20190930final_order_no_34448.pdf

Office of the Secretary
Service Date
September 30,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.INT-G-19-06OFINTERMOUNTAINGASCOMPANYFOR)AUTHORITY TO CHANGE ITS PRICES (2019 )PURCHASED GAS COST ADJUSTMENT).)ORDER NO.34448
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.
On August 28,2019,the Commission issued a Notice of Application and Notice of
Modified Procedure.Order No.34429.Commission Staff filed the only comments.
Having reviewed the record,the Commission approves the Company's Application as
set forth below.
THE 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
(includingNorthwest Pipeline LLC);(2)replacement of long-term segmented Northwest Pipeline
LLC capacityreceived from third parties with firm Northwest Pipeline LLC capacity held directly
by the Company;(3)a decrease in the 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-
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person customer payment fees.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.The changes to the rates will decrease the Company's annualized revenues by
approximately $1.1 million,but will not impact earnings.
COMMENTS
Staff recommended approval of the Company's Application.Having examined the
Application,workpapers,and exhibits for this case,Staff believes that the Company's PGA
proposal would not impact the Company's earnings,that the deferred costs are prudent and
properly calculated,and that the Company's WACOG request is reasonable.
COMMISSION FINDINGS
The Commission has reviewed the record,including the Application and comments.
The Company is a gas corporation and public utility,and the Commission has jurisdiction over it
and the issues in this case under Title 61 of the Idaho Code,and more specifically,Idaho Code §§
61-117,61-129,61-307,61-501,and 61-502.The Commission must establish just,reasonable,
and sufficient rates for utilities subject to its jurisdiction.Idaho Code §61-502.
Based on our review of the record,we find that the Company's proposed rate changes
to Schedules RS,T-3,T-4,GS-1,and LV-1 accurately capture the Company's variable costs.We
also find the Company's WACOG request reasonable.We thus find it fair,just,and reasonable to
approve the Company's proposed schedule changes.The Company should issue direct notice to
its customers of these changes in accord with Rule 125.IDAPA 31.01.01.125.
We also find that quarterly WACOG reports and monthlydeferred cost reports provide
useful information and assist Staff with determining whether to audit earlier than planned,and
whether an interim filing might be needed.
ORDER
IT IS HEREBY ORDERED that the Company's Application for authority to change
its prices is approved -for a total revenue decrease of $1.1 million,with new rates to take effect
on October 1,2019.The Company's proposed tariffs are approved as filed.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order with regard to any
matter decided in this Order.Within seven (7)days after any person has petitioned for
ORDER NO.34448 2
reconsideration,any other person may cross-petition for reconsideration.See Idaho Code §61-
626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of September 2019.
PAUL KJELLA ,PRESIDENT
A R,ISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST4
Diane M.Hanian
Commission Secretary
I:\Legal\GAS\INT-G-19-06\Orders\lNTGl906_FinaLmh.docx
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