20170828notice_of_application_order_no_33859.pdf

Office of the Secretary
Service Date
August 28,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF INTERMOUNTAIN GAS COMPANY )CASE NO.INT-G-17-05
FOR AUTHORITY TO CHANGE ITS )
PRICES )NOTICE OF APPLICATION
)
)NOTICE OF
)MODIFIED PROCEDURE
)
_______________________________
)ORDER NO.33859
On August 14,2017,Intermountain Gas Company applied to the Commission for
authority to change its rates,effective October 1,2017,to reflect changes in gas-related costs.
Application at 2.The Commission now issues this Notice of Application and Notice of Modified
Procedure setting comment and reply deadlines.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Intermountain’s rates include a base rate
component and a gas-related cost component.The base rate component is intended to cover
Intermountain’s fixed costs to serve its customers —for example,the Company’s costs for
equipment and facilities to provide service —and rarely change.The current base rates were
approved in Order No.33757,Case No.INT-G-16-02.See Id.
YOU ARE FURTHER NOTIFIED that the gas-related cost component of
Intermountain’s rates is at issue here.Specifically,with this Application,Intermountain seeks to
change its rates to pass through to customers changes in gas-related costs resulting from:(1)
costs billed to Intermountain from firm transportation providers (including Northwest Pipeline
LLC);(2)a decrease in Intermountain’s Weighted Average Cost of Gas (WACOG);(3)an
updated customer allocation of gas-related costs under the Company’s Purchased Gas Cost
Adjustment (PGA)provision;(4)the inclusion of temporary surcharges and credits for one year
relating to natural gas purchases and interstate transportation costs from Intermountain’s deferred
gas cost accounts;(5)benefits resulting from Intermountain’s management of its storage and
firm capacity rights on various pipeline systems;and (6)costs accrued related to Intermountain’s
general rate case.Id.at 3-4.Intermountain seeks to eliminate the temporary surcharges and
credits included in its current prices during the past 12 months under Case No.INT-G-16-03.Id.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33859 1
YOU ARE FURTHER NOTIFIED that the changes in Intermountain’s gas-related
costs will decrease rates for Intermountain’s RS and GS-1 customers,and increase rates for its
LV-1,T-3,and T-4 customers.Id.at 4.The current gas-related cost component of
Intermountain’s rates was approved in Order No.33604,Case No.LNT-G-16-03.See id.
YOU ARE FURTHER NOTIFIED that the changes to the rates will decrease
Intermountain’s annualized revenues by $19.2 million,but will not impact earnings.Id.at 2.
YOU ARE FURTHER NOTIFIED that the Company provides additional detail on
the changes it is seeking to incorporate into rates.See id.at 4-8.For example,the permanent
transportation and storage costs in this Application reflect a decrease of $1.3 million compared to
those same costs in Case No.INT-G-16-03.Id.at 4.The WACOG reflected in the proposed
prices is $0.26020 per therm,compared with the WACOG of $0.29695 currently included in
rates.Id.at 5.This decrease of $0.03675 per therm reflects robust natural gas supplies,
significant storage balances,and the Company’s efforts to manage its natural gas storage assets.
Id.The Application further explains other adjustments and treatment of various deferred costs.
Id.at 4-8.
YOU ARE FURTHER NOTIFIED that Intermountain also explains that the proposed
rate changes would be allocated to customer classes through its PGA provision.Id.at 7.
YOU ARE FURTHER NOTIFIED that the Company specifically explains
adjustments to the LV-1,T-3,and T-4 tariffs.For the LV-1 tariff,a straight cents per therm
price change was not used,because no fixed costs are currently recovered in the tail block of that
tariff.Id.Intermountain indicates that the proposed changes in the WACOG and variable
deferred credits and debits (outlined in Exhibit Nos.9 and 10)applied to all three blocks of the
LV-l tariff.Id.at 7-8.However,adjustments related to fixed costs applied only to the first two
blocks.Id.at 8.The net change of the adjustments is a price increase for the LV-1 customers.
See id.at Exhibit No.13.For the T-3 and T-4 tariffs,the adjustments included in the proposed
tariffs include:(a)removal of existing temporary price changes;(b)the Lost and Unaccounted
for Gas decrease (outlined in Exhibit No.9);(c)for the T-4 tariff,the LNG Sales Credits (see
Exhibit 10),and (d)a temporary adjustment to recover the Company’s general rate case related
expenses.Id.The net change of these adjustments for the T-3 and T-4 customers is a rate
increase.Id.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33859 2
YOU ARE FURTHER NOTIFIED that the Company states this Application includes
$25.178 of intervenor funding for recovery,per Order No.33757,to be allocated proportionally
according to base rate revenues within each customer class.Id.
YOU ARE FURTHER NOTIFIED that the Company also requests amortization and
collection,over a four-year period,of $699,114 of deferred external rate case costs.Id.
YOU ARE FURTHER NOTIFIED that the Company provides an exhibit,Exhibit
No.13,which analyzes the overall price changes by class of customer.Id.The Company also
provides its proposed rate schedules and tariff sheets.See id.at Exhibit Nos.1-2.
YOU ARE FURTHER NOTIFIED that the Application and supporting
documentation have been filed with the Commission and are available for public inspection
during regular business hours at the Commission offices.These documents are also available on
the Commission’s web site at wwpic.idahogcv.Click on the “File Room”tab at the top of
the page,then select “Natural Gas Cases”and 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
Idaho Code §61-502 and 6 1-503.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 3 1.01.01.000 etseq.
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 that it will proceed under
Modified Procedure pursuant to Rules 201 through 204 of the Commission’s Rules of Procedure,
IDAPA 3 1.01.01.201 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 any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission by no
later than September 14,2017.The comment must contain a statement of reasons supporting
the comment.Persons desiring a hearing must specifically request a hearing in their written
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33859
comments.Written comments concerning this Application shall be mailed to the Commission
and the Company 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 83 720-0074 P.O.Box 7608
Boise,ID 83707
Street Address for Express Mail:
Ronald L.Williams
472 W.Washington Street Williams Bradbury PC
Boise,ID 83702-5918 802 W.Bannock,Suite 900
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 Click the “Case Comment or Question
Form”under the “Consumers”tab,and complete the comment form using the case number as it
appears on the front of this document.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
necessary,by 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.
ORDER
IT IS HEREBY ORDERED that the Application of Intermountain Gas Company be
processed by Modified Procedure,Rule 201-204 (IDAPA 31.01.01.201-.204).Persons interested
in submitting written comments must do so no later September 14,2017.The Company may file
a reply no later than September 20,2017.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33859 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2017.
PAUL KJELLAWDER,PRESIDENT
4tj P4A
KRFSTINE RAPER,C___ISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
o INT-G-17-05 cc
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33859 5