20170615reconsideration_order_no_33789.pdf

Office of the Secretary
Service Date
June 15,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF INTERMOUNTAIN GAS COMPANY )CASE NO.INT-G-16-02
TO CHANGE ITS RATES AND CHARGES )
FOR NATURAL GAS SERVICE IN THE )ORDER NO.33789
STATE OF IDAHO )
On April 28,2017,this Commission issued a final Order in Intermountain Gas
Company’s general rate case.Order No.33757.On May 18,2017,Intermountain Gas timely
petitioned the Commission to reconsider certain aspects of Final Order No.33757,Specifically,
the Company asked the Commission to reconsider its decisions relating to:(1)the data input into
Staffs weather normalization model (see Petition for Reconsideration at 1-10);(2)the
Commission’s preference for Staffs weather normalization model over the Company’s model
(id.at 10-14);(3)the disallowance of certain affiliated operations and maintenance (O&M)
expenses (id.at 14-17);and (4)the disallowance of incentive compensation (Id.at 17-19).The
Company asserted that the Commission’s decisions on these issues were unreasonable,arbitrary,
capricious,and not supported by the facts.No other Petitions for Reconsideration were received.
On May 25,2017,Commission Staff filed an answer that also recommended the
Commission reconsider the weather normalization issues.See Commission Staffs Answer to
Intermountain Gas Company’s Petition for Reconsideration.The answer did not address the
Company’s request that the Commission reconsider its decision to disallow certain affiliated
O&M expenses and incentive compensation.No other party or person responded to the
Company’s Petition.
On June 9,2017,Staff reported to the Commission that the Company and Staff had
explored the possibility of meeting in an effort to resolve the weather normalization issues.See
Commission Staffs Status Report Regarding Reconsideration of Weather Normalization,Staff
reported that it and the Company recommended that,if reconsideration is granted as to weather
normalization,then the Commission should begin the reconsideration process by directing the
Staff,Company,and other parties that may wish to attend,to meet and confer in an effort to
narrow the weather normalization issues,discuss settlement opportunities,and agree (to the
extent possible)on a remaining schedule.Staff recommended that the meeting occur within two
ORDER NO.33789 1
weeks of the Commission’s Order,and noted that Staff or the Company would report back to the
Commission on the meeting’s outcome.Id.
Having reviewed the record,we issue this Order granting reconsideration as to all
four issues raised in the Petition,and directing the parties to meet within 14 days to attempt to
narrow the issues in dispute,and to promptly report back to the Commission on the outcome of
the meeting.Our decision is further explained below.
STANDARD OF REVIEW
A person may petition the Commission to reconsider its orders.See Idaho Code §61-
626;Rules 33 1-333 (IDAPA 31.01.01.331-.333).Reconsideration allows the petitioner to bring
to the Commission’s attention any question previously determined and thereby affords the
Commission an opportunity to rectify any mistake or omission.Washington Water Power Co.V.
Kootenai Environmental Alliance,99 Idaho 875,879,591 P.2d 122,126 (1979);Rule 325.The
petitioner has 21 days from the date of the final Order in which to ask for reconsideration.Idaho
Code §61-626(1).The petition must specify why it “contends that the order or any issue
decided in the Order is unreasonable,unlawful,erroneous or not in conformity with the law.”
Rule 331.01.Further,the petition “must state whether the petitioner...requests reconsideration
by evidentiary hearing,written briefs,comments,or interrogatories.”Rule 331.03.Answers or
cross-petitions,if any,must be filed within seven days after the petition was filed.Rule 331.02
and .05.
Once a petition is filed,the Commission has 28 days to issue an Order saying whether
or not it will reconsider the parts of the Order at issue and,if reconsideration is granted,how the
matter will be reconsidered.Idaho Code §61-626(2).If reconsideration is granted,the
Commission must complete its reconsideration within 13 weeks after the date for filing petitions
for reconsideration.Idaho Code §61-626(2).The Commission must issue its final Order on
reconsideration within 28 days after the matter is finally submitted for reconsideration.Id.
DISCUSSION AND FINDINGS
The Commission issued Final Order No.33757 on April 28,2017.Within 21 days,
on May 18,2017,the Company filed its Petition asking the Commission to reconsider parts of
that Order.The Company’s Petition was,therefore,timely.The Commission Staff also filed a
timely answer.No one else filed a Petition or Cross Petition raising additional issues.Thus,the
Commission has only been asked to reconsider the matters raised in the Company’s Petition,
ORDER NO.33789 2
namely:those relating to:(1)the data input into Staffs weather normalization model;(2)the
Commission’s preference for Staffs weather normalization model over the Company’s model;
(3)the disallowance of certain affiliated operations and maintenance expenses claimed by the
Company;and (4)the disallowance of incentive compensation.We note that Staff concurred
that we should reconsider the weather normalization issues,and that no one opposed the
reconsideration of issues 3 and 4.We thus find it reasonable to take the opportunity to grant
reconsideration as to each of those matters,using the procedure discussed below.As no other
matters were the subject of a reconsideration petition,we limit our reconsideration to the four
narrow issues raised in the Petition.
The Company and Staff initially proposed different means of reconsidering the issues,
In summary,the Company proposed that the Commission reconsider certain issues based on the
record as it exists,while allowing for additional discovery and new evidence,followed by
testimony and hearings on other issues.See Petition at 19-20.Staff on the other hand,proposed
a limited re-opening of the record to allow the parties to introduce information already provided
through discovery,followed by comments explaining their respective arguments.See Answer at
3-4.Subsequently,however,the Company and Staff agreed it would be beneficial for the parties
to meet to see if they can narrow —or possibly settle —certain issues and agree on a
recommended process for any further reconsideration.The Commission presently declines to
adopt any of those recommendations,and instead opts for the following alternative procedure.
Since the Company filed its Petition on May 28,2017,the Commission has 13 weeks
from then,until August 17,2017,to complete reconsideration and then another 28 days to issue
its final order on reconsideration.See Idaho Code §61-326(2).We find it reasonable,and
believe it will make the most efficient use of this time,to direct the Company,Staff,and other
parties that may wish to attend,to meet by June 29,2017.The purpose of the meeting will be
for the attendees to try to narrow the disputed facts and issues,and explore the possibility of
settling the weather normalization and other issues raised in the Petition.At the meeting,the
attendees are also to try to agree on a schedule by which they recommend we conduct any further
reconsideration proceedings.After the meeting,we direct Staff and the Company to promptly
report to the Commission on the outcome of the meeting.
ORDER NO.33789 3
ORDER
IT IS HEREBY ORDERED that the Company’s Petition for Reconsideration is
granted,as more fully described herein.All parties are encouraged to participate in the meeting,
settlement negotiations,and the limited reconsideration granted by this Order.
THIS IS AN INTERLOCUTORY ORDER granting reconsideration,and it is subject
to Rules 321,322,324,and 325 (IDAPA 31.01.01.321,.322,.324,.325).After reconsideration
is complete,the Commission will issue a Final Order on Reconsideration that is subject to review
as specified in Rule 323 (IDAPA 31.01.01.323).
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /
day of June 2017.
PAUL KJELLANDER,PRESIDENT
KRISTINE RAPER,COMMiSSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
O:INT-G-I 6-02 kk5 Reconsideration
ORDER NO.33789 4