20190913Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE: SEPTEMBER 12,2019
SUBJECT:INTERMOUNTAIN GAS COMPANY'S APPLICATION FOR
DETERMINATION OF 2017-2018 ENERGY EFFICIENCY EXPENSES AS
PRUDENTLY INCURRED; CASE NO. INT-G-19-04.
On August 9,2019Intermountain Gas Company ("lntermountain Gas" or "Company")
applied to the Commission for an order designating expenses associated with its 2017-2018
residential Energy Efficiency Program ("EE Program") as prudently incurred. Intermountain Gas
requests that its application be processed under Modified Procedure.
BACKGROUND
In Case No. INT-G-17-03,lntermountain Gas received the Commission's authority to
implement: l) Rate Schedule EE-Residential Energy Efficiency Rebate Program, outlining the
offerings of the EE Program; and 2) Rate Schedule EEC-Energy Efficiency Charge ("EE
Charge"), establishing a per therm charge to fund the EE Program. See Order No. 33888;
Application at 4. The EE Program is funded through collection from customers via the EE Charge
of $0.00367 per therm. Application at 5. Both Schedules became effective October 1,2017. Id. at
4. The initial period for both Schedules ran from October 1,2017 through December 31,2018
("Initial Period"). /d.
2017-2018 EE Program Expenses
The Company asks the Commission to find the Company prudently incurred
$1,496,198 in EE Program expenses during the Initial Period. Id at 5,8. Of these expenses,
$1,227,650, or 82o/o, was spent on rebates paid directly to customers. 1d. at 5. The remaining
$268,548 was incurred for labor, program delivery, and a conservation potential assessment - Id. at
DECISION MEMORANDUM I
6.TheEEChargerevenueforthelnitialPeriodwas$1,185,328. Id.at5.ForthelnitialPeriod,the
expenditures exceeded the revenues collected through the EE Charge by $310,870, which the
Company is deferring and will submit a separate application seeking to adjust the EE, Charge. Id.
at 6.
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Application and Notice of
Modified Procedure, with a December 16,2019 comment deadline and Company reply comments
due December 30, 2019.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and a Notice of Modified
Procedure, with a December 16, 2019 comment deadline and Company reply comments due
December 30,2019?
Dayn Hardie
Deputy Attorney General
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