20180221notice_of_settle._stipulation_order_no_33990.pdf

Office of the Secretary
Service Date
February 21,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )OF INTERMOUNTAIN GAS COMPANY FOR )CASE NO.INT-G-17-06
APPROVAL TO PLACE INTO EFFECT A )CHANGE IN ITS DEPRECIATION AND )NOTICE OF
AMORTIZATION RATES )SETTLEMENT STIPULATION
)NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.33990
On October 27,2017,Intermountain Gas Company filed an Application seeking
approval to change its composite depreciationand amortization rates.The Company asked to:(1)
increase its composite depreciation rate from 3.05%(3.09%when weighted by December 31,2016
assets)to 3.18%;'and (2)decrease its total General Plant account amortizations from $2,066.577
to $1,648,415.2 The Company indicated it needed to make changes because its most recent studies
show that overall,it has under-depreciatedits assets and over-amortized General Plant accounts.
The Company stated it is not proposing to increase the prices that customers pay for natural gas
service in this case.The Company requested that the increase to the annual composite depreciation
rate be effective January 1,2018,consistent with the beginning of its annual financial reporting
period.
The Commission issued a Notice of Application and set a deadline for interventions.
Order No.33934.No interventions were received.A settlement conference was then noticed and
held on January 10,2018,and further discussions ensued.On February 12,2018,Commission
Staff filed a Motion to approve a Settlement Stipulation agreed to by the Company and Staff
(collectively,the Parties).The Motion asked the Commission to accept the Stipulation and
implement revised depreciation and amortization schedules effective January 1,2018.
The Commission now issues this Notice of Settlement Stipulation and Notice of
Modified Procedure setting comment deadlines.
*As shown in Exhibit I of the Application.
2 As shown on Exhibit 2 of the Application.
NOTICE OF SETTLEMENT STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33990 1
NOTICE OF SETTLEMENT STIPULATION
YOU ARE HEREBY NOTIFIED that the Settlement Stipulation in Case No.INT-G-
17-06,plus its attachments,has been filed with the Commission and is available for public
inspection during regular business hours at the Commission offices.These documents are also
available on the Commission's website at wwypuc&aho ov.Click on the "File Room"tab at
the top of the page,scroll down to "Open Natural Gas Cases,"then click on the case number as
shown on the front of this document.
YOU ARE FURTHER NOTIFIED that the Parties have signed a Settlement Stipulation
regarding the issues in this case.The settlement was reached followingsettlement discussions in
January 2018.Stipulation at 2.
YOU ARE FURTHER NOTIFIED that the Parties agree the Settlement Stipulation
represents a "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."Id
YOU ARE FURTHER NOTIFIED that the Parties agree to depreciation rates set forth
in Attachment A to the Stipulation,recommend acceptance of all other depreciation account accruals
shown in the Application's Exhibits in this case,and recommend acceptance of the changes in
amortization expenses shown in the Application's Exhibits in Case No.INT-G-17-06.Id at 3.As a
result of the Stipulation,the Company's overall depreciation rate would be 2.78%,as compared to
the originallyproposed 3.18%.Id
YOU ARE FURTHER NOTIFIED that the Company is not seeking new rates because of
its requested changes to the depreciation rates.Id.at 2.
YOU ARE FURTHER NOTIFIED that the Parties agree to further discuss,outside of
this proceeding,possible changes to the accounting structure for its liquid natural gas plants at Nampa
and Rexburg,Idaho,and the appropriate depreciation study cycle (that is,a three year cycle or
something else)going forward.
NOTICE OF MODIFIED PROCEDURE
YOU ARE HEREBY 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,
NOTICE OF SETTLEMENT STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33990 2
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 party or member of the public 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 21 days from the service date of this Order.IDAPA
31.01.01.202.02.All comments 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 Company at the
addresses reflected below:
Commission Secretary Michael P.McGrath,Director -Regulatory
Idaho Public Utilities Commission Affairs
PO Box 83720 Intermountain Gas Company
Boise,ID 83720-0074 PO Box 7608
Boise,ID 83707
Street Address for Express Mail:E-mail:[e-mail]
472 W.Washington Street Ronald L.Williams
Boise,ID 83702-5918 Williams Bradbury PC
1015 W.Hays St.
Boise,ID 83702
E-mail:[e-mail]
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 wvww.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 e-mail
address listed above.
YOU ARE FURTHER NOTIFIED that the Company may file reply comments,if
necessary,by no later than 7 days from the comment deadline.
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.
NOTICE OF SETTLEMENT STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33990 3
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure,
Rule 201-204 (IDAPA 31.01.01.201-.204).Parties and persons interested in submitting comments
on the Stipulation must do so no later than 21 days from the service date of this Order.The
Company must file a reply,if any,no later than 7 days from the comment deadline.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of February 2018.
PAUL KJELLAÑDEÍ RESIDENT
KRI TÏNE RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
L\Legal\LORDERS\INTGl706nte of stip and mod proced docx
NOTICE OF SETTLEMENT STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33990 4