20220425Stipulated Motion to Approve Settlement.pdf

Preston N. Carter, ISB No. 8462
Givens Pursley LLP
601 W. Bannock St.
Boise,Idaho 83702
Telephone: (208) 388-l 200
Facsimile: (208) 388-l 300
prestoncarter(@ eivenspursley. com
stephaniew@ eivenspursley. com
Attomeys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMNIISSION
li:Lrt lr-
IN THE MATTER OF COM]VtrSSION
STAFF'S FORMAL COMPLAINT
CONCERNING INTERMOUNTAIN GAS
COMPANY'S PRACTICES OF ALLOWING
TJNQUALIFIED OPERATORS TO
PERFORM LIVE METER EXCHANGES
CASE NO.INT.G.22.OI
STIPULATED MOTION TO
APPROVE SETTLEMENT
)
)
)
)
)
)
)
Intermountain Gas Company, ("Intermountain Gas," or "Company") and the Idaho Public
Utilities Commission Staff("Staff'), hereby moves the ldaho Public Utilities Commission
("Commission") for an Order accepting the Stipulation and Settlement filed herewith. IDAPA
31.01.01.56, .272, .274.Thrs motion is based on the following:
1. On March 3,2022, Stafffiled the formal complaint ("Complaint") in this case and
issued a summons to lntermountain Gas.
2. On March 16,2022, the Commission extended the deadline to answer the
Complaint to enable Staffand the Company to continue settlement negotiations.
3. After significant discussions and negotiations, on April 25,2022, the Company
and Staff reached agreement on a settlement of this proceeding and signed the Stipulation and
Settlement attached to this Motion.
STIPULATED MOTION TO APPROVE SETTLEMENT PecE 1 or 3
4. The Parties recommend that the Commission grant this Motion and approve the
Stipulation and Settlement in its entirety, without material change or condition, pursuant to
IDAPA 31.01.01.274.
5. The Parties agree that the Stipulation and Settlement is in the public interest and
that all of its terms and conditions are fair, just and reasonable.
NOW, THEREFORE, the Parties respectfully request that the Commission issue an order
in Case No. INT-G-22-01:
l. Granting this Motion and accepting the Stipulation and Settlement in its entirety,
without material change or condition; and
2. Any other relief the Commission deems just and reasonable.
DATED: April25,2022.
Grvexs Punsmv LLP
,"
DATED: April25, 2022.
PrestonN. Carter
Attomey for Intennountain Gas Company
Ioeno PueI.rc Uru.rnes CovrurssroN Srerr
Dalm Hardie
Deputy Attorney General
STIPULATED MOTION TO APPROVE SETTLEMENT Pecn2 or3
CERTIFICATE OF SERVICE
I certiff that on April 25, 2022, a true and correct copy of the foregoing was served upon
all parties of record in this proceeding via electronic mail as indicated below:
Commission Staff Via Electronic Mail
JanNoriyuki, Commission Secretary [e-mail]
Idatro Public Utilities Commission
ll33l W. ChindenBlvd., Bldg.8, Suite201-A
Boise, D 83714
Dayn Hardie
Deputy Attorney General
Idatro Public Utilities Commission
11331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise,ID 83714
dayn.hardie@puc. idaho. gov
.2 e---*.-
Preston N. Carter
STIPULATED MOTION TO APPROVE SETTLEMENT Pacn 3 or 3
-Hz
Frl
=-t{U
HH
ATTACHMEI\T 1
Preston N. Carter, ISB No. 8462
Givens Pursley LLP
601 W. Bannock St.
Boise,Idaho 83702
Telephone: [phone]
Facsimile: (208) 388- 1 300
prestonc arter(E givenspursle y. com
stephaniew@ eivenspursley. com
Attomeys for lntermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF COMMISSION
STAFF'S FORMAL COMPLAINT
CONCERNING INTERMOUNTAIN GAS
COMPANY'S PRACTICES OF ALLOWING
UNQUALIFIED OPERATORS TO
PERFORM LIVE METER EXCHANGES
CASE NO.INT-G.22.01
STIPULATION AI\D
SETTLEMENT
)
)
)
)
)
)
)
This Stipulation and Settlement ("Settlement") is entered into by and among
Intermountain Gas Company ("lntermountain Gas," or "Company"), t subsidiary of Montana-
Dakota Utilities Co. ("MDU") and Staff for the Idaho Public Utilities Commission Staff
("Staff'), collectively the "Parties" and individually "Part5/."
IxrRooucrroN
l. The terms and conditions of this Settlement are set forth herein. The Parties agrce
that this Settlement represents a reasonable compromise of the issues raised in this proceeding.
The Parties, therefore, recommend that the ldaho Public Utilities Commission ("Commission")
approve the Settlement and all of its terms and conditions. See Rules 271,272, ard,274 (IDAPA
31.01.01.27 I, 27 2, and 27 4).
B.lcrcRouNo
2. On March 3,2022, the Commission issued a sunmons regarding the formal
complaint ("Complaint") filed by Staff in this matter. The Complaint alleges that 1,847 work
StrpulerroN AND S pttt-BueNr Pecp 1 or 10
orders were assigned to, and performed by, operators who did not have the required
qualifications.
3. On March 22,2022, the Commission granted an extension of time for the
Company to file an answer, in part to allow Staff and the Company to continue settlement
discussions. ,See Order No. 35358.
4. tn February and March 2022,the Parties held two settlement conferences to
discuss possible settlement of the issues addressed in the Complaint.
5. As a compromise of positions in this case, and for other considerations as set forth
below, the Parties stipulate and agree to the terms set forth below.
TBnrrls oF THE SBrrlrunNr
6. Training, quarterly audits, and other actions. lntermountain Gas agrees to
implement the following action items by the deadlines indicated (as applicable):
A. Action ltem l: Evaluate and decide which department will be responsible for Operator
Qualifications. Specify roles under which the MDU Utilities Group will adhere. Define
roles and responsibilities of a cross-department parhrership, with ongoing collaboration.
i. Executive management completed this action item and provided a directive to the
management team responsible for implementing the ACE Review on November
16,2021. The roles and responsibilities determined through this process will be
incorporated into OPS 800 - Operator Qualification Plan by June 30,2022.
B. Action ltemZ: Align the requirements of each Covered Task to coincide with Service
Technician and Service Technician Apprentice work orders and conduct and file
quarterly audits.
i. The Safety & Technical Training department is developing the list of Covered
Tasks required to perform Service Technician and Service Technician Apprentice
SrpulerroN AND SsrrleuBNr Pece 2 or l0
work orders. The final list, and training regarding its use, will be implemented by
June 30, 2022.lmplementation will include a series of in-person or virtual
meetings with the affected Directors, Managers, and Supervisors.
lntermountain Gas agrees to perform quarterly audits of service orders to ensure
that Service Technician Apprentices and Service Technicians are qualified to
perform the work associated with the service orders. The audits will be conducted
in a similar manner as the previous review that was completed during the SMS
review; however, the scope will not be limited to Service Technician Apprentices
but will include all Service Technicians. Order completions by all Service
Technicians or Service Technician Apprentices will be compared to the
Technician's qualifications at the time the work was completed. The first
quarterly audit will include the period immediately following the conclusion of
the Company's initial audit on June 23, 2021 through June 30,2022. The results
of this audit will be provided to Staffno later than August 29,2022. The results of
subsequent quarterly audits will be provided to Staffno later than 30 days after
the last day of the preceding quarter. lnstances of noncompliance identified in the
quarterly reports may be subject to penalty under Idaho Code $ 6l-7l2A.In
determining whether to advocate for proposal of such penalties, Commission Staff
will consider the Company's self-reporting, the Company's good faith efforts to
address the violations, and the progress of the Company in decreasing the number
of violations as this Sefflement is implemented. If the Company achieves twelve
(12) months without any safety violations, upon termination of the Settlement
l1
SttpulerroN AND SETTLEMENT Pece 3 or 10
pursuant to a petition pursuant to paragraph 6.B.iii, penalties for any violations
identified in the quarterly audits will be waived.
iii. The quarterly audits conducted pursuant to Paragraph 6.8 will continue until the
issue can be resolved by computer software that ensures work orders are assigned
only to qualified service technicians or service technician apprentices.
lntermountain Gas may request that the Commission terminate its obligation to
conduct quarterly audits either l) after two consecutive quarters that, as reflected
in the quarterly audits, indicate zero violations related to the qualifications of
Service Technicians or Service Technician Apprentices or 2) at any time
beginning twenty-four (24) months after the effective date of an Order approving
this Settlement. lntermountain Gas may support such request by, among other
things, demonstrating a history of compliance and/or the presence of sufficient
internal controls to ensure that work orders are assigned to qualified service
technicians. The Parties recognize that the Commission retains the discretion to
determine whether the petition and supporting materials justifies termination of
the quarterly audit requirement.
C. Action Item 3: Update, maintain, and provide annual training to lntermountain Gas
supervisors, focusing on Covered Tasks.
i. Initial training will be conducted prior to June 30, 2022, with the implementation
of the OPS 800 - Operator Qualification Plan revisions and annually thereafter.
D. Action Item 4: Further define 'Expired.' Establish procedures for supervisors to follow if
an Employee (a term that includes all Intermountain employees who perform Covered
Tasks) has expired qualifications. Although there is a 90-day grace period, ensure
SrpuleuoN AND SerLnueNr PecE4or l0
lntermountain Gas Supervisors, Managers, and Directors understand that the grace period
exists only to allow management flexibility in resolving short-term issues, and that issues
regarding qualification should be reviewed and resolved in advance of the end of the 90-
day grace period to the extent possible.
i. The definition of 'Expired' will be included in the OPS 800 - Operator
Qualification Plan revisions and Intermountain Gas supervisor training.
E. Action Item 5: Establish an annual Operator Qualification and OPS procedure calendar
for supervisor reference and support.
i. The Policy & Procedure department has implemented a policy review calendar on
SharePoint that includes OPS procedure taining, effective dates of new and
revised OPS procedures, and changes to Operator Qualifications associated with
the OPS procedure change. The Safety & Technical Training department
maintains a training calendar that focusses on apprentice training and annual
support for Operator Qualification covered tasks.
F. Action Item 6: Establish a firm deadline for Performance Evaluations to be completed
once Computer Based Training/Classroom training has been completed. Lock-down
Performance Evaluations will be blocked or not allowed until Computer Based
Training/C lassroom training has been completed.
i. The revision of OPS 800 - Operator Qualification Plan includes the following
statement: Prior to a Pedormance Evaluation, the Employee shall complete
computer based or classroom training and examination. Energy WorldNet
("EWN"), Intermountain Gas' learning management system vendor, will update
their software to not allow perfornance evaluation in advance of computer based
SrpuLetroN AND SETTLEMENT Pece 5 on l0
or Company training and associated examinations. The EWN change will occur
by June 30,2022, in conjunction with the implementation of OPS 800 - Operator
Qualification Plan.
G. Action Item 7: Pursue additional hierarchical review of Operator Qualifications.
Example: Regional Director can review District Manager staffand below.
i. Operator Qualification statuses of Employees' assigned tasks are provided to
Employee's direct supervisor weekly by an email from EWN. These weekly
emails include notifications regarding expiring qualifications. The Safety &
Technical Training departrnent is coordinating with internal and external [T
personnel to connect EWN with lntermountain Gas ernployee management
software to expand hierarchical notifications for review. The hierarchical
notifications will be implemented by June 6,2023. Until this action item is
implemented, the Safety & Technical Training will provide a comprehensive
status report to all levels of supervision with Employees assigned covered tasks.
H. Action Item 8: Develop and review EWN Computer Based Training ('"CBT") modules
and incorporate with MDU Utilities Group trainings modeled after OPS Procedures.
i. Existing and future OPS procedure training is currently being converted to CBT
modules that will replace and/or supplement existing CBT modules. The
converted and/or supplemental CBTs will be implemented and available in EWN
by December 31,2022. To detail this process, OPS I - Management of Change
will be revised by December 31,2022.
I. Action ltem 9: Review MDU Utilities Group training for newly hired Employees who
perform Covered Tasks.
StpuLerroN AND SErrt-pvsNr Pace 6 or l0
i. Following the completion of the action item identified in paragraph 6.B.i, the
Safety & Technical Training department will revise the Service Technician
apprentice training to include an OPS 800 - Operator Qualification Plan policy
review. The apprentice training will be revised by December 31,2022.
J. Action Item l0: Review and re-write OPS 800 - Operator Qualification Plan to
incorporate the above recommendations.
i. OPS 800 - Operator Qualification plan will be rewritten to incorporate the above
ACE Review Recommendations. The revised OPS 800 - Operator Qualification
Plan will implement on June 30,2022.
K. Action Item 1l: Training provided will identi$ the avenues for reporting concerns
regarding operator qualifications.
7. Quarterly reports. The Company agrees to provide quarterly reports regarding
its implementation of the action-items set forth in paragraph 6 to the Executive Director of Idaho
Public Utilities Commission no later than the fifteenth (l5th) day after the last day of the
preceding quarter. Progress reports for action items due on June 30,2022 will be provided by
May 15, 2022. Quarterly reports will be filed until (i) the action item is complete (i.e., a quarterly
report that includes a particular action item will be filed until that action item is complete); (ii) a
completion report, discussed below in paragraph 8, is approved by the Commission; or (iii) this
Settlement is otherwise terminated by the Commission as described in paragraph 9.
8. Abeyance and waiver of penalty. The penalty proposed in the Complaint shall
be held in abeyance pendrng successful implementation of the action items set forth in paragraph
6. The penalty shall be waived upon termination of the Settlement, discussed in more detail in
paragraph 9. If the Company violates any term of this Settlement, Commission Staffmay request
SttpulettoN AND SetrleuBNr Pace 7 or 10
imposition of the entire penalty amount alleged in the Complaint. Any dispute regarding the
Company's compliance with this Settlement shall be submitted to the Commission for resolution.
9. Termination of Settlement. This Settlement shall terminate upon the earlier of
(i) completion of the action items identified in paragraph 6, as indicated by the filing and final
approval by the Commission of a completion report or similar document agreed to by the Parties;
(ii) upon stipulation of the Parties approved by the Commission; or (iii) upon approval by the
Commission of a petition filed by Intermountain Gas.
10. Extension of deadlines. The dates set forth in paragraph 6 can be extended only
upon request of the Company, based on the occrrrence of an event that cannot reasonably be
anticipated or controlled by the Company. A request to extend a deadline under this paragraph
shall be supported by an explanation of the circumstances justiffing an extension and must be
approved by the Commission.
GnNsRAr, PnovrsroNs
I l. The Parties agree that this Settlement represents a compromise of the positions of
the Parties on all issues in this proceeding. Other than the above-referenced positions, and except
to the extent necessary for a Party to explain before the Commission its own statements and
positions with respect to the Settlement, none of the negotiations relating to this Settlement shall
be admissible as evidence in this or any other proceeding regarding this subject maffer.
12. The Parties submit this Settlement to the Commission and recommend approval in
its entirety pursuant to Rule 274.The Parties shall support this Settlement before the
Commission, and no Party shall appeal any portion or any Order approving this Settlerrent.
13. The Parties agree that the Settlement should be accepted, without modification,
because it is just, fair, and reasonable, in the public interest, and otherwise in accordance with
law or regulatory policy.
SrpulerroN AND SnrrLeueur Pece 8 or l0
14. The Parties agree that no part of this Settlement or the formulae and methods used
in developing the agreements herein or a Commission order approving the same shall in any
manner be argued or considered as precedential in any future case.
15. In the event the Commission rejects any part or all of this Settlement, or imposes
any additional conditions on approval of this Settlement, each Party reserves the right, upon
wriffen notice to the Commission and the other Parties to this proceeding, within fourteen days of
the date of such action by the Commission, to withdraw from this Settle,ment. In such c:ue, no
Party shall be bound or prejudiced by the terms of this Settlement, and each Party shall be
entitled to seek reconsideration of the Commission's final order, file testimony as it chooses,
cross-examine witresses, and do all stlhsl things necessary to put on such case as it deems
appropriate.
DATED: April25, 2022.
GrveNs PunslEv LLP
," *;. L--*->
PrestonN. Carter
Attorney for Intermountain Gas Company
DATED: Apri125,2022.
Ioa,Ho PueI,rc UulnrEs CourvlssroN Sr.trr
Dayn
Deputy Attomey General
Srpumrrou AND SETTLEMENT Pncn 9 or 10
CERTIFICATE OF SERVICE
I certifu that on April 25, 2022, a true and correct copy of the foregoing was served upon
all parties of record in this proceeding via electonic mail as indicated below:
Commission Staff
Jan Noriyuki, Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise,ID 83714
Dayn Hardie
Deputy Attorney General
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise,ID 83714
Via Electronic Mail
j an.noriyuki@puc. idaho. gov
dayn.hardie@puc. idaho. gov
dL----,"
Preston N. Carter
SrpulertoN euo Serrt-nueNt Pecr l0 oF 10