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HomeMy WebLinkAbout20161216Erdwurm Direct with Exhibits 112-117.pdfRt:CE 'ED BEFORE THE r n ir ··T 1r P1 I: 38 LU1U l,... 0 : • • -I "f,j i ..-\ IDAHO PUBLIC UTILITIES COMMiSS.IO.~•f 1 '..· :;'J~;s:oN IN THE MATTER OF INTERMOUNTAIN GAS COMPANY'S APPLICATION TO CHANGE ITS RATES AND CHARGES FOR NATURAL GAS SERVICE. ) ) CASE NO. INT-G-16-02 ) ) ) ___________ ) DIRECT TESTIMONY OF BENTLEY ERDWURM IDAHO PUBLIC UTILITIES COMMISSION DECEMBER 16, 2016 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Please state your name and business address for the record. A. My name is Bentley Erdwurm. My business address is 472 West Washington Street, Boise, Idaho. Q. A. By whom are you employed and in what capacity? I am employed by the Idaho Public Utilities Commission as a Utilities Analyst. Q. What is your educational and professional background? A. I received a B.A. in Economics from the University of Dallas in 1978, and an M.S. in Economics from Texas A&M University in 1980. I have worked for the Idaho Public Utilities Commission since November 2015 as a Utilities Analyst. I have over thirty years of utility industry experience, focused on cost allocation, rate design, revenue and load forecasting, the regulatory treatment of acquisitions, and financial and statistical analysis. I have testified as an expert witness both for regulatory agencies (Texas Public Utility Commission and as a consultant to the Arizona Corporation Commission), and utilities (California American Water,, Alabama Gas Corporation, and UNS Energy Corporation subsidiaries Tucson Electric Power Company, UNS Electric and UNS Gas) Q. A. What is the purpose of your testimony? My testimony addresses rate design issues CASE NO. INT-G-16-02 12/16/16 ERDWURM, B. (Di) 1 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 including: (1) residential and general service customer charges; (2) combining the two current residential rate schedules (Schedule RS-1 and Schedule RS-2) into a single rate schedule; (3) introducing a fourth rate tier into the general service rate; and (4) rate design for the large volume and transportation classes. Q. A. Please summarize your testimony. I am recommending that: 1. the residential customer charge be increased to $5.50 per month, an average monthly increase of $1.67 per month (43% increase); 2. the residential usage charges (excluding gas costs) for current Residential: (a) RS-1 customers be decreased by 47% for April through November, and decreased by 18% from December through March; and (b) RS-2 customers be decreased by 15% from April through November, and slightly increased by 3% from December through March; 3. the general service customer charge be increased to $9.50 per month, an average monthly increase of $5.00 per month (111% increase); 4. the general service usage charges be decreased by 18%, 21% and 24% in usage tiers 1, 2 and 3, CASE NO. INT-G-16-02 12/16/16 ERDWURM, B. (Di) 2 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. respectively; 5. residential rate schedules RS-1 and RS-2 be combined into a single residential rate schedule; 6. the Company's proposal to introduce a fourth rate tier into the general service rate be approved; and 7. the Company's proposal to introduce a charge for Maximum Daily Firm Quantity (MDFQ) be approved, but at a lower charge of $0.20 per therm rather than the Company's proposed $0.30. Are there areas where you disagree with the Company's position? A. Other than adjustments to conform to Staff's revenue requirement, and the level of customer charges and MDFQ charges, my only disagreement involves the Company's proposal to include a portion of mains in the customer-related cost calculation. I exclude mains from that calculation. However, including or excluding mains has no effect on my customer charge recommendations, because of customer impact considerations. RESIDENTIAL AND GENERAL SERVICE CUSTOMER CHARGES Q. You mentioned you would discuss the Company's customer charges for residential and general service. Please explain what a "customer charge" is. CASE NO. INT-G-16-02 12/16/16 ERDWURM, B. (Di) 3 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. In general, a "customer charge" is a fixed amount that a customer must pay each month without regard to how much gas the customer uses. Q. Please state the Company's current residential and general service customer charges. A. The residential customer charge is $2.50 per month for the billing months of April through November (8 months of the year) and $6.50 per month for the billing months of December through April (4 months of the year). The current weighted average residential customer charge is $3.83. The general service customer charge is $2.00 per month for the billing months of April through November (8 months of the year) and $9.50 per month for the billing months of December through April (4 months of the year). The current weighted average general service customer charge is $4.50. Q. What are the Company's proposed residential and general service customer charges? A. The Company's proposed residential customer charge is $10.00 per month (161% increase) for all months of the year. The Company's proposed general service customer charge is $35.00 per month (678% increase) for all months of the year. The Company has recommended eliminating the seasonal differential. CASE NO. INT-G-16-02 12/16/16 ERDWURM, B. (Di) 4 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. What customer charges are you recommending for the residential and general service classes? A. As stated above, I recommend a residential customer charge of $5 .50 and a general service customer charge of $9.50. Staff's recommendation eliminates the seasonal variation in customer charges, as proposed b y the Company . Q. Given that you are proposing customer charge increases, are you proposing offsetting usage charge decreases? A. Yes. Given a revenue objective, and two rate components - a customer charge and a usage charge -to recover revenue, an increase in customer charge will necessitate a net decrease in the usage charge . Staff proposes a $1.67 increase (a 43% increase) in the average residential customer charge of $3.83. To balance this increase, Staff proposes Residential usage charges (excluding gas cost) of $0.16679 per therm that would apply over the entire year. As explained below, Staff proposes to eliminate current seasonal differentials and favors combining the current Residential RS-1 and RS-2 into a single rate schedule. For current RS-1 customers, Staff's proposed usage charge represents a decrease of $0.14999 per therm (47% decrease) for November through April usage, and a decrease of $0.03743 per therm (18% CASE NO. INT -G-16-02 12/16 /16 ERDWURM, B. (Di) 5 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 decrease) for December through March usage. For current RS-2 customers, Staff's proposed usage charge represents a decrease of $0.02921 per therm (15% decrease) for November through April usage, and a small increase of $0.00442 per therm (3% increase) for December through March usage. The general service Staff-proposed customer charge increase of $5.00 is offset by usage charge decreases of $0.03920 (18% decrease), $0.04023 (21% decrease), and $0.04119 (24% decrease) for usage tiers 1, 2 and 3 respectively. Q. Why do you support eliminating the seasonal differentiation in customer charges? A. Having the same customer charge throughout the year is consistent with how the Company incurs customer- related costs over the year. Costs most closely tied to specific customers are the capital costs and expenses of metering, meter reading, billing, the service line, and customer service. Monthly customer-related operation and maintenance expenses are driven by the number of customers, but not by variations in usage over the year. The capital cost of customer-related plant items and the associated depreciation expense is constant over the year, much like a fixed-rate mortgage payment. Minor monthly variations in customer-related capital costs are CASE NO . INT-G -16-02 12/16/16 ERDWURM, B. (Di) 6 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 unrelated to monthly usage. A level customer charge helps match revenue with the incursion of costs. Q. Please explain how customer charges should be determined for utilities in general. A. Several factors should be considered in the determination of customer charges. The weighting of the factors depends on the specific circumstances of the utility, the communities served, and the regulatory jurisdiction. For Idaho and other jurisdictions where rates are based on historical test years (as opposed to forward looking or future test years), factors include: 1. the level of customer-related cost; 2. the bill impact in moving from current to proposed rates; 3. the total bill for "basic needs"; 4. marginal cost pricing and price signals that promote conservation and the efficient use of resources; and 5. the customer charges of other utilities. CUSTOMER-RELATED COSTS Q. Please explain how average embedded cost is used to help determine the customer charge. A. The overall revenue requirement calculation is based on historical, average embedded costs subject to known and measurable adjustments; therefore, it generally CASE NO. INT-G-16-02 12/16/16 ERDWURM, B. (Di) 7 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 is important to have a cost-of-service study based on these costs when determining customer charges. Cost allocation for Intermountain Gas is more fully addressed in the testimony of Staff witness Mike Morrison. Dr. Morrison has recommended that the Company's proposed cost-of-service study be rejected because the Company did not provide load data necessary to calculate accurate factors to allocate costs among the classes. Customer- related unit costs based on historical average embedded costs (i.e., customer-related costs per customer in a specific class) cannot be accurately calculated without a cost-of-service study. Q. Did you attempt to calculate a residential customer charge based on average embedded costs with the data provided by the Company? A. Yes, I estimated a cost-based residential customer charge to be $8.57 per month. The calculation is included as Exhibit 112 to my testimony. However, I did not recommend a residential customer charge based exclusively on average embedded cost because, as mentioned above, Staff has proposed to reject the cost- of-service study. Furthermore, Staff considered several other factors when developing its proposed customer charges. Q. Did you exclude all portions of mains from your CASE NO. INT-G-16-02 12/16/16 ERDWURM, B. (Di) 8 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 customer-related cost calculation? A. Yes. A given main serves multiple customers, possibly from different rate classes. My customer components such as meters and services are associated with specific customers, at their premises. I have restricted the customer-related classification to items that serve specific customers rather than multiple customers. The classification of costs as "Customer" is further described in Dr. Morrison's testimony. BILL IMPACTS Q. Please discuss how bill impact considerations affect your customer charge recommendations. A. Substantial changes in rate design may in some cases impose unexpected hardships on some customers. this reason, Staff considers how rate changes affect customers over a wide range of usage levels. Customer charge increases have the largest impact in percentage terms on lower-use customers. Conversely, customer For charge increases have the smallest impact in percentage terms on high-use customers. Staff believes that implementing the Company-proposed $10.00 residential customer charge (161% increase) and $35.00 general service customer charge (678% increase) would excessively impact some customers. As discussed below, Staff is recommending CASE NO. INT-G-16-02 12/16/16 ERDWURM, B. (Di) 9 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 approval of the Company's proposal to combine the Residential RS-1 and RS-2 residential rate schedules. Separate bill comparison tables are presented for RS-1 and RS-2 that quantify the effect of moving from the current residential rate schedules to Staff's proposed combined residential rate schedule. The residential bill comparison tables for RS-1 are presented in Exhibit 113, and tables for RS-2 are presented as Exhibit 114. Current rates are differentiated by season; therefore, the tables show results for April through November and for December through March. Also, separate bill comparisons are presented excluding the cost of gas and including the cost of gas. This proceeding focuses on distribution and storage costs and not on the cost of gas. The cost of gas is specified in a separate tariff, which is an adjustment mechanism that generally recovers changes in commodity costs on an annual basis. For an RS-1 customer during April through November, moving from current rates to Staff-proposed rates decreases monthly bills by $2.25 (-17% excluding gas costs and -7% including gas costs) for a typical low use residential customer using 35 therms per month, and by $6.00 (-28% excluding gas costs and -11% including gas costs) for an average residential customer using 60 therms per month. CASE NO. INT-G-16-02 12/16/16 ERDWURM, B. (Di) 10 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 For an RS-1 customer during December through March, moving from current rates to Staff proposed rates decreases monthly bills by $2.31 (-17% excluding gas costs, and -7% including gas costs) for a typical low-use residential customer using 35 therms per month, and by $3.25 (-17% excluding gas costs and -6% including gas costs) for an average residential customer using 60 therms per month. For an RS-2 customer during April through November, moving from current rates to Staff-proposed rates increases monthly bills by $1 .98 (21% excluding gas costs and 7% including gas costs) for a typical low use residential customer using 35 therms per month, and by $1.25 (9% excluding gas costs and 3% including gas costs) for an average residential customer using 60 therms per month. For an RS-2 customer during December through March, moving from current rates to Staff proposed rates decreases monthly bills by $0.85 (-7% excluding gas costs, and -3% including gas costs) for a typical low-use residential customer using 35 therms per month, and by $0.73 (-5% excluding gas costs and -2% including gas costs)for an average residential customer using 60 therms per month. A general service bill comparison table is CASE NO. INT-G-16-02 12/16/16 ERDWURM, B . (Di) 11 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 presented in Exhibit 115. The Staff-proposed general service rate includes a fourth rate tier, as proposed by the Company and adjusted for the Staff revenue requirement. Q. Please discuss the proposed fourth general service rate tier. A. The Company proposes that a fourth rate tier be added to the general service schedule . Staff recommends approval of this proposal. The general service schedule currently has a declining block design, whereby the usage rate declines as usage increases. Staff has confirmed that on a v erage the Company's larger general service customers are less costly to serve on a per therm basis; therefore, Staff favors retaining the declining block design for general service. The proposed fourth block would apply to usage in excess of 10,000 therms per month. During the test year, monthly usage did not fall in the over 10,000 therms range. Therefore, introducing the fourth block will benefit any prospective customer that uses over 10,000 therms, but does not affect the rate calculations applicable to customers with lower usage. Additionally, introducing a fourth general service rate block allows for a smoother transition for customers switching from the general service to the large volume class, or in the opposite direction. CASE NO. INT-G-16-02 12/16 /16 ERDWURM, B. (Di) 12 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Do you have concerns about increasing the general service customer charge beyond $9.50? A. Yes. The general service class is diverse, with customers ranging in size from the "mom and pop" stores to larger retail, office and manufacturing operations. The Company should study whether the general service class should be divided into two or more classes. If such division is appropriate the Company should propose different customer charges for each of the new classes. This would avoid having the smallest general service customers subsidizing the largest general service customers. In this proceeding, Staff seeks to avoid recommending a "one-size fits-all" general service customer charge in excess of $9.50 that may overstate the customer-related costs of the smallest general service customers. Dr. Morrison has proposed that, after this proceeding ends, a cost-of-service workshop be held where Staff, the Company and interested parties may also discuss methodologies and direction of rate design in future proceedings. General Service rate design issues should receive special attention. Q. Given the last Intermountain Gas general rate case was filed over 30 years ago, did you calculate the effect of inflation when adjusting the current customer CASE NO. INT-G-16-02 12/16/16 ERDWURM, B. (Di) 13 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 charges? A. Yes. Comparing the increase in the price of gas service to the increase in the price of a typical market basket of goods provides some perspective on the size of customer charge or bill increases. The Bureau of Labor Statistics Consumer Price Index shows the weighted average percentage price increase for all items purchased by American consumers is 124% since 1985. Based on this percentage increase, the residential customer charge would increase to $8.58, and the general service customer charge would increase to $10.08. These results illustrate that Staff's proposed customer charge increases (43% and 111% for residential and general service, respectively) are less than the inflation rate for the typical market basket of goods (124%). But as mentioned above, there are several factors to consider when determining the customer charges. TOTAL BILL FOR BASIC NEEDS Q. When you evaluate how rate design affects customers with basic needs, how do you define "basic A. Analysts may differ on the number of therms required to meet monthly "basic needs." However, the general idea is to determine a usage level that provides a very basic level of service, but meets health and CASE NO . INT-G-16-02 12/16/16 ERDWURM, B. (Di) 14 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 safety objectives. Monthly therms may differ by the number of end uses served (e.g., space heating, water heating, and cooking), the month in question, and perhaps the number of members in the household. Q. Have you examined the percentage increase in the annual bill for basic needs? A. Yes. For simplicity, I assume basic needs are met with an average usage of 35 therms per month -the low use-residential level cited above. Assuming the customer is currently served under RS-1, the total current annual bill, excluding gas, is $163.29. The total Staff-proposed annual bill, excluding gas costs, is $136.05. The bills of basic needs RS-1 customers will decrease under Staff-proposed rates, with the annual bill decreasing by $27.24, or $2.27 per month. Assuming the customer is currently served under RS-2, the total current annual bill, excluding gas, is $123.61. The total Staff-proposed annual bill, excluding gas costs, is $136.05. The annual bill increase is $12.44, or $1.04 per month. PRICE SIGNAL CONSIDERATIONS Q. Please explain why the marginal cost of providing service, and the price signal, should be considered when designing rates. A. Marginal cost pricing sends the customer a CASE NO. INT-G-16-02 12/16/16 ERDWURM, B. (Di) 15 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 price signal that reflects the cost of additional consumption. Economic efficiency occurs when the price the customer pays for the next therm consumed equals the marginal cost of providing that next therm. Given that most utility customers use some gas, the "marginal" decision is whether to use another unit of gas, as opposed to whether to become an Intermountain Gas customer and incur a customer charge. Q. Has Staff considered marginal cost pricing principles when considering its customer charge proposal? A. Yes. The Intermountain Gas system is experiencing customer growth that necessitates system upgrades to meet future throughput requirements. To the extent customers conserve, capacity is available to meet future load growth, potentially deferring the need for costly investments. The best way to encourage conservation is to keep usage rates at levels that recognize the longer-run costs of expanding the system. This may produce usage rates that are based primarily on marginal-cost principles. These marginal cost-based usage rates may exceed rate levels from an average embedded cost of service study . The marginal cost approach to rate design is forward-looking, while the average embedded approach is based on historical costs. Both approaches should be considered in rate-making. CASE NO. INT-G-16-02 12/16/16 ERDWURM, B. (Di) 16 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMPARISONS TO OTHER UTILITIES Q. Are Staff's proposed customer charges lower than those of some other gas utilities operating in nearby states? A. Yes. However, Staff's recommendation is constrained by customer-impact considerations. The Company's last general rate case was filed over 30 years ago. Staff cannot recommend that three decades of rate design changes be accomplished in a single case . Staff's proposed customer charges are fair to both the Company and to customers, and the residential charge almost matches Avista's recently approved customer charge (Avista's residential customer charge is $5.25) COMBINING RS-1 and RS-2 RESIDENTIAL SERVICE Q. Have you reviewed the Company's proposal to combine the Company's two current residential rate schedules (Schedule RS-1 and Schedule RS-2) into a single rate schedule? A. Q. Yes. Please explain your review of the proposal, and whether you have any recommendations regarding it. A. I reviewed the monthly average consumption profiles of the two classes, and noted that the consumption profile of each class over twelve months is very similar, with peaks and valleys in consumption CASE NO. INT-G-16-02 12/16/16 ERDWURM, B. (Di) 17 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 matching. Based on this similarity, I recommend that the RS-1 and RS-2 classes be combined, as proposed by the Company. LARGE VOLUME/ TRANSPORTATION Q. Have you examined the Company's proposals for large volume and transportation customers? A. Yes. The Company has two key proposals. First, the Company proposes a new charge for MDFQ (Maximum Daily Firm Quantity) for its LV-1 customers and for customers in the current T-4 and T-5 rate categories. Second, the Company proposes combining the T-4 and T-5 rate categories. Q. A. What is the purpose of the MDFQ charge? MDFQ is a type of demand charge. It is best characterized as a reservation charge, because it is based on customers' estimates of their maximum needs, as opposed to actual usage over some time interval (e.g., over one or two days). Introducing a demand charge into the Company's large volume and transportation rates recognizes that the Company's costs to serve these customers are driven in large part by the maximum demands they place on the system. At this time, the Company has not supported the amount of its proposed MDFQ charge with a cost-of-service study. CASE NO. INT-G-16-02 12/16/16 Consequently, Staff recommends ERDWURM, B. (Di) 18 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that the amount of the MDFQ charges be addressed at the aforementioned workshop proposed by Staff. Q. Although Staff recommends that the proposed amount of the MDFQ charge not be approved in this case, does Staff nevertheless support the approval of an MDFQ charge in this proceeding? A. Yes. Introducing a demand charge will better match what customers pay to the Company's costs to serve them. However, Staff recommends that the Company's proposed $0.30 per therm per month MDFQ charge be reduced to $0.20 per therm per month for nominated MDFQ. The recommendation to reduce the charge is based on the impact on specific customers. Introducing a demand charge will shift costs from higher load factor customers to lower load factor customers. Staff believes this is appropriate, and that lower load factor customers should pay more, because they are more costly to serve (other things being constant). However, Staff supports a more gradual phase-in of demand charges than proposed by the Company. Q. Has the Company provided additional MDFQ information to Staff since the application was filed? A. Yes. The Company allowed customers to nominate new MDFQ after it filed this case. Staff incorporated the new MDFQ when calculating its proposed rates. CASE NO. INT-G-16-02 12/16/16 ERDWURM, B. (Di) 19 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Why did the Company allow customers to nominate new MDFQ? A. Previous MDFQs were nominated before customers knew that they would be charged for each therm nominated . Consequently, customers had little disincentive to over­ nominate. On the other hand, customers nominated the new MDFQs knowing that a charge would apply to each therm. Q. Were affected customers notified in writing that they had an opportunity to nominate new MDFQs? A. Yes. Intermountain Gas sent an October 25, 2016 letter to customers informing them of the "Open Season" that would allow them to change the amount of their nominated MDFQ. Customers were informed that the MDFQ rate proposal would have "both operational and financial ramifications." Customer responses were due back to Intermountain Gas on or before November 28, 2016. As such, customers had approximately thirty days to consider their decisions and contact the Company. Q. Describe how and MDFQ charge will affect customers' bills. A. The impact on specific customers varies widely. Based on the Company's proposed rates, large volume customers would see percentage changes in annual bills (based on 2016 usage) ranging from a decrease of 8% to an increase of 20%. T-4 transportation customers would see CASE NO. INT-G-16-02 12/16/16 ERDWURM, B. (Di) 20 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 percentage changes ranging from a decrease of 56% to an increase of 190% (with the standard deviation in the percentage increase of 51%). T-5 transportations would see percentage changes ranging from a decrease of 24% to an increase of 6 9--0 • Staff's proposal to reduce the MDFQ charge will reduce the substantial variation in percentage changes in bills. Staff believes that introducing the MDFQ charge will better reflect costs, regardless of these impacts. Q. Do you support combining T-4 and T-5 as proposed by the Company? A. Yes. This simplifies the tariff. Also, there appears to be no reason for separate tariffs . REVENUE PROOF Q. Have you prepared a proof-of-revenue table that shows that Staff-proposed rates will accurately recover the Staff-proposed revenue target under normalized conditions? A. Yes. This schedule is attached as Exhibit 116. Absent a cost-of service study, the percentage of revenue by class is maintained at current levels. Additionally, a summary of current and Staff-proposed residential and general service rates is included as Exhibit 117 . Staff­ proposed large volume and transportation (as well as CASE NO . INT-G-16-02 12/16/16 ERDWURM, B. (Di) 21 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 residential and general service) rates are show in Exhibit 116. Q. Does this conclude your direct testimony in this proceeding? A. Yes, it does. CASE NO. INT-G-16-02 12/16 /16 ERDWURM, B. (Di) 22 STAFF Embedded Residential Customer Charge Estimate Line 2 3 4 5 6 7 8 9 10 11 12 13 14 16 17 19 20 21 22 25 27 28 29 30 31 32 33 34 35 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 Description Customer-Related Operating Expenses (includes depreciation expense) Operation 4010.2878 4010.28783 4010.2879 Maintenance 4020.2892 4020.2893 Customer Accounting 4010.2901 4010.2902 4010.2903 Customer Service & Information Expenses 4010.2908 Labor-Distribution Operation Expenses 4010.2874 4010.2878 4010.2879 Labor-Distribution Maintenance Expenses 4020.2892 4020.2893 Labor-Customer Account 4010.2902 4010.2903 Depreciation Expense-Distribution Plant 4030.0005 Total O&M Customer-Related Plant 1010.38 Dist Services 1010.381 Dist Meters 1010.382 Dist Meter Installations 1010.383 Dist House Regulators 1010.384 Dist House Regulator Install 1010.385 Dist Ind Reg Sta Accumulated Depreciation for Selected Dist Plant Net Plant % Debt Financed (Company Assumptions) Cost of Debt Interest Expense Operating Expenses plus Interest Net Plant Equity Portion (in Percent) of Net Plant Equity Portion (in $) of Net Plant Return as % (Company Assumption) Equity Return Gross Revenue Conversion Factor Grossed-Up Equity Return $226,375 -$556,097 $7,126,046 $1 ,037,443 $832,745 $98,925 $715,432 $7,599,357 $202,610 $1 ,611,161 $202,693 $5,917,585 $357,288 $353,914 $553,077 $4,401,233 $12,612,078 $43,291,865 Add Lines 3 through 39 $149,255,628 $44,853,911 $13,955,058 $6,410,602 $7,047,749 $11 ,259,697 $232,782,645 Add Lines 43 through 48 -$130,903,051 $101,879,594 Line 49 minus 51 50.000% 4.940% $2,516,426 Line 52 times 54 times 55 $45,808,291 Add Lines 40 and 56 $101 ,879,594 50.000%! $50,939,797 Line 61 times 62 9.90% $5,043,040 Line 62 times 63 1.67055 $8,424,626 Line 64 times 66 i..;I C:;..;u;;.:s;.;.to..;;..m.;;.;..;..er;...-;..;R..;;..el"-a"'te'-'d_R_e'-v-'e.c.cn..:cu.c.e"""R""e""q"'u'-ir..;;..em.;;.;..;..e.;..;.nt'---------"$"'-54"",;;;;.23;;.;:2:.c,9c...1'-'-'7 !Add Lines 58 and 68. Exhibit No. 112 Case No. INT-G-16-02 8 . Erdwurm, Staff 12/16/16 Page I of2 Embedded Residential Customer Charge Estimate 71 Alternate Weighted Customer Calculation 72 73 74 75 76 77 78 RS GS LV-1 T-3 T-4 Bills Weights1 3,701,803 1 385,898 6 217 100 72 100 1,158 100 Weighted Customers 3,701,803 2,315,388 21 ,700 7,200 115,800 % ofWtd Customers 60.08% 37.58% 0.35% 0.12% 1.88% 79 6,161,891 100.00% 80 81 Weights are chosen to reduce allocation to residential (for a conservative estimate). 82 Calculate Customer Related portion allocated to Residential 83 84 85 86 87 88 89 Customer-Related Revenue Requirement Times Residential % Weighted Factor Divide by Annual Bills Unadjusted CosUCustomer Conformed to Staff Revenue $54,232,917 Line 70 60.08% Line 74 $32,580,838 3,701 ,803 $8.80 $8.57 Exhibit No. 112 Case No. INT-G-16-02 8. Erdwurm, Staff 12/16/16 Page 2 of2 RS-1 Bill Comparison -Apr through Nov -Current v. Staff Proposed Staff- Proposed Staff- Current1 Bill Bill Current1 Bill Proposed Excluding Excluding Including Bill including Therms Gas Cost Gas Cost $ Change % Change Gas Cost Gas Cost $ Change % Change 0 $ 2.50 $ 5.50 $ 3.00 120% $ 2.50 $ 5.50 $ 3.00 120% 10 $ 5.67 $ 7.17 $ 1.50 26% $ 11.23 $ 12.73 $ 1.50 13% 20 $ 8.84 $ 8.84 $ 0.00 0% $ 19.95 $ 19.95 $ 0.00 0% 30 $ 12.00 $ 10.50 $ (1.50) -12% $ 28.68 $ 27.18 $ (1.50) -5% 35 $ 13.59 $ 11.34 $ (2.25) -17% $ 33.04 $ 30.79 $ (2.25) -7% 40 $ 15.17 $ 12.17 $ (3.00) -20% $ 37.41 $ 34.41 $ (3.00) -8% so $ 18.34 $ 13.84 $ (4.50) -25% $ 46.13 $ 41.63 $ (4.50) -10% 60 $ 21.51 $ 15.51 $ (6.00) -28% $ 54.86 $ 48.86 $ (6.00) -11% 70 $ 24.67 $ 17.18 $ (7.50) -30% $ 63.59 $ 56.09 $ (7.50) -12% 80 $ 27.84 $ 18.84 $ (9.00) -32% $ 72.31 $ 63.31 $ (9.00) -12% 90 $ 31.01 $ 20.51 $ (10.50) -34% $ 81.04 $ 70.54 $ (10.50) -13% 100 $ 34.18 $ 22.18 $ (12.00) -35% $ 89.77 $ 77.77 $ (12.00) -13% 125 $ 42.10 $ 26.35 $ (15.75) -37% $ 111.58 $ 95.84 $ (15.75) -14% 150 $ 50.02 $ 30.52 $ (19.50) -39% $ 133.40 $ 113.90 $ (19.50) -15% 200 $ 65.86 $ 38.86 $ (27.00) -41% $ 177.03 $ 150.04 $ (27.00) -15% 300 $ 97.53 $ 55.54 $ (42.00) -43% $ 264.30 $ 222.30 $ (42.00) -16% 400 $ 129.21 $ 72.22 $ (57.00) -44% $ 351.57 $ 294.57 $ (57.00) -16% 500 $ 160.89 $ 88.90 $ {72.00) -45% $ 438.84 $ 366.84 $ (72.00) -16% 750 $ 240.09 $ 130.59 $ (109.49) -46% $ 657.00 $ 547.51 $ (109.49) -17% 1000 $ 319.28 $ 172.29 $ (146.99) -46% $ 875.17 $ 728.18 $ {146.99) -17% RS-1 Bill Comparison -Dec through Mar -Current v. Staff Proposed Staff- Proposed Staff- Current Bill Bill Current Bill Proposed Excluding Excluding Including Bill including Therms Gas Cost Gas Cost $ Change % Change Gas Cost Gas Cost $ Change % Change 0 $ 6.50 $ 5.50 $ (1.00) -15% $ 6.50 $ 5.50 $ (1.00) -15% 10 $ 8.54 $ 7.17 $ {1.37) -16% $ 14.10 $ 12.73 $ (1.37) -10% 20 $ 10.58 $ 8.84 $ {1.75) -17% $ 21.70 $ 19.95 $ (1.75) -8% 30 $ 12.63 $ 10.50 $ (2.12) -17% $ 29.30 $ 27.18 $ (2.12) -7% 35 $ 13.65 $ 11.34 $ (2.31) -17% $ 33.10 $ 30.79 $ (2.31) -7% 40 $ 14.67 $ 12.17 $ (2.50) -17% $ 36.90 $ 34.41 $ (2.50) -7% so $ 16.71 $ 13.84 $ (2.87) -17% $ 44.51 $ 41.63 $ (2.87) -6% 60 $ 18.75 $ 15.51 $ (3.25) -17% $ 52.11 $ 48.86 $ (3.25) -6% 70 $ 20.80 $ 17.18 $ (3.62) -17% $ 59.71 $ 56.09 $ (3.62) -6% 80 $ 22.84 $ 18.84 $ (3.99) -17% $ 67.31 $ 63.31 $ (3.99) -6% 90 $ 24.88 $ 20.51 $ (4.37) -18% $ 74.91 $ 70.54 $ (4.37) -6% 100 $ 26.92 $ 22.18 $ (4.74) -18% $ 82.51 $ 77.77 $ (4.74) -6% 125 $ 32.03 $ 26.35 $ (S.68) -18% $ 101.51 $ 95.84 $ (S.68) -6% 150 $ 37.13 $ 30.52 $ (6.61) -18% $ 120.52 $ 113.90 $ (6.61) -5% 200 $ 47.34 $ 38.86 $ (8.49) -18% $ 158.52 $ 150.04 $ (8.49) -5% 300 $ 67.77 $ 55.54 $ (12.23) -18% $ 234.53 $ 222.30 $ (12.23) -5% 400 $ 88.19 $ 72.22 $ {15.97) -18% $ 310.54 $ 294.57 $ {15.97) -5% 500 $ 108.61 $ 88.90 $ {19.72) -18% $ 386.56 $ 366.84 $ (19.72) -5% 750 $ 159.67 $ 130.59 $ {29.07) -18% $ 576.58 $ 547.51 $ {29.07) -5% 1000 $ 210.72 $ 172.29 $ (38.43) -18% $ 766.61 $ 728.18 $ (38.43) -5% Note 1: Based on Gas Costs in Company's Application Exhibit No. 113 Case No. INT-G-16-02 B. Erdwurm, Staff 12/16/16 RS-2 Bill Comparison -Apr through Nov -Current v. Staff Proposed Staff- Proposed Staff- Current1 Bill Bill Current1 Bill Proposed Excluding Excluding Including Bill including Therms Gas Cost Gas Cost $ Change % Change Gas Cost Gas Cost $ Change % Change 0 $ 2.50 $ 5.50 $ 3.00 120% $ 2.50 $ 5.50 $ 3.00 120% 10 $ 4.46 $ 7.17 $ 2.71 61% $ 9.62 $ 12.33 $ 2.71 28% 20 $ 6.42 $ 8.84 $ 2.42 38% $ 16.74 $ 19.15 $ 2.42 14% 30 $ 8.38 $ 10.50 $ 2.12 25% $ 23.86 $ 25.98 $ 2.12 9% 35 $ 9.36 $ 11.34 $ 1.98 21% $ 27.41 $ 29.39 $ 1.98 7% 40 $ 10.34 $ 12.17 $ 1.83 18% $ 30.97 $ 32.81 $ 1.83 6% so $ 12.30 $ 13.84 $ 1.54 13% $ 38.09 $ 39.63 $ 1.54 4% 60 $ 14.26 $ 15.51 $ 1.25 9% $ 45.21 $ 46.46 $ l.2S 3% 70 $ 16.22 $ 17.18 $ 0.96 6% $ 52.33 $ 53.28 $ 0.96 2% 80 $ 18.18 $ 18.84 $ 0.66 4% $ 59.45 $ 60.11 $ 0.66 1% 90 $ 20.14 $ 20.51 $ 0.37 2% $ 66.57 $ 66.94 $ 0.37 1% 100 $ 22.10 $ 22.18 $ 0.08 0% $ 73.69 $ 73.76 $ 0.08 0% 125 $ 27.00 $ 26.35 $ (0.65) -2% $ 91.48 $ 90.83 $ (0.65) -1% 150 $ 31.90 $ 30.52 $ (1.38) -4% $ 109.28 $ 107.90 $ (1.38) -1% 200 $ 41.70 $ 38.86 $ (2.84) -7% $ 144.87 $ 142.03 $ (2.84) -2% 300 $ 61.30 $ 55.54 $ (S.76) -9% $ 216.06 $ 210.29 $ (S.76) -3% 400 $ 80.90 $ 72.22 $ (8.68) -11% $ 287.24 $ 278.56 $ (8.68) -3% 500 $ 100.50 $ 88.90 $ (11.61) -12% $ 358.43 $ 346.82 $ (11.61) -3% 750 $ 149.50 $ 130.59 $ (18.91) -13% $ 536.39 $ 517.48 $ (18.91) -4% 1000 $ 198.50 $ 172.29 $ (26.21) -13% $ 714.35 $ 688.14 $ (26.21) -4% RS-2 Bill Comparison -Dec through Mar -Current v. Staff Proposed Staff- Proposed Staff- Current Bill Bill Current Bill Proposed Excluding Excluding Including Bill including Therms Gas Cost Gas Cost $ Change % Change Gas Cost Gas Cost $ Change % Change 0 $ 6.50 $ 5.50 $ (1.00) -15% $ 6.50 $ 5.50 $ (1.00) -15% 10 $ 8.12 $ 7.17 $ (0.96) -12% $ 13.28 $ 12.33 $ (0.96) -7% 20 $ 9.75 $ 8.84 $ (0.91) -9% $ 20.06 $ 19.15 $ (0.91) -5% 30 $ 11.37 $ 10.50 $ (0.87) -8% $ 26.85 $ 25.98 $ (0.87) -3% 35 $ 12.18 $ 11.34 $ (0.85) -7% $ 30.24 $ 29.39 $ (0.85) -3% 40 $ 12.99 $ 12.17 $ (0.82) -6% $ 33.63 $ 32.81 $ (0.82) -2% so $ 14.62 $ 13.84 $ (0.78) -5% $ 40.41 $ 39.63 $ (0.78) -2% 60 $ 16.24 $ 15.51 $ (0.73) -5% $ 47.19 $ 46.46 $ (0.73) -2% 70 $ 17.87 $ 17.18 $ (0.69) -4% $ 53.98 $ 53.28 $ (0.69) -1% 80 $ 19.49 $ 18.84 $ (0.65) -3% $ 60.76 $ 60.11 $ (0.65) -1% 90 $ 21.11 $ 20.51 $ (0.60) -3% $ 67.54 $ 66.94 $ (0.60) -1% 100 $ 22.74 $ 22.18 $ (0.56) -2% $ 74.32 $ 73.76 $ (0.56) -1% 125 $ 26.80 $ 26.35 $ (0.45) -2% $ 91.28 $ 90.83 $ (0.45) 0% 150 $ 30.86 $ 30.52 $ (0.34) -1% $ 108.23 $ 107.90 $ (0.34) 0% 200 $ 38.97 $ 38.86 $ (0.12) 0% $ 142.14 $ 142.03 $ (0.12) 0% 300 $ 55.21 $ 55.54 $ 0.33 1% $ 209.97 $ 210.29 $ 0.33 0% 400 $ 71.45 $ 72.22 $ 0.77 1% $ 277.79 $ 278.56 $ 0.77 0% 500 $ 87.69 $ 88.90 $ 1.21 1% $ 345.61 $ 346.82 $ 1.21 0% 750 $ 128.28 $ 130.59 $ 2.32 2% $ 515.17 $ 517.48 $ 2.32 0% 1000 $ 168.87 $ 172.29 $ 3.42 2% $ 684.72 $ 688.14 $ 3.42 0% Note 1: Based on Gas Costs in Company's Application Exhibit No. I 14 Case No. INT-G-16-02 B. Erdwurm, Staff 12/16/16 General Service Bill Comparison -Apr through Nov -Current v. Staff Proposed Staff- Proposed Staff- Current1 Bill Bill Current1 Bill Proposed Bill Excluding Excluding Including Gas including Gas Therms Gas Cost Gas Cost $ Change % Change Cost Cost $ Change % Change 0 $ 2.00 $ 9.50 $ 7.50 375% $ 2.00 $ 9.50 $ 7.50 375% 25 $ 7.44 $ 13.96 $ 6.52 88% $ 20.23 $ 26.75 $ 6.52 32% 50 $ 12.88 $ 18.42 $ 5.54 43% $ 38.46 $ 44.00 $ 5.54 14% 75 $ 18.31 $ 22.87 $ 4.56 25% $ 56.69 $ 61.25 $ 4.56 8% 100 $ 23.75 $ 27.33 $ 3.58 15% $ 74.92 $ 78.50 $ 3.58 5% 150 $ 34.63 $ 36.25 $ 1.62 5% $ 111.38 $ 113.00 $ 1.62 1% 200 $ 45.50 $ 45.16 $ (0.34) -1% $ 147.84 $ 147.50 $ (0.34) 0% 250 $ 55.29 $ 52.94 $ (2.35) -4% $ 183.21 $ 180.86 $ (2.35) -1% 300 $ 65.08 $ 60.72 $ (4.36) -7% $ 218.58 $ 214.22 $ (4.36) -2% 400 $ 84.66 $ 76.27 $ (8.39) -10% $ 289.33 $ 280.94 $ (8.39) -3% 500 $ 104.24 $ 91.83 $ (12.41) -12% $ 360.07 $ 347.66 $ (12.41) -3% 750 $ 153.18 $ 130.71 $ {22.47) -15% $ 536.93 $ 514.47 $ (22.47) -4% 1000 $ 202.13 $ 169.60 $ (32.52) -16% $ 713.80 $ 681.27 $ (32.52) -5% 2500 $ 485.29 $ 391.94 $ (93.35) -19% $ 1,764.46 $ 1,671.11 $ (93.35) -5% 5000 $ 922.19 $ 725.86 $ (196.32) -21% $ 3,480.54 $ 3,284.21 $ (196.32) -6% 7500 $ 1,359.09 $ 1,059.79 $ (299.30) -22% $ 5,196.61 $ 4,897.31 $ (299.30) -6% 10000 $ 1,795.99 $ 1,393.71 $ (402.27) -22% $ 6,912.69 $ 6,510.41 $ (402.27) -6% 20000 $ 3,543.59 $ 2,393.71 $ (1,149.87) -32% $ 13,776.99 $ 12,627.11 $ (1,149.87) -8% 30000 $ 5,291.19 $ 3,393.71 $ (1,897.47) -36% $ 20,641.29 $ 18,743.81 $ {1,897.47) -9% 40000 $ 7,038.79 $ 4,393.71 $ (2,645.07) -38% $ 27,505.59 $ 24,860.51 $ {2,645.07) -10% General Service Bill Comparison -Dec through Mar -Current v. Staff Proposed Staff- Proposed Staff- Current Bill Bill Current Bill Proposed Bill Excluding Excluding Including Gas including Gas Therms Gas Cost Gas Cost $ Change % Change Cost Cost $ Change % Change 0 $ 9.50 $ 9.50 $ 0% $ 9.50 $ 9.50 $ 0% 25 $ 13.67 $ 13.96 $ 0.29 2% $ 26.46 $ 26.75 $ 0.29 1% 50 $ 17.83 $ 18.42 $ 0.58 3% $ 43.42 $ 44.00 $ 0.58 1% 75 $ 22.00 $ 22.87 $ 0.87 4% $ 60.37 $ 61.25 $ 0.87 1% 100 $ 26.17 $ 27.33 $ 1.17 4% $ 77.33 $ 78.50 $ 1.16 2% 150 $ 34.50 $ 36.25 $ 1.75 5% $ 111.25 $ 113.00 $ 1.75 2% 200 $ 42 .83 $ 45.16 $ 2.33 5% $ 145.17 $ 147.50 $ 2.33 2% 250 $ 50.11 $ 52.94 $ 2.83 6% $ 178.02 $ 180.86 $ 2.83 2% 300 $ 57.38 $ 60.72 $ 3.34 6% $ 210.88 $ 214.22 $ 3.34 2% 400 $ 71.92 $ 76.27 $ 4.35 6% $ 276.59 $ 280.94 $ 4.35 2% 500 $ 86.47 $ 91.83 $ 5.36 6% $ 342.31 $ 347.66 $ 5.36 2% 750 $ 122.84 $ 130.71 $ 7.88 6% $ 506.59 $ 514.47 $ 7.88 2% 1000 $ 159.20 $ 169.60 $ 10.40 7% $ 670.87 $ 681.27 $ 10.40 2% 2500 $ 367.16 $ 391.94 $ 24.78 7% $ 1,646.34 $ 1,671.11 $ 24.78 2% 5000 $ 679.66 $ 725.86 $ 46.20 7% $ 3,238.01 $ 3,284.21 $ 46.20 1% 7500 $ 992.16 $ 1,059.79 $ 67.63 7% $ 4,829.69 $ 4,897.31 $ 67.63 1% 10000 $ 1,304.66 $ 1,393.71 $ 89.05 7% $ 6,421.36 $ 6,510.41 $ 89.05 1% 20000 $ 2,554.66 $ 2,393.71 $ (160.95) -6% $ 12,788.06 $ 12,627.11 $ (160.95) -1% 30000 $ 3,804.66 $ 3,393.71 $ (410.95) -11% $ 19,154.76 $ 18,743.81 $ (410.95) -2% 40000 $ 5,054.66 $ 4,393.71 $ (660.95) -13% $ 25,521.46 $ 24,860.51 $ (660.95) -3% Note 1: Based on Gas Costs in Company's Application Exhibit No. I 15 Case No. INT-G-16-02 B. Erdwurrn, Staff 12/16/16 Proof of Revenue Line No. Class 1 RS-1 2 Annual Bills 3 Therms 4 Total 5 RS-2 6 Annual Bills 7 Therms 8 Total 9 15-R 10 Annual Bills 11 Therms 12 Total GS-1 13 Annual Bills 14 15 Therms -Tier 1 16 Therms -Tier 2 17 Therms -Tier 3 18 Therms -Tier 4 19 Total Therms 20 Total 21 15-C 22 Annual Bills 23 24 Therms -Tier 1 25 Therms -Tier 2 26 Therms -Tier 3 27 Therms -Tier 4 28 Total Therms 29 Total 30 LV-1 31 Annual Bills 32 33 MDFQ 34 35 Therms -Tier 1 36 Therms -Tier 2 37 Therms -Tier 3 38 Total Therms 39 Total Billing Determinates Rate 807,488 $5.50 32,972,314 $0.16679 2,893,307 $5.50 184,003,658 $0.16679 1,008 $5.50 137,397 $0.16679 385,791 $9.50 31,992,665 0.17831 52,346,235 0.15555 26,185,787 0.13357 0.10000 110,524,687 102 $9.50 5,911 0.17831 6,823 0.15555 3,276 0.13357 0.10000 16,010 217 No Charge 450,360 $0.20000 6,317,560 $0.03981 0 $0.01584 $0.00373 6,317,560 Revenue $4,441,184 $5,499,452 $9,940,636 $15,913,189 $30,689,970 $46,603,159 $5,544 $22,916 $28,460 $3,665,015 $5,704,612 $8,142,457 $3,497,636 $0 $17,344,705 $ 21,009,719 $969 $1,054 $1,061 $438 $0 $2,553 $3,522 $90,072 $251,502 $0 $0 $251,502 $341,574 Exhibit No. 116 Case No. INT-G-16-02 B. Erdwurm, Staff 12/16/16 Page 1 of2 Proof of Revenue (cont.) Line No. Class 40 T-3 41 Annual Bills 42 43 Therms -Tier 1 44 Therms -Tier 2 45 Therms -Tier 3 46 Total Therms 47 Total 48 T-4 49 Annual Bills so 51 MDFQ1 52 53 Therms -Tier 1 54 Therms -Tier 2 55 Therms -Tier 3 56 Total Therms 57 Overrun 58 Total 59 T-5 60 Annual Bills 61 62 MDFQ1 63 64 Therms -Tier 1 65 Therms -Tier 2 66 Therms -Tier 3 67 Total Therms 68 69 Total 70 Total (excludes Gas Costs) Billing Determinates Rate 72 No Charge 8,308,080 $0.01775 3,419,023 $0.00722 33,049,148 $0.00267 44,776,251 1,149 No Charge 14,661,480 $0.20 110,747,535 $0.04846 85,960,760 $0.01712 67,928,377 $0.00526 264,636,672 4,120,808 15,655,352 No Charge 659,820 $0.20 6,575,248 $0.04846 5,009,713 $0.01712 4,070,392 $0.00526 15,655,352 Revenue $147,468 $24,685 $88,241 $260,395 $260,395 $2,932,296 $5,366,826 $1,471,648 $357,303 $7,195,777 $10,128,073 $131,964 $318,637 $85,766 $21,410 $425,813 $557,777 $88,873,315 Exhibit No. I 16 Case No. INT-G-16-02 B. Erdwurm, Staff 12/16/16 Page 2 of2 Residential & General Service Rates -Current & Staff Proposed Company Current Proposed Residential RS-1 Customer Charge Apr-Nov (8 months) $2.50 $10.00 Dec-Mar (4 months) $6.50 $10.00 Weighted Avg $3.83 $10.00 Commodity Charge Apr-Nov (8 months) $0.31678 $0.11265 Dec-Mar (4 months) $0.20422 $0.11265 Residential RS-2 Customer Charge Apr-Nov (8 months) $2.50 $10.00 Dec-Mar (4 months) $6.50 $10.00 Weighted Avg $3.83 $10.00 Commodity Charge Apr-Nov (8 months) $0.19600 $0.11265 Dec-Mar (4 months) $0.16237 $0.11265 General Service GS-1 Customer Charge Apr-Nov (8 months) $2.00 $35.00 Dec-Mar (4 months) $9.50 $35.00 Weighted Avg $4.50 $35.00 Commodity Charge Apr-Nov (8 months) 1st block $0.21751 $0.11076 2nd block $0.19578 $0.09662 3rd block $0.17476 $0.08297 4th block N/A $0.07500 Dec-Mar (4 months) 1st block $0.16666 $0.11076 2nd block $0.14546 $0.09662 3rd block $0.12500 $0.08297 4th block N/A $0.07500 Current to Staff Staff Proposed Change $5.50 $3.00 $5.50 ($1.00) $5.50 $1.67 $0.16679 ($0.14999) $0.16679 ($0.03743) $5.50 $3.00 $5.50 ($1.00) $5.50 $1.67 $0.16679 ($0.02921) $0.16679 $0.00442 $9.50 $7.50 $9.50 $0.00 $9.50 $5.00 $0.17831 ($0.03920) $0.15555 ($0.04023) $0.13357 ($0.04119) $0.10000 N/A $0.17831 $0.01165 $0.15555 $0.01009 $0.13357 $0.00857 $0.10000 N/A Current to Staff % Change 120% -15% 43% -47% -18% 120% -15% 43% -15% 3% 375% 0% 111% -18% -21% -24% N/A 7% 7% 7% N/A Exhibit No. I 17 Case No. INT-G-16-02 B . Erdwurm, Staff 12/16/16 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 16TH DAY OF DECEMBER 2016, SERVED THE FOREGOING DIRECT TESTIMONY OF BENTLEY ERDWURM, IN CASE NO. INT-G-16-02, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE FOLLOWING: MICHAEL P McGRATH DIR-REGULATORY AFFAIRS INTERMOUNTAIN GAS CO PO BOX 7608 BOISE ID 83 707 E-MAIL : mike.mcgrath@intgas.com BRADMPURDY ATTORNEY AT LAW 2019 N 17TH STREET BOISE ID 83702 E-MAIL: bmpurdy@hotmail.com CHAD M STOKES TOMMY A BROOKS CABLE HUSTON LLP 1001 SW 5TH AVE STE 2000 PORTLAND OR 97204-1136 E-MAIL: cstokes@cablehuston.com tbrooks@cablehuston.com BENJAMIN J OTTO ID CONSERVATION LEAGUE 710 N 6TH STREET BOISE ID 83702 E-MAIL: botto@idahoconservation.org PETER RICHARDSON GREGORY MADAMS RICHARDSON ADAMS PLLC 515 N 27TH STREET BOISE ID 83702 E-MAIL: peter@richardsonadams.com gre g@ri chardsonadams. com RONALD L WILLIAMS WILLIAMS BRADBURY 1015 W HAYS ST BOISE ID 83 702 E-MAIL: ron@williamsbradbury.com EDWARD A FINKLEA EXECUTIVE DIRECTOR NW INDUSTRIAL GAS USERS 545 GRANDVIEW DR ASHLAND OR 87520 E-MAIL: efinklea@nwigu.org ELECTRONIC ONLY MICHAEL C CREAMER GIVENS PURSLEY LLP E-MAIL: mcc@givenspursley.com F DIEGO RIV AS NW ENERGY COALITION 1101 3TH AVENUE HELENA MT 59601 E-MAIL: diego@nwenergy.org SCOTT DALE BLICKENSTAFF AMALGAMATED SUGAR CO LLC 1951 S SATURN WAY STE 100 BOISE ID 83702 E-MAIL: sblickenstaff@amalsugar.com CERTIFICATE OF SERVICE KEN MILLER SNAKE RIVER ALLIANCE PO BOX 1731 BOISE ID 83701 E-MAIL: km i ller@snakeriveralliance.org LANNY L ZIEMAN NATALIE A CEPAK THOMAS A JERNIGAN EBONY M PAYTON AFLOA/JA-ULFSC 139 BARNES DR STE 1 TYNDALL AFB FL 32403 E-MAIL: lanny.zieman. l @us.af.mil Nata1ie.cepak.2(@us.af.mil Thomas.jernigan.3(@us.af.mil Ebony.payton.ctr@us.af.mil ANDREW J UNSICKER MAJ USAF AFLOA/JACE-ULFSC 139 BARNES DR STE 1 TYNDALL AFB FL 32403 E-MAIL: Andrew.unsicker@us.af.mil CERTIFICATE OF SERVICE