20170822Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECR-ETARY
COMMISSION STAFF
LEGAL
FROM:CAMILLE CHRISTEN
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 17,2017
SUBJECT: THE APPLICATION OF INTERMOUNTAIN GAS COMPANY FOR
AUTHORITY TO CHANGE ITS PRICES, CASE NO. INT-G-17-05.
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 at2-3.
THE APPLICATION
With this Application, Intermountain seeks to pass through to its customers changes
in gas-related costs resulting from the following: (l) costs billed to lntermountain 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 pursuant to 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. at3-4.
Intermountain also seeks authority to eliminate the temporary surcharges and credits included in
its current prices during the past l2 months pursuant to Case No. INT-G- I 6-03. Id. The changes
to the rates will decrease Intermountain's annualized revenues by $19.2 million. Id. at2. The
changes will result in a price decrease to Intermountain's RS and GS-l customers and a price
increase to its LV-1, T-3, and T-4 customers. Id. at4.
DECISION MEMORANDUM I
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Application and Notice of
Modified Procedure, with comments due September 14,2017, and reply comments, if any, due
September 20,2017.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and a Notice of Modified
Procedure, with comments due September 14,2017, and reply comments, if any, due September
20,2017?
U-;h( l*,tt*,,*
Camille Christen
Deputy Attorney General
M:INT-G-17-05 cc
2DECISION MEMORANDUM