20220616Notice_of_Application_Order_No_35432.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35432 1

Office of the Secretary
Service Date
June 16, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On May 31, 2022, Intermountain Gas Company (“Company”) applied for authority to
changes its prices. The Company requests its proposed rates—which would increase the
Company’s revenue by $67 million—be updated in the Company’s Purchased Gas Cost
Adjustment (“PGA”), effective August 1, 2022. The Company proposes to increase the commodity
Weighted Average Cost of Gas (“WACOG”) to $0.42405 per therm. If approved, the average
residential customer would see a monthly increase of $10.55—about 24.1 percent—and the
average commercial customer would see a monthly increase of $51.87, about 27 percent.
The Commission now issues this Notice of Application and Notice of Modified
Procedure establishing deadlines for interested parties to comment, and the Company’s reply.
BACKGROUND
The Company’s PGA is a Commission approved mechanism that adjusts rates up or
down to reflect changes in the Company’s costs to buy natural gas from suppliers—including
changes in transportation, storage, and other related costs. The Company defers these costs into its
PGA account and then passes them on to customers through an increase or decrease in rates.
In Case No. INT-G-21-04, the Commission approved the Company’s annual PGA,
effective October 1, 2021. Order No. 35182. In Order No. 35182, the Commission authorized the
Company to increase its WACOG to $0.26000 per therm The Commission also approved the
Company’s proposed tariffs as filed, and quarterly filing of the Quarterly Deferred Gas Balances
report.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company’s Application reflects its proposed
PGA to amend its commodity WACOG due to macroeconomic forces and geopolitical events
IN THE MATTER OF INTERMOUNTAIN
GAS COMPANY’S APPLICATION FOR
AUTHORITY TO CHANGE ITS PRICES
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CASE NO. INT-G-22-02

NOTICE OF APPLICATION

NOTICE OF MODIFIED
PROCEDURE

ORDER NO. 35432
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35432 2

increasing the price of wholesale natural gas. Application at 4-5. Natural gas demand has exceeded
supply throughout the Covid-19 pandemic as many producers have shifted from additional drilling
activity to paying down debt. Id. at 4. The United States continues to export large amounts of LNG,
thus diminishing supply levels available for domestic consumers. Id. In addition, there are
concerns that national gas storage levels will “not be at ideal levels by November 1, 2022.” Id. at
5. Notwithstanding increased gas prices, lower coal stockpiles have bolstered the demand for
natural-gas-powered resources. Id. Finally, significant global events—including the war in
Ukraine and lockdowns in China—have exacerbated supply-chain issues. Id.
YOU ARE FURTHER NOTIFIED that the Company proposes to increase the
Commodity WACOG from the $0.26000 per therm currently embedded in rates to $0.42405 per
therm for the Company’s RS, GS-1, IS-R, IS-C, and LV-1 customer classes.
YOU ARE FURTHER NOTIFIED that the Company believes that making this filing
now will mitigate the build-up of deferrals and allow customers additional time to budget for
increased winter heating costs.
YOU ARE FURTHER NOTIFIED that the Application and Exhibits are available for
public inspection during regular business hours at the Commission’s office. These documents are
also available on the Commission’s website at www.puc.idaho.gov. Click on the “NATURAL
GAS” tab, select “Open Cases,” and then locate and click on the case number as shown on the
front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code. 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.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER 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 201-204 of the Idaho
Public Utilities Commission’s Rules of Procedure, IDAPA 31.01.01.201-204. The Commission
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35432 3

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.
Persons shall have until July 7, 2022, 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:
For the Idaho Public Utilities
Commission:

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

Street Address for Express Mail:

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

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

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

YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
July 14, 2022.
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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35432 4

O R D E R
IT IS HEREBY ORDERED that the Company’s Application be processed by Modified
Procedure, Rules 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting written
comments must do so by July 7, 2022. The Company must file any reply comments by July 14,
2022.
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 16th day
of June 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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