20220617Notice_of_Modified_Procedure_Order_No_35434.pdf

NOTICE OF MODIFIED PROCEDURE
NOTICE OF PROPOSED SETTLEMENT
ORDER NO. 35434 1
Office of the Secretary
Service Date
June 17, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF COMMISSION
STAFF’S FORMAL COMPLAINT
CONCERNING INTERMOUNTAIN GAS
COMPANY’S PRACTICE OF ALLOWING
UNQUALIFIED OPERATORS TO PERFORM
LIVE METER EXCHANGES
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CASE NO. INT-G-22-01

NOTICE OF MODIFIED
PROCEDURE

NOTICE OF PROPOSED
SETTLEMENT

ORDER NO. 35434

On April 23, 2021, Jesse Urzua (“Urzua”) contacted the Commission expressing
concern that he was an unqualified operator who was performing live residential meter exchanges.
Through investigation and self-reporting by the Company, Commission Staff (“Staff”) discovered
that the Company had violated pipeline safety requirements by allowing 1,847 work orders to be
issued and performed by unqualified operators.
On March 1, 2022, the Commission accepted Staff’s formal complaint (“Complaint”).
On March 3, 2022, the Commission issued a Summons to the Company requiring it to respond to
Staff’s Complaint within 21 days. See Summons to Intermountain Gas Company.
On March 11, 2022, Staff notified the Commission’s Secretary that it had entered into
Settlement discussions with the Company pursuant to Rule 272 of the Commission’s Rules of
Procedure, IDAPA 31.01.01.272.
On March 16, 2022, the Company petitioned for an extension of time to answer Staff’s
Complaint. See Company’s Request for Extension of Time. The Company requested that the
Commission allow it until April 25, 2022 to respond to Staff’s Complaint. The Company
represented that it was engaged in active settlement discussions with Staff and hoped to achieve a
mutually agreeable solution prior to filing a formal answer to Staff’s Complaint.
On March 30, 2022, the Commission granted the Company’s Request for Extension of
Time—allowing the Company until April 25, 2022, to file an answer to the Summons. Order No.
35358.
On April 25, 2022, the Company and Staff (collectively, the “Parties”) filed a Joint
Stipulated Motion to Approve Settlement and Stipulation and proposed Settlement (“Settlement”)
entered between Staff and the Company.
NOTICE OF MODIFIED PROCEDURE
NOTICE OF PROPOSED SETTLEMENT
ORDER NO. 35434 2
We now issue this Notice of Proposed Settlement and Notice of Modified Procedure,
establishing a public comment deadline and a Parties’ reply deadline.
BACKGROUND
During February and March 2022, the Parties worked together and engaged in multiple
settlement conferences. During those conferences, the Parties discussed the issues concerning the
Company’s practices of allowing unqualified operators to perform live meter exchanges and
possible solutions to prevent future occurrences. The Parties came to mutually agreeable terms on
a solution that ensures these issues do not occur again plus interim measures the Company will
incorporate to ensure compliance. Accordingly, the proposed Settlement was produced.
NOTICE OF PROPOSED SETTLEMENT
YOU ARE HEREBY NOTIFIED that the Settlement proposed an overarching solution
that envelopes and revises the Company’s internal practices. The Settlement involves several
action items with the highlight being the revision of the Company’s OPS 800 – Operator
Qualification Plan. In addition, the Company has agreed to file quarterly safety audit reports to
verify the number of safety incidents in any quarter. The Parties anticipate this process will help
the Commission track the Company’s progress and ensure that its newly implemented procedures
are reducing the number of safety violations. The Company committed to implementing several
policies, procedures, and plans through its departments to not only notify all personnel of safety
requirements, but also to update the training of required personnel to ensure safety compliance.
Relevant issues addressed in the Settlement are summarized below:
1. Training, quarterly audits, and other actions. The Company agrees to implement the
following action items:
a. Evaluate and decide which department will be responsible for Operator Qualifications.
Specify roles under which the MDU Utilities Group (the Company’s parent) will
adhere.
b. Align the requirements of each Covered Task1 to coincide with Service Technician
work orders and conduct and file quarterly audits.
i. The Company agrees to perform quarterly audits of service orders to ensure that
Service Technician Apprentices and Service Technicians are qualified to perform

1 The Safety & Technical Training department is developing the list of Covered Tasks required to perform Service
Technician and Service Technician Apprentice work orders.
NOTICE OF MODIFIED PROCEDURE
NOTICE OF PROPOSED SETTLEMENT
ORDER NO. 35434 3
the work associated with the service orders. 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 Staff no later than August 29, 2022. The results of subsequent quarterly audits
will be provided to Staff no later than 30 days after the last day of the preceding
quarter. Instances of noncompliance identified in the quarterly reports may be
subject to penalty under Idaho Code § 61-712A.
ii. These quarterly audits will continue until the issue can be resolved by computer
software that ensures work orders are assigned only to qualified service
technicians. However, the Company may request that the Commission terminate
its obligation to conduct quarterly audits either 1) after two consecutive quarters
that indicate zero violations related to the qualifications of Service Technicians
or 2) at any time beginning 24 months after the effective date of an order
approving this Settlement.
c. Update, maintain, and provide annual training to the Company’s supervisors, focusing
on Covered Tasks.
d. Further define ‘Expired’ and establish procedures for supervisors to follow if an
Employee—anyone employed by the Company who performs Covered Tasks—has
expired qualifications.
i. The definition of ‘Expired’ will be included in the OPS 800 – Operator
Qualification Plan revisions and the Company’s supervisor training.
e. Establish an annual Operator Qualification and OPS procedure calendar for supervisor
reference and support.
f. Establish a firm deadline for Performance Evaluations to be completed once Computer
Based Training (“CBT”)/Classroom training has been completed. Lock-down
Performance Evaluations will be blocked or not allowed until CBT/Classroom training
has been completed.
g. Pursue additional hierarchical review of Operator Qualifications. Example: Regional
Director can review District Manager staff and below.
h. Develop and review Energy WorldNet CBT modules and incorporate with MDU
Utilities Group trainings modeled after OPS Procedures.
NOTICE OF MODIFIED PROCEDURE
NOTICE OF PROPOSED SETTLEMENT
ORDER NO. 35434 4
i. Review MDU Utilities Group training for newly hired Employees who perform
Covered Tasks.
j. Review and re-write OPS 800 - Operator Qualification Plan to incorporate the above
recommendations.
k. Training provided will identify the avenues for reporting concerns regarding operator
qualifications.
2. Quarterly reports. The Company agrees to provide quarterly reports regarding its
implementation of the action-items described above to the Executive Director of Idaho Public
Utilities Commission no later than the 15th day after the last day of the preceding quarter.
Quarterly reports for each action item will continue to be filed until (i) the action item is
complete; (ii) a completion report, discussed below, is approved by the Commission; or
(iii) this Settlement is otherwise terminated by the Commission.
3. Abeyance and waiver of penalty. The penalty proposed in the Complaint shall be held in
abeyance pending successful implementation of the action items described above. The penalty
shall be waived upon termination of the Settlement, described below. If the Company violates
any term of this Settlement, Commission Staff may request 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.
4. Termination of Settlement. This Settlement shall terminate upon the earlier of (i) completion
of the action items described above 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 the Company.
5. Extension of deadlines. The dates agreed to in the Settlement can be extended only upon
request of the Company, based on the occurrence of an event that cannot be anticipated or
controlled by the Company. A request to extend a deadline shall be supported by an
explanation of the circumstances justifying an extension and must be approved by the
Commission.
YOU ARE FURTHER NOTIFIED that the Commission will review the Settlement
under Commission Rules 271-280. See IDAPA 31.01.01.271-280.
NOTICE OF MODIFIED PROCEDURE
NOTICE OF PROPOSED SETTLEMENT
ORDER NO. 35434 5
YOU ARE FURTHER NOTIFIED that the Settlement does not bind the Commission.
The Commission will independently review the Settlement to decide whether to approve it, reject
it, or state conditions under which to accept it. The Settlement proponents ultimately must prove
it is just, fair, and reasonable, in the public interest, or otherwise in accordance with law or
regulatory policy.
YOU ARE FURTHER NOTIFIED that the Settlement, and supporting work papers,
testimony, and exhibits are available for public inspection during regular business hours at the
Commission’s office. They also may be viewed on the Commission’s web site at
www.puc.idaho.gov by clicking on the “Natural Gas” icon, select “Open Cases,” and click on the
case number, Case No. INT-G-22-01, as shown on this document.
NOTICE OF MODIFIED PROCEDURE
YOU ARE HEREBY NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and it will review the case through written
submissions under the Commission’s Rules of Modified Procedure Rules 201 through 204 of the
Idaho Public Utilities Commission’s Rules of Procedure, 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
Application may file a written comment explaining why they support or oppose the Application.
Persons who would like a hearing must specifically request a hearing in their written comments.
Interested persons shall have 14 days from the service date of this Order to file written
comments. Comments must be filed through the Commission’s website or by e-mail unless
computer access is unavailable. To comment electronically, please access the Commission’s
website at www.puc.idaho.gov. Click the “Case Comment Form” and complete the form using the
case number as it appears on the front of this document. To file by e-mail, the customer must e-
mail the comments to the Commission Secretary and the Company at the e-mail addresses listed
below. If computer access is unavailable, then comments may be mailed to the Commission and
Company at these addresses:
NOTICE OF MODIFIED PROCEDURE
NOTICE OF PROPOSED SETTLEMENT
ORDER NO. 35434 6
For the Idaho Public Utilities
Commission:

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

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, Idaho 83714
For Intermountain Gas:

Lori A. Blattner
Intermountain Gas Company
P.O. Box 7608
Boise, Idaho 83707
[e-mail]

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

YOU ARE FURTHER NOTIFIED that the Parties must file any reply comments
within 21 days of the service date on this Order.
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.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be conducted
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code, and the Commission
may enter any final Order consistent with its authority under Title 61.
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.

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NOTICE OF MODIFIED PROCEDURE
NOTICE OF PROPOSED SETTLEMENT
ORDER NO. 35434 7
O R D E R
IT IS HEREBY ORDERED that the proposed Settlement be processed by Modified
Procedure, Rules 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting written
comments must do so within 14 days of the service date of this Order. The Parties must file any
reply comments within 21 days of the service date of this Order.
IT IS FURTHER ORDERED that Parties comply with Order No. 35375, issued April
21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service between
Parties should continue to be accomplished electronically when possible. However, 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 17th day
of June 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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