20200904Notice_of_Application_Order_No_34776.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34776 1

Office of the Secretary
Service Date
September 4, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF INTERMOUNTAIN
GAS COMPANY’S APPLICATION FOR
AUTHORITY TO CHANGE ITS PRICES
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CASE NO. INT-G-20-05

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 34776

On August 14, 2020, Intermountain Gas Company (“Intermountain” or “Company”)
requested authority to place into effect on October 1, 2020 new rate schedules that would increase
its annualized revenues by $8.6 million. If approved, the Company’s proposal would increase the
price of natural gas for residential customers by 3.66%, increase the price for GS-1 General Service
customers 4.29%, increase the price for LV-1 Large Volume customers 5.10%, and decrease the
price for T-3 Transportation customers 3.02%, decrease the price for T-4 Demand Charge
customers 1.02%, and not change the prices for T-4 Transportation customers.
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 Commission approved the Company’s
current base rates 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) an increase to the
Company’s Weighted Average Cost of Gas (“WACOG”); (4) an updated customer allocation of
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34776 2

gas-related costs pursuant to 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 accounts; (6) benefits
generated 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 latest general
rate case, Case No. INT-G-16-02; and (9) the recovery of deferred in-person customer payment
fees. Application at 4.
YOU ARE FURTHER NOTIFIED that the changes to the rates will increase the
Company’s annualized revenues by about $8.6 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
show the overall price changes by customer class. The Company also summarizes price changes
and proposed rate schedules and tariff sheets. 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. These documents
are available on the Commission’s web site at www.puc.idaho.gov. Click on the “NATURAL
GAS” icon, select “Open 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 §§ 61-501 to 61-503.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that 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
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34776 3

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 anyone desiring to state a position on this
Application must file a written comment in support or opposition with the Commission by
September 21, 2020. The comment must explain why the person supports or opposes the
Application. Persons desiring a hearing must specifically request a hearing in their written
comments. Written comments concerning this Application should be sent electronically, unless
email is not available, to the Commission and the Applicant at the email addresses reflected below:
For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
Email: [e-mail]

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, Idaho 83714

For Intermountain Gas Company:

Lori A. Blattner
Director – Regulatory Affairs
Intermountain Gas Company
P.O. Box 7608
Boise, ID 83707
Email: [e-mail]

Preston N. Carter
Givens Pursley LLP
601 W. Bannock St.
Boise, Idaho 83702
Email: [e-mail]
[e-mail]

Comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via email may do so by accessing the
Commission’s home page located at www.puc.idaho.gov. Click the “Case Comment Form” under
“Consumers,” and complete the comment form using the case number as it appears on the front of
this document. These comments must also be sent to the Applicant.
YOU ARE FURTHER NOTIFIED that Intermountain must file any reply comments
by September 24, 2020.
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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34776 4

ORDER
IT IS HEREBY ORDERED that the Application of Intermountain Gas be processed by
Modified Procedure, Rule 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting
written comments must do so by September 21, 2020. The Company must file any reply comments
by September 24, 2020.
IT IS FURTHER ORDERED that parties should continue to comply with Order No.
34602, issued March 17, 2020. All pleadings should be filed with the Commission electronically
and shall be deemed timely filed when received by the Commission Secretary. See Rule 14.02.
Service between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 4th
day of September, 2020.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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