20171103Decision Memo.pdf

DECISION IVIEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAPHNE HUANG
DEPUTY ATTORNEY GENERAL
SUBJECT: INTERMOUNTAIN GAS COMPANY'S APPLICATION TO INCREASE
DEPRECIATION & AMORTIZATION RATES; CASE NO.INT-G-17-06
On October27,2017, Intermountain Gas Company asked to: (l) 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.
The Company proposes the changes - which would not increase the rates it charges to provide
natural gas to customers - because the Company's most recent studies show it under-depreciates
its assets and over-amortizes General Plant Account Nos. 391, 393, 394, 395, 397, and 398. The
Company proposes a January l, 2018 effective date, and asks the Commission to process the
case by Modified Procedure.
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Application and Notice of
Intervention Deadline with a l4day intervention period. After the intervention period, the
parties would informally meet to possibly settle any outstanding issues. Staff would then report
back to the Commission, and a Notice of Modified Procedure could be issued, if necessary.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Intervention
Deadline of l4 days from the service date of the Commission's Notice and Order?
Daphne
I \Lcpn.MEMOS III-IG l?06_djhl.doc
DECISION MEMORANDUM
Deputy Attorney General
DATE: OCTOBER 31,2017
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