20170727Application.pdf

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luly 27 ,2017
Ms. Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472W. Washington St.
P.O. Box 83720
Boise, lD 83720-0074
RE: Case No. INT-G-17-03
Dear Ms. Hanian:
Attached for consideration by this Commission are the original and seven (7) copies of Intermountain Gas
Company's Application for Authority to Implement a Demand Side Management Program Funding
Mechanism and Charge effective October 1,2017.
If you should have any questions regarding this Application please contact me at.377-6168.
Sincerely,
P. McGrath
D irector-Re gu latory Affairs
Intermountain Gas Company
Enclosure
cc: Mark Chiles
Ronald L. Williams
Scott Madison
INTBRMOUNTAIN GAS COMPANY
CASE NO. INT.G.17-03
APPLICATION
AND
EXHIBITS
In the Matter of the Application of INTERMOUNTAIN GAS COMPANY
For Authority to Implement a Demand Side Management
Program Funding Mechanism and Charge
Ronald L. Williams, ISB 3034
Williams Bradbury PC
P O Box 388, 802 W. Bannock St., Suite 900
Boise, Idaho 83701
Telephone: [phone]
Attorney for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
In the Matter of the Application of
INTERMOUNTAIN GAS COMPANY
for Authority to Implement a Demand
Side Management Program Funding
Mechanism and
Intermountain Gas Company ("lntermountain" or "Company"), a subsidiary of MDU
Resources Group, Inc. with general offices located at 555 South Cole Road, Boise, Idaho, pursuant
to the Rules of Procedure of the Idaho Public Utilities Commission ("Commission"), hereby requests
authority to implement a Demand Side Management ("DSM") Program Funding Mechanism and
DSM Charge as outlined in this Application.
Communications in reference to this Application should be addressed to
Michael P. McGrath
Director - Regulatory Affairs
Intermountain Gas Company
Post Office Box 7608
Boise, ID 83707
and
Ronald L. Williams
Williams Bradbury PC
P O Box 388, 802 W. Bannock St.
Suite 900
Boise, Idaho 83701
In support of this Application, Intermountain does allege and state as follows
Case No.INT-G-I7-03
APPLICATION
APPLICATION - 1
I.
Intermountain is a gas utility, subject to the jurisdiction of the Commission, engaged in the
sale of and distribution of natural gas within the State of Idaho under authority of Commission
Certificate No. 219 issued December2,1955, as amended and supplemented by Order No. 6564,
dated October 3,1962.
Intermountain provides natural gas service to the following Idaho communities and counties
and adjoining areas:
Ada County - Boise, Eagle, Garden City, Kuna, Meridian, and Star;
Bannock County - Arimo, Chubbuck, Inkom, Lava Hot Springs, McCammon, and Pocatello;
Bear Lake County - Georgetown, and Montpelier;
Bingham County - Aberdeen, Basalt, Blackfoot, Firth, Fort Hall, Moreland/Riverside, and Shelley;
Blaine County - Bellevue, Hailey, Ketchum, and Sun Valley;
Bonneville County - Ammon, Idaho Falls, Iona, and Ucon;
Canyon County - Caldwell, Greenleaf Middleton, Nampa, Parma, and Wilder;
Caribou County - Bancroft, Grace, and Soda Springs;
Cassia County - Burley, Declo, Malta, and Raft River;
Elmore County - Glenns Ferry, Hammett, and Mountain Home;
Fremont County - Parker, and St. Anthony;
Gem County - Emmett;
Gooding County - Gooding, and Wendell;
Jefferson County - Lewisville, Menan, Rigby, and Ririe;
Jerome County - Jerome;
Lincoln County - Shoshone;
Madison County - Rexburg, and Sugar City;
Minidoka County - Heybum, Paul, and Rupert;
Owyhee County - Bruneau, and Homedale;
Payette County - Fruitland, New Plymouth, and Payette;
Power County - American Falls;
Twin Falls County - Buhl, Filer, Hansen, Kimberly, Murtaugh, and Twin Falls;
Washington County - Weiser.
Intermountain's properties in these locations consist of transmission pipelines, liquefied
natural gas storage facilities, a compressor station, distribution mains, services, meters and regulators,
and general plant and equipment.
II.
In Order No. 33757, Case INT-G-16-02, the Commission authorized the Company to
implement residential Demand Side Management tariffs as described in the Company's proposed
Rate Schedule DSM. As stated in Case INT-G-16-02 in the direct testimony of Company Witness
Spector, "The Company intends to submit a filing following program approval to obtain defened
treatment of incremental staffing expenses (salaries associated with employees that would not
APPLICATION - 2
otherwise have been hired in the absence of a DSM program) and administrative/outreach costs
resulting from operation of a Company run Demand Side Management Program" (p.5, Lines 1-5).
The Company's current base rates are those approved in Order No. 33757 and do not include any
costs associated with the implementation of the Company's Rate Schedule DSM.
III.
The Company seeks with this Application to define and formalize amechanism whereby the
Company can recover costs incurred in the administration and delivery of its Rate Schedule DSM
and concurrently submits herein a proposed budget for recovery under the same proposed
mechanism.
IV.
Costs incurred in the administration and delivery of the Company's Rate Schedule DSM
may include, but may not necessarily be limited to: energy efficiency program rebates; delivery and
administration to include program ramp-up expenses and incremental staffing pertaining to DSM;
DSM outreach in print form and at trade show participation; local equipment dealer, distributer, and
builder ("trade ally") support to encourage promotion of tariff-approved DSM measures for
customers; engagement in activities that encourage increased adaptation of energy efficiency
technologies in the market ("market transformation") through organizations such as the Gas
Technology Institute ("GTI"), if appropriate; and future energy savings potential assessment and
validation activities. All aforementioned activities are designed to benefit residential customers
within the Company's service territory.
v.
The recovery mechanism for the cost categories outlined in paragraph IV above is proposed
to be as follows:
Each year, and subsequent to the proposed budget contained within this initial filing, the
Company shall submit its annual budget of anticipated administrative and program costs related to
the Company's DSM program. As part of that same annual filing, the Company will request a
ruling from the Commission that those same expenses are both reasonable and prudent.
Additionally, the Company shall include within the proposed budget any surplus or deficit
associated with the collection of DSM funds and the incurrence of DSM-related expenses.
The DSM Charge shall be determined as the approved annual budget to implement Rate
Schedule DSM divided by normalized therm sales for Rate Schedule RS, as determined in the
Company's annual Purchased Gas Cost Adjustment filing. This charge will be reviewed annually
APPLICATION - 3
and revised as necessary based on evaluation ofDSM budgetary needs and actual program
performance. All DSM funds collected will be allocated to costs incurred in the administration and
delivery of its proposed DSM program and accounting records will be maintained to track actual
expenses vs. the DSM Charge collected from residential customers.
vI.
For the program year October 1,2017 to September 30, 2018, the Company anticipates total
costs of approximately $777 ,000. As shown on Exhibit No. 1, this includes an estimate of $ 177,000
for program delivery and administration, and $600,000 in rebate payments. Estimated program
delivery and administration costs and rebate payments in future program years will be based on
actual, ongoing program results.
The $177,000 anticipated program delivery and administration costs are divided as follows:
1) $147,000 will be directed towards incremental personnel to include:
a. A Conservation Analyst I who will support calls, rebate processing and day-to-day
program operations and,
b. A Conversation Analyst II who will support portfolio design efforts, quality control
inspections, trade ally support, and DSM planning for the Company's Integrated
Resources Plan.
2) $30,000 will be directed towards ramp-up expenses and may include the associated program
delivery activities listed in Section IV. The order and extent of these activities and expenses
shall be contingent upon the amount of funds available to maintain cost-effective program
operation.
The proposed DSM budget of $777,000 would equate to a per therm increase of $0.00367
(0.58%) for the Company's residential class, as outlined in Exhibit No. 2.
Exhibit Nos. I and2 are attached hereto and incorporated herein by reference.
vII.
The Company proposes to make the DSM Charge, as outlined in this Application and
Exhibit No. 2, effective October 1,2017, coincident with the effective date of the price change
related to the Company's annual Purchased Gas Cost Adjustment.
VIII.
This Application has been brought to the attention of Intermountain's customers through a
Customer Notice and by a Press Release sent to daily and weekly newspapers, and major radio and
television stations in Intermountain's service area. The Press Release and Customer Notice are
APPLICATION - 4
attached hereto and incorporated herein by reference. Copies ofthis Application and its Exhibits have
been provided to those parties regularly intervening in Intermountain's rate proceedings.
IX.
Intermountain requests that this matter be handled under modified procedure pursuant to
Rules 201-204 of the Commission's Rules of Procedure. Intermountain stands ready for immediate
consideration of this matter.
APPLICATION - 5
attached hereto and incorporated herein by reference. Copies of this Application and its Exhibits have
been provided to those parties regularly intervening in Intermountain's rate proceedings.
IX.
Intermountain requests that this matter be handled under modified procedure pursuant to
Rules 201-204 of the Commission's Rules of Procedure. Intermountain stands ready for immediate
consideration of this matter.
WHEREFORE, lntermountain respectfully petitions the Idaho Public Utilities Commission
as follows:
a. That the Commission approve the annual DSM budget as presented by the Company in
this Application,
b. That the Commission authorize the Company to implement a DSM Charge as it has been
outlined in this Application,
c. That the DSM Charge be made effective October I,2017, coincident with the effective
date of the price change related to the Company's annual Purchased Gas Cost Adjustment,
d. That this Application be heard and acted upon without hearing under modified procedure,
and
e. For such other relief as this Commission may determine proper herein.
DATED at Boise,Idaho, this z7mday of -\_tt-I ,2017.
INTERMOUNTAIN GAS COMPANY Williams Bradbury PC
By By
Ronald L. Williams
Attorney for Intermountain Gas Company
APPLICATION - 6
PA /h///t^
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on this 27ft day of July,20l7,I served a copy of the
foregoing Case No. INT-G-17-03 upon:
Ed Finklea
Northwest Industrial Gas Users
545 Grandview Drive
Ashland, OR97520
Don Sturtevant
J. R. Simplot Company
PO Box 27
Boise,lD 83707
Chad Stokes
Cable Huston et al.
1001 SW Fifth Avenue, Suite 2000
Portland, Oregon 97204-1136
Benjamin Otto
ldaho Conservation League
710 N. 6th Street
Boise,lD 83702
Brad Purdy
Attomey for Community Action
Partnership Association of tdaho (CAPAD
2019 N. 17ft Street
Boise,ID 83702
by depositing true copies thereof in the United States Mail, postage prepaid, in envelopes addressed
to said persons at the above addresses.
- Regulatory Affairs
APPLICATION - 7
EXHIBIT NO. 1
CASE NO. INT.G.17.O3
INTERMOUNTAIN GAS COMPANY
PROPOSED ANNUAL DSM BUDGET
(l pages)
Line
lntermountain Gas Company
DSM Budget
Program Year 2Ot7-2OLg
Description
Budgeted
AmountNo
(a)
1 Rebate Payments
2 lncrementalPersonnel
3 Ramp-Up & Program Delivery Acitivities
4 Deficit/(Surplus) Funds from Prior Program Year
5 Total DSM Budget
(b)
s 600,000
747,O00
30,000
0
5 777,OOO
Exhibit No. 1
Case No. INT-G-17-03
lntermountain Gas Company
Page 1 of 1
EXHIBIT NO.2
CASE NO. INT.G.17-03
INTERMOUNTAIN GAS COMPANY
PROPOSED DSM CHARGE
(2 pages)
lntermountain Gas Company
DSM Charge
Program Year 2Ol7-2Ot8
Line Budgeted
AmountNo.Description
(a)
1 Total DSM Budget (Ex. No. 1, Col. (b), Ln.5)
2 RS Normalized Sales Volumes (1/I/LG - L2131176)
3 PerTherm DSM Charge
(b)
5 777,OOO
277,957,936S o.oosoz
Exhibit No. 2
Case No. INT-G-17-03
lntermountain Gas Company
Page 1 of 2
l.P.U.C. Gas Tariff
Rate Schedules
Original Sheet No. 17 (Page 1 of 1)
Name
of Utility lntermountain Gas Company
Rate Schedule DSM Charge
DEMAND SIDE MANAGEMENT ("DSM")
PROGRAM FUNDING MECHANISM
APPLICABILITY:
Applicable to customers taking service under Rate Schedule RS. This DSM Charge is designed to fund
administrative and program delivery costs incurred by the Company in its provision of energy efficiency
services to customers as outlined in Rate Schedule DSM. This Schedule will be reviewed annually
and revised as necessary to ensure adequate funding for the DSM program. Additionally, the
Company shall submit an annual budget of anticipated administrative and program costs. Any change
to this Schedule is subject to Commission approval.
MONTHLY RATE:
The Monthly Rate is equalto the applicable DSM Charge times monthly billed therms
Schedule
Rate Schedule RS
DSM Charge
$0.00367
Exhibit No. 2
Case No. INT-G-17-03
lntermountain Gas Company
tssued by: lntermountain Gas CompanyBy: Michael P. McGrath Title: Director - Regulatory Affairs
Effective: October 1 2017
2 of2
NBWS RELEASB
and
CUSTOMER NOTICE
CASE NO. INT.G.17.O3
INTERMOUNTAIN GAS COMPANY
(2 Pages)
NEWS RELEASE
A INTERT4OUNTAIN
GAS COMPANY
A Subsidiary of MDU Resources Group, lnc.
Intermountain Gas files for demand side management program funding mechanism
BOISE,IDAHO -July 27,2017- Intermountain Gas filed an application with the ldaho Public Utilities
Commission for approval to implement a mechanism whereby the company can recover costs incurred for
a residential demand side management (DSM) program. DSM is an energy industry term for reducing the
amount of energy purchased on behalf of the customer through activities or programs that promote energy
efficiency or conservation.
If approved and implemented the change to residential customer rates would be in affect October 1,2017.
The proposed mechanism would allow the company to implement a per therm increase to residential
customers of 0.58 percent. This change would increase the average residential customer's monthly bill
approximately 22 cents per month. If approved, the increase to the company's revenues would be
5777,000 with no change to the company's earnings.
The request is subject to public review and approval by the IPUC. A copy of the application is available
for review at the commission, the company's website at www.intgas.com as well as the IPUC website at
www.puc.idaho.sov. Written comments regarding the application may be filed with the commission.
Customers may also subscribe to the commission's RSS feed to receive periodic updates via email.
Inlermountain Gas Company is a naturql gas distribution company serving approximately 350,000
residential, commercial and industrial customers in 75 communities in southern ldaho. Intermountain is a
subsidiary of MDU Resources Group, Inc., which provides essential products and services through its
regulated energl delivery and construction materials and services businesses. It is traded on the New York
Stock Exchange as "MDU." For more information aboul MDU Resources, visit the company's website at
v,v,v,.mdu.cot t. For more information about Intermountain, visit u,\t,tt,.inlgcts.com.
*d<*{<>F>k>k{<**(**
Media Contact: Cheryl Imlach, Manager Energy Utilization, 208-377 -6179
Customer Notice
A INTERMOUNTAIN
CAS COMPANY
ASubsidiary of MDU Renurces Gruplnc.
Intermountain Gas files for demand side management program funding mechanism
On July 27 ,2017 ,lntermountain Gas filed an application with the Idaho Public Utilities Commission for
approval to implement a mechanism whereby the company can recover costs incurred for a residential
demand side management (DSM) program. DSM is an energy industry term for reducing the amount of
energy purchased on behalf of the customer through activities or programs that promote energy efficiency
or conservation.
If approved and implemented the change to residential customer rates would be in affect October 1,2017
The proposed mechanism would allow the company to implement a per therm increase to residential
customers of 0.58 percent. This change would increase the average residential customer's monthly bill
approximately 22 cents per month. If approved, the increase to the company's revenues would be
$777,000 with no change to the company's eamings.
The request is subject to public review and approval by the IPUC. A copy of the application is available
for review at the commission, the company's website at www.intgas.com as well as the IPUC website at
www.puc.idaho.gov. Written comments regarding the application may be filed with the commission.
Customers may also subscribe to the commission's RSS feed to receive periodic updates via email.