HomeMy WebLinkAbout20180212Stipulation.pdfRonald L. Williams,ISB No. 3034
Williams Bradbury, P.C.
P.O. Box 388, 802 W. Bannock, Suite 900
Boise,ID 83702
Telephone: (208) 344-6633
ron@williamsbradbury.com
Attorney for Intermountain Gas Company
Camille Christen,ISB No. 10177
Deputy Attorney General
Idaho Public Utilities Commission
47 2 W . Washington (837 02)
P.O. Box 83720
Boise,ID 83720-0074
Telephone: (208) 334-031,4
camille.christen@puc. idaho. gov
Attorney for Commission Staff
In the Matter of the Application of
INTERMOUNTAIN GAS COMPANY fOT
Approval to Place into Effect a Change in
Its
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
Case No. INT-G-17-06
STIPULATION AND
SETTLEMENTand AmortizationRates
This Stipulation is entered into by Intermountain Gas Company (o'Intermountain") and the
Staff of the Idaho Public Utilities Commission ("Staff') collectively referred to herein as the "Settling
Parties". The Settling Parties understand this Stipulation is subject to approval by the Idaho Public
Utilities Commission ("IPUC" or the "Commission").
STIPULATION AND SETTLEMENT - 1
I.INTRODUCTION
L The terms and conditions of this Stipulation are set forth herein. The Settling Parties agree that this
Stipulation represents a fair, just and reasonable compromise of all the issues raised in the proceeding,
is in the public interest and its acceptance by the Commission represents a reasonable resolution of
the multiple issues identified by the Settling Parties in this case. The Settling Parties, therefore,
recommend that the Commission approve the Stipulation and all of its terms and conditions without
material change or condition.
II. BACKGROUND
2. On October 27 , 2017 , Intermotrntain filed an Application with the Commission seeking approval
to place into effect a change in its Composite Depreciation and Amortization Rates. Intermountain's
currently effective composite depreciation rate of 3.05o/o was approved by this Commission in
Case No. INT-G-14-02, Order No. 33260, dated March 26,2015.Intermountain has traditionally
reviewed and filed an update to its deprecation rates with this Commission every three years. The
present Application, Case INT-G-17-06, reflected an update to Intermountain's last study. In the
Application, Intermountain stated the results of this more recent study indicated that
Intermountain's current composite rate was under-depreciating its assets. Therefore, Intermountain
requested an increase in its composite depreciation rate from 3.05% (3.09% when the accrual rates
per Order No. 33260 are weighted by December 31,2016 assets) to 3.18%. This increase was
required in order to accrue the proper dollars over the remaining life of Intermountain's depreciable
assets. The effect of the higher rate would be to increase Intermountain's annual depreciation
accrual by $451,824. Also within Case No. INT-G-L7-06,Intermountain requested a decrease to
the total General Plant account amortizations from $2,066,577 to $1,648,415, or an annual
decrease of $418,162.
3. Intermountain did not seek a change in its prices as a result of the requested change in
depreciation and amortization.
4. There are no intervening parties to Case No. INT-G-17-06.
5. A settlement conference was noticed and held in the Commission offices on January 10, 2018,
and subsequently on January 30,2018 and was attended by the Settling Parties in this case. As a
compromise of the positions in this case, and for other consideration as set forth below, the Settling
Parties agree to the following terms:
STIPULATION AND SETTLEMENT - 2
III. TERMS OF THE STIPULATION AND SETTLEMENT
6. Intermountain, as part of Case No. INT-G-17-06, requested an increase in depreciation for Account
380, Services, of $3,408,604 which incorporated negative net salvage of l2l%o. The Settling Parties
agree to mitigate the impact ofthis same negative net salvage by spreading its impact on depreciation
expense over the next three (3) depreciation study periods. In so doing, the resultant change to
Intermountain's Account 380 depreciation expense would be a decrease of $2,180 ,278 to that expense
as compared to Intermountain's original filing and as outlined on Attachment A to this Stipulation.
Attachment A reflects the agreed-upon depreciation rates, updating pages 1 through 3 of Exhibit No.
I in Intermountain's original filing. As noted on Attachment A, page 1, as a result of this treatment
of negative net salvage, the depreciation rate for Account 380, Services, would change from
Intermountain's original filing of 4.89% to a much lower 3.47%. Reflecting this same change, and as
noted on page 1 of Attachment A, Intermountain's overall depreciation rate would change from the
originally proposed 3.18% to 2.18o/o.
7. The Settling Parties recommend acceptance of all other depreciation account accruals shown in the
Application's Exhibits in Case No. INT-G-17-06.
8. The Settling Parties recommend acceptance of the changes in amortization expenses shown in the
Application's Exhibits in Case No. INT-G-17-06.
9. The Settling Parties agree to continue to convene after the final ruling in this case to discuss and
adopt an accounting structure that would accommodate an additional breakout of the assets associated
with Intermountain's liquid natural gas ("LNG") plants at Nampa and Rexburg, Idaho. The Settling
Parties agree that such an accounting breakout would facilitate more refined depreciation parameters
in subsequent depreciation studies.
10. The Settling parties agree, after Intermountain files its next depreciation and amortization study,
to address the need for an ongoing three (3) year study cycle vs. some other pre-determined cycle
period.
IV. GENERAL PROVISIONS
1 L The Settling Parties agree that this Stipulation represents a compromise of the positions of the
Settling Parties in this case. As provided in RP 272, other than any testimony or cofllments filed in
support of the approval of this Stipulation, and except to the extent necessary for a Settling Party to
explain before the Commission its own statements and positions with respect to the Stipulation, all
STIPULATION AND SETTLEMENT - 3
statements made and positions taken in negotiations relating to this Stipulation shall be confidential
and will not be admissible in evidence in this or any other proceeding.
12. The Settling Parties submit this Stipulation to the Commission and recommend approval in its
entirety pursuant to RP 274. Settling Parties shall support this Stipulation before the Commission,
and no Settling Party shall appeal a Commission Order approving the Stipulation or an issue resolved
by the Stipulation. If this Stipulation is challenged by any person not a party to the Stipulation, the
Settling Parties reserve the right to file testimony, cross-examine witnesses, and put on such case as
they deem appropriate to respond fully to the issues presented, including the right to raise issues that
are incorporated in the settlement terms embodied in this Stipulation. Notwithstanding this
reservation of rights, the Settling Parties agree they will continue to support the Commission's
adoption of the terms of this Stipulation.
13. If the Commission rejects any part or all of this Stipulation or imposes any additional material
conditions on approval of this Stipulation, each Settling Party reserves the right, upon written notice
to the Commission and the other Parties to this proceeding, within 14 days of the date of such action
by the Commission, to withdraw from this Stipulation. In such case, no Settling Party shall be bound
or prejudiced by the terms of this Stipulation, and each Settling Party shall be entitled to seek
reconsideration of the Commission's order, file testimony as it chooses, cross-examine witnesses, and
do all other things necessary to put on such case as it deems appropriate.
14. The Settling Parties agree that this Stipulation is in the public interest and that all of its terms and
conditions are fair, just and reasonable.
15. No Settling Party shall be bound, benefited or prejudiced by any position asserted in the
negotiation of this Stipulation, except to the extent expressly stated herein, nor shall this Stipulation
be construed as a waiver of the rights of any Settling Party unless such rights are expressly waived
herein. Execution of this Stipulation shall not be deemed to constitute an acknowledgement by a.ry
Settling Party of the validity or invalidity of any particular method, methodology, theory or principle
of regulation or cost recovery. No Settling Party shall be deemed to have agreed that any method,
methodology, theory, or principle of regulation or cost recovery employed in arriving at this
Stipulation is appropriate for resolving any issues in any other proceeding in the future. No findings
of fact or conclusions of law other than those stated herein shall be deemed to be implicit in this
Stipulation.
STIPULATION AND SETTLEMENT - 4
16. The obligations of the Settling Partics underthis Stipulation are subject to the Commission's
approval of this Stipulation in accordance with its tcrms and conditions and upon such approval being
upheld on appeal, if any, by a court of competent jurisdiction.
17. This Stipulation may be cxecuted in countcrparts and cach signcd countcrpart shall constitute an
original document.
DATED at Boise. Idaho. tt irffiauy of Februar.v. 2018.
TNTERMOUNTN IN GAS COMI'ANY IDAI"IO PUBLIC U]'ILIl'IES
COMMISSION STAFF
fre t\1+t,-l*ilh Q L*r,-"By
Ron Williams
Attorney for Intermountain Gas Company
Ill'
Camille Christen
Deputy Attomey General lbr IPLiC StatT
STIPULATION AND SEI-I'LEMENT - 5
ATTACHMENT A
CASE NO. INT.G.17-06
STIPULATION AND SETTLEMENT
(Depreciation Study)
(3 pages)
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Case No. INT-G-'17-06
lntermountain Gas Company
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Case No. INT-G-17-06
lntermountain Gas Company
Page 2 of 3
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I ntermountain Gas Company
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