20190823Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:MATT HUNTER
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 22,2019
SUBJECT: THE APPLICATION OF INTERMOUNTAIN GAS COMPANY FOR
AUTHORITY TO CHANGE ITS PRICES, CASE NO. INT-G.I9.06.
On August 15,2019, Intermountain Gas Company applied to the Commission for
authority to change its rates, effective October 1,2019, to reflect changes in gas-related costs.
Application at 2.
THE APPLICATTON
With this Application, Intermountain seeks to pass through to its customers changes
in gas-related costs resulting from: (1) costs billed to Intermountain 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 Intermountain; (3) a decrease in Intermountain'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
Intermountain's deferred gas cost accounts; (6) benefits resulting from Intermountain'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 Intermountain's general rate case, Case No. INT-G-16-02;
and (9) the recovery of deferred in-person customer payment fees. Id. at 4. Intermountain 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-I8-02. Id. The changes to the rates will decrease
DECISION MEMORANDUM 1
Intermountain's annualized revenues by $1.1 million. Id. at l. The changes would decrease prices
for Intermountain's RS, T3, and T-4 customers and increase prices for its GS-l and LV-l
customers. Id. at 4.
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Application and Notice of
Modified Procedure, with comments due September 13,2019, and reply comments, if any, due
September 18, 2019. Staff believes that this shortened comment period is necessary because the
Company is requesting that the new prices be effective October l,20l9t .
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and a Notice of Modified
Procedure, with comments due September 13,2019, and reply comments, if any, due September
18,2019?
Matt Hunter
Deputy Attorney General
I:U-egal\CASUNT-G-19-06\N,IemoS\INTGl906 mh.doc
I Procedural Rule 202.02,IDAPA 3 1.01.01.202.02 states: "... Unless otherwise provided by the notice of modified
procedure, all interested persons will have at least twenty-one (2 I ) days from the date of the notice to file a written
protest or comment."
2DECISION MEMORANDUM