20171229Decision Memo.pdf

DECISION MEMORANDT'M
TO:COMIVfl SSIONER KJEL LAI{DER
COMI/ilSSIONER RAPER
COMNIISSIONER ANDERSON
COMMISSION SECRETARY
COMNfiSSION STAFF
FROM:CAMILLE CHRISTEN
DEPUTY ATTORNEY GENERAL
DATE: DECEMBER 28,2017
SUBJECT:THE APPLICATION OF' INTERMOT.'NTAIN GAS COMPANY FOR
AUTHORITY TO IMPLEMENT AIY INFRASTRUCTURE INTEGRITY
MANAGEMENT MECHANISM, CASE NO. INT.G.I1 47.
On December 18, 2017, Intermountain Gas Company submitted an application for
authority to implement an Infrastructure Integrity Management Mechanism (IIMM). The
Application included the Company's proposed rate sshedule and asked that the Comrnission
process the case by Modified Procedure.
The Company asserts the IIMM is a cost recovery mechanism designed to allow the
Company to accelerate the replacement of aging infrastructure, to mitigate the increasing impact
of regulation on the Company's capital and operations and maintenance (O&M) budgets, and to
more proactively address safety issues on its system. Application at 3. The Company anticipates
with the implementation of the proposed IIMM, it \ryill be able to accelerate its program of
replacements of pipe that has a potential risk of failure, which currently can be subject to budget
Iimitations. Id. at 4. The Company also anticipates it will be able to implement capital projects
required by federal, state, or local authorities while also implementing other necessary capital
projects. Id. ati. The Company describes how the proposed IIMM would work. Id. at7-8.
STAFT RECOMMENDATION
Staffrecommends that the Commission issue a Notice of Application and set a deadline
for petitions to intervene of 2l days from the date of the Order. After the intervention deadline
has passed, Staff\ryill confer with parties regarding a schedule for processing the case.
DECISION MEMORANDUM I
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and set a deadline for
petitions to intervene of 2l days from the date of the Order?
t*Jj, (l***,
Camille Christen
Deputy Attorney General
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1DECISION MEMORANDUM