20160824notice_of_application_order_no_33577.pdf

Office of the Secretary
Service Date
August 24, 2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF INTERMOUNTAIN
GAS COMPANY'S APPLICATION FOR
AUTHORITY TO DECREASE ITS PRICES
(2016 PURCHASED GAS COST
ADJUSTMENT).
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)
) CASE NO. INT-G-16-03
)
) NOTICE OF APPLICATION
)
) NOTICEOF
) MODIFIED PROCEDURE
)
) ORDER NO. 33577
On August 12, 2016, Intermountain Gas Company filed its annual Purchased Gas
Cost Adjustment (PGA) Application and requested a Commission Order, under Idaho Code§§ 61-
307 and 61-622, to institute new rate schedules that will decrease its annualized revenues by $17.2
million (about 7.11 %). The Company asks that the Commission process the Application by
Modified Procedure, and that the new rates take effect October 1, 2016.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the PGA adjusts rates each year to reflect
changes in the Company's costs to buy natural gas from suppliers-including transportation,
storage, and other related costs. See Order No. 26019. A change in the PGA does not affect the
Company's earnings. But a PGA change can cause customer rates to go up or down. With this
PGA Application, the Company proposes to pass-through to customers gas-related cost changes
that would decrease the average bill of: (1) residential customers who use natural gas for space
heating and water heating, by $3.48/month (7.55%); (2) customers who use gas for space heating
only, by $2.03/month (6.50%); and (3) commercial customers by $14.23/month (7.34%)
YOU ARE FURTHER NOTIFIED that with this Application, the Company seeks to
pass-through to each of its customer classes changes in gas-related costs resulting from: (1)
transportation costs billed to the Company by Northwest Pipeline; (2) a decrease in the
Company's weighted average cost of gas (WACOG); (3) an updated customer allocation of gas­
related costs under the Company's PGA provision; (4) the inclusion of temporary surcharges and
credits for one year relating to natural gas purchases and interstate transportation costs from the
Company's deferred gas cost accounts; and (5) benefits resulting from the Company's
management of its storage and firm capacity rights on various pipeline systems. The Company
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33577
also seeks to eliminate the temporary surcharges and credits included in its current prices during
the past 12 months, pursuant to Case No. INT-G-15-02.
YOU ARE FURTHER NOTIFIED that the Company proposes decreasing the
WACOG from the currently approved $0.32764 per therm to $0.29695 per therm (9.4%
reduction). The Company says significant shale gas reserves producing a supply imbalance have
greatly decreased its WACOG. Combined with significant storage balances, the healthy supply
situation have kept natural gas prices lower than they were last year.
YOU ARE FURTHER NOTIFIED that the Company says it has entered into fixed­
price agreements to lock-in the price for significant portions of its underground storage and other
winter "flowing" supplies.
YOU ARE FURTHER NOTIFIED that the Company seeks to pass-through to its
customers the benefits that will be generated from the management of its transportation capacity
totaling $3.9 million. The Company also proposes temporary price adjustments for the 12-month
period ending September 30, 2017, to allocate fixed, variable, and lost and unaccounted-for gas
costs from the Company's deferred Account No. 191 balance. The Company also notes that
pursuant to Order No. 33386, its deferred variable gas cost credits included those associated with
liquefied natural gas (LNG) sales from the Company's Nampa, Idaho facility.
YOU ARE FURTHER NOTIFIED that the Company says the proposed overall price
changes reflect a just, fair, and equitable pass-through of changes in gas-related costs to the
Company's customers. The Company says it has notified customers about the Application and
price changes through a formal Customer Notice and a Press Release, and that it has made the
Application available to the public on its website at www.intgas.com.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices. The Application and
testimonies are also available on the Commission's web site at www.puc.idaho.gov. Click on the
"File Room" tab at the top of the page, scroll down to "Gas Cases" and then click on the case
number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33577 2
Idaho Code § 61-502 and 61-622. The Commission may enter any final Order consistent with its
authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission's Rules
of Procedure, IDAPA 31.01.01.201 through .204. The Commission notes that Modified
Procedure and written comments have proven to be an effective means for obtaining public input
and participation.
YOU ARE FURTHER NOTIFIED that the Commission has not scheduled public
informational workshops in this matter. However, if customers request that Staff conduct a
workshop, or if numerous public comments are received, one or more workshops may be
scheduled. Members of the public will be notified if any workshops are to occur.
YOU ARE FURTHER NOTIFIED that any persons desiring to state a position on
this Application may file a written comment in support or opposition with the Commission no
later than September 15, 2016, and reply comments, if any, by September 20, 2016. The
comment must contain a statement of reasons supporting the comment. Persons desiring a
hearing must specifically request a hearing in their written comments. Written comments
concerning this Application shall be mailed to the Commission and the Company at the
following addresses:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33577 3
Michael P. McGrath
Director -Regulatory Affairs
Intermountain Gas Company
PO Box 7608
Boise, ID 83707
Ronald L. Williams
Williams Bradbury PC
1015 W. Hays Street
Boise, ID 83702
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission's home page located at www.puc.idaho.gov. Scroll to the "Consumers" tab, click
the "Utility Case Comment or Question Form," and complete the comment form using the case
number as it appears on the front of this document.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and parties may file written comments no later than September 15, 2016, and
reply comments, if any, by September 20, 2016.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of August 2016.
A~
Diane Holt
Assistant Commission Secretary
O:INT-G-16-03_bk
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33577
PAULKJ PRESIDENT
ER
ERIC ANDERSON, COMMISSIONER
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