20190829notice_of_application_order_no_34431.pdf

Office of the Secretary
Service Date
August 29,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.INT-G-19-05
OF INTERMOUNTAIN GAS COMPANY )FOR AUTHORITY TO REVISE RATE )NOTICE OF APPLICATION
SCHEDULE EEC -ENERGY EFFICIENCY )CHARGE )NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.34431
On August 15,2019,Intermountain Gas Company,a subsidiary of MDU Resources
Group,Inc.("IntermountainGas"or the "Company")applied to the Commission for an order
approving an increase in the Energy Efficiency Charge (the "EEC"),from $0.00367 per therm to
$0.02093 per therm.Application at 1.The Company asserts the EEC must be increased to recover
deferred Residential Energy Efficiency Rebate Program ("EE Program")expenses and to fund
forecasted future EE Program growth.Id.3-4.
The Company requests its Application be processed under Modified Procedure,and
that the proposed change to the EEC take effect on October 1,2019.Id at 5-6.
BACKGROUND
In Case No.INT-G-16-02 the Commission authorized Intermountain Gas to establish
the EE Program for its residential customers.See Order No.33757 at 35-37.The purpose of the
EE Program "is to encourage upgrades to,or use of,high efficiency natural gas equipment."Rate
Schedule EE,Intermountain Gas Company I.P.U.C.Gas Tariff,Sheet No.16 at 1;see also Energy
Efficiency 2018 Annual Report at 1,attached as Exhibit 1 to the Application in Case No.INT-G-
19-04.On July 27,2017,Intermountain Gas requested Commission authority to implement a
funding mechanism for the EE Program.See Order No.33888,Case No.INT-G-17-03.In Order
No.33888 the Commission approved this request and authorized the Company to charge its
residential customers $0.00367 per therm to fund the EE Program.See Rate Schedule EE,
Intermountain Gas Company I.P.U.C.Gas Tariff,Sheet No.17 at 1;see also Application at 3-4 &
Order No.33888 at 3.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34431 1
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Intermountain Gas asserts from October 1,2017,
throughJune 30,2019,EE Program expenses exceeded revenues by $1,097,907,which remains
deferred and unrecovered to date.Application at 4.
YOU ARE FURTHER NOTIFIED that Intermountain Gas asserts that due to the EE
Program's success and anticipated growth,its expenses are forecasted to be $3,944,642 annually.
Id.The Company estimates $3,300,000,or 84%of these future expenses,will be rebates paid to
customers participating in the EE Program.Id.
YOU ARE FURTHER NOTIFIED that Intermountain Gas requests Commission
authorityto increase the EEC to $0.02093 per therm so the Company can collect $5,042,549 next
year to recover EE Program deferred expenses and to fund its operation and growth.Id.
YOU ARE FURTHER NOTIFIED that Intermountain Gas requests that the proposed
EEC take effect October 1,2019,to coincide with the effective date of any rate changes resulting
from the Company's annual Purchased Gas Cost Adjustment.Id.at 5.Intermountain Gas states
the typical residential customer's monthly bill would increase by $1.07 if the Commission
approves the proposed EEC of $0.02093 per therm.Id.
YOU ARE FURTHER NOTIFIED that Intermountain Gas states it has informed its
customers of the Application through a Customer Notice and by a Press Release sent to daily and
weekly newspapers,and major radio and television stations in the Company's service area.Id.at
5-6.
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 will proceed under Modified Procedure
pursuant to Rules 201 through204 of the Idaho Public Utilities 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 the Commission finds good cause exists to
require written comments to be filed in this case on less than twenty-one (21)days-notice.This is
necessary in order to process the case to completion so that Commission authorized changes,if
any,to the EEC will take effect on October 1,2019,which is the same day any Commission
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34431 2
approved rate changes,if any,will take effect as a result of the Company's annual Purchased Gas
Cost Adjustment.See Case No.INT-G-19-06.Accordingly,any person desiring to state a position
on this Application may file a written comment in support or opposition with the Commission no
later than September 13,2019.The written comment must contain a statement of reasons
supporting it.Persons desiring a hearing must specifically request one in their written comments.
Written comments concerning this Application shall be mailed to the Commission and the
Company at the addresses reflected below:
For the Commission:For the Company:
Commission Secretary Preston N.Carter
Idaho Public Utilities Commission Givens Pursley LLP
PO Box 83720 601 W.Bannock Street
Boise,ID 83720-0074 Boise,Idaho 83702
E-mail:pnc givenspursely.com
Street Address for Express Mail:kendrah givenspursley.com
472 W.Washington Street Lori A.Blattner
Boise,ID 83702-5918 Director -Regulatory Affairs
Intermountain Gas Company
P.O.Box 7608
Boise,Idaho 83707
E-mail:
These written 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 www.puc.idaho.gov.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.These written comments must also be sent to the Company
at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that for the same reasons stated above for
shortening the period for filing written comments,the Commission similarly finds good cause
exists to reduce the period for the Company to file any reply written comments.Accordingly,the
Company may file reply comments,if necessary,no later than September 18,2019.
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
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ORDER NO.34431 3
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 this matter for a formal hearing.
YOU ARE FURTHER NOTIFIED that the Application and supporting work papers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission office.The Application and
supporting documentation are also available on the Commission's web site at www.pucidgho.goy.
Click on the "File Room"tab at the top of the page,scroll down to "Open Gas Cases,"and then
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 §§61-307,61-503,and 61-622.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.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure
(IDAPA 31.01.01.201 through .204).Interested persons wishing to file written comments or
protests in this matter must do so no later than September 13,2019.
IT IS FURTHER ORDERED that the Company may file reply comments,if necessary,
no later than September 18,2019.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34431 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2019.
PAUL KJELLAÑD ,PRESIDENT
KRISTINE RAPER,C MMISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
I:\Legal\GAS\lNT-G-19-05\lNTGl905 nteofapp mod_jrh.doex
NOTICE OF APPLICATION
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