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HomeMy WebLinkAbout20210924Application.pdfA INTERMOUNIAIN' RECEII'ED 2021 September 24, PM l:49 IDAHO P(IBLIC I IT I I- IT I ES COM lIT I SS I O N RE GAs COMPANYAgiffiydrfiilWrEdop,fi. lnfrre@mrunltyto*nE September 24,2021 Ms. Jan Noriyuki Commission Secretary Idatro Public Utilities Commission P.O. Box 83720 Boise,lD 83720-0074 tNT- &-J.r- or Intermountain Gas Company TariffAdvice No. 2l-01 Dear Ms. Noriyuki: Enclosed for filing with this Commission is a copy of Intermountain Gas Company's ("Intermountain" or "Company") proposed revisions to Section C of its General Service Provisions. The proposed edits to Section C are presented in Attachment No. 1. The resulting proposed Section C is presented in Attachment No. 2. The proposed revisions outlined below are in line with Commission Order No. 34735 in Case No. INT-G-20-01 which authorizes the Company to "file an annual tariff advice to update the Allowable Investment Factors, the Service Line Cost per Foot, and the construction overhead charge." Order No. i4735 at 9. l. The update to the Allowable Investrnent Factors in section 4.3 includes changes in the compound inflation factor and in the depreciation lives of various distribution plant accounts. The compound inflation factor was updated to include inflation data for June 2019 - December 2020. The Company adjusts for inflation the embedded costs from its last general rate case (Case No. INT-G-16-02) to help ensure that new applicants are treated the same as existing customers in terms of the amount of facilities their Allowable Investrnent will cover. The depreciation lives of various distibution plant accounts used in the calculation of the Allowable Investment Factors were updated to reflect the Company's recently approved settlement of its depreciation rates (Case No. INT-G-21-01, Order No. 35134). The calculation of the proposed Allowable Investnent Factors, including the adjustments discussed above, is shown in Attachment No. 3. A INTERMOUNIAIN' GAS COMPANYASUWy otttlw f,feu[fE eup, ht. lntheCommunltytoSerw' 2. The update to its service line cost per foot in section 5.2 is based on a new three-year average of service lines costs divided by the feet installed during the same years. The proposed three-year average service line cost per foot is shown in Attachment No. 4. 3. The change in the constuction overhead rate in section 5.3(c) reflects the Company's currently calculated rate. In addition to the regular revisions outlined in Order No. 34735, Intermountain proposes the following changes to provide additional clarity to the tariff. 4. To avoid possible confusion, the Company proposes a change to section 4.2(a) to remove the ambiguous reference to "Non-discretionary load" and replace it with the word "Gas". 5. The Company proposes to remove the reference to "stubs" in section 5.3 because sfubs are not included in the main project cost estimate. Stub costs are included in the average service line cost per foot referenced in section 5.2. The Company requests that the proposed revisions become effective one month after Commission approval to give the Company enough time to implement the changes to its systems and forms. Therefore, the Company proposes a Commission approval date of November 1,2021and an effective date of December 1,2021. If you have any questions or require additional information regarding the attached, please contact me at (208) 377-6015. Wnsbw Lori A. Blattner Director - Regulatory Affairs Intermountain Gas Company Enclosures Mark Chiles Preston Carter cc Attachment No. 1 TariffAdvice No. 21-01 lntermountain Gas Company Page 1 of 2 LP.U.C. Gas Tariff Section C Third Revised F0Uilh Sheet No. 3 Narn6 of Utilaty Intermountain Gas Company IDAHO PUBLIC UTILITIES COMMISSIONApproved EffectiveSeet#,4eze es+.<#re Per e,N, 3t1735 Jan Noriyuki Secrctary construction within six months of the date of the contract. 3.2 Relocation or abandonment of Company owned Gas Facilities will be at the expense of the applicant when required by the applicant. 3.3 The applicant may be required to reimburse the Company for the installation, extension, or abandonment of Gas Facilities if the terms of the signed agreement are not met. 3.4 The applicant shall indemni! and hold the Company harmless from liability for access for routine maintenance, inspections, and emergencies, or for injury to property caused by the installation of a Service. 3.5 The Company will install a single Service per applicant, unless the applicant requests an additional Service. The Company may provide an additional Service on a case-by-case basis, provided there is over one-hundred-feet between meter locations. Each Service must follow the provisions of this section. The Company may waive the one-hundred-foot requirement when an additional Service is required for Multifamily or lnteruptible Snowmelt Service (Rate Schedules lS-R and ISC). 4. ALLOWABLEINVESTMENT 4.1 The Allowable lnvestment for Services and Mains is determined by first calculating the estimated annual therm usage and then applying the Allowable lnvestment Factor per therm. 4.2 The estimated annual therm usage is calculated as follows: (a) For residential applicants: \Men natural gas is the primary heat source, calculate the estimated annual space heating therm usage by multiplying the square foot factor of 0.234 by the square footage of the home. Gas To the estimated annual space heating therm usage, add gas appliance annual therm usage estimates from the chart below, as applicable, to calculate the total estimated therm usage per year. llen+ieerefieaery-Oae appliances not on this list can be estimated by the Company on a case-by+ase basis. ln residential Developments where specific appliances are unknown at the time of calculation, the Company will base therm estimates on only the estimated annual space heating therm usage plus the water heater therm estimate. Natural Gas Appllances Annual Therm Estimates Ranoe 23 Seasonal Fireolace 50 crill 't5 Clothes Drver 28 Water Heater 240 rssued by: lntermountain Gas Company Blattner . --Title: Director-RegulatoryAffairs December 1. 2021 |.P.U.C. Gas Tariff Section C +nirel Revised l-Ouflh Sheet No.4 Name of Utility lntermountain Gas Gompany Attachment No. 1 Tariff Advice No.21-01 Intermountain Gas Company Page 2 ot 2 IDAHO PUBLIC UTILITIES COMMISSIONApproved EffectiveSee+#,+e3e esHr*fe Per e-N- 31735 Jan Noriyuki Secretary (b) For commercial applicants: The therm usage estimate will be determined by the Company on a case-by-case basis. The estimate will be based on the climate zone, the heated structure square footage, commercial property type, and applicable gas appliances. 4.3 To determine the Allowable lnvestment per applicant, multiply the estimated annual therm usage per applicant by the applicable Allowable lnvestment Fastor below to calculate the Allowable lnvestment in dollars: Allowable lnvestnent Factors Gustomer Type Seruice Main Combined Residential 0.612 e5e3 0.674 es6e 1.286 ffi Commercial 0.459 w 0.505 ffi 0.964 0€4e 4.4 The applicant agrees to install and activate gas appliances pursuant to the signed agreement(s) and the therm usage estimates used to determine the Allowable lnvestment. 4.5 The Company may calculate the Allowable lnvestment for applicants with structures or business operations which are non-permanent on a case-by-case basis. 5. PROJECTCOST 5.1 ln the event the Company can defay any of the trench and backfill costs, for example by sharing a trench with other utilities, the cost reduc{ion will be included in the Main extension cost or Service cost estimates. 5.2 The Service Line Project Cost estimate is determined by multiplying the on-property Service Line lenqth bv $43t8 per foot.- '$13.66 5.3 The Main Extension Project Cost estimate is based on the Gas Facilities (excluding Services) required to serve the gas load of the requesting applicant. This includes but is not limited to Main, regulator stations, valves, stubs and Main fittings. (a) The Company will provide a Project Cost estimate to the applicant prior to execution of an agreement. (b) The estimate will exclude costs for Company Betterment. (c) The Company includes construction overhead charges in the amount s1 449t1r.9.920/o (d) The Main extension Project Cost will be divided by the number of estimated Service Points to calculate the Main extension Project Cost per applicant. r$ued by: lntermountain Gas Company By: Lori A. Blattner . -^f[le: Direc{or - Regulatory Affairs Eiteaive: e€1gb€r-t_?gee December 1. 2021 l.P.U.C. Gas Tariff Section C Fourth Revised Sheet No.3 Name of Utility lntermountain Gas Company Attachment No. 2 TariffAdvice No.21-01 lntermountain Gas Company Page 1 ot2 construction within six months of the date of the contract. 3.2 Relocation or abandonment of Company owned Gas Facilities will be at the expense of the applicant when required by the applicant. 3.3 The applicant may be required to reimburse the Company for the installation, extension, or abandonment of Gas Facilities if the terms of the signed agreement are not met. 3.4 The applicant shall indemnify and hold the Company harmless from liability for access for routine maintenance, inspections, and emergencies, or for injury to property caused by the installation of a Service. 3.5 The Company will install a single Service per applicant, unless the applicant requests an additional Service. The Company may provide an additional Service on a case-by-case basis, provided there is over one-hundred-feet between meter locations. Each Service must follow the provisions of this section. The Company may waive the one-hundred-foot requirement when an additional Service is required for Multifamily or lnterruptible Snowmelt Service (Rate Schedules lS-R and lS-C). 4. au-omBLEtNvEsritENT 4.1 The Allowable lnvestment for Services and Mains is determined by first calculating the estimated annual therm usage and then applying the Allowable lnvestment Factor per therm. 4.2 The estimated annualtherm usage is calculated as follows: (a) For residential applicants: \trhen natural gas is the primary heat source, calculate the estimated annual space heating therm usage by multiplying the square footfactorof 0.234 by the square footage of the home. To the estimated annual space heating therm usage, add gas appliance annualtherm usage estimates from the chart below, as applicable, to calculate the total estimated therm usage per year. Gas appliances not on this list can be estimated by the Company on a case-by- case basis. !n residential Developments where specific appliances are unknown at the time of calculation, the Company will base therm estimates on only the estimated annua! space heating therm usage plus the water heater therm estimate. Natura! Gas Appliances Annual Therm Estimates Ranqe 23 Seasonal Fireplace 50 Grill 15 Clothes Drver 28 Water Heater 240 tssued by: lntermountain Gas Compa By: Lori A. Blattner Title: Effective: December 1, 2021 ny Director - Regulatory Affairs LP.U.C. Gas Tariff Section C Fourth Revised Sheet No.4 Name of Utility Intermountain Gas Company Attachment No. 2 TariffAdvice No.2'l-01 lntermountain Gas Company Page 2 ol 2 (b) For commercial applicants: The therm usage estimate will be determined by the Company on a case-by-case basis. The estimate will be based on the climate zone, the heated structure square footage, commercial propefi type, and applicable gas appliances. 4.3 To determine the Allowable lnvestment per applicant, multiply the estimated annual therm usage per applicant by the applicable Allowable lnvestment Factor below to calculate the Allowable lnvestment in dollars: Allowable lnvestment Factors Customer Type Seruice Main Combined Residential 0.612 o.674 1.286 Commercial 0.459 0.505 0.964 4.4 The applicant agrees to install and activate gas appliances pursuant to the signed agreement(s) and the therm usage estimates used to determine the Allowable Investment. 4.5 The Company may calculate the Allowable lnvestment for applicants with structures or business operations which are non-permanent on a case-by+ase basis. 5. PROJEGTCOST 5.1 In the event the Company can defray any of the trench and backfill costs, for example by sharing a trench with other utilities, the cost reduction will be included in the Main extension cost or Service cost estimates. 5.2 The Service Line Project Cost estimate is determined by multiplying the on-property Service Line length by $13.66 per foot. 5.3 The Main Extension Project Cost estimate is based on the Gas Facilities (excluding Services) required to serve the gas load of the requesting applicant. This includes but is not limited to Main, regulator stations, valves and Main fittings. (a) The Company will provide a Project Cost estimate to the applicant prior to execution of an agreement. (b) The estimate willexclude costs for Company Betterment. (c) The Company includes construction overhead charges in the amount of 9.92% (d) The Main extension Project Cost will be divided by the number of estimated Service Points to calculate the Main extension Project Cost per applicant. rssued by: Intermountain Gas Company By: Lori A. Blattner Title: Director - Regulatory Affairs Effec{ive: December 1, 2021 Attachment No. 3 TariffAdvice No.21-01 lntermountain Gas Company Page 1 of4 Line No. INTERMOUNTAIN GAS COMPANY Line Extension Allowable lnvestnent Factots Dsscdplion R6sidential Commercial 40 55 70 43 $ 1 2 3 4 5 6 7 8 9 10 11 72 13 74 15 16 17 18 19 20 27 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 (a) Sarvlca3 Allowrblc lny.3tmcnt Frc{ot Ssrvice Line Extonsion Emboddad Cost p6r Them: FERC Account 38ol1l FERC Account 38512t Total +Year Compound lnflation Factofl Servie Lino Extension Embedded Cost por Therm (Line 5 times Line 6) Weighted Ass6t Life: FERC Account 380 - Asset Lifet'l FERC Account 38O - Embedded Cost per fhermlll Woighting Factor (Lin€ 9 times Line 10) FERC Account 385 - Asset Lifeltl FERC Account 385 - Embedded Cost per therml2l Weighting Faclor (Lim 12 times Lina 13) Weighted Asset Life (Sum ol Lines 1 l and 14 divided by Line 5) Weighted AvoEge Cost of Capitallq Soruicos Allorabl€ lnvestment Factor ($/therm)o @ Main LinE Exension Emb€ddad Cost psr Therm: FERC Account 374lEl FERC Account 376lel FERC Account 378l1ol Total 4-Y6ar Compound lnflation Facto/el Main Line Extension Emb€dded Cost per Therm (Line 23 times Lino 24) Weighted Asset Life: FERC Account 374 - Asset Lifelrll FERC Account 374 - Embedded Cost per Therml8l Weighting Factor (Lin€ 27 times Line 28) FERC Account 376 - Asset Lifeltrl FERC Account 375 - Embedded cost per Thermlel Weighting Factor (LinE 30 tim6s Line 31) FERC Account 378 - Asset Lifetr3l FERC Account 378 - Embedded Cost per Thermllol Weighting Faclor (Line 33limes Lim 34) (b)(c) t 0.039146 0.002953 s oo42o99 108.1% $0.M55 t7 58 58 s 0.039146 s 0.0293502.270451 1.702275 s 0.002953 s 0.029350 o.oo2214s 0031564 108.1% $ 0"034116 40 0.088564 , 0.oo2214 0 0.1 18125 56.7 7.300h 0.612 56.7 7.30% 0.459t $s 0.000125 0.032386 0.001874 T 0"01438s 108.1%s 0.049585 $ 0.037176 0.000167 0.043't95 0.002499 s 0.045862 108.1% s 0.fr)0167 56 0.000125 70 0.032385 0.009367 0.007023 s 0.M3195 3.023646 2.256998 I 0.m2499 s 0.001874 43 Wsighted Assst Life (Sum of Lines 29, 32 and 35 divided by Line 23) Waighted Averag6 Cost of Capitall6l Mains Allwable lnvestmont Faclor (t^herm)lr'l NOTES trlS6 Attachment No. 3, Pags 3, Lines 6 and 18, Column (g) l2lSm Attachment No. 3, Page 3, Line6 11 and 23, column (g) BlSe6 Attachmant No. 3, Page 4, Line 5, Column (n) 14 See Attacfiment No. 3, Page 3, Linos 6 and 18, Column (b) FlSeo Attachmont No. 3, Page 3, Linos 'l 1 and 23, Column (b) t4Case No. INT€-I642, Ord3r No. 33757 m The present valua of Lin€ 7 discounlsd by th€ weighted ayerage cost of epital on Lino 16 over the wsightsd life of lh€ assgts on Line 1 5 FlSe Attachment No. 3, P.ge 3, Linos 2 and 14, column (g) 0 Sse Attachmsnl No. 3, Page 3, Lanes 4 and 16, Column (9) l!0lSee Attachment No. 3, Page 3, Linss 5 and 17, column (g) ItrlSe Attachmgnt No. 3, Page 3, Lines 2 and 14, Cotumn (b) Ii4 Ss Attachment No. 3, Page 3, Lines 4 and '16, cotumn (b) 11$ See Attachment No. 3, Pags 3, Linss 5 and 17, cotumn (b) 114 The prcsent value of Line 25 dascountod by the weighted avorago cost ot capital on Line 37 ovor th€ weight€d lile of the assots on Line 36 o.to7475 68.5 7.30o/o 0.574 $ 0.080579 68.5 7.30% 0.505 Line No. INTERiIOUNTAIN GAS COMPANY Glass Line Extenslon Embedded Costs Description Total Company Attachment No. 3 TariffAdvice No.2l-0'l lntermountain Gas Company Page 2 ot 4 CommercialResidential (a) Llm Ext n.lon Cost3 Embedded ln Current Rat6 Ca3e No. INT-G1&02 Commission Ordered Deprecidionlll Case No. INT-G1S02 Commission Ordercd Operating lncome al7.3o/ol1l Tax Gross.UpPl Line Extension Emb€dd€d Co3E (Sum of Lines 2 - 4) Cae€ No. INT€-1&02 Proposed Distribulion Rate Baset3l Caee No. INT&1&02 Commission Ordered Rate Baselll PropGed Distribution Rat€ Ba3e Percentag€ (Line 7 divided ry Line 8) Case No. INT-G-1&02 Class Basa Revenue Requirementtal Case No. lNT6-1&02 Total Base Revenue Requirementlll Class Bage Rovenu€ Roquirefirent Percentage (Line '10 divided by Line 1 1) 13 Class Line Extercion Embedded Costsrsl 6 7 I I (b) $ 20,859,316 17,193,456 6,3't 8,423s 44,371,195 $ 1E7,838,950 235,526,78E 79.750/o (c) 57,675,297 89,376,2U (d) 22,067,933 89,376,254 10 11 12 $$ 64.53o/o 24.690/o !393v! !JZg!93, ]{OTES lrlOrder No. 33757, Attachm€ntA PlThe Tax Gros+Up was comput€d using the gro$ revenue conveBion fiactor hom Cas€ No. GNR-u-1&Ol, Exhibit No. 5 t3lCase No. INT€-1&O2, Exhibit No.20, Page 3 ttl order No. 337 57, 2nd Err€l:€ IslLine 5, Column (b) times Une 9, Column (b) tirn$ Line 12 Cdumm (c) and (d), r$poctiv6ly. 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