20180904notice_of_application_order_no_34137.pdf

Office of the Secretary
Service Date
September 4,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.INT-G-18-02
OF INTERMOUNTAIN GAS COMPANY )
FOR AUTHORITY TO CHANGE ITS )NOTICE OF APPLICATION
PRICES )
)NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.34137
On August 10,2018,Intermountain Gas Company (the "Company")applied to the
Commission for authority to change its rates,effective October 1,2018,to reflect changes in gas-
related costs.If approved,the Company's proposal would decrease the average residential
customer's rates by 10%or $4.12 per month,and the average commercial customer's rates by
about l 1.9%or $21.89 per month.The proposal would increase rates for Transportation customers
on Schedule T-3 by 6.84%and,by 2.3%for those on Schedule T-4.See Application at 2-3,and
Exhibit No.1.The Commission now issues this Notice of Application and Notice of Modified
Procedure setting comment and reply deadlines.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company's rates include a base rate
component and a gas-related cost component.The base rate component is intended to cover the
Company's fixed costs to serve its customers -for example,the Company's costs for equipment
and facilities to provide service -and rarely change.The current base rates were approved in
Order No.33887,Case No.INT-G-17-05.See id.
YOU ARE FURTHER NOTIFIED that the gas-related cost component of the
Company's rates is at issue here.Specifically,with this Application,the Company seeks to change
its rates to pass through to customers changes in gas-related costs resulting from:(1)costs billed
to the Company from firm transportation providers (including Northwest Pipeline LLC);(2)a
decrease in the Company's Weighted Average Cost of Gas (WACOG);(3)an updated customer
allocation of gas-related costs pursuant to the Company's Purchased Gas Cost Adjustment (PGA)
provision;(4)the inclusion of temporary surcharges and credits for one year relating to natural gas
purchases and interstate transportation costs from the Company's deferred gas cost accounts;(5)
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34137 1
benefits resulting from the Company's management of its storage and firm capacity rights on
various pipeline systems;(6)costs accrued related to the Company's general rate case;and (7)
benefits generated by changes to the federal and state income tax codes.Id.at 3-4.The Cornpany
also seeks authorityto eliminate the temporary surcharges and credits included in its current prices
during the past 12 months pursuant to Case No.INT-G-17-05.Id
YOU ARE FURTHER NOTIFIED that the changes to the rates will decrease the
Company's annualized revenues by $24.5 million.Id at 2.As described above,the changes will
result in a price decrease to the Company's RS,GS-1,and LV-1 customers and a price increase to
its T-3 and T-4 customers.Id at 4.
YOU ARE FURTHER NOTIFIED that the changes to the rates will decrease the
Company's annualized revenues by 10.2%,or approximately $24.5 million,but will not impact
earnings.Id at 2.
YOU ARE FURTHER NOTIFIED that the Company also explains that the proposed
rate changes would be allocated to customer classes through its PGA provision.Id.at 7.
YOU ARE FURTHER NOTIFIED that the Company provides supporting exhibits that
analyze the overall price changes by customer class.Id.The Company also provides its proposed
rate schedules and tariff sheets.See id at Exhibit Nos.1-2.
YOU ARE FURTHER NOTIFIED that the Application and supporting documentation
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices.These documents are also available on the
Commission's web site at nu a o il Click on the "File Room"tab at the top of the
page,then select "Natural Gas Cases"and click on the case number as shown on the front of this
document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically Idaho
Code §§61-502 and 61-503.The Commission may enter any final Order consistent with its
authorityunder Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000et seq.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34137 2
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determinedthat the public
interest may not require a formal hearing in this matter,and that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission's Rules of Procedure,IDAPA
31.01.01.201 through .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 person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission by no later
than September 18,2018.The comment 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 shall be mailed to the Commission and
the Company at the addresses reflected below:
Commission Secretary Michael P.McGrath
Idaho Public Utilities Commission Director -Regulatory Affairs
PO Box 83720 Intermountain Gas Company
Boise,ID 83720-0074 P.O.Box 7608
Boise,ID 83707
Street Address for Express Mail:
Preston N.Carter
472 W.Washington Street Givens Pursley LLP
Boise,ID 83702-5918 601 W.Bannock St.
Boise,ID 83702
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 we ·Click the "Case Comment or Question
Form"under the "Consumers"tab,and complete the comment form using the case number as it
appears on the front of this document.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
necessary,by no later than September 20,2018.
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 APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34137 3
ORDER
IT IS HEREBY ORDERED that the Application of Intermountain Gas Company be
processed by Modified Procedure,Rule 201-204 (IDAPA 31.01.01.201-.204).Persons interested
in submitting written comments must do so no later September 18,2018.The Company may file
a reply no later than September 20,2018.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of September 2018.
PAUL KJELL DÊ RESIDENT
KRI INE RAPER,C SSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
I:\Legal\GAS\INT-G-18-02\Orders\INTGl802NtcAppMod bkl doc
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34137 4