20220805Final_Order_No_35492.pdf

ORDER NO. 35492 1
Office of the Secretary
Service Date
August 5, 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

ORDER NO. 35492

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
while employed by Intermountain Gas Company (“Company”). Through investigation and self-
reporting by the Company, Commission Staff (“Staff”) learned 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.
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. 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”).
ORDER NO. 35492 2
On June 17, 2022, the Commission issued a Notice of Proposed Settlement and Notice
of Modified Procedure, establishing a public comment deadline and a Parties’ reply deadline. Staff
filed the only comments.
Having reviewed the record in this case, we now issue this Order approving the
Settlement as filed.
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.
THE SETTLEMENT
The Settlement proposed an overarching solution that 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 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 processes and procedures reduce 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
described below:
1. Training, quarterly audits, and other actions. The Company will 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.
ORDER NO. 35492 3
b. Align the requirements of each Covered Task1 to coincide with Service Technician
work orders and conduct and file quarterly audits.
i. The Company will 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 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. 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

1 The Safety & Technical Training department is developing the list of Covered Tasks required to perform Service
Technician and Service Technician Apprentice work orders.
ORDER NO. 35492 4
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.
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 will 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 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. 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
ORDER NO. 35492 5
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.
STAFF COMMENTS
Staff filed comments in support of the Settlement. Staff offered that while it had hoped
a software solution would be available to ensure operators were not assigned to jobs they were
unqualified to perform, the technology does not currently exist and the Settlement provides a
mechanism to guide the Company to full compliance. Staff noted that it was confident that the
commitments the Company made and the reports that will follow will—in the absence of a
technology solution—put the Company on track to eliminate the safety violations at issue.
Staff also supported the Settlement because it does not propose to withdraw or
eliminate the proposed fine, but instead holds it in abeyance pending the Company successfully
remedying the safety violations according to the terms of the Settlement and meeting the reporting
requirements described above. Staff also noted that the Settlement does not foreclose the
possibility of additional penalties being imposed if the Company continues to have safety
violations. For the reasons stated above, Staff believed the Settlement was in the public interest
and offers the Company an opportunity to correct its processes and procedures while eliminating
safety violations.
COMMISSION DECISION AND FINDINGS
The Commission has jurisdiction over this matter under Idaho Code §§ 61-302, 61-
501, 61-515, and 61-712A. Each regulated utility must maintain its facilities to promote the health
and safety of its customers, employees, and the public Idaho Code § 61-301. The Commission has
the express statutory authority to regulate every public utility in Idaho. Idaho Code §§ 61-501. The
Commission can require every regulated utility to maintain and operate its system to “promote and
safeguard the safety of its employees, customers, and the public” and may fine any regulated utility
that violates title 61 or the Commission’s authority governing pipeline safety. Idaho Code §§ 61-
515 and 61-712A.
The Commission’s process for considering settlement stipulations is set forth in its
Rules of Procedure 271-277, IDAPA 31.01.01.271-277. When a settlement is presented to the
Commission, it “will prescribe the procedures appropriate to the nature of the settlement to
consider the settlement.” IDAPA 31.01.01.274. Proponents of a proposed settlement must show
ORDER NO. 35492 6
“that the settlement is reasonable, in the public interest, or otherwise in accordance with law or
regulatory policy.” IDAPA 31.01.01.275. Finally, the Commission is not bound by settlement
agreements. IDAPA 31.01.01.276. Instead, the Commission “will independently review any
settlement proposed to it to determine whether the settlement is just, fair and reasonable, in the
public interest, or otherwise in accordance with law or regulatory policy.” Id.
The Commission has reviewed the record, including the Application, Settlement, and
Staff’s comments. The Parties have established a record that sets forth their justifications for
signing and supporting the Settlement. We appreciate the investment of time and resources the
Parties have made to participate in this case and explore the options available to correct the
Company’s safety violations. The record, as presented, assisted the Commission in understanding
the challenges with establishing a software solution to ensure no unqualified operators are assigned
to covered tasks. While we are disappointed that no software exists to aid the Company’s
compliance efforts, we were persuaded by the terms agreed to in the Settlement that compliance
with safety rules and regulations will be achieved going forward. We anticipate the Company will
strictly monitor how jobs are assigned to specific personnel and only qualified technicians or
apprentices will complete those tasks. We remind the Company that if it continues to experience
safety violations that we may enforce the fine currently held in abeyance or impose new penalties
for continuing violations. Based on our review of the record, we find that the Settlement is fair,
just, and reasonable, in the public interest. Accordingly, we approve the Settlement as filed.
Finally, we wish to note our appreciation of Mr. Urzua, who took time to inform the
Commission of the safety violations.
O R D E R
IT IS HEREBY ORDERED that the Settlement is approved as filed.
IT IS FURTHER ORDERED that the Company must continue to file the agreed upon
reports until such time as the Commission grants its release from the terms of the Settlement.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order about any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.

ORDER NO. 35492 7
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 5th day
of August 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

//ABSTAINED//
JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\GAS\INT-G-22-01 Urzua\Orders\INTG2201_final_dh.docx