20191203notice_of_filing_order_no_34497.pdf

Office of Secretary
Service Date
December 3,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF INTERMOUNTAIN )GAS COMPANY'S 2019-2023 INTEGRATED )CASE NO.INT-G-19-07
RESOURCE PLAN )
)NOTICE OF FILING
)NOTICE OF
)INTERVENTION DEADLINE
)ORDER NO.34497
On October 18,2019,Intermountain Gas Company ("Intermountainor "Company")
filed its Integrated Resource Plan ("IRP")for 2019-2023.Intermountain files an IRP every two
years to describe the Company's plans to meet its customers'future natural gas needs.The IRP
must discuss the subjects required by several Commission orders and Section 303(b)(3)of the
Public Utility Regulatory Policies Act ("PURPA"),15 U.S.C.§3202.The Idaho Public Utilities
Commission ("Commission")reviews the IRP to ensure that it discusses these subjects and
represents a diligent effort by the Company to plan for the anticipated supply and demand for
natural gas.
With this Order,the Commission outlines the IRP requirements,provides notice of the
IRP,and sets a deadline for submitting Petitions to Intervene.
BACKGROUND
In Order No.25342,the Commission adopted IRP requirements for local gas
distribution companies in response to amended Section 303 of PURPA.
In Order No.27024,the Commission shortened the IRP's planning horizon from 20
years to 5 years.Order No.27098 removed any requirement that IRPs formally evaluate potential
demand-side management ("DSM")programs,and instead directed the companies to explain
whether cost-effective DSM opportunities exist.
In the Company's 2013 IRP case,the Commission 1)directed the Company to continue
to work to improve public participation in the IRP process;and 2)allowed the Company to stop
filing semi-annual lost and unaccounted for gas ("LAUF Gas")reports.'Order No.32855.The
i LAUF Gas is the difference between the amount of natural gas delivered to the Company's distribution system at
the city gate and the amount of natural gas ultimately recorded at the customers'meters.
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IRP's LAUF Gas section must explain the Company's (a)framework for how it has tested for,
identified,and remediated equipment measurement errors or leaks,and (b)business process for
alleviating measurement errors through its financial accounting of nominations,scheduling,
measurements,flow volume allocation,and billing.See Order No.32855.
In Intermountain's 2015 IRP case,the Commission directed the Company to include
more detail in future IRPs about how the Company calculates avoided costs and uses those
calculations to determine whether natural gas DSM opportunities are cost-effective.See Order
No.33314.
Finally,in the Company's 2017 IRP case,the Commission directed the Company to
convene an IRP advisory group and work with it to develop future IRPs that comprehensively and
transparently consider demand,existing resources,and potential supply and demand-side options
for meeting any deficits.See Order No.33997.
In summary,these orders direct the Company to file an IRP every two years that
includes:
1.A forecast of future gas demand in firm and interruptible markets for each
customer class,which includes the number,type,and efficiency of gas end-
users as well as effects from economic forces on gas consumption;
2.An analysis of gas supply options for each customer class,which includes
a projection of spot market versus long-term purchases for both firm and
interruptible markets,an evaluation of the opportunities for using company-
owned or contracted storage or production,an analysis of prospects for
company participation in a gas futures market,and an assessment of
opportunities for access to multiplepipeline suppliers or direct purchases
from producers;
3.A comparative analysis of gas purchasing options and improvements in the
efficient use of gas,and an explanation of whether there are cost-effective
DSM opportunities;
4.The integration of the demand forecast and resource evaluationsinto a long-
range (at least a five-year)plan describing the strategies designed to meet
current and future needs at the lowest cost to the utility and its ratepayers;
5.A short-term (e.g.,two-year)plan outliningthe specific actions to be taken
by the utility in implementing the IRP;
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6.A progress report that relates the new plan to the previouslyfiled plan;and,
7.Public participation.
NOTICE OF IRP FILING
YOU ARE HEREBY NOTIFIED that the Company's IRP filing includes a 158-page
IRP and ten exhibits that contain extensive information associated with the IRP document.The
information summarized below is taken from the IRP's Executive Summary section and other
selected sections.
YOU ARE FURTHER NOTIFIED that Intermountain states it regularlyforecasts the
demand of its growing customer base and determines how to best meet the load requirements
brought on by this demand.IRP at 1-2.The Company's IRP represents a snapshot in time of the
Company's ongoing planning process;it describes the anticipated conditions over a five-year
planning horizon,the anticipated resource selections,and the process for making resource
decisions.Id at 1-2.
YOU ARE FURTHER NOTIFIED that Intermountain represents it sells natural gas to
two major markets:the residential/commercial market and the large volume market.Id.at 1 and
6.In 2018,the Company served 364,512 customers,roughly 330,000 of which are residential
customers.Id.at 1.Residential and commercial customers primarilyuse natural gas for space and
water heating.Id.Industrial customers use natural gas for boiler and manufacturing applications.
Id.at 1-2.Large volume demand for natural gas is strongly influenced by the agricultural economy
and the price of alternative fuels.Id.at 2.In 2018,industrial sales and transportation accounted
for 50%of the throughput on Intermountain's system.Id.at 2.
YOU ARE FURTHER NOTIFIED that the Company states it forecasts changes in its
peak-dayloads due to customer growth under base case,high,and low growth economic scenarios.
Id.at 2.In this IRP,the Company forecasts a base case growth scenario in which its total
residential,commercial,and industrial peak-day loads increase each year for five years by an
average of 2.08%in the base case scenario.Id.at 95.Intermountain says this increase in peak-
day loads corresponds to expected growth in the Company's markets for residential and small
commercial customers.The Company sees no peak-day deliverydeficits over the next five years
when it matches its forecasted peak-day deliveryagainst its existing resources.Id.at 3-4.
YOU ARE FURTHER NOTIFIED that to enhance the IRP,the Company established the
Intermountain Gas Resource Advisory Committee ("IGRAC").Id.at 3.The intent of the
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committee is to provide a forum through which public participation can occur as the IRP is
developed.Id.Advisory committee members were solicited from across Intermountain's service
territory as representatives of the communities served by the Company.Id.Intermountain states
it held meetings across its service territory to ensure travel would not impact the ability of
committee members and the public to participate.Id.The Company stated it provided a comment
period after each meeting to ensure feedback was timely and could be incorporated into the IRP.
Id.
YOU ARE FURTHER NOTIFIED that the Company also analyzes different
geographic areas in its service territoryso it can plan to meet any projected deficits in those areas.
Id.at 8.In this IRP,the Company analyzed the Idaho Falls Lateral,the Sun ValleyLateral,Canyon
County Area,the State Street Lateral,Central Ada County,and the All Other segment.Id.
YOU ARE FURTHER NOTIFIED that the Idaho Falls Lateral ("IFL")is 104 miles
long and serves cities between Pocatello and St.Anthonyin eastern Idaho.Id.at 128.In the base
case scenario,customers in the IFL are expected to increase by 7,772 (a 2.92%annualizedgrowth
rate)over the IRP period.Id.at 91.Intermountain states its previous system enhancements give
it the capacity to serve the IFL for the next five years.Id.at 129.Another IFL capacity
enhancement for this IRP period is the addition of a second liquefied natural gas ("LNG")storage
tank at the Rexburg LNG Facility in 2022.Id.The Company asserts the second tank will increase
total storage at the facility,which is desired as potential vaporization flow requirements increase
out of this facility.Id.
YOU ARE FURTHER NOTIFIED that the Sun Valley Lateral ("SVL")is 68 miles
long and has almost its entire demand at the far end of the lateral away from the gas source.Id.at
129.In the base case scenario,customers in the SVL are projected to increase by 1,304 (a 2.26%
annualizedgrowth rate)over the IRP period.Id.at 91.With continued demand growth,a second
compressor station has been selected to enhance the SVL further downstream from the existing
Jerome Compressor.Id.at 129.The Company asserts this second station to be completed in 2021
and will increase capacity beyond the remaining five-year growth outlook of this IRP.Id.
YOU ARE FURTHER NOTIFIED that the Canyon County Area ("CCA")consists of
an interconnected system of high-pressure pipelines that serve communities from Star Road west
to Highway 95.Id.at 127.In the base case scenario,customers in the CCA are expected to
increase by 14,854 (a 5.75%annualizedgrowthrate)over the IRP period.Id.at 91.For this IRP,
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the Company represents that three enhancement projects are needed to meet projected growth
demands throughout Canyon County.Id.at 127.First,the 5-inch Orchard Avenue Extension
project,which is expected to be completed in 2020,extends 4.5 miles into a significant growth
area not currentlysupported by a nearby high-pressure pipeline.Id.Next,the second phase of the
12-inch Ustick/Caldwell enhancement would extend the existing 2018 pipeline 2 more miles to
the east which is to be completed in 2021.Id.at 127-128.Last,the 8-inch Happy Valley
enhancement would extend the high-pressure pipeline 2 miles further into south Nampa that will
be built in 2022.Id.at 128.
YOU ARE FURTHER NOTIFIED that the State Street Lateral ("SSL")in northwest
Boise is 16.2 miles long.Id.at 125.It primarily serves residential and commercial customers.Id.
In the base case scenario,SSL customers are expected to increase by 7,055 customers (a 2.69%
annualized growth rate)for the IRP period.Id.at 91.The Company asserts this area is ideally
suited for a pipeline retest that would establish a higher maximum allowable operating pressure
and allow Intermountain to maximize its existing facilities'potential before investing in new
infrastructure.Id.at 125.The retest can be performed in phases over multipleyears,which will
increase capacity as growth is experienced while minimizing the length of pipe that must be taken
out of service at one time.Id.
YOU ARE FURTHER NOTIFIED that the Central Ada County area ("CAC")in the
Boise area consists of multiple high-pressure and intermediate pressure pipeline systems.Id.at
126.In the base case scenario,CAC customers are expected to increase by 6,622 customers (a
2.49%annualizedgrowth rate)during the IRP period.Id.at 91.Intermountain states that,like the
SSL,the existing,large diameter pipeline on Victory Road could be retested to increase its
operating pressure and resulting flow capacity.Id.at 126.The Company represents this increased
operating pressure is designed to match the Chinden and Cloverdale operating pressure,and the
retest is an initial step to create a consistent,connected system between the pipelines.Id.at 126.
Phase one of the retest is scheduled for completion in 2021.Id.at 126-127.The retest begins at
the Meridian gate station and extends about 2.5 miles.Id.at 127.
YOU ARE FURTHER NOTIFIED that,in summary,the Company states the IRP
analyzed residential,commercial,and industrial customer growth and its impact on the Company's
distribution system using design weather conditions under various scenarios for Idaho's economy.
Id.at 3.The Company asserts it measured peak-day deliveryunder each customer growth scenario
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against the available natural gas deliverysystems to project the magnitude and timing of delivery
deficits on a total Company and regional perspective.Id.The Company states it analyzed the
resources needed to meet any projected deficits within a framework of options to help determine
the most cost-effective means to manage the deficits.Id.The Company states these options allow
its core market and firm transportation customers to rely on uninterrupted service now and for
years to come.Id.
YOU ARE FURTHER NOTIFIED that the IRP and its exhibits 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
www puc.idaho.cos.Click on the "File Room"tab at the top of the page,scroll down to "Natural
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 §61-501.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
under the Commission's Rules of Procedure,IDAPA 31.01.01.000et seq.
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YOU ARE FURTHER NOTIFIED that persons who wish to intervene in this matter
to obtain the rights of party (e.g.,to file formal discovery,or present evidence or cross-examine
witnesses at a hearing)must file a Petition to Intervene with the Commission pursuant to the
Commission's Rules of Procedure 72 and 73,IDAPA 31.01.01.072 and .073.Persons who wish
to intervene as a party must file a Petition to Intervene no later than 21 days from the service
date of this Order.Such persons shall also provide the Commission Secretary with their
electronic mail address to facilitate further communications in this matter.After the intervention
deadline runs,the Commission Secretary shall issue a Notice of Parties that identifies the parties
and assigns exhibit numbers to each party in this proceeding.Once the Notice of Parties has issued,
Commission Staff shall informally confer with the Company and any intervening parties about
how to further process this case,and shall then report back to the Commission on a proposed case
schedule.
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YOU ARE FURTHER NOTIFIED that persons who would like to present their views
without parties'rights of participation and cross-examination do not have to intervene but may
present their views by submitting written comments to the Commission.
YOU ARE FURTHER NOTIFIED that the followingpeople are designated as the
Company's representatives in this matter:
For the Company:
Preston N.Carter
Givens Pursley LLP
601 W.Bannock Street
Boise,Idaho 83702
E-mail:giggrenspursley.com
Lori A.Blattner
Director -Regulatory Affairs
Intermountain Gas Company
P.O.Box 7608
Boise,Idaho 83707
E-mail:[e-mail])
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene no later than 21 days from the service date of this Order.Once the deadline
for intervention has passed,the Commission Secretary shall prepare and issue a Notice of Parties.
IT IS FURTHER ORDERED that,after the Notice of Parties has issued,Commission
Staff shall confer with the parties regarding a procedural schedule for this matter,and report the
proposed schedule to the Commission.
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DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of December 2019.
PA L KJEL(AÑ R,P SIDENT
KRISfWE RAPER M ISSIONER
ERIC ANDERSON,COMMISSIONER
ATTES :
Diane M.Hanian
Commission Secretary
O:INT-G-19-07_jh_order
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