20170628order_no_33801.pdf

Office of the Secretary
Service Date
June 28,2017
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.33801
STATE OF IDAHO )
On April 28,2017,this Commission issued final Order No.33757 in Intermountain
Gas Company’s general rate case.On May 18,2017,Intermountain Gas petitioned the
Commission to reconsider the Order 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
(O&M)expenses;and (4)the disallowance of incentive compensation.On June 15,2017,the
Commission granted reconsideration on these four issues.The Commission also directed the
Company,Staff,and other parties to meet and try to narrow disputed facts and issues,explore
settlement possibilities,and propose a schedule by which to conduct further reconsideration
proceedings.Order No.33789.
STAFF REPORT ON PROPOSED SCHEDULE
On June 23,2017,the Commission Staff reported that Staff,the Company,Northwest
Industrial Gas Users (NWIGU),and Amalgamated Sugar Company met and agreed (or did not
object to)the following proposed schedule:
•Issue Nos.1 and 2 (weather normalization):Staff and the Company
asked to hold additional meetings to narrow facts and issues and
potentially explore settlement possibilities on this matter.These parties
would report back to the Commission on their progress in time to allow
the Commission to schedule and complete further process (e.g.,hearings,
filing comments or briefing,etc.),if needed,by August 17,2017 (the
deadline by which reconsideration procedures must end).
•Issue Nos.3 (disallowance of affiliated expense charges)and 4
(disallowance of incentive compensation expenses):NWIGU and the
Company asked to address these issues through written submissions
instead of a hearing on the record,with:(1)the Company filing written
ORDER NO.33801 1
comments (including additional evidence on these issues)’by June 30,
2017:(2)other parties filing response comments,if any.by July 28,2017;
and (3)the Company filing reply comments.if any,by August 15,2017.
See Staff Report on Reconsideration Meeting and Proposed Schedule.
DISCUSSION AND FINDINGS
The Company filed its Petition on May 28,2017.The Commission thus has 13
weeks from then,until August 17,2017,to complete reconsideration proceedings.The
Commission then has another 28 days to issue its final order on reconsideration.See Idaho Code
§61-626(2).We continue to find it reasonable and an efficient use of time to direct the
Company and Staff (and other parties who may wish to attend)to continue to meet about the
weather normalization matters (Issues 1 and 2)in an effort to narrow disputed facts and issues
and explore settlement possibilities.We find it reasonable to allow the parties flexibility as to
the meeting times,but encourage them to work diligently and to report to the Commission on
their progress in time for the Commission to schedule additional proceedings on these issues,if
necessary,before the reconsideration process must end.
As to Issue Nos.3 and 4 (disallowance of certain O&M expenses and incentive
compensation),the Commission finds it reasonable to adopt the schedule of written submissions
proposed by the Company and NWIGU.i.e.:(1)the Company must file written comments
(including additional evidence on these issues)by June 30.2017;(2)other parties must file
response comments,if any,by July 28,2017;and (3)the Company must file reply comments,if
any,by August 15,2017.
ORDER
IT IS HEREBY ORDERED that the procedure and schedule set forth in our
discussion,above,is adopted.
THIS IS AN INTERLOCUTORY ORDER granting reconsideration,and it is subject
to Rules 321,322,324,and 325 (IDAPA 3 1.01.01.321,.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 3 1.01.01.323).
The Company previously stated its additional evidence would include “documentation that 2016 operations and
maintenance charges from MDU Resources’to Intermountain are benchmarked to comparable gas utilities that incur
such costs internally,and benchmarked against third party providers of such 0 &M services,to the extent that such
services can reasonably be acquired from competent third party providers.”Intermountain Gas Company’s Petition
for Reconsideration at 20.
ORDER NO.33801
iane M.Hanian
Commission Secretary
O:INTGl6-O2 kk6 Reconsideration Schedule
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of June 2017.
PA L KJE LA ER,PRESIDENT
ATTEST:
ANDERSON,COMMISSIONER
ORDER NO.33801 3