20190815Application.pdf

EXECUTIVE OFFICES
I NrenrvIouNTAtN Gns Cotu PeruY
555 SOUTH COLE ROAD . p.o. Box 7608 . BOlsE, IDAHO 83707 . [phone] r FAX: [phone]
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August 15,2019
Ms. Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
RE: Case No. INT-G-I9-05
Dear Ms. Hanian:
Attached for consideration by this Commission are the original and seven (7) copies of
Intermountain Gas Company's Application for Authority to Revise Rate Schedule EEC - Energy
Efficiency Charge.
If you should have any questions regarding the attached, please don't hesitate to contact me at
(208) 377-60rs.
Very truly yours,
frwrt6tH
Lori A. Blattner
Director, Regulatory Affairs
Intermountain Gas Company
Enclosure
Mark Chiles
Preston Carter
cc
INTERMOUNTAIN GAS COMPANY
CASE NO. INT.G-19.05
APPLICATION,
EXHIBITS,
A1\[D
WORIGAPERS
In the Matter of the Application of INTERMOUNTAIN GAS COMPAIYY
For Authority to Revise Rate Schedule EEC - Energy Efficiency Charge
Preston N. Carter, ISB No. 8462
Givens Pursley LLP
601 W. Bannock St.
Boise,Idaho 83702
Telephone: (208) 3 88- I 200
Attomeys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
In the Matter of the Application of
INTERMOLINTAIN GAS COMPANY
for Authority to Revise Rate Schedule
EEC _
Intermountain Gas Company ("Intermountain" or "Company"), a subsidiary of MDU
Resources Group, Inc. with general offices located at 555 South Cole Road, Boise,Idaho, pursuant
to the Rules of Procedure of the Idaho Public Utilities Commission ("Commission"), hereby
requests an order approving an increase in the Energy Efficiency Charge, Rate Schedule EEC, from
$0.00367 per therm to $0.02093 per therm, effective October 1,2019.
Please address communications regarding this Application to:
Preston N. Carter
Givens Pursley LLP
601 W. Bannock St.
Boise,Idaho 83702
[e-mail]
kendrah@givenspursley. com
and
Lori A. Blattner
Director - Regulatory Affairs
Intermountain Gas Company
Post Office Box 7608
Boise,ID 83707
Lori.Blattner@intgas. com
In support of this Application, Intermountain alleges and states as follows.
INTERMOLINTATN GAS COMPANY'S APPLICATION - 2
Case No. INT-G-I9-05
APPLICATION
I.
Intermountain is a gas utility, subject to the jurisdiction of the Commission, engaged in the
sale of and distribution of natural gas within the State of Idaho under authority of Commission
Certificate No. 219, issued December 2,1955, as amended and supplemented by Order No. 6564,
dated October 3,1962.
Intermountain provides natural gas service to the following Idaho commtrnities and counties
and adjoining areas:
Ada County - Boise, Eagle, Garden City, Kuna, Meridian, and Star;
Bannock County - Arimo, Chubbuck, Inkom, Lava Hot Springs, McCammon, and Pocatello;
Bear Lake County - Georgetown, and Montpelier;
Bingham County - Aberdeen, Basalt, Blackfoot, Firth, Fort Hall, Moreland,/Riverside, and Shelley;
Blaine County - Bellevue, Hailey, Ketchum, and Sun Valley;
Bonneville County - Ammon, Idaho Falls,Iona, and Ucon;
Canyon County - Caldwell, Greenleaf, Middleton, Nampa, Parma, and Wilder;
Caribou County - Bancroft, Grace, and Soda Springs;
Cassia County - Burley, Declo, Malta, and Raft River;
Elmore County - Glenns F.rry, Hammett, and Mountain Home;
Fremont County - Parker, and St. Anthony;
Gem County - Emmett;
Gooding County - Gooding, and Wendell;
Jefferson County - Lewisville, Menan, Rigby, and Ririe;
Jerome County - Jerome;
Lincoln County - Shoshone;
Madison County - Rexburg, and Sugar City;
Minidoka County - Heybum, Paul, and Rupert;
Owyhee County - Bruneau, and Homedale;
Payette County - Fruitland, New Plymouth, and Payette;
Power County - American Falls;
Twin Falls County - Buhl, Filer, Hansen, Kimberly, Murtaugh, and Twin Falls;
Washington County - Weiser.
Intermountain's properties in these locations consist of transmission pipelines, liquefied
natural gas storage facilities, a compressor station, distribution mains, services, meters and
regulators, and general plant and equipment.
II.
In Order No. 33888, Case No. INT-G-I7-03, the Commission authorized the Company to
implement Rate Schedule EEC - Energy Efficiency Charge ("EEC") to fund its newly created
Residential Energy Efficiency Rebate Program ("EE Program"). The EEC is currently $0.00367
and was based on a budget of $777,000 of total annual program expenditures that included direct
rebate expenses, personnel expenses, program delivery, and ramp-up expenses. Due to customer
INTERMOLTNTAIN GAS COMPANY'S APPLICATION - 3
growth, the EEC is currently collecting approximately $935,000 per year based on actual collections
from July 2018 through June 2019.
ru.
From the start of the program on October 1,2017 through June 30, 2019 EEC revenues
collected from customers totaled $1,712,654. For the same time period, program expenses were
S2,810,560. Of the total program expenses $2.2 million, or 77oh, were rebates paid directly to
customers. Because of the positive customer response to the new EE Program, expenses outpaced
revenues resulting in a deferred balance through June 2019 of $1,097,907. The Company requests
approval to collect this deferred balance from residential customers as illustrated on Exhibit No. l,
which is attached and incorporated by reference. The Company recently applied to the Commission
for a determination that EE Program expenses from the start of the program in October 2017
through the program year ended December 2018 were prudently incurred.
Iv.
To allow for the participation in the program of all interested customers, and to continue
to grow the program, the Company anticipates annual total costs of approximately $3,944,642
going forward. This increase of $3.2 million over the previously anticipated program cost
estimate of $777 ,000 is based on the .overwhelming success of the first twenty-one months of the
program. The forecast program expenses are based on actual program expenses through June 30,
2019 adjusted for continued program growth. As shown on Exhibit No. 1, this includes an
estimate of $3,300,000 in rebate payments and $644,642 for program delivery and
administration.
The $3,300,000 of anticipated rebate payments, representingS4% of the proposed
program costs, are estimated based on actual program participation growth through June 2019. It
also includes the plan to further expand the residential program based on a recently completed
Conservation Potential Assessment study.
While overall growth of the program is expected, the Whole Home rebate offering is
expected to grow significantly. Before any active promotion of the program, the Company only
had two builders participate in the Whole Home rebate. As of the end of June 2019 there are
approximately twenty builders that have been regularly participating in the program. By August
2019, Whole Home rebates are projected to match the number of Whole Home rebates submitted
through the entire program year of2018.
INTERMOLTNTATN GAS COMPANY'S APPLICATION - 4
In addition, a second builder is working toward 100% ENERGY STAR certification.
This would mean all of the homes built by that builder would qualiff for the Whole Home
rebate. The Whole Home rebate offering is expected to account for approximately 40oh of all
rebates, and70%o of all rebate dollars. Thus, the Company significantly increased its budget
related to Whole Home energy rebates to accommodate the expected growth described above.
The Company also forecasts 9644,642 of anticipated program delivery and administration
costs. Program delivery includes outreach activities and events, promotional materials, and
consultant fees to conduct an Evaluation, Measurement and Verification study. Program
administration includes the labor costs required for program management, program development,
promotion, rebate processing, and reporting.
Incorporating the under-collected balance of $1,097,907,the total amount to be collected
from residential customers during a 12-month period is $5,042,549 as seen on Exhibit No.l.
v.
Based on the above costs, the Company proposes to increase the EEC from $0.00367 to
$0.02093. Exhibit No. 2 shows the derivation of the proposed per therm EEC, which is calculated
by dividing the total amount to be collected from residential customers by normalized therm sales
for Rate Schedule RS, as determined in the Company's annual Purchased Gas Cost Adjustment
filing. Exhibit No. 2 is attached and incorporated by reference.
The proposed increase in the EEC results in $4,265,549 of incremental EE Program annual
revenues. A typical Residential customer of Intermountain would see a monthly increase of $1.07
as a result of this proposal.
vr.
The Company proposes to make the EEC change effective October I,2019 to coincide with
the effective date of the price change related to the Company's annual Purchased Gas Cost
Adjustment. The Company believes this timing will help to minimize customer confusion that may
result from multiple rate changes in a year.
Intermountain's current Rate Schedules EEC and RS showing proposed changes in
legislative format are attached as Exhibit No. 3. The Company's resulting proposed Rate Schedules
EEC and RS (clean version) are attached as Exhibit No. 4.
VII.
This Application has been brought to the attention of Intermountain's customers through a
INTERMOUNTAIN GAS COMPANY'S APPLICATION - 5
Customer Notice and by a Press Release sent to daily and weekly ne\Mspapers, and major radio and
television stations in Intermountain's serice area. The Press Release and Customer Notice are
attached as Exhibit No. 5. Copies of this Application and is Exhibits have been provided to parties
ttrat regularly intervene in Intermountain's rate proceedings.
vI[
Intermountain requests that this matter be handled under modified procedrue pursuant to
Rules 201-204 of the Commission's Rules of Procedure. Intermountain stands ready for immediate
consideration of this matter.
Ix.
Intermountain respectfully petitions the Idatro Public Utilities Commission as follows:
a. That the Commission issue an order approving an increase to the Energy Effrciency
Charge, Rate Schedule EEC, from $0.00367 per therm to $0.02093 per therm, effective October l,
2019,
b. That this Application be heard and acted upon without hearing under modified procedure,
an4
c. For such other relief as this Commission may determine proper,
DATED: August 15,2019.
INTERMOUNTAIN GAS COMPANY GIVENS PURSLEY LLP
By By
Lori A. Blattner
Director - Regulatory Affairs
INTERMOUNTAIN GAS COMPAI.IY'S APPLICATION - 6
Preston N. Carter
Attorney for Intermountain Gas Company
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on August 15, 2019,I served a copy of the foregoing
Application upon:
Ed Finklea
Alliance of Western Energy Consumers
545 Grandview Drive
Ashland, OR 97520
Chad Stokes
Cable Huston et al.
1001 SW Fifth Avenue, Suite 2000
Portland, Oregon 97204-1136
Brad Purdy
Attorney for Community Action
Partnership Association of Idaho (CAPAI)
2019 N. 17th Street
Boise, ID 83702
Benjamin Otto
Idaho Conservation League
710 N. 6th Street
Boise,lD 83702
by depositing true copies thereof in the United States Mail, postage prepaid, in envelopes addressed
to said persons at the above addresses.
A. Blattner
Director - Regulatory Affairs
INTERMOUNTAIN GAS COMPANY'S APPLICATION - 7
EXHIBIT NO. 1
CASE NO. INT.G.19.O5
Intermountain Gas Company
Proposed Annual EE Program Funding
Exhibit No. 1
Case No. INT-G-19-05
lntermountain Gas Company
Page 1 of 1
Line
No.
INTERMOUNTAIN GAS COMPANY
Residential Energy Efficiency Rebate Program
Annual Funding
Description Amount
(a)
1 Annual Budset:
2 Rebate Payments
3 ProgramAdministration
4 Total Annual Budget
5 Deferred Balance:
6 Defened Balance Held for Collection
7 Annual EE Program Fundlng
(b)
$ 3,300,000
644,642
$ 3,944,642
1,097,907
$ 5,042,549
EXHIBIT NO.2
CASE NO. INT.G.19.O5
Intermountain Gas Company
Proposed Energy Efficiency Charge
Exhibit No. 2
Case No. INT-G-19-05
lntermountain Gas Company
Page 1 of 1
Line
No.
INTERMOUNTAIN GAS COMPANY
Energy Efficiency Charge
Description Amount
(a)
1 AnnualEE Program Funding (Ex. No. 1, Col. (b), Ln.7)
2 RS Normalized Sales Volumes (1/1/18 - 12131118)
3 Per Therm Energy Efficiency Charge
$
(b)
5,042,549
240,971,135
$ 0.02093
EXHIBIT NO.3
CASE NO. INT.G-19-05
Intermountain Gas Company
Proposed Tariff
(Legislative Format)
LP.U.C. Gas Tariff
Rate Schedules
Fenrtlr Revised Fifth Sheet No. 1 (Page 1 of 1)
Nam€
of Utility lntermountain Gae Company
Exhibit No. 3
Case No. INT-G-19-05
lntermountain Gas Company
Page I of 2
Rate Schedule RS
RESIDENTIAL SERVICE
APPLICABILITY:
Applicable to any customer using natural gas br residential purposes.
RATE:
Monthly minimum charge is the CustomerCharge.
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Sept-f+,+g+S ffiettPct€EiH+l€4
Diane M. Hanian Secretary
($0.07741)
$0.22724
$0.18901
Customer Charge:
Per Therm Charge:
*lncludes the following:
Cost of Gas:
$5.50 per bill
$€50556* $0.52282
1 ) Temporary purchased gas cost adjustment
2) Weighted average cost of gas
3) Gas transportation cost
Distribution Cost:
EE Charge:
$0.16305
-s€f,ffiGr $0.020e3
PURCHASED GAS COST ADJUSTMENT:
This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA.
This adjustment is incorporated into the calculation of the Cost of Gas stated on custrcmer bills.
ENERGY EFFICIENCY CHARGE ADJUSTMENT:
This trariff is subject to an adjustment for cosb related to the Company's Energy Efficiency prognm as
provided ficr in Rate Schedule EEC. The Energy Efficiency Charge is separately stated on customer bills.
SERVICE CONDITIONS:
All natural gas service hereunder is subject to the General SeMce ProMsions of the Company's Tarifi, of
which this rate schedule is a part.
lssued by: lntermountain Gas Company
By: trffiHrle€eath Lori A' Blattner Title: Director - Regulatory Affairs
Effective: ffif€ October 1' 2019
Exhibit No. 3
Case No. INT-G-19-05
lntermountain Gas Company
Page 2 ot 2
IDAHO PUBLIC UT!LITIES COMMISSIONApproved EffectiveSffi+r ffiti@
Diane M. Hanian Secretary
Rate Schedule EEG
ENERGY EFFICIENCY CHARGE
APPLICABILITY:
Applicable to customers taking service under Rate Schedule RS. The Energy Efficiency Charge is
designed to fund administrative and program delivery costs incurred by the Company for energy
efficiency services provided to customers as outlined in Rate Schedule EE.
MONTHLY RATE
The Monthly Rate is equal to the applicable Energy Efficiency Charge multiplied by the monthly billed
therms.
Schedule
Rate Schedule RS
Enerqv Efficiencv Charqe
$e€g3e7 $0.020e3
l.P.U.C. Gas Tariff
Rate Schedules
erieinal First Revised Sheet No. 17 (Paqe 1 of 1)
Name lntermountain Gas Gompanyof Utility
tssued by: lntermountain Gas GompanyBy: Miehael P, Meerath Lori A. Blattner Title: Director - Regulatory Affairs
Effective: eeeber# October 1, 2019
EXHIBIT NO.4
CASE NO. INT.G.19.O5
Intermountain Gas Company
Proposed Tariff
(Clean Format)
l.P.U.C. Gas Tariff
Rate Schedules
Fifth Revised Sheet No. 1 (Page 1 of 1)
Name
of Utility lntermountain Gas Company
Exhibit No. 4
Case No. INT-G-19-05
lntermountain Gas Company
Page 1 ot2
Rate Schedule RS
RESIDENTIAL SERVICE
APPLICABIL!TY:
Applicable to any customer using naturalgas for residential purposes.
RATE:
Monthly minimum charge is the Customer Charge.
Customer Charge:
Per Therm Charge:
*lncludes the following:
Cost of Gas:
$5.50 per bill
$0.52282.
1) Temporary purchased gas cost adjustment
2) Weighted average cost of gas
3) Gas transportation cost
($0.07741)
$0.22724
$0.18901
Distribution Cost:
EE Charge:
$0.16305
$0.02093
PURCHASED GAS COST ADJUSTMENT
This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA.
This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills.
ENERGY EFFICIENCY CHARGE ADJUSTMENT:
This tariff is subject to an adjustment for costs related to the Company's Energy Efficiency program as
provided for in Rate Schedule EEC. The Energy Efficiency Charge is separately stated on customer bills.
SERVICE CONDITIONS:
All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of
which this rate schedule is a part.
rssued by: lntermountain Gas Company
By: Lori A. Blaftner Title: Director - Regulatory Affairs
Effective: October 1, 2019
l.P.U.C. Gas Tariff
Rate Schedules
First Revised Sheet No. 17 (Page 1 of 1)
Name
of Utility lntermountain Gas Company
Exhibit No. 4
Case No. INT-G-19-05
lntermountain Gas Company
Page 2 ol 2
Rate Schedule EEG
ENERGY EFFICIENCY CHARGE
APPLICABILITY:
Applicable to customers taking service under Rate Schedule RS. The Energy Efficiency Charge is
designed to fund administrative and program delivery costs incurred by the Company for energy
efficiency services provided to customers as outlined in Rate Schedule EE.
MONTHLY RATE:
The Monthly Rate is equalto the applicable Energy Efficiency Charge multiplied by the monthly billed
therms.
Schedule
Rate Schedule RS
Enerov Efficiencv Charqe
$0.02093
tssued ny: lntermountain Gas CompanyBy: Lori A. Blattner Title: Director - Regulatory Affairs
Effective: October 1, 2019