20190828notice_of_application_order_no_34429.pdf

Office of the Secretary
Service Date
August 28,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.INT-G-19-06
OF INTERMOUNTAIN GAS COMPANY )
FOR AUTHORITY TO CHANGE ITS )NOTICE OF APPLICATION
PRICES )
)NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.34429
On August 15,2019,Intermountain Gas Company (the "Company")applied to the
Commission for authorityto change its rates,effective October 1,2019,to reflect changes in gas-
related costs.If approved,the Company's proposal would decrease the average residential
customer's rates by 0.78%or $0.29 per month,decrease rates for Schedule T-3 (Interruptible
Distribution Transportation Service)customers by 0.15%,and decrease the demand charge rate
for Schedule T-4 (Firm Distribution Transportation Service)customers by 0.94%.The proposal
would increase rates for Schedule GS-1 (General Service)customers by 0.16%,and increase rates
for Schedule LV-1 (Large Volume)customers by 0.10%.See Application at 4,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.33757,Case No.INT-G-16-02.
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)
replacement of long-term segmented Northwest Pipeline LLC capacity received from third parties
with firm Northwest Pipeline LLC capacity held directly by the Company;(3)a decrease in the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34429 1
Company's Weighted Average Cost of Gas (WACOG);(4)an updated customer allocation of gas-
related costs under the Company's Purchased Gas Cost Adjustment (PGA)provision;(5)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;(6)benefits
resulting from the Company's management of its storage and firm capacity rights on various
pipeline systems;(7)benefits associated with the sale of liquefied natural gas from the Company's
Nampa,Idaho facility;(8)a portion of the costs accrued related to the Company's general rate
case,Case No.INT-G-16-02;and (9)the recovery of deferred in-person customer payment fees.
Id.at 4.The Company also seeks to eliminate the temporary surcharges and credits included in its
current process during the past 12 months pursuant to Case No.INT-G-18-02.
YOU ARE FURTHER NOTIFIED that the changes to the rates will decrease the
Company's annualized revenues by approximately $1.1 million,but will not impact earnings.
YOU ARE FURTHER NOTIFIED that the Company also explains that the proposed
rate changes would be allocated to customer classes through its PGA provision.
YOU ARE FURTHER NOTIFIED that the Company provides supporting exhibits that
analyze the overall price changes by customer class.The Company also provides its proposed rate
schedules and tariff sheets.See Application,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 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
authority under 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.34429 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
September 13,20191.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 Lori A.Blattner
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 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 September 18,2019.
i The Commission usually provides parties at least 21 days from the issuance of the notice of Modified Procedure to
file written comments.See IDAPA 31.01.01.202.02.However,the Company requested that the new gas prices go into
effect on October I,2019.Application at 2.Additionally,the Commission will have a limited meeting schedule in
September in order to facilitate the agency's move to a new building.In light of these facts,the Commission believes
an expedited comment period is appropriate.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34429 3
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.
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 13,2019.The Company may file
a reply no later than September 18,2019.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2019.
PAULkJELLA DEI RESIDENT
KR-ISTINE RAPER,CbMMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
I:\Legal\GAS\lNT-G-19-06\Orders\lNTGl906_NtcAppMod_midocx
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34429 4