20200131Notice_of_Modified_Procedure_Order_no_34537.pdf

Office of the Secretary
Service Date
January 31,2020
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 MODIFIED
)PROCEDURE
)ORDER NO.34537
On October 18,2019,Intermountain Gas Company ("Intermountainor "Company")
filed its Integrated Resource Plan ("IRP")for the years 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.
After the Company filed its IRP,the Commission issued an Order providing Notice of
Filing,setting a deadline for interventions,and directing the parties to confer about a proposed
schedule and report their proposal to the Commission.Order No.34497.The Idaho Conservation
League ("ICL")was granted intervention into the case.See Order No.34522.Finally,the
Commission issued Notice of Parties on January 8,2020.
Staff,the Company and ICL agreed on a schedule for processing this case,which Staff
proposed to the Commission.With this Order,the Commission adopts the proposed schedule and
notifies the public that this case will be processed via Modified Procedure under Rules 201-204 of
the Commission's Rules of Procedure,IDAPA 3 1.0 1.0 1.201-.204.
BACKGROUND
In Order No.25342,the Commission adopted IRP requirements for local gas
distribution companies in response to amended Section 303 of PURPA.
'See Order Nos.25342,27024,27098,32855,33314 and 33997.
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34537 1
In Order No.27024,the Commission shortened the IRP's planning horizon from 20
years to 5 years.Order No.27098 removed any requirementthat IRPs formallyevaluate 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 ("LAUFGas")reports.See Order No.32855.The
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 comprehensivelyand
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;
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34537 2
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 outlining the specific actions to be taken
by the utility in implementing the IRP;
6.A progress report that relates the new plan to the previouslyfiled plan;and,
7.Public participation.
THE 2019-2023 IRP
Intermountain's IRP explains that the Company 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.
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.The
Company also states that industrial customers use natural gas for boiler and manufacturing
applications.Id.at 1-2.Intermountain asserts large volume demand for natural gas is strongly
influenced by the agricultural economy and the price of alternative fuels.Id.at 2.The Company
alleges that in 2018,industrial sales and transportation accounted for 50%of the throughput on
Intermountain's system.Id.
The Company states it forecasts changes in its peak-day loads due to customer growth
under base case,high,and low growth economic scenarios.Id.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 of2.08%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 asserts it sees
no peak-day delivery deficits over the next five years when it matches its forecasted peak-day
delivery against its existing resources.Id.at 3-4.
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ORDER NO.34537 3
Intermountain asserts that to enhance the IRP,the Company established the
Intermountain Gas Resource Advisory Committee ("IGRAC").Id.at 3.The intent of IGRAC 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 represents it provided a comment period
after each meeting to ensure feedback was timely and could be incorporated into the IRP.Id.
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 against the available natural
gas delivery systems 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.The
Commission's Notice of Filing provides more detail on the Company's IRP.See Order No.34497.
PARTIES'PROPOSED SCHEDULE
Staff,the Company and ICL conferred informally and agreed to the following schedule
under Modified Procedure:
April 23,2020 Comment deadline
May 4,2020 Company reply deadline
The Commission finds it reasonable to adopt the parties'proposed schedule.
NOTICE OF MODIFIED PROCEDURE
YOU ARE HEREBY NOTIFIED that the Commission has determined that the public
interest may not require a formal hearingin this matter and will proceed under Modified Procedure
pursuant to Rules 201 through 204 of the IdahoPublic Utilities Commission's Rules of Procedure,
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34537 4
IDAPA 31.01.01.201-204.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 persons desiring to state a position on this IRP
must file a written comment in support or in opposition with the Commission by April 23,2020.
IDAPA 31.01.01.202.02.All comments 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 IRP filing may be mailed to the Commission and
parties at the addresses reflected below:
For the Commission:For the Company:
Commission Secretary Preston N.Carter
Idaho Public Utilities Commission Givens Pursley LLP
P.O.Box 83720 601 W.Bannock Street
Boise,Idaho 83720-0074 Boise,Idaho 83702
[e-mail]
Street Address for Express Mail:[e-mail]
11331 W.Chinden Blvd.Lori A.Blattner
Bldg.8,Suite 20 l-A Director -Regulatory Affairs
Boise,Idaho 83714 Intermountain Gas Company
P.O.Box 7608
Boise,Idaho 83707
[e-mail]
For the Commission Staff of For the Idaho Conservation League:
the Idaho Public Utilities Commission:
John R.Hammond Jr.Benjamin J.Otto
Deputy Attorney General 710 N.6'Street
Idaho Public Utilities Commission Boise,Idaho 83701
11331 W.Chinden [e-mail]
Bldg.No.8,Suite 201-A
Boise,Idaho 83714
P.O.Box 83720
Boise,Idaho 83720-0074
[e-mail]
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34537 5
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 www.puc.idaho.gov.Click the "Case Comment or Question
Form"under the "Consumers"tab,and complete the form using the case number as it appears on
the front of this document.These comments must also be sent to the parties at the e-mail addresses
listed above.
YOU ARE FURTHER NOTIFIED that the Company may file reply comments,if
necessary,by May 4,2020.
YOU ARE FURTHER NOTIFIED that ifno 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.
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34537 6
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure,
Rule 201-204 (IDAPA 31.01.01.201-.204).Persons who desire to submit comments must do so
by April 23,2020.The Company must file a reply,if any,by May 4,2020.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this Ï/
day of January 2020.
PAU JELL R,PRESIDENT
KRIŠTINERAPER,CO MISSIONER
ERIC ANDERSON,COMMIŠŠIONER
Diane M.Hanian *
Commission Secretary
I:\Legal\GAS\INT-G-19-07\orders\INTGl907 jh order_NMP.docx
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