OMC 237.8 83.33 19,812 0.1254%2.6401%6.45%0.0033%0.0081%
ONEOK Inc OKE 210.1 43.25 9,087 0.0575%5.6879%7.30%0.0033%0.0042%
Owens-Illinois Inc OI 161.9 18.90 3,060 0.0000%n/a 7.00%n/a 0.00%
PG&E Corp PCG 496.0 60.08 29,802 0.1886%3.2623%4.00%0.0062%0.0075%
Parker-Hannifin Corp PH 134.7 114.84 15,467 0.0979%2.1944%8.212%0.0021%0.008%
PPL Corp PPL 676.9 38.54 26,089 0.1651%3.944%4.775%0.0065%0.0079%
PepsiCo Inc PEP 1,444.4 101.17 146,132 0.9248%2.9752%6.422%0.0275%0.0594%
Exelon Corp EXC 921.7 34.27 31,586 0.1999%3.7117%4.574%0.0074%0.0091%
ConocoPhillips COP 1,238.4 43.79 54,229 0.3432%2.2836%6.667%0.0078%0.0229%
PulteGroup Inc PHM 346.0 18.76 6,492 0.0411%1.919%14.04%0.0008%0.0058%
Pinnacle West Capital Corp PNW 111.1 73.59 8,179 0.0518%3.3972%4.648%0.0018%0.0024%
Pitney Bowes Inc PBI 188.6 18.63 3,514 0.0222%4.0258%14.00%0.0009%0.0031%
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 6, p. 3 of 10
Intermountain Gas Company
Market DCF Calculation as of May 31, 2016
[1][2][3][4]
Dividend
Yield
Dividend
Yield x
(1 + 0.625g)
Expected Growth
Rate (g)
Secondary
Market
Investor
Required
Return
S&P 500 2.54%2.69%9.44%12.13%
[5][6][7][8][9][10][11][12]
Company Ticker
Shares
Outstanding
(million)Price
Market
Capitalization
($million)
Percent of
Total Market
Capitalization
Current Dividend
Yield
Best Long-Term
Growth Estimate
Market
Capitalization-
Weighted
Dividend
Yield
Market
Capitalization-
Weighted Best
Long-Term
Growth
Estimate
PNC Financial Services Group Inc/The PNC 499.3 89.74 44,809 0.2836%2.2732%6.048%0.0064%0.0172%
PPG Industries Inc PPG 266.1 107.68 28,650 0.1813%1.4859%8.50%0.0027%0.0154%
Praxair Inc PX 285.3 109.86 31,339 0.1983%2.7307%7.11%0.0054%0.0141%
Progressive Corp/The PGR 583.0 33.30 19,414 0.1229%2.6673%8.84%0.0033%0.0109%
Public Service Enterprise Group Inc PEG 505.9 44.75 22,640 0.1433%3.6648%3.428%0.0053%0.0049%
Raytheon Co RTN 297.0 129.67 38,509 0.2437%2.2596%7.935%0.0055%0.0193%
Robert Half International Inc RHI 131.3 41.59 5,462 0.0346%2.1159%11.63%0.0007%0.004%
Ryder System Inc R 53.7 69.62 3,739 0.0237%2.3556%9.92%0.0006%0.0023%
SCANA Corp SCG 142.9 69.91 9,991 0.0632%3.2899%5.80%0.0021%0.0037%
Edison International EIX 325.8 71.63 23,338 0.1477%2.6804%4.759%0.004%0.007%
Schlumberger Ltd SLB 1,391.2 76.30 106,151 0.6718%2.6212%7.225%0.0176%0.0485%
Charles Schwab Corp/The SCHW 1,321.7 30.58 40,417 0.2558%0.9156%19.00%0.0023%0.0486%
Sherwin-Williams Co/The SHW 92.5 291.09 26,924 0.1704%1.1543%17.70%0.002%0.0302%
JM Smucker Co/The SJM 119.7 129.15 15,457 0.0978%2.0751%14.50%0.002%0.0142%
Snap-on Inc SNA 58.1 161.82 9,409 0.0595%1.5078%4.80%0.0009%0.0029%
AMETEK Inc AME 233.4 47.82 11,162 0.0706%0.7528%10.304%0.0005%0.0073%
Southern Co/The SO 938.6 49.44 46,402 0.2936%4.5307%3.90%0.0133%0.0115%
BB&T Corp BBT 812.0 36.37 29,534 0.1869%3.0795%5.598%0.0058%0.0105%
Southwest Airlines Co LUV 638.7 42.48 27,131 0.1717%0.9416%9.083%0.0016%0.0156%
Southwestern Energy Co SWN 392.7 13.67 5,368 0.0000%n/a (15.98%)n/a 0.00%
Stanley Black & Decker Inc SWK 150.1 113.18 16,990 0.1075%1.9438%10.50%0.0021%0.0113%
Public Storage PSA 173.4 253.71 43,989 0.2784%2.8379%5.483%0.0079%0.0153%
SunTrust Banks Inc STI 501.1 43.82 21,959 0.1390%2.1908%6.883%0.003%0.0096%
Sysco Corp SYY 563.5 48.11 27,111 0.1716%2.5774%10.00%0.0044%0.0172%
TECO Energy Inc TE 235.6 27.54 6,487 0.0411%3.3406%5.00%0.0014%0.0021%
Tesoro Corp TSO 120.0 78.08 9,368 0.0000%2.5615%(0.503%)0.00%0.00%
Texas Instruments Inc TXN 1,004.2 60.60 60,856 0.3851%2.5083%10.00%0.0097%0.0385%
Textron Inc TXT 268.8 38.06 10,232 0.0648%0.2102%7.31%0.0001%0.0047%
Thermo Fisher Scientific Inc TMO 393.5 151.77 59,723 0.3780%0.3953%11.825%0.0015%0.0447%
Tiffany & Co TIF 126.0 61.96 7,808 0.0494%2.9051%8.317%0.0014%0.0041%
TJX Cos Inc/The TJX 661.1 76.12 50,322 0.3185%1.3663%11.556%0.0044%0.0368%
Torchmark Corp TMK 120.7 61.63 7,436 0.0471%0.9086%7.98%0.0004%0.0038%
Total System Services Inc TSS 183.6 53.70 9,860 0.0624%0.7449%11.00%0.0005%0.0069%
Tyco International Plc TYC 425.5 42.62 18,135 0.1148%1.924%13.00%0.0022%0.0149%
Ulta Salon Cosmetics & Fragrance Inc ULTA 62.6 233.01 14,594 0.0000%n/a 21.00%n/a 0.00%
Union Pacific Corp UNP 841.0 84.19 70,807 0.4481%2.6131%12.917%0.0117%0.0579%
UnitedHealth Group Inc UNH 950.8 133.67 127,094 0.8043%1.4962%13.017%0.012%0.1047%
Unum Group UNM 237.8 36.92 8,778 0.0556%2.1668%7.60%0.0012%0.0042%
Marathon Oil Corp MRO 847.6 13.07 11,079 0.0000%1.5302%(2.437%)0.00%0.00%
Varian Medical Systems Inc VAR 95.2 82.79 7,883 0.0000%n/a 12.05%n/a 0.00%
Ventas Inc VTR 338.1 66.33 22,428 0.1419%4.4022%5.12%0.0062%0.0073%
VF Corp VFC 417.0 62.32 25,989 0.1645%2.3748%10.768%0.0039%0.0177%
Vornado Realty Trust VNO 188.8 95.52 18,031 0.1141%2.6382%5.45%0.003%0.0062%
Vulcan Materials Co VMC 133.2 116.75 15,550 0.0984%0.6852%23.08%0.0007%0.0227%
Weyerhaeuser Co WY 747.1 31.50 23,533 0.1489%3.9365%12.267%0.0059%0.0183%
Whirlpool Corp WHR 76.0 174.62 13,265 0.0839%2.2907%17.04%0.0019%0.0143%
Williams Cos Inc/The WMB 750.6 22.16 16,633 0.0000%11.5523%(2.067%)0.00%0.00%
WEC Energy Group Inc WEC 315.6 60.14 18,983 0.1201%3.2923%6.00%0.004%0.0072%
Xerox Corp XRX 1,013.0 9.97 10,100 0.0639%3.1093%11.60%0.002%0.0074%
Adobe Systems Inc ADBE 500.2 99.47 49,756 0.0000%n/a 20.286%n/a 0.00%
AES Corp/VA AES 659.0 11.09 7,308 0.0462%3.9675%4.918%0.0018%0.0023%
Amgen Inc AMGN 751.2 157.95 118,655 0.7509%2.5324%7.971%0.019%0.0599%
Apple Inc AAPL 5,477.4 99.86 546,976 3.4615%2.2832%11.563%0.079%0.4002%
Autodesk Inc ADSK 224.6 58.27 13,087 0.0000%n/a 20.96%n/a 0.00%
Cintas Corp CTAS 107.0 94.80 10,144 0.0642%1.1076%11.95%0.0007%0.0077%
Comcast Corp CMCSA 2,417.8 63.30 153,044 0.9685%1.7378%11.349%0.0168%0.1099%
Molson Coors Brewing Co TAP 193.8 99.18 19,222 0.1216%1.6536%19.767%0.002%0.024%
KLA-Tencor Corp KLAC 155.7 72.93 11,356 0.0719%2.852%5.55%0.002%0.004%
Marriott International Inc/MD MAR 254.2 66.04 16,789 0.1062%1.8171%11.96%0.0019%0.0127%
McCormick & Co Inc/MD MKC 115.3 97.07 11,190 0.0708%1.7719%9.10%0.0013%0.0064%
Nordstrom Inc JWN 172.9 37.98 6,568 0.0416%3.8968%7.68%0.0016%0.0032%
PACCAR Inc PCAR 350.5 55.75 19,538 0.1236%1.722%7.833%0.0021%0.0097%
Costco Wholesale Corp COST 439.0 148.77 65,315 0.4133%1.2099%10.787%0.005%0.0446%
St Jude Medical Inc STJ 284.3 78.36 22,276 0.1410%1.5824%10.625%0.0022%0.015%
Stryker Corp SYK 374.0 111.16 41,572 0.2631%1.3674%12.488%0.0036%0.0329%
Tyson Foods Inc TSN 300.5 63.78 19,168 0.1213%0.9407%12.025%0.0011%0.0146%
Applied Materials Inc AMAT 1,089.1 24.42 26,597 0.1683%1.638%15.433%0.0028%0.026%
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 6, p. 4 of 10
Intermountain Gas Company
Market DCF Calculation as of May 31, 2016
[1][2][3][4]
Dividend
Yield
Dividend
Yield x
(1 + 0.625g)
Expected Growth
Rate (g)
Secondary
Market
Investor
Required
Return
S&P 500 2.54%2.69%9.44%12.13%
[5][6][7][8][9][10][11][12]
Company Ticker
Shares
Outstanding
(million)Price
Market
Capitalization
($million)
Percent of
Total Market
Capitalization
Current Dividend
Yield
Best Long-Term
Growth Estimate
Market
Capitalization-
Weighted
Dividend
Yield
Market
Capitalization-
Weighted Best
Long-Term
Growth
Estimate
Time Warner Inc TWX 786.4 75.66 59,499 0.3765%2.1279%14.382%0.008%0.0542%
Bed Bath & Beyond Inc BBBY 154.4 44.75 6,908 0.0437%1.1173%6.756%0.0005%0.003%
American Airlines Group Inc AAL 578.2 31.91 18,449 0.0000%1.2535%(15.44%)0.00%0.00%
Cardinal Health Inc CAH 325.8 78.95 25,723 0.1628%2.2744%12.00%0.0037%0.0195%
Celgene Corp CELG 774.6 105.52 81,736 0.0000%n/a 22.373%n/a 0.00%
Cerner Corp CERN 338.1 55.61 18,801 0.0000%n/a 16.30%n/a 0.00%
Cincinnati Financial Corp CINF 164.5 69.10 11,366 0.0000%2.7786%n/a 0.00%n/a
Cablevision Systems Corp CVC 222.2 34.68 7,706 0.0000%n/a 9.25%n/a 0.00%
DR Horton Inc DHI 370.9 30.56 11,335 0.0717%1.0471%15.283%0.0008%0.011%
Flowserve Corp FLS 130.4 48.13 6,275 0.0397%1.5791%11.667%0.0006%0.0046%
Electronic Arts Inc EA 301.6 76.75 23,149 0.0000%n/a 11.267%n/a 0.00%
Express Scripts Holding Co ESRX 632.5 75.55 47,788 0.0000%n/a 13.80%n/a 0.00%
Expeditors International of Washington Inc EXPD 182.1 48.55 8,839 0.0559%1.6478%8.533%0.0009%0.0048%
Fastenal Co FAST 288.9 46.03 13,297 0.0842%2.607%12.675%0.0022%0.0107%
M&T Bank Corp MTB 159.0 119.50 19,000 0.1202%2.3431%5.445%0.0028%0.0065%
Fiserv Inc FISV 222.3 105.33 23,418 0.0000%n/a 12.74%n/a 0.00%
Fifth Third Bancorp FITB 767.7 18.87 14,487 0.0917%2.7557%3.833%0.0025%0.0035%
Gilead Sciences Inc GILD 1,331.8 87.06 115,948 0.7338%2.1594%1.457%0.0158%0.0107%
Hasbro Inc HAS 124.7 87.29 10,885 0.0689%2.337%10.40%0.0016%0.0072%
Huntington Bancshares Inc/OH HBAN 798.9 10.45 8,348 0.0528%2.6794%5.875%0.0014%0.0031%
Welltower Inc HCN 357.0 68.91 24,601 0.1557%4.992%4.67%0.0078%0.0073%
Biogen Inc BIIB 219.1 289.73 63,466 0.0000%n/a 8.274%n/a 0.00%
Linear Technology Corp LLTC 239.1 47.32 11,314 0.0716%2.705%6.913%0.0019%0.0049%
Range Resources Corp RRC 169.7 42.59 7,229 0.0000%0.1878%(25.535%)0.00%0.00%
Northern Trust Corp NTRS 228.2 74.10 16,907 0.1070%1.9433%11.447%0.0021%0.0122%
Paychex Inc PAYX 360.1 54.22 19,526 0.1236%3.0985%9.775%0.0038%0.0121%
People's United Financial Inc PBCT 310.9 15.88 4,936 0.0000%4.2821%n/a 0.00%n/a
Patterson Cos Inc PDCO 99.1 48.81 4,837 0.0306%1.9668%7.667%0.0006%0.0023%
QUALCOMM Inc QCOM 1,468.9 54.92 80,673 0.5105%3.8602%10.40%0.0197%0.0531%
Roper Technologies Inc ROP 101.2 171.08 17,313 0.1096%0.7014%11.433%0.0008%0.0125%
Ross Stores Inc ROST 401.8 53.40 21,456 0.1358%1.0112%12.457%0.0014%0.0169%
AutoNation Inc AN 103.1 50.44 5,201 0.0000%n/a 8.64%n/a 0.00%
Starbucks Corp SBUX 1,464.9 54.89 80,408 0.5089%1.4575%18.622%0.0074%0.0948%
KeyCorp KEY 842.4 12.82 10,799 0.0683%2.6521%6.333%0.0018%0.0043%
Staples Inc SPLS 646.3 8.80 5,687 0.0360%5.4545%1.603%0.002%0.0006%
State Street Corp STT 395.9 63.06 24,968 0.1580%2.1567%8.63%0.0034%0.0136%
US Bancorp USB 1,726.4 42.82 73,925 0.4678%2.3821%5.86%0.0111%0.0274%
Symantec Corp SYMC 612.3 17.36 10,629 0.0673%1.7281%8.686%0.0012%0.0058%
T Rowe Price Group Inc TROW 248.2 77.06 19,127 0.1210%2.803%10.908%0.0034%0.0132%
Waste Management Inc WM 444.3 60.95 27,078 0.1714%2.6907%8.326%0.0046%0.0143%
CBS Corp CBS 415.3 55.20 22,925 0.1451%1.087%17.772%0.0016%0.0258%
Allergan plc AGN 395.6 235.75 93,253 0.0000%n/a 13.50%n/a 0.00%
Whole Foods Market Inc WFM 321.0 32.35 10,385 0.0657%1.6692%7.973%0.0011%0.0052%
Constellation Brands Inc STZ 176.4 153.15 27,018 0.1710%1.0447%12.955%0.0018%0.0222%
Xilinx Inc XLNX 255.5 47.39 12,110 0.0766%2.7854%8.233%0.0021%0.0063%
DENTSPLY SIRONA Inc XRAY 234.2 62.16 14,560 0.0921%0.4987%9.42%0.0005%0.0087%
Zions Bancorporation ZION 204.6 28.02 5,734 0.0363%0.8565%9.00%0.0003%0.0033%
Alaska Air Group Inc ALK 123.3 66.40 8,184 0.0518%1.6566%5.49%0.0009%0.0028%
Invesco Ltd IVZ 417.3 31.40 13,102 0.0829%3.5669%11.282%0.003%0.0094%
Intuit Inc INTU 255.9 106.66 27,291 0.1727%1.1251%17.11%0.0019%0.0296%
Morgan Stanley MS 1,937.0 27.37 53,016 0.3355%2.1922%6.433%0.0074%0.0216%
Microchip Technology Inc MCHP 214.8 51.68 11,102 0.0703%2.7825%9.64%0.002%0.0068%
Chubb Ltd CB 464.5 126.61 58,808 0.3722%2.1799%9.50%0.0081%0.0354%
Hologic Inc HOLX 278.8 34.41 9,595 0.0000%n/a 8.943%n/a 0.00%
Chesapeake Energy Corp CHK 684.6 4.29 2,937 0.0000%n/a (3.63%)n/a 0.00%
Citizens Financial Group Inc CFG 529.0 23.55 12,457 0.0788%2.0382%9.00%0.0016%0.0071%
O'Reilly Automotive Inc ORLY 96.5 264.43 25,506 0.0000%n/a 15.536%n/a 0.00%
Allstate Corp/The ALL 374.4 67.51 25,274 0.1599%1.9553%8.25%0.0031%0.0132%
FLIR Systems Inc FLIR 137.6 31.15 4,287 0.0271%1.5409%15.00%0.0004%0.0041%
Equity Residential EQR 365.5 69.21 25,296 0.1601%2.9114%6.427%0.0047%0.0103%
BorgWarner Inc BWA 217.6 34.03 7,406 0.0469%1.5281%12.787%0.0007%0.006%
Newfield Exploration Co NFX 198.5 40.77 8,092 0.0000%n/a 16.485%n/a 0.00%
Urban Outfitters Inc URBN 117.4 28.53 3,349 0.0000%n/a 14.838%n/a 0.00%
Simon Property Group Inc SPG 309.4 197.64 61,152 0.3870%3.2382%7.92%0.0125%0.0306%
Eastman Chemical Co EMN 147.8 73.36 10,845 0.0686%2.5082%5.50%0.0017%0.0038%
AvalonBay Communities Inc AVB 137.2 179.88 24,673 0.1561%3.002%7.423%0.0047%0.0116%
Prudential Financial Inc PRU 442.0 79.25 35,029 0.2217%3.5331%9.55%0.0078%0.0212%
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 6, p. 5 of 10
Intermountain Gas Company
Market DCF Calculation as of May 31, 2016
[1][2][3][4]
Dividend
Yield
Dividend
Yield x
(1 + 0.625g)
Expected Growth
Rate (g)
Secondary
Market
Investor
Required
Return
S&P 500 2.54%2.69%9.44%12.13%
[5][6][7][8][9][10][11][12]
Company Ticker
Shares
Outstanding
(million)Price
Market
Capitalization
($million)
Percent of
Total Market
Capitalization
Current Dividend
Yield
Best Long-Term
Growth Estimate
Market
Capitalization-
Weighted
Dividend
Yield
Market
Capitalization-
Weighted Best
Long-Term
Growth
Estimate
United Parcel Service Inc UPS 690.5 103.09 71,179 0.4504%3.0265%9.611%0.0136%0.0433%
Apartment Investment & Management Co AIV 156.6 42.65 6,679 0.0423%3.095%11.765%0.0013%0.005%
Walgreens Boots Alliance Inc WBA 1,080.2 77.40 83,611 0.5291%1.8605%13.20%0.0098%0.0698%
McKesson Corp MCK 225.0 183.14 41,210 0.2608%0.6116%12.70%0.0016%0.0331%
Lockheed Martin Corp LMT 304.5 236.23 71,921 0.4551%2.7939%7.61%0.0127%0.0346%
AmerisourceBergen Corp ABC 215.9 74.98 16,185 0.1024%1.8138%12.50%0.0019%0.0128%
Capital One Financial Corp COF 512.1 73.24 37,506 0.2374%2.1846%6.741%0.0052%0.016%
Waters Corp WAT 80.9 137.55 11,133 0.0000%n/a 8.594%n/a 0.00%
Dollar Tree Inc DLTR 235.6 90.54 21,328 0.0000%n/a 17.667%n/a 0.00%
Darden Restaurants Inc DRI 126.7 67.83 8,596 0.0544%2.9485%14.06%0.0016%0.0076%
Diamond Offshore Drilling Inc DO 137.2 25.82 3,542 0.0000%n/a n/a n/a n/a
NetApp Inc NTAP 289.1 25.53 7,380 0.0467%2.9769%8.967%0.0014%0.0042%
Citrix Systems Inc CTXS 155.1 84.92 13,171 0.0000%n/a 16.70%n/a 0.00%
Goodyear Tire & Rubber Co/The GT 265.9 27.97 7,438 0.0471%1.0011%7.00%0.0005%0.0033%
DaVita HealthCare Partners Inc DVA 206.5 77.32 15,967 0.0000%n/a 11.358%n/a 0.00%
Hartford Financial Services Group Inc/The HIG 393.4 45.17 17,769 0.1124%1.8596%9.333%0.0021%0.0105%
Iron Mountain Inc IRM 212.0 36.74 7,787 0.0493%5.2803%9.40%0.0026%0.0046%
Estee Lauder Cos Inc/The EL 222.6 91.78 20,428 0.1293%1.3075%11.855%0.0017%0.0153%
Yahoo! Inc YHOO 949.9 37.94 36,040 0.0000%n/a 6.535%n/a 0.00%
Principal Financial Group Inc PFG 289.9 44.56 12,916 0.0817%3.5009%8.14%0.0029%0.0067%
Stericycle Inc SRCL 84.9 97.99 8,321 0.0000%n/a 14.45%n/a 0.00%
Universal Health Services Inc UHS 89.8 134.86 12,106 0.0766%0.2966%8.883%0.0002%0.0068%
E*TRADE Financial Corp ETFC 278.7 27.89 7,774 0.0000%n/a 18.07%n/a 0.00%
Skyworks Solutions Inc SWKS 190.2 66.76 12,700 0.0804%1.5578%16.674%0.0013%0.0134%
National Oilwell Varco Inc NOV 377.1 32.95 12,424 0.0000%0.607%(9.35%)0.00%0.00%
Quest Diagnostics Inc DGX 141.5 77.17 10,916 0.0691%2.0733%8.905%0.0014%0.0062%
Activision Blizzard Inc ATVI 738.2 39.26 28,983 0.1834%0.6623%12.00%0.0012%0.022%
Rockwell Automation Inc ROK 130.3 116.05 15,117 0.0957%2.4989%6.927%0.0024%0.0066%
Kraft Heinz Co/The KHC 1,216.0 83.19 101,155 0.6401%2.7648%21.688%0.0177%0.1388%
American Tower Corp AMT 424.6 105.78 44,917 0.2842%1.9285%20.412%0.0055%0.058%
Regeneron Pharmaceuticals Inc REGN 103.2 398.93 41,156 0.0000%n/a 23.293%n/a 0.00%
Amazon.com Inc AMZN 471.8 722.79 341,033 0.0000%n/a 50.747%n/a 0.00%
Ralph Lauren Corp RL 57.0 94.33 5,379 0.0340%2.1202%7.62%0.0007%0.0026%
Boston Properties Inc BXP 153.6 125.63 19,298 0.1221%2.0696%6.55%0.0025%0.008%
Amphenol Corp APH 307.9 58.72 18,081 0.1144%0.9537%9.26%0.0011%0.0106%
Pioneer Natural Resources Co PXD 163.6 160.32 26,221 0.1659%0.0499%20.00%0.0001%0.0332%
Valero Energy Corp VLO 469.8 54.70 25,698 0.1626%4.3876%4.208%0.0071%0.0068%
L-3 Communications Holdings Inc LLL 77.0 137.21 10,559 0.0668%2.0407%9.94%0.0014%0.0066%
Western Union Co/The WU 491.1 19.45 9,553 0.0605%3.2905%6.826%0.002%0.0041%
CH Robinson Worldwide Inc CHRW 142.8 74.98 10,705 0.0677%2.2939%10.275%0.0016%0.007%
Accenture PLC ACN 623.8 118.97 74,212 0.4696%1.8492%9.72%0.0087%0.0456%
Yum! Brands Inc YUM 407.4 82.09 33,447 0.2117%2.2414%11.60%0.0047%0.0246%
Prologis Inc PLD 525.1 47.53 24,957 0.1579%3.5346%5.175%0.0056%0.0082%
FirstEnergy Corp FE 424.7 32.81 13,935 0.0882%4.3889%0.085%0.0039%0.0001%
VeriSign Inc VRSN 108.5 85.46 9,270 0.0000%n/a 9.85%n/a 0.00%
Quanta Services Inc PWR 144.2 24.03 3,464 0.0000%n/a 8.00%n/a 0.00%
Henry Schein Inc HSIC 82.1 173.73 14,257 0.0000%n/a 11.22%n/a 0.00%
Ameren Corp AEE 242.6 49.55 12,023 0.0761%3.4309%5.283%0.0026%0.004%
NVIDIA Corp NVDA 534.0 46.72 24,948 0.1579%0.9846%9.667%0.0016%0.0153%
Scripps Networks Interactive Inc SNI 95.1 64.34 6,119 0.0387%1.5542%11.733%0.0006%0.0045%
Sealed Air Corp SEE 197.1 46.44 9,155 0.0579%1.3781%4.267%0.0008%0.0025%
Cognizant Technology Solutions Corp CTSH 605.9 61.44 37,225 0.0000%n/a 13.783%n/a 0.00%
Intuitive Surgical Inc ISRG 38.1 634.71 24,157 0.0000%n/a 13.065%n/a 0.00%
Aetna Inc AET 350.6 113.23 39,698 0.2512%0.8832%11.111%0.0022%0.0279%
Affiliated Managers Group Inc AMG 53.8 173.52 9,337 0.0000%n/a 13.91%n/a 0.00%
Republic Services Inc RSG 343.9 48.28 16,603 0.1051%2.4855%7.868%0.0026%0.0083%
eBay Inc EBAY 1,148.9 24.46 28,102 0.0000%n/a 8.887%n/a 0.00%
Goldman Sachs Group Inc/The GS 415.4 159.48 66,247 0.4192%1.6303%15.145%0.0068%0.0635%
Sempra Energy SRE 249.5 107.12 26,726 0.1691%2.8193%8.33%0.0048%0.0141%
Moody's Corp MCO 194.3 98.64 19,166 0.1213%1.5004%11.00%0.0018%0.0133%
Priceline Group Inc/The PCLN 49.6 1,264.33 62,760 0.0000%n/a 18.10%n/a 0.00%
F5 Networks Inc FFIV 67.0 110.20 7,381 0.0000%n/a 13.18%n/a 0.00%
Akamai Technologies Inc AKAM 175.6 54.58 9,584 0.0000%n/a 17.333%n/a 0.00%
Reynolds American Inc RAI 1,427.3 49.70 70,939 0.4489%3.3803%9.485%0.0152%0.0426%
Devon Energy Corp DVN 524.0 36.09 18,911 0.1197%0.665%8.233%0.0008%0.0099%
Alphabet Inc GOOGL 293.7 748.85 219,919 0.0000%n/a 15.66%n/a 0.00%
Red Hat Inc RHT 181.4 77.46 14,054 0.0000%n/a 17.70%n/a 0.00%
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 6, p. 6 of 10
Intermountain Gas Company
Market DCF Calculation as of May 31, 2016
[1][2][3][4]
Dividend
Yield
Dividend
Yield x
(1 + 0.625g)
Expected Growth
Rate (g)
Secondary
Market
Investor
Required
Return
S&P 500 2.54%2.69%9.44%12.13%
[5][6][7][8][9][10][11][12]
Company Ticker
Shares
Outstanding
(million)Price
Market
Capitalization
($million)
Percent of
Total Market
Capitalization
Current Dividend
Yield
Best Long-Term
Growth Estimate
Market
Capitalization-
Weighted
Dividend
Yield
Market
Capitalization-
Weighted Best
Long-Term
Growth
Estimate
Netflix Inc NFLX 428.3 102.57 43,931 0.0000%n/a 35.50%n/a 0.00%
Allegion PLC ALLE 95.7 67.64 6,475 0.0410%0.7096%13.567%0.0003%0.0056%
Agilent Technologies Inc A 327.8 45.89 15,041 0.0952%1.0024%10.133%0.001%0.0096%
Anthem Inc ANTM 263.0 132.16 34,752 0.2199%1.9673%8.91%0.0043%0.0196%
CME Group Inc/IL CME 338.6 97.89 33,149 0.2098%2.4517%13.123%0.0051%0.0275%
Juniper Networks Inc JNPR 383.9 23.41 8,988 0.0569%1.7087%9.633%0.001%0.0055%
BlackRock Inc BLK 163.4 363.85 59,441 0.3762%2.5175%13.537%0.0095%0.0509%
DTE Energy Co DTE 179.4 90.68 16,271 0.1030%3.2201%5.54%0.0033%0.0057%
Nasdaq Inc NDAQ 164.5 66.01 10,860 0.0687%1.9391%7.923%0.0013%0.0054%
Philip Morris International Inc PM 1,551.3 98.68 153,079 0.9687%4.1346%9.187%0.0401%0.089%
salesforce.com Inc CRM 677.5 83.71 56,714 0.0000%n/a 25.389%n/a 0.00%
MetLife Inc MET 1,098.7 45.55 50,044 0.3167%3.5126%7.10%0.0111%0.0225%
Monsanto Co MON 436.8 112.47 49,132 0.3109%1.9205%7.85%0.006%0.0244%
Under Armour Inc UA/C 217.6 34.97 7,608 0.0000%n/a 25.19%n/a 0.00%
Coach Inc COH 278.0 39.42 10,960 0.0694%3.4247%10.963%0.0024%0.0076%
Fluor Corp FLR 139.2 52.78 7,349 0.0465%1.5915%1.357%0.0007%0.0006%
Dun & Bradstreet Corp/The DNB 36.3 126.90 4,601 0.0291%1.5209%11.75%0.0004%0.0034%
CSX Corp CSX 955.9 26.43 25,264 0.1599%2.7242%5.867%0.0044%0.0094%
Edwards Lifesciences Corp EW 211.8 98.50 20,859 0.0000%n/a 17.60%n/a 0.00%
Ameriprise Financial Inc AMP 165.8 101.67 16,858 0.1067%2.9507%11.00%0.0031%0.0117%
Xcel Energy Inc XEL 508.0 41.37 21,014 0.1330%3.2874%4.95%0.0044%0.0066%
Rockwell Collins Inc COL 130.2 88.40 11,509 0.0728%1.4932%8.323%0.0011%0.0061%
FMC Technologies Inc FTI 226.4 27.23 6,164 0.0000%n/a (8.10%)n/a 0.00%
Zimmer Biomet Holdings Inc ZBH 199.2 122.11 24,329 0.1540%0.7862%10.493%0.0012%0.0162%
CBRE Group Inc CBG 335.4 29.85 10,013 0.0000%n/a 12.50%n/a 0.00%
Signet Jewelers Ltd SIG 78.4 98.97 7,763 0.0491%1.0508%14.40%0.0005%0.0071%
MasterCard Inc MA 1,078.3 95.90 103,410 0.6544%0.7925%15.00%0.0052%0.0982%
CarMax Inc KMX 193.5 53.66 10,382 0.0000%n/a 13.552%n/a 0.00%
Intercontinental Exchange Inc ICE 119.0 271.12 32,276 0.2043%1.2541%13.667%0.0026%0.0279%
Fidelity National Information Services Inc FIS 326.5 74.27 24,246 0.1534%1.4003%12.00%0.0021%0.0184%
Chipotle Mexican Grill Inc CMG 29.2 441.96 12,906 0.0000%n/a 16.879%n/a 0.00%
Wynn Resorts Ltd WYNN 101.8 96.18 9,790 0.0620%2.0794%10.00%0.0013%0.0062%
Assurant Inc AIZ 61.9 87.39 5,413 0.0343%2.2886%12.36%0.0008%0.0042%
NRG Energy Inc NRG 314.9 16.38 5,158 0.0000%0.7326%(27.35%)0.00%0.00%
Monster Beverage Corp MNST 203.0 150.00 30,456 0.0000%n/a 18.958%n/a 0.00%
Regions Financial Corp RF 1,266.7 9.83 12,452 0.0788%2.645%4.905%0.0021%0.0039%
Teradata Corp TDC 130.0 28.34 3,684 0.0000%n/a 9.604%n/a 0.00%
Mosaic Co/The MOS 349.8 25.23 8,826 0.0559%4.3599%0.85%0.0024%0.0005%
Expedia Inc EXPE 136.3 111.24 15,162 0.0960%0.863%22.286%0.0008%0.0214%
Discovery Communications Inc DISCA 150.5 27.85 4,191 0.0000%n/a 13.45%n/a 0.00%
CF Industries Holdings Inc CF 233.1 27.66 6,447 0.0408%4.3384%17.15%0.0018%0.007%
Viacom Inc VIAB 346.6 44.37 15,379 0.0973%3.606%6.487%0.0035%0.0063%
Alphabet Inc GOOG 343.4 735.72 252,676 0.0000%n/a 15.66%n/a 0.00%
Wyndham Worldwide Corp WYN 112.0 67.39 7,544 0.0477%2.9678%7.65%0.0014%0.0037%
Spectra Energy Corp SE 700.9 31.86 22,331 0.1413%5.0847%10.20%0.0072%0.0144%
First Solar Inc FSLR 102.2 49.65 5,076 0.0000%n/a 5.50%n/a 0.00%
Mead Johnson Nutrition Co MJN 186.7 82.28 15,359 0.0972%2.0053%9.84%0.0019%0.0096%
TE Connectivity Ltd TEL 357.6 60.00 21,457 0.1358%2.4667%12.20%0.0033%0.0166%
Discover Financial Services DFS 412.2 56.81 23,419 0.1482%1.9715%9.895%0.0029%0.0147%
TripAdvisor Inc TRIP 132.9 67.74 9,003 0.0000%n/a 16.308%n/a 0.00%
Dr Pepper Snapple Group Inc DPS 185.8 91.40 16,983 0.1075%2.3195%13.243%0.0025%0.0142%
Visa Inc V 1,904.8 78.94 150,364 0.9516%0.7094%16.641%0.0068%0.1583%
Xylem Inc/NY XYL 178.9 44.66 7,990 0.0506%1.3874%15.00%0.0007%0.0076%
Marathon Petroleum Corp MPC 529.8 34.83 18,454 0.1168%3.675%8.35%0.0043%0.0098%
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 6, p. 7 of 10
Intermountain Gas Company
Market DCF Calculation as of May 31, 2016
[1][2][3][4]
Dividend
Yield
Dividend
Yield x
(1 + 0.625g)
Expected Growth
Rate (g)
Secondary
Market
Investor
Required
Return
S&P 500 2.54%2.69%9.44%12.13%
[5][6][7][8][9][10][11][12]
Company Ticker
Shares
Outstanding
(million)Price
Market
Capitalization
($million)
Percent of
Total Market
Capitalization
Current Dividend
Yield
Best Long-Term
Growth Estimate
Market
Capitalization-
Weighted
Dividend
Yield
Market
Capitalization-
Weighted Best
Long-Term
Growth
Estimate
Tractor Supply Co TSCO 133.4 96.10 12,822 0.0811%0.999%15.763%0.0008%0.0128%
Level 3 Communications Inc LVLT 357.9 53.95 19,310 0.0000%n/a (0.69%)n/a 0.00%
Transocean Ltd RIG 365.2 9.79 3,575 0.0000%n/a (6.20%)n/a 0.00%
Essex Property Trust Inc ESS 65.4 227.23 14,868 0.0941%2.8165%6.827%0.0026%0.0064%
General Growth Properties Inc GGP 883.2 26.87 23,732 0.1502%2.8284%6.915%0.0042%0.0104%
Realty Income Corp O 257.6 60.09 15,481 0.0980%3.974%3.67%0.0039%0.0036%
Seagate Technology PLC STX 298.5 22.56 6,734 0.0426%11.1702%5.05%0.0048%0.0022%
WestRock Co WRK 252.6 39.61 10,006 0.0633%3.7869%2.85%0.0024%0.0018%
Western Digital Corp WDC 281.4 46.54 13,098 0.0829%4.2974%1.94%0.0036%0.0016%
Church & Dwight Co Inc CHD 128.3 98.48 12,638 0.0800%1.4419%9.288%0.0012%0.0074%
Federal Realty Investment Trust FRT 70.9 153.19 10,862 0.0687%2.4545%6.255%0.0017%0.0043%
Twenty-First Century Fox Inc FOX 798.5 29.24 23,349 0.1478%1.026%13.838%0.0015%0.0204%
JB Hunt Transport Services Inc JBHT 112.7 82.72 9,319 0.0590%1.0638%13.738%0.0006%0.0081%
Lam Research Corp LRCX 159.6 82.81 13,216 0.0836%1.4491%9.717%0.0012%0.0081%
Mohawk Industries Inc MHK 74.1 196.69 14,573 0.0000%n/a 11.10%n/a 0.00%
Pentair PLC PNR 180.7 60.24 10,886 0.0689%2.2576%9.25%0.0016%0.0064%
Vertex Pharmaceuticals Inc VRTX 247.4 93.15 23,041 0.0000%n/a 50.533%n/a 0.00%
Facebook Inc FB 2,311.9 118.81 274,673 0.0000%n/a 31.337%n/a 0.00%
United Rentals Inc URI 88.5 69.67 6,166 0.0000%n/a 14.13%n/a 0.00%
United Continental Holdings Inc UAL 335.7 45.09 15,137 0.0000%n/a (11.42%)n/a 0.00%
Navient Corp NAVI 330.5 13.71 4,531 0.0000%4.6681%n/a 0.00%n/a
Delta Air Lines Inc DAL 771.6 43.46 33,533 0.2122%1.2425%18.495%0.0026%0.0392%
Baxalta Inc BXLT 683.5 45.23 30,917 0.0000%0.6191%n/a 0.00%n/a
Mallinckrodt PLC MNK 109.3 63.36 6,927 0.0000%n/a 9.154%n/a 0.00%
News Corp NWS 199.6 12.34 2,463 0.0156%1.6207%8.893%0.0003%0.0014%
Centene Corp CNC 170.5 62.35 10,629 0.0000%n/a 17.172%n/a 0.00%
Macerich Co/The MAC 148.5 76.32 11,333 0.0717%3.5639%7.12%0.0026%0.0051%
Martin Marietta Materials Inc MLM 63.5 189.04 12,009 0.0760%0.8464%22.156%0.0006%0.0168%
PayPal Holdings Inc PYPL 1,212.0 37.79 45,803 0.0000%n/a 16.075%n/a 0.00%
Alexion Pharmaceuticals Inc ALXN 224.0 150.90 33,805 0.0000%n/a 26.098%n/a 0.00%
Columbia Pipeline Group Inc CPGX 400.4 25.54 10,226 0.0000%2.1731%n/a 0.00%n/a
Endo International PLC ENDP 222.7 15.81 3,520 0.0000%n/a 4.70%n/a 0.00%
News Corp NWSA 380.4 11.96 4,549 0.0288%1.6722%8.893%0.0005%0.0026%
Global Payments Inc GPN 154.0 77.69 11,964 0.0757%0.0515%13.443%0.00%0.0102%
Crown Castle International Corp CCI 337.6 90.81 30,654 0.1940%3.8982%15.50%0.0076%0.0301%
Delphi Automotive PLC DLPH 273.0 67.96 18,552 0.1174%1.7069%10.083%0.002%0.0118%
Advance Auto Parts Inc AAP 73.6 153.84 11,316 0.0716%0.156%11.006%0.0001%0.0079%
Michael Kors Holdings Ltd KORS 179.4 42.72 7,665 0.0000%n/a n/a n/a n/a
Illumina Inc ILMN 147.2 144.83 21,319 0.0000%n/a 14.481%n/a 0.00%
Acuity Brands Inc AYI 43.8 259.04 11,353 0.0718%0.2007%19.60%0.0001%0.0141%
Alliance Data Systems Corp ADS 58.9 222.19 13,096 0.0000%n/a 14.00%n/a 0.00%
LKQ Corp LKQ 306.7 33.07 10,142 0.0000%n/a 15.467%n/a 0.00%
Nielsen Holdings PLC NLSN 360.8 53.39 19,263 0.1219%2.3225%12.333%0.0028%0.015%
Garmin Ltd GRMN 189.1 42.52 8,039 0.0509%4.7977%7.425%0.0024%0.0038%
Cimarex Energy Co XEC 94.8 116.28 11,025 0.0000%0.2752%(4.37%)0.00%0.00%
Zoetis Inc ZTS 496.2 47.42 23,530 0.1489%0.8013%15.40%0.0012%0.0229%
Equinix Inc EQIX 69.4 362.00 25,133 0.1591%1.9337%22.05%0.0031%0.0351%
Digital Realty Trust Inc DLR 159.3 95.45 15,208 0.0962%3.6878%5.94%0.0035%0.0057%
Discovery Communications Inc DISCK 248.7 26.77 6,658 0.0000%n/a 13.45%n/a 0.00%
Average for Companies Paying Dividends with Positive Best Long-Term Growth Estimates 2.39%9.69%
Notes:
[1] Equals sum of Column [11]
[2] Equals Column [1] x (1 + 0.625 x Column [3]/100)
[3] Equals sum of Column [12]
[4] Equals Column [2] + Column [3]
[5] Source: Bloomberg Finance L.P.
[6] Source: Bloomberg Finance L.P.
[7] Equals Column [5] x Column [6]
[8] Equals percent of sum of Column [7] if Current Dividend Yield does not equal "n/a" and BEst Long-Term Growth Estimate does not equal "n/a" and is greater than 0%
[9] Source: Bloomberg Finance L.P.
[10] Source: Bloomberg Finance L.P.
[11] Equals Column [8] x Column [9]
[12] Equals Column [8] x Column [10]
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 6, p. 8 of 10
1 S&P Current Required Return [1]12.13%
2 Less: May '16 T-Bond [2]2.63%
3 Market Risk Premium [3]9.50%
4 x Value Line Beta [4]0.74
5 LDC Risk Premium [5]7.06%
6 Plus: May '16 T-Bond [2]2.63%
7 LDC CAPM Cost of Eq. [6]9.69%
[1] Source: Schedule 6 Market DCF, Page 1
[2] Source: Schedule 1 Bond Yields, Page 3
[3] Equals [1] − [2]
[4] Source: Schedule 6 Beta, Page 1
[5] Source: [3] * [4]
[6] Source: [5] + [6]
Intermountain Gas Company
CAPM Analysis
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 6, p. 9 of 10
Intermountain Gas Company
Beta
As of June 3, 2016
Value Line
Atmos Energy Corporation ATO 0.75
Spire Inc.SR 0.70
New Jersey Resources Corporation NJR 0.80
Northwest Natural Gas Company NWN 0.65
South Jersey Industries, Inc.SJI 0.80
Southwest Gas Corporation SWX 0.75
WGL Holdings, Inc.WGL 0.75
Mean 0.74
Source: Value Line; dated June 3, 2016
Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 6, p. 10 of 10
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Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 7, p. 1 of 1
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Exhibit No. 05
Case No. INT-G-16-02
S. Gaske, IGC
Schedule 8, p. 1 of 1