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HomeMy WebLinkAbout20210614Notice_of_Proposed_Settlement_Order_No_35070.pdf NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED PUBLIC COMMENT DEADLINE ORDER NO. 35070 1 Office of the Secretary Service Date June 14, 2021 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION On January 12, 2021, Intermountain Gas Company (“Company”) applied to the Commission requesting authority to decrease its depreciation and amortization rates from a combined 2.97% to 2.55%. On February 8, 2021, the Commission issued a Notice of Application and Notice of Intervention Deadline. Order No. 34914. No one petitioned to intervene. On March 18, 2021, the Commission issued a Notice of Modified Procedure setting a June 8, 2021, public comment deadline and a June 22, 2021, Company reply deadline. Subsequently, Staff and the Company (individually, “Party” or collectively, “Parties”) entered settlement negotiations. Staff and the Company attended two settlement conferences which resulted in settlement. On June 3, 2021, the Company filed a settlement and stipulation (“Settlement”) and a Motion for Approval of Stipulation and Settlement requesting Commission approval of the Settlement. At the June 8, 2021, decision meeting, Staff recommended issuing a Notice of Proposed Settlement and vacating the public comment deadline and issuing a Notice of Amended Public Comment Deadline. At the meeting, the Commission discussed Staff’s recommendation to vacate the public comment deadline and decided to allow more time for public comment and the Company’s reply than was recommended by Staff. The Commission now issues this Notice of Proposed Settlement and Notice of Amended Comment Deadlines. IN THE MATTER OF INTERMOUNTAIN GAS COMPANY’S APPLICATION FOR APPROVAL TO CHANGE DEPRECIATION AND AMORTIZATION RATES ) ) ) ) ) ) ) ) ) CASE NO. INT-G-21-01 NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED COMMENT DEADLINES ORDER NO. 35070 NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED PUBLIC COMMENT DEADLINE ORDER NO. 35070 2 NOTICE OF PROPOSED SETTLEMENT YOU ARE HEREBY NOTIFIED that the Parties agreed to terms to update the Company’s depreciation and amortization rates. The Parties agreed as follows: 1. The Parties agree to the depreciation and amortization rates as set forth on Settlement Exhibit No. 1, Col. (o). 2. Settlement Exhibit Nos. 2 and 3 provide supporting calculations, including the retirement rate analysis and detailed depreciation calculations, for the plant accounts that changed from the original Application as a result of this Settlement, including: Account 363 (including all the subaccounts listed in Settlement Exhibit No. 3, Pages 2-6), Account 367, Account 376, Account 378, Account 380, and Account 390. The Parties agree that the depreciation and amortization rates for all other plant accounts should be approved as set forth in the Application. 3. If approved by the Commission, the rates would reflect an effective combined depreciation and amortization rate of 2.41%. See Settlement Exhibit No. 1, Line 41, Col. (o). 4. The Parties agree that the rates reflected on Settlement Exhibit No. 1, Col. (o), if approved by the Commission, will be effective as of January 1, 2021. 5. The Parties agree that the reduction in accruals, as reflected on Settlement Exhibit No. 1, Col. (q) shall be deferred starting on July 1, 2023, unless the reduction in depreciation rates have previously been incorporated into base rates through an Order from this Commission. YOU ARE FURTHER NOTIFIED that the Parties agreed to support the Settlement before the Commission, and neither Party will appeal a Commission order approving the Settlement. If this Settlement is challenged by any person not a Party to the Settlement, the Parties reserve the right to file testimony, cross-examine witnesses, and put on such case as they deem appropriate to respond fully to the issues presented, including the right to raise issues that are incorporated in the Settlement. Notwithstanding this reservation of rights, the Parties agreed they will continue to support the Commission’s adoption of the terms of this Settlement. YOU ARE FURTHER NOTIFIED that if the Commission rejects any part or all of the Settlement or imposes any additional material conditions on its approval, either Party reserves the right, upon written notice to the Commission and the other Party, within 14 days of the date of such action by the Commission, to withdraw from the Settlement. In such case, no Party shall be bound or prejudiced by the terms of the Settlement, and each Party will be entitled to seek reconsideration NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED PUBLIC COMMENT DEADLINE ORDER NO. 35070 3 of the Commission’s order, file testimony as it chooses, cross-examine witnesses, and do all other things necessary to put on such case as it deems appropriate. YOU ARE FURTHER NOTIFIED that the Settlement has been filed with the Commission. The full record is available for public inspection during regular business hours at the Commissions office.1 The Company’s Application is also available on the Commission’s web site at www.puc.idaho.gov. Click on the “NATURAL GAS” tab in the left-hand column of the home page, click “Open Cases,” click on the case number as shown on the front of this document. You then may access the Settlement by clicking on “Stipulation and Settlement.PDF” under the “Company” heading. YOU ARE FURTHER NOTIFIED that the Commission is not bound by the Parties’ Settlement. The Commission will independently review any proposed settlement to determine whether the settlement is just, fair, and reasonable, and in the public interest, or otherwise in accordance with law or regulatory policy. The Commission may accept a settlement, reject a settlement, or state additional conditions under which a settlement will be accepted. IDAPA 31.01.01.274-.276. NOTICE OF AMENDED COMMENT DEADLINES YOU ARE FURTHER NOTIFIED that the Commission finds it reasonable to vacate the June 8, 2021, public comment and June 22, 2021, Company reply deadlines established in Order No. 34960 to provide interested persons additional time to review and comment on the proposed Settlement. YOU ARE FURTHER NOTIFIED that interested persons desiring to state a position in this case must file a written comment in support or opposition with the Commission within 14 days of the service date of this Order. YOU ARE FURTHER NOTIFIED that the Company must file any reply comments with the Commission within 21 days of the service date of this Order. O R D E R IT IS HEREBY ORDERED that interested persons must file written comments within 14 days of the service date of this Order. The Company must file any reply comments within 21 days of the service date of this Order. 1 Interested persons are encouraged to view the actual Settlement on the Commission’s web site, if possible. NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED PUBLIC COMMENT DEADLINE ORDER NO. 35070 4 IT IS FURTHER ORDERED that Parties should continue to comply with Order No. 35058, issued June 3, 2021. 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 14th day of June 2021. PAUL KJELLANDER, PRESIDENT KRISTINE RAPER, COMMISSIONER ERIC ANDERSON, COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\GAS\INT-G-21-01\orders\INTG2101_Ntc settle Ntc amend cmt_dh.docx