20170816notice_of_application_order_no_33839.pdf

Office of the Secretary
Service Date
August 16.2O7
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.INT-G-17-03
OF INTERMOUNTAIN GAS COMPANY )
TO IMPLEMENT A DEI AND SIDE )NOTICE OF APPLICATION
MANAGEMENT PROGRAM FUNDING )
MECHANISM AND CHARGE )NOTICE OF
)MODIFIED PROCEDURE
)
____________________________
)ORDER NO.33839
On July 27,2017,Intermountain Gas Company asked the Commission for authority
to implement a Demand Side Management (DSM)Program Funding Mechanism and DSM
Charge.Although the Commission has yet to formally accept a tariff filing from the Company,a
draft tariff was submitted as an exhibit during the Company’s recent rate case,in which the
Commission authorized the Company to implement a residential DSM program,but did not
approve the proposed fixed cost collection mechanism.Order No.33757 at 37-38.
Intermountain asks that its Application be processed by Modified Procedure,and requests an
effective date of October 1,2017,to coincide with the requested effective date for its annual
Purchased Gas Cost Adjustment filing.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that “DSM”generally refers to utility activities and
programs that encourage customers (thus,on the “demand side”as opposed to the “generation
side”)to use less overall energy or use less energy during peak usage hours.Order No.33188.
The Commission authorized the Company to implement a DSM program,finding that “DSM,as
both a least-cost resource and an important element of promoting energy efficiency,is an
important part of any utility’s provision of service.”Order No.33757 at 37;see Application at 2.
However,the Commission rejected the Company’s proposal to use a fixed cost collection
mechanism (FCCM),citing insufficient “evidentiary quantification of the Company’s need for an
FCCM and the benefits of its developing DSM program,and what it hopes to achieve through
energy efficiency programs and fixed-cost recovery.”Order No.33757 at 38.
YOU ARE FURTHER NOTIFIED that the Company seeks “to define and formalize
a mechanism whereby the Company can recover costs incurred in the administration and
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33839 1
delivery of its Rate Schedule DSM”and submits a proposed budget for recovery.Application at
3.The Company states that its costs from administering its DSM program may include energy
efficiency program rebates:administration ramp-up expenses and incremental staffing;DSM
outreach;local support for promotion of tariff-approved DSM measures;and encouraging market
transformation through adaptation of energy efficiency technologies.Id.The Company reports
that all DSM activities are designed for its residential customers.Id.
YOU ARE FURTHER NOTIFIED that the Company proposes a recovery mechanism
in which it submits its “annual budget of anticipated administrative and program costs related to
the Company’s DSM program.”Id.In its annual filing,the Company will request the
Commission’s ruling that its “expenses are both reasonable and prudent.”Id.Also,the
Company’s budget will include “any surplus or deficit associated with the collection of DSM
funds and the incurrence of DSM-related expenses.”Id.
YOU ARE FURTHER NOTIFIED that the Company states its “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.”Id.“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.”
Id.at4.
YOU ARE FURTI-IER NOTIFIED that,for the program year October 1,2017 to
September 30,2018,the Company estimates costs of $177,000 for program delivery and
administration (personnel and ramp-up expenses),and $600,000 in rebate payments for total
costs of $777,000.Id.This proposed budget would equal a per therm increase of $000367
(0.58%)for the Company’s residential class.Id.
YOU ARE FURTHER NOTIFIED that the Company states it provided notice of its
proposed rate increase associated with its proposed DSM funding mechanism.Id at 4-5.
YOU ARE FURTHER NOTIFIED that the Application and supporting documents,
including the Company’s proposed DSM budget and proposed DSM Charge have been filed with
the Commission and are available for public inspection during regular business hours at the
Commission offices.The Application and attachments are also available on the Commission’s
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33839 2
web site at v\\v.puc.idahogov.Click on the File Room”tab at the top of the page,scroll down
to the type ofOpen Gas Cases,”and then click on the case number as shown on the front of this
document.
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-.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 any person desiring to state a position on this
Application may file a written comment in support or in opposition with the Commission by no
later than September 15,2017.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 may be mailed to the Commission
and Intermountain Gas at the addresses reflected below:
Commission Secretary Michael P.McGrath
Idaho Public Utilities Commission Director —Regulatory Affairs
P0 Box 83720 Intermountain Gas Company
Boise,ID 83720-0074 P0 Box 7608
Boise,ID 83707
Street Address for Express Mail:
Ronald L.Williams
472 W.Washington Street Williams Bradbury PC
Boise,ID 83702-5918 P0 Box 388
802 W.Bannock Street,Suite 900
Boise,ID 83701
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.Click the “Case Comment or Question
Form”under the “Consumers”tab,and complete the form using the case number as it appears on
the front of this document.These comments must also be sent to the Company at the addresses
listed above.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO,33839 3
YOU ARE FURTHER NOTIFIED that if the Company wishes to file a reply,it must
do so no later than September 20,2017.
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.
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
Idaho Code §61-503.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.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure,
Rules 201-204 (IDAPA 31.01.01.201 -.204).Interested persons shall have until September 15,
2017 to file written comments,and the Company shall have until September 20,2017 to file a
reply,if any.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO,33839 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2017.
ATTEST:
PA KJEL N R,
Diane M.Hanian
Commission Secretary
O:INT-G-17O3 djh
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33839
ERIC ANDERSON,COMMISSIONER