20180824Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJE,LLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STATF
LEGAL
FROM:BRANDON KARPEN
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 23, 2018
SUBJECT: THE APPLICATTON OF INTERMOUNTAIN GAS COMPANY FOR
AUTHORITY TO CHANGE ITS PRICES, CASE NO. INT.G.I8.Oz.
On August 10,2018, Intermountain Gas Company applied to the Commission for
authority to change its rates, effective October l,2018, to reflect changes in gas related costs.
Application at2-3,
THE APPLICATION
With this Application, Intermountain seeks to pass through to its customers changes
in gas-related costs resulting from the following: (l) costs billed to Intermountain from firm
transportation providcrs (including Northwest Pipeline LLC); (2) a decrease in Intermountain's
Weighted Average Cost of Cas (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 lor one year relating to natural gas purchases and
interstate transporlation costs from Intermountain's deferred gas cost accounts; (5) benefits
resulting from Intermountain's management of its slorage and firm capacity rights on various
pipeline systems; (6) costs accrued relaled 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. Intermountain also
seeks authority to eliminate the temporary surcharges and credits included in its current prices
during the past I2 months pursuant to Case No. INT-G-17'05. ld. The changes to the rates will
decrease Intermountain's annualized revenues by $24.5 million. Id. at2. The changes will result
in a price decrease to Intermountain's RS, GS-1, and LV-l customers and a price increase to its
T-3 and T-4 customers. /d. at 4.
DECISION MEMORANDUM I
STAPT RECOMMENDATION
Staff recomrnends that the Commission issue a Notice of Application and Notice of
Modified Procedure, with comments due September I 8, 2018, and reply comments, if any, due
September 20, 2018.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and a Notice of Modified
Procedure, with comments due September 18,2018, and reply comments, if any, due September
20, 201 g?
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?DECISION MEMORANDUM