20220822Notice_of_Application_Order_No_35511.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35511 1

Office of the Secretary
Service Date
August 22, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On August 10, 2022, Intermountain Gas Company (“Company”), applied for authority
to implement new rate schedules that will reduce the Company’s annualized revenues by
approximately $7.7 million, effective October 1, 2022. Application at 2. If approved, the typical
residential customer would have a monthly decrease of $1.36 or 2.5%. Id. at News Release.
Although the factors that increased the WACOG still exist (See INT-G-22-02; Order No. 35479),
changes in storage prices can offset this volatility and stabilize customer prices. Id. at 5. The
Company attached Exhibits 1-3 in support of its Application. Id. The Company also asks that the
filing requirement for the Deferred Gas Cost Balance, LNG Sales Cost Benefit Analysis, and
Weighted Average Cost of Gas reports be maintained at a quarterly frequency. Id. at 13. The
Company requests that this matter be processed by modified procedure.
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 Purchased Gas Adjustment (“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.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED The Company’s rates include a base-rate
component and a gas-related cost component. The base-rate component is intended to cover the
Company’s fixed costs to serve its customers—for example, the Company’s costs for equipment
IN THE MATTER OF INTERMOUNTAIN
GAS COMPANY’S APPLICATION FOR
AUTHORITY TO CHANGE ITS PRICES
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CASE NO. INT-G-22-04

NOTICE OF APPLICATION

NOTICE OF MODIFIED
PROCEDURE

ORDER NO. 35511
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35511 2

and facilities to provide service—and rarely change. The Commission approved the Company’s
current temporary rates in Case No. INT-G-22-02, Order No. 35479.
YOU ARE FURTHER NOTIFIED that the gas-related component of the Company’s
rates is at issue here. With this Application, the Company seeks to pass through to each of its
customer classes changes in gas related costs resulting from: l) costs billed to the Company from
firm transportation providers; 2) a decrease in the Company’s Weighted Average Cost of Gas
(“WACOG”); 3) an updated customer allocation of gas related costs pursuant to the Company's
PGA; 4) the inclusion of temporary surcharges and credits for one year relating to natural gas
purchases and interstate transportation costs from the Company’s deferred gas cost accounts; 5)
benefits resulting from the Company’s management of its storage and firm capacity rights on
various pipeline systems; 6) benefits associated with the sale of liquefied natural gas from the
Company’s Nampa, Idaho facility; 7) the recovery of deferred in-person customer payment fees;
and 8) a refund of over-collected Residential Energy Efficiency funds. The Company also seeks
to eliminate the temporary surcharges and credits included in its current prices during the past 12
months, pursuant to Case No. INT-G-21-04. If approved, these changes would result in a price
decrease to all of the Company’s customers.
YOU ARE FURTHER NOTIFIED that the proposed changes to the rates will decrease
the Company’s annualized revenues by about $7.7 million but will not impact earnings.
YOU ARE FURTHER NOTIFIED that the Company stated that the proposed rate
changes would be allocated to customer classes through its PGA provision, but that a straight cents
per therm price change was not utilized for the LV-l tariff as no fixed costs are currently recovered
in the tail block of the LV-l tariff.
YOU ARE FURTHER NOTIFIED that the Company provides supporting exhibits that
show the overall price changes by customer class. The Company also summarizes price changes
and proposed rate schedules and tariff sheets.
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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35511 3

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
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 September 8, 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]

For Intermountain Gas:

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

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35511 4

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, ID 83714
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
September 15, 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.
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 September 8, 2022. The Company must file any reply comments by
September 15, 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.

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35511 5

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 22nd day
of August 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\GAS\INT-G-22-04 PGA\orders\INTG2204_NtcApp_Mod_cs.docx