20180216Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:CAMILLE CHRISTEN
DEPUTY ATTORNEY GENERAL
DATE: FEBRUARY 16,2018
SUBJECT:IN THE MATTER OF TTTE APPLICATION OF INTERMOUNTAIN GAS
COMPAI\IY FOR APPROVAL TO PLACE INTO EFFECT A CHANGE IN
ITS DEPRECIATION AND AMORTIZATION RATES,
CASE NO.INT.G.I7.O6
On October 27, 2017, Intermountain Gas Company filed an Application seeking
approval to change its composite depreciation and amortization rates. The Company asked to:
( I ) increase its composite depreciation rate from 3.05% (3.09% when weighted by December 3 I ,
2016 assets) to 3.l8Yo;t 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 under-depreciates its assets and over-amortizes 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 noticed and
held in the Commission offices on January 10,2018, and further discussions ensued. On
February 12,2018, Commission Staff filed with the Commission a Settlement Stipulation agreed
to by the Company and Staff (collectively, the Parties) and a Motion asking the Commission to
accept the Stipulation and implement revised depreciation and amortization schedules effective
January 1,2018.
I As shown in Exhibit I of the Application.
2 As shown on Exhibit 2 of the Application.
IDECISION MEMORANDUM
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Settlement Stipulation and
Notice of Modified Procedure setting a deadline for comments of 21 days from the date of the
Order. Staff also recommends a deadline for reply comments by the Company of 7 days from
the comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Settlement Stipulation and Notice of
Modified Procedure setting a deadline for comments of 2l days from the date of the Order, and a
deadline for reply comments by the Company of 7 days from the comment deadline?
Camille Christen
Deputy Attorney General
I \Lcgal\GASVNT-G- I 7-06\IvlemosVNTG I ?06 cc dec memo re ntc of sertlement doc
2DECISION MEMORANDUM