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HomeMy WebLinkAbout20221202Application.pdfGTvENS PunsLEY,," Attorneys and Counselors at Law 601 W. Bonnock Street PO Box27?0 Boise. lD 83701 Telephone: 208-388-l 200 Focsimile: 208-388-l 300 M.givenspu6ley.com Preslon N. CorterMW17Z2 prestoncorter@givenspunley.com Gory G. Allen Chorlle S. Boser Chrislopher J. Beeson Joson J. Blokley Clinl R. Bolinder Jeff W. Bower Preslon N. Corter Chynno K. Cosloro Jeremy C. Chou Michoel C. Creoms Joshuo C. Dickinson Ambs N. Dino Brodley J. Dixon Thomqs E. Dvorok Morgon D. Goodin Oonold Z. Groy Brion J. Holleron Kersti H. Kennedy Elizobeth A. Koeckeritz Neol A. Koskello Michoel P. Lowrence Fronklin G. Lee Dovid R. Lombordi Lors E. Lundberg Kimberly D. Moloney Kennelh R. McClure Alex P. McLoughlin Melodie A. McQuode Christopher H. Meyer L. Edword Miller Judson B. Montgomery Deboroh E. Nelson Somuel F. Porry Rondoll A. Petermon Bloke W. Ringer Michoel O. Roe Donielle M. Strollo Robert B. White Michoel V. Woodhouse williom C. Cole (Of Counsel) Kennelh L. Pursley ll94G20r5l Jomes A. Mcclure (1921-2or rl Roymond D. Givens Ir9rz-2008) ,"T GJ . t{le} December 1,2022 VIA HAND DELIWRY and EMAIL Jan Noriyuki Idaho Public Utilities Commission I l33l W. Chinden Blvd. Building 8, Suite 201-A Boise, ID 83714 j an.noriyuki @puc. idaho. gov icc)@o t- Re: Intermountain Gas Company - General Rate Case Filing Dear Ms. Noriyuki Enclosed for filing, please find a thumb drive containing the Intermountain Gas Company's Application and supporting testimony. Copies have also been sent by e-mail. The thumb drive contains word versions of the testimony for the convenience of the Commission and per the Commission's rule of procedure. Sincerely, / __=- - 2_.2__. Preston N. Carter Attorney for Intermountain Gas Company PNC/sw Enclosurescc: Dayn Hardie, Deputy Attomey General Lori Blattner, lntermountain Gas Company Cf,Trr, ,a I \/fi'luIn? lll LJUI o\ t1" "J );'. Ltu11;,,,- 16515183 I docx Preston N. Cartet ISB No. 8462 Morgan D. Goodin, tSB No. I I184 Blake W. Ringer, ISB No. 11223 Givens Pursley LLP 601 W. Bannock St. Boise, Idaho 83702 Telephone: (208) 388-1200 Facsimile: (208) 388-l 300 orestoncarter@ sivenspursley.com morgan goodin@ givenspursley.com blakerin eer@ eivenspursley.com /,IOEIVED Ifili 0[C - | Pll 5: I 6 rr rarr rAjir,.-'!J t-Ut.iLlLiil i'il[;i C0h{tu{lSSl0N Attorneys for Intermountain Gas Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF INTERMOTINTATN GAS COMPANY FOR AUTHORITY TO INCREASE ITS RATES AND CHARGES FOR NATURAL GAS SERVICE IN THE STATE OF IDAHO Case No. INT-G-22-07 ApplrcarroN Intermountain Gas Company, ("Intermountain," "Applicant," or "Company") hereby moves the Idaho Public Utilities Commission ("Commission") for an Order approving revisions to Applicant's schedules of rates and charges for natural gas service in the State of Idaho to become effective on or after January 1,2023 Please address communications regarding this Application to Preston N. Carter Givens Pursley LLP 601 W. Bannock St. Boise,Idaho 83702 prestoncarter@givenspursley.com stephaniew@givenspursley.com and Lori A. Blattner Director - Regulatory Affairs Intermountain Gas Company Post Office Box 7608 APPLICATIoN PAGE 1 oF 7 Boise, lD 83707 lori.blattner@intgas.com In support of this Application, Intermountain alleges and states as follows. I. Intermountain is a gas utility, subject to the jurisdiction of the Commission, engaged in the sale of and distribution of natural gas within the State of Idaho under authority of Commission Certificate No. 219, issued December 2,1955, as amended and supplemented by Order No. 6564, dated October 3,1962. Intermountain provides natural gas service to the following Idaho communities and counties and adjoining areas: Ada County - Boise, Eagle, Garden City, Kuna, Meridian, and Star; Bannock County - Arimo, Chubbuck,lnkom, Lava Hot Springs, McCammon, and Pocatello; Bear Lake County - Georgetown and Montpelier; Bingham County - Aberdeen, Basalt, Blackfoot, Firth, Fort Hall, Moreland/Riverside, and Shelley; Blaine County - Bellevue, Hailey, Ketchum, and Sun Valley; Bonneville County - Ammon,Idaho Falls, Iona, and Ucon; Canyon County - Caldwell, Greenleaf, Middleton, Nampa, Parma, and Wilder; Caribou County - Bancroft, Grace, and Soda Springs; Cassia County - Burley, Declo, Malta, and Raft River; Elmore County - Glenns Ferry, Hammett, and Mountain Home; Fremont County - Parker and St. Anthony; Gem County - Emmett; Gooding County - Gooding and Wendell; Jefferson County - Lewisville, Menan, Rigby, and Ririe; Jerome County - Jerome; Lincoln County - Shoshone; Madison County - Rexburg and Sugar City; Minidoka County - Heyburn, Paul, and Rupert; Owyhee County - Bruneau and Homedale; Payette County - Fruitland, New Plymouth, and Payette; Power County - American Falls; Twin Falls County - Buhl, Filer, Hansen, Kimberly, Murtaugh, and Twin Falls; Washington County - Weiser. Intermountain's properties in these locations consist of transmission pipelines, liquefied natural gas storage facilities, compressor stations, distribution mains, services, meters and APPLICATIoN PAGEZoF 7 regulators, and general plant and equipment. Intermountain is a wholly owned subsidiary of MDU Resources Group, lnc. ("MDU") and shares certain centralized services provided by MDU with other utilities also owned by MDU. II. lntermountain's existing base rates and charges for natural gas service were approved by the Commissionin2}lT in Case No. INT-G-16-02 and subsequently decreased in Case No. GNR-U- l8-01 in 2018. A copy of lntermountain's current, Commission-approved tariffs are attached as Attachment I to this Application. III. A copy of the Company's tariffs showing the changes proposed in this Application are attached as Exhibit No. 5 and the resulting clean tariffs as Exhibit No. 6 to Ms. Blattner's testimony. Intermountain proposes to increase the revenue collected through rates by approximately $1 I .3 million. This request represents a margin revenue increase of 10.3%, or an overall revenue increase of 3.2o/o. The changes in rates and charges proposed in this Application are just and reasonable. If the changes are approved as proposed, the expected rate of retum to the Company will be approximately 7.37oh, which is a fair rate of retum on the Company's investment in property used and useful in rendering gas utility services. IV. Under its presently authorized rates, the Company is earning a rate of retum of approximately 5.20%o based on a test year ending December 31,2022. The Company seeks additional revenues to recover increased operating expenses and costs associated with plant additions, as well as revenues necessary to produce a fair rate of return to enable continued adequate and reliable service. If the requested rate increases are not approved, lntermountain's rates will not APPLICATIoN PAGE 3 oF 7 be fair, just and reasonable and Intermountain will not have an opportunity to realize a fair rate of return on its investments in the State of ldaho. V. Included within the changes proposed in this Application are certain items that have been decided or discussed in other proceedings before this Commission, such as inclusion of in-person payment transaction fees within base rates and revisions to the Company's Line Extension tariff. These items are discussed in Ms. Blattner's testimony. Allocation ofthe proposed revenue increase, and associated changes to rate design, are discussed in Mr. Amen's testimony. VI. To support this Application, Intermountain is concurrently filing the Direct Testimony of Nicole Kivisto, Tammy Nygard, Ann Bulkley, Patrick Darras, Hart Gilchrist, Dyke Boese, Kirsti Hourigan, Jacob Darrington, Ron Amen, and Lori Blaffner. This testimony and the accompanying exhibits include information regarding the Company's finances, revenue analysis, analysis of cost of service, and supponing work papers that justifr and support the changes proposed in this Application. The native files for exhibits created in Microsoft Excel will be provided with or shortly after this Application is filed. VII. The testimony, information, and evidence in support of the proposed changes are based on a 12-month test year ending December 31,2022. The test year consists of ninth months actual and three months forecasted, with the forecasted months to be trued up as actual numbers become available. lntermountain's testimony, information, and evidence regarding ratebase is presented on a thirteen-month average basis. A complete justification of the changes proposed in this Application APPLICATIoN PAGE 4 oF 7 is provided in this testimony and exhibits. A brief overview ofthe subject-matter of each witresses' testimony is provided in the testimony of Ms. Kivisto. vm. Notice to Intermountain's customers is being accomplished by news media releases concurrent with this Application and by an individual notice delivered to each customer. Copies of the press release and customer notice are attached as to this Application as Attachment2 and Attachment 3. In addition, a copy of the Application and relevant rate schedules are available on the Company's website at www.intgas.com, and this Application and supporting materials are available for public review on the Commission's website at www.Duc.idaho.eov Ix. lntermountain stands ready for an immediate hearing on this Application and requests that a hearing be held as soon as possible. x. For the reasons set forth above and in the accompanying testimony and exhibits, Intermountain respectfu lly requests: l. That this Application be heard and acted upon at the earliest possible date; 2. That the Commission find that the Applicant's existing rates are unjust, unreasonable and insuffrcient to provide the Company with a fair rate of retum, and that the changes proposed in this Application are just and reasonable; 3. That the Commission approve the changes proposed in this Application, effective January 1,2023;and 4. That the Commission grant such other relief as the Commission may determine proper under the circumstances. APPLICATION PAGE 5 OF 7 DATED: December l, 2022. GrveNs Punsley LLP / --., -- * 72__ z_ _ Preston N. Carter Attorney for Intermountain Gas Company APPLICATIoN PAGE 6 OF 7 CERTIFICATE OF SERVICE I certiff that on December 1,2022, 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 Jan Noriyuki, Commission Secretary jan.noriyuki@puc.idaho.gov Idaho Public Utilities Commission 11331 W. Chinden BIvd., Bldg. 8, Suite 201-A Boise, ID 83714 Dayn Hardie Deputy Attorney General Idaho Public Utilities Commission I l33l W. Chinden Blvd., Bldg. 8, Suite 201-A Boise, ID 83714 dayn.hardie@puc. idaho. gov ,P Preston N. Carter APPL!CAnoN PAGE 7 OF 7 t-{ Elzrc = Fti -U HH ATTACHMENT 1 l.P.U.C. Gas Tariff Rate Schedules Tenth Revised Sheet No. 1 (Page 1 of 1) Name of Utility lntermountain Gas Company Rate Schedule RS RESIDENTIAL SERVICE APPLICABILITY: Applicable to any customer using natural gas for residential purposes. RATE: Monthly minimum charge is the Customer Charge. IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective5ept.27,2022 Oct.1,2022 Per ON 35538 & 35539 Jan NoriyukiSecretary ($o.ooos7) $0.39216 $0.16364 Customer Charge: Per Therm Charge *lncludes the following: Cost of Gas: $5.50 per bill $0.73392. 1) Temporary purchased gas cost adjustment 2) Weighted average cost of gas 3) Gas transportation cost Distribution Cost: EE Charge: $0.16305 $0.01564 PURCHASED GAS COST ADJUSTMENT This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. ENERGY EFFICIENCY CHARGE ADJUSTMENT: This tariff is subject to an adjustment for costs related to the Company's Energy Efficiency program as provided for in Rate Schedule EEC-RS. The Energy Efficiency Charge is separately stated on customer bills. SERVICE CONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of which this rate schedule is a part. rssued by: lntermountain Gas Company By: Lori A. Blattner Title: Director - Regulatory Affairs Effective: October 1, 2022 l.P.U.C. Gas Tariff Rate Schedules Sixty-Fifth Revised Sheet No.3 (Page 1 of 2) Name of Utility lntermountain Gas Company IDAHO PUBLIC UTILITIES COMMISSIONApproved EffectiveSept.27,2022 Oct.1,2022 Per ON 35538 Jan NoriyukiSecretary Rate Schedule GS-l GENERAL SERVICE APPLICABILITY: Applicable to customers whose requirements for natural gas do not exceed 2,000 therms per day, at any point on the Company's distribution system. Requirements in excess of 2,000 therms per day may be allowed at the Company's discretion. RATE: Monthly minimum charge is the Customer Charge. Customer Charge: Per Therm Charge: $9.50 per bill "lncludes the following: Cost of Gas: Distribution Cost: 1) Temporary purchased gas cost adjustment 2) Weighted average cost of gas 3) Gas transportation cost 200 therms per bill@ 1,800 therms per bill @ 8,000 therms per bill @ 10,000 therms per bill @ 200 therms per bill @ 1,800 therms per bill @ 8,000 therms per bill @ 10,000 therms per bill @ Block One: Block Two: Block Three: Block Four: Block One: Block Two: Block Three: Block Four: First Next Next Over First Next Next Over $0.75436" $0.73088. $0.70821. $0.63965. $0.01445 $0.39216 $0.15990 $0.18465 $0.16117 $0.1 3850 $0.06994 EE Charge $0.00320 tssued by: lntermountain Gas Company By: Lori A. Blattner Title: Director- Regulatory Affairs Effective: October 1, 2022 l.P.U.C. Gas Tariff Rate Schedules Sixty-Fifth Revised Sheet No.3 (Page 2ol 2) Name of Utility Intermountain Gas Company Rate Schedule GS-1 GENERAL SERVICE (Continued) For separately metered deliveries of gas utilized solely as Compressed Natural Gas Fuel in vehicular internal combustion engines. Customer Charge: $9.50 per bill Per Therm Charge:Block One: Block Two: First 10,000 therms per bill @ Over 10,000 therms per bill@ IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective5ept.27,2022 Oct.1,2022 Per ON 35538 Jan NoriyukiSecretary $0.70501' $0.63645. $0.01445 $0.39216 $0.15990 $0.13850 $0.06994 *lncludes the following Cost of Gas: Distribution Cost: 1) Temporary purchased gas cost adjustment 2) Weighted average cost of gas 3) Gas transportation cost Block One: First 10,000 therms per bill @ Block Two: Over 10,000 therms per bill @ PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. ENERGY EFFICIENCY CHARGE ADJUSTMENT: This tariff is subject to an adjustment for costs related to the Company's Energy Efficiency program as provided for in Rate Schedule EEC-GS. The Energy Efficiency Charge is not applicable to gas utilized solely as Compressed Natural Gas Fuel in vehicular internal combustion engines. The Energy Efficiency Charge is separately stated on customer bills. SERVICE CONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of which this rate schedule is a part. tssued by: Intermountain Gas Company By: Lori A. Blattner Title: Director - Regulatory Affairs Effective: October 1, 2022 l.P.U.C. Gas Tariff Rate Schedules TwenU-First Revised Sheet No. 4 (Paqe 1 of2) Name of Utilitv lntermountain Gas Company Rate Schedule lS-R RESIDENTIAL INTERRUPTIBLE SNOWMELT SERVICE APPLICAB!LITY: Applicable to any residential customer othenadse eligible to receive service under Rate Schedule RS who has added natural gas snowmelt equipment after 61112010. The intended use of the snowmelt equipment is to melt snow and/or ice on sidewalks, driveways or any other similar appurtenances. Any and all such applications meeting the above criteria will be subject to service under Rate Schedule lS-R and will be separately and individually metered. All service hereunder is interruptible at the sole discretion of the Company. FACI LITY REIMBURSEMENT GHARGE: All new interruptible Snowmelt service customers are required to pay for the cost of the Snowmelt meter set and other related facility and equipment costs, prior to the installation of the meter set. Any request to alter the physical location of the meter set and related facilities ftom Company's initial design may be granted provided, however, the Company can reasonably accommodate said relocation and Customer agrees to pay all related costs. RATE: Monthly minimum charge is the Customer Charge. $5.50 per bill $0.73618* 1) Temporary purchased gas cost adjustment 2) Weighted average cost of gas 3) Gas transportation cost IDAHO PUBLIC UTILITIES COMMISSIONApproved EffectiveSept.27,2o22 Oct.1,2022 Per ON 35538 Jan NoriyukiSecretary $0.01733 $0.39216 $0.16364 Customer Charge: Per Therm Charge: "lncludes the following Cost of Gas: Distribution Cost:$0.16305 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. tssued by: lntermountain Gas Company By: Lori A. Blattner Title: Director - Regulatory Affairs Effective: October 1, 2022 l.P.U.C. Gas Tariff Rate Schedules Second Revised SheetNo. 4 (Pase2of2) Name of Utilitv lntermountain Gas Company 2 IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective June 20,2016 July 1,2016 Jean D. JewellSecretary Rate Schedule lS-R RESIDENTIAL INTERRUPTIBLE SNOWMELT SERVICE (Continued) SERVICE GONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of which this Rate Schedule is a part. Customer understands and expressly agrees that all service hereunder is considered a standby service and is subject to curtailment and/or intenuption at the Company's sole discretion. Company reserves the right to manually or remotely turnoff the flow of natural gas to any and all meters and/or applicable boiler system receiving lnterruptible Snowmelt Service hereunder when the Company determines that system conditions require such action. Customer shall provide and Company shall have uninhibited access to any meter, on-off switches or other related equipment necessary to provide lntenuptible Snowmelt Service hereunder. Customer shall be responsible to provide Companywith correct telephone or email contact information prior to the meter set and is responsible to immediately notify Company with any change to that contact information. Additionally, Customer is responsible to ensure that its prefened method of communication is in working order. Customer further agrees to indemnifo Company against any and all damages resulting from Customer's failure to provide accurate contact information, working communication equipment or failure to accept such notification after Company has made reasonable efforts to make said notification. Company will provide a minimum of two hours notification prior to interrupting Custome/s Snowmelt application when, at the Company's sole discretion, interruption of service under Rate Schedule lS-R is imminent and will at the same time provide its best estimate of the duration of the intenuption. Said notification will be made to Customer, or Customer's designated Agent, using the Customer's preferred method of communication either via telephone or email. Company will give subsequent notice when Rate Schedule lS-R Snowmelt service has been restored using Customer's preferred method of communication and, upon said restoration, Company will, if necessary, relight and/or recycle applicable Snowmelt equipment. Company shall not be liable for damages that direclly or indirectly occur as the result of interruption or restoration of service under Rate Schedule lS-R. Any Customer operating Snowmelt equipment prior to the initial Commission approval of Rate Schedule lS-R may elect to receive Snowmelt service under Rate Schedule lS-R. Upon such election, Company will exempt Customer from the payment of the Rate Schedule lS-R Facility Reimbursement Charge provided, however, that any request to modify the placement of existing facilities or related equipment due to the physical location requirements of Customer shall be granted at the Company's sole discretion and at the Customer's expense. 8.For billing purposes, amounts billed for service hereunder will be combined with amounts billed for other gas service Customer receives from Company at the same premise or property address. tssued oy: lntermountain Gas Company By: Michael P. McGrath Title: Director - Regulatory Affairs Effective: July 1, 2016 3 4. 5. 6. 7. |.P.U.C. Gas Tariff Rate Schedules Twentieth Revised Sheet No. 5 (Paoe'l of 2) Name of Utilitv lntermountain Gas Company IDAHO PUBLIG UTILITIES COMMISSIONApproved Effective5ept.27,2022 Oct.1,2022 Per ON 35538 Jan NoriyukiSecretary Rate Schedule lS-C SMALL COMMERICAL INTERRUPTIBLE SNOWMELT SERVICE APPL!CABILITY: Applicable to any customer otherwise eligible to receive gas service under Rate Schedule GS-1 who has added natural gas snowmelt equipmenl after 61112010. The intended use of the snowmelt equipment is to melt snow and/or ice on sidewalks, driveways or any other similar appurtenances. Any and all such applications meeting the above criteria will be subject to service under Rate Schedule lS-C and will be separately and individually metered. All service hereunder is interruptible at the sole discretion of the Company. FACILITY REIMBURSEMENT CHARGE All new interruptible Snowmelt service customers are required to pay for the cost of the Snowmelt meter set and other related facility and equipment costs, prior to the installation of the meter set. Any request to alter the physical location of the meter set and related facilities from Company's initial design may be granted provided, however, the Company can reasonably accommodate said relocation and Customer agrees to pay allrelated costs. RATE: Monthly minimum charge is the Customer Charge Customer Charge: Per Therm Charge: $9.50 per bill *lncludes the following Cost of Gas: Distribution Charge: Block One: Block Two: Block Three: Block Four: Block One: Block Two: Block Three: Block Four: 200 therms per bill @ 1,800 therms per bill@ 8,000 therms per bill @ 10,000 therms per bill@ 200 therms per bill @ 1,800 therms per bill @ 8,000 therms per bill @ 10,000 therms per bill @ 1 ) Temporary purchased gas cost adjustment 2) Weighted average cost of gas 3) Gas transportation cost First Next Next Over First Next Next Over $0.75116. $0.72768" $0.70501. $0.63645. $0.01445 $0.39216 $0.15990 $0.18465 $0.161 17 $0.138s0 $0.069e4 tssued by: lntermountain Gas Gompany By: Lori A. Blattner Title: Director - Regulatory Affairs Effective: October 1, 2022 l.P.U.C. Gas Tariff Rate Schedules Third Revised SheetNo. 5 (Pase2ol2\ Name of LJtilitu lntermountain Gas Gompany IDAHO PUBLIC UTILITIES COMM!SSIONApproved EffectiveNov.16,2021 Dec.1,2021 Jan NoriyukiSecretary 3. 4. Rate Schedule lS-C SMALL COMMERICAL INTERRUPTIBLE SNOWMELT SERVICE (Continued) PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. SERVICE CONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of which this Rate Schedule is a part. Customer understands and expressly agrees that all service hereunder is considered a standby service and is subject to curtailment and/or interruption at the Company's sole discretion. Company reserves the right to manually or remotely tumoff the flow of natural gas to any and all meters and/or applicable boiler system receiving lnterruptible Snowmelt Service hereunder when the Company determines that system conditions require such action. Customer shall provide and Company shall have uninhibited access to any meter, on-off switches or other related equipment providing lnterruptible Snowmelt Service hereunder. Customer shall be responsible to provide Company with conect telephone or email contact information prior to the meter set and is responsible to immediately notiff Company with any change to that contact information. Additionally, Customer is responsible to ensure that its preferred method of communication is in working order. Customer further agrees to indemnify Company against any and all damages resulting from Custome/s failure to provide accurate contact information, working communication equipment or failure to accept such notification after Company has made reasonable efforts to make said notification. Company will provide a minimum of two hours notification prior to interrupting Customer's Snowmelt application when, at the Company's sole discretion, interruption of service under Rate Schedule lS-C is imminenl and will at the same time provide its best estimate of the duration of the interruption. Said notification will be made to Customer, or Customer's designated Agent, using the Custome/s prefened method of communication either via telephone or email. Company will give subsequent notice when Rate Schedule lS-C Snowmelt service has been restored using Custome/s prefened method of communication and, upon said restoration, Company will, if necessary, relight and/or recycle applicable Snowmelt equipment. Company shall not be liable for damages that directly or indirectly occur as the result of interruption or restoration of service under Rate Schedule lS-C. Any Customer operating Snowmelt equipment prior to the initial Commission approval of Rate Schedule lS-C may elect to receive Snowmelt service under Rate Schedule lS-C. Upon such election, Company will exempt Customer from the payment of the Rate Schedule lS-C Facility Reimbursement Charge provided, however, that any request to modifo the placement of existing facilities or related equipment due to the physical location requirements of Customer shall be granted at the Company's sole discretion and at the Custome/s expense. For billing purposes, amounts billed for service hereunder will be combined with amounts billed for other gas service Customer receives from Company at the same premise or property address. tssued by: lntermountain Gas Gompany By: Lori A. Blattner Title: Director - Regulatory Affairs Effective: December 1, 2021 1 2. 6 7 8. 5 l.P.U.C. Gas Tariff Rate Schedules Seventv-Second Revised Sheet No.7 (Paoe 1 of2\ Name of Utilitv !ntermountain Gas Company IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective 5ept 27,2022 Oct.1,2022 Per ON 35538 Jan NoriyukiSecretary Rate Schedule LV-l LARGE VOLUME FIRM SALES SERVICE AVAILAB!LIW: Available at any mutually agreeable delivery point on the Company's distribution system to any existing customer receiving service under the Company's rate schedule LV-1 or any customer not previously served under this schedule whose usage does not exceed 500,000 therms annually, upon execution of a one-year minimum written service contract for firm sales service in excess of 200,000 therms per year. MONTHLY RATE: Demand Charge: Per Therm Charge: $0.30000 per MDFQ therm Block One: Block Two: Block Three: Block One: Block Two: Block Three: First Next Over 250,000 therms per bill @ 500,000 therms per bill @ 750,000 therms per bill @ $0.9173. $0.52384. $0.44733. *lncludes the following Cost of Gas: Distribution Cost: 1) Temporary purchased gas cost adjustment Block One and Two Block Three 2) Weighted average cost of gas 3) Gas transportation cost (Block One and Two only) $0.03247 $0.05210 $0.39216 $0.08710 $0.03000 $0.01211 $0.00307 First Next Over 250,000 therms per bill @ 500,000 therms per bill @ 750,000 therms per bill @ 2 3 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. SERVICE CONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of which this Rate Schedule is a part. The customer shall negotiate with the Company, a mutually agreeable Maximum Daily Firm Quantity (MDFO), which will be stated in and in effect throughout the term of the service contract. The monthly Demand Charge will be equal to the MDFQ times the Demand Charge rate. Demand Charge relief will be afforded to those LV-1 customers when circumstances impacted by force majeure events prevent the Company from delivering natural gas to the customer's meter. tssued by: lntermountain Gas Company By: Lori A. Blattner Title: Director- Regulatory Affairs Effective: October 1, 2022 l.P.U.C. Gas Tariff Rate Schedules Fifth Revised Sheet No.7 (Pase2of2l Name of utilitu lntermountain Gas Gompany 1 2. IDAHO PUBLIC UTILITIES COMMISSIONApproved EffectiveNov.16,2021 Dec.1,2021 Jan NoriyukiSecretary Rate Schedule LV-1 LARGE VOLUME FIRM SALES SERVICE (Continued) BILLING ADJUSTMENTS: ln the event that total deliveries to any new LV-1 customer did not meet the 200,000 therm threshold during the current contract period, an additional amount shall be billed. The additional amount shall be calculated by billing the customer's total usage during that contract period at the Rate Schedule GS-1 Block 3 rate, and then subtracting the amounts previously billed during the annual contract period. The customer's future eligibility for the LV-1 Rate Schedule will be renegotiated with the Company. ln the event that total deliveries to any existing LV-1 customer within the most recent three contract periods met or exceeded the 200,000 therm threshold, but the customer during the cunent contract period used less than the contract minimum of 200,000 therms, an additional amount shall be billed. The additional amount shall be calculated by billing the deficit usage below 200,000 therms at the LV- 1 Block 1 rate adjusted for the removal of variable gas costs. The customer's future eligibility for the LV-1 Rate Schedule will be renegotiated with the Company. 3.ln the event the customer requires daily usage in excess of the MDFQ, and subject to the availability of firm interstate transportation to serve lntermountrain's system, all such excess usage will be billed under Rate Schedule LV-1. Additionally, all excess MDFQ above the customeds contracted MDFQ for the month will be billed at the monthly Demand Charge rate. tssued by: lntermountain Gas Company By: Lori A. Blattner Title: Director - Regulatory Affairs Effective: December 1, 2021 l.P.U.C. Gas Tariff Rate Schedules Twentv-Second Revised Sheet No.8 (Paqe 1 of 1) Name of Utilitv lntermountain Gas Company !DAHO PUBLIC UTILITIES COMMISSIONApproved Effective5ept.27,2022 Oct.1,2022 Per ON 35538 Jan NoriyukiSecretary Rate Schedule T-3 INTERRU PTI BLE DISTRIBUTION TRANSPORTATION SERVICE AVAILABILITY: Available at any point on the Company's distribution system to any customer upon execution of a one year minimum written service contract. MONTHLY RATE: Per Therm Charge: Block One: First 100,000 therms transported @ $0.03771. Block Two: Next 50,000 therms transported @ $0.01487. Block Three: Over 150,000 therms transported @ $0.00496. "lncludes temporary purchased gas cost adjustment of ($0.00082) ANNUAL MINIMUM B!LL: The customer shall be subject to the payment of an annual minimum bill based on annual usage of 200,000 therms. The deficit usage below 200,000 therms shall be billed at the T-3 Block 1 rate. PURCHASED GAS COST ADJUSTMENT This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. SERVICE GONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of which this Rate Schedule is a part. This service does not include the cost of the customer's gas supply or the interstate pipeline capacity. The customer is responsible for procuring its own supply of natural gas and transportation to lntermountain's distribution system under this Rate Schedule. The customer understands and agrees that the Company is not responsible to deliver gas supplies to the customerwhich have not been nominated, scheduled, and delivered by the interstate pipeline to the designated city gate. The Company, in its sole discretion, shall determine whether or not it has adequate capacity to accommodate transportation of the customer's gas supply on the Company's distribution system. lf requested by the Company, the customer expressly agrees to immediately curtail or interrupt its operations during periods of capacity constraints on the Company's distribution system. tssued by: lntermountain Gas Gompany By: Lori A. Blattner Title: Director - Regulatory Affairs Effective: October 1, 2022 2 3 4 5. LP.U.C. Gas Tariff Rate Schedules Twentv-First Revised Sheet No.9 (Paqe 1 of 2) Name of Utilitu lntermountain Gas Company IDAHO PUBLIC UTILIT!ES COMMISSIONApproved Effective $ept 27,2022 Oct.1,2022 Per ON 35538 Jan NoriyukiSecretary Rate Schedule T4 FIRM DISTRIBUTION ONLY TRANSPORTATION SERVICE AVAILABILITY: Available at any mutually agreeable delivery point on the Company's distribution system to any customer upon execution of a one year minimum written service contract for firm distribution transportation service in excess of 200,000 therms per year. MONTHLY RATE: Demand Charge:$0.28032 per MDFQ therm* Per Therm Charge:Block One: Block Two: Block Three: First Next Over 250,000 therms transported @ $0.02395 500,000 therms transported @ $0.00847 750,000 therms transported @ $0.00260 2 3. *lncludes temporary purchased gas cost adjustment of ($0.01968) PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. SERVICE CONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of which this Rate Schedule is a part. This service does not include the cost of the customer's gas supply of the interstate pipeline capacity. The customer is responsible for procuring its own supply of natural gas and transportation to lntermountain's distribution system under this Rate Schedule. The customer understands and agrees that the Company is not responsible to deliver gas supplies to the customer which have not been nominated, scheduled, and delivered by the interstate pipeline to the designated city gate. The customer shall negotiate with the Company, a mutually agreeable Maximum Daily Firm Quantity (MDFO), which will be stated in and in effect throughout the term of the service contract. The monthly Demand Charge will be equalto the MDFQ times the Demand Charge rate. Demand Charge relief will be afforded to those T4 customers when circumstances impacted by force majeure events prevent the Company from delivering natural gas to the customer's meter. tssued by: lntermountain Gas Gompany By: Lori A. Blattner Title: Director - Regulatory Affairs Effective: October 1, 2022 4. 5. l.P.U.C. Gas Tariff Rate Schedules Fourth Revised Sheet No.9 (Paoe 2ot 2l Name of Utilitv lntermountain Gas Company IDAHO PUBLIC UTILITIES COMMISSIONApproved EffectiveNov.16,2021 Dec.1,2021 Jan NoriyukiSecretary 1 2. Rate Schedule T"4 FIRM DISTRIBUTION ONLY TRANSPORTATION SERVICE (Continued) BILLING ADJUSTMENTS: ln the event that total deliveries to any new T-4 customer did not meet the 200,000 therm threshold during the current contract period, an additional amount shall be billed. The additional amount shall be calculated by billing the custome/s total usage during that contract period at the Rate Schedule GS-1 Block 3 rate, adjusted for the cost of gas, and then subtracting the amounts previously billed during the annual contract period. The customer's future eligibility for the T-4 Rate Schedule will be renegotiated with the Company. ln the event that total deliveries to any existing T-4 customer within the most recent three contract periods met or exceeded the 200,000 therm threshold, but the customer during the current contract period used less than the contract minimum of 200,000 therms, an additional amount shall be billed. The additional amount shall be calculated by billing the deficit usage below 200,000 therms at the T- 4 Block 1 rate. The customer's future eligibility for the T4 Rate Schedule will be renegotiated with the Company. 3.ln the event the customer requires daily usage in excess of the MDFQ, and subject to the availability of firm distribution capacity to serve lntermountain's system, all such excess usage will be billed under rate schedule T4. Additionally, all excess MDFQ above the customer's contracted MDFQ for the month will be billed at the monthly Demand Charge rate. tssued by: lntermountain Gas Company By: Lori A. Blattner Title: Director - Regulatory Affairs Effective: December 1, 2021 N Hztrl = Ht{U HH ATTACHMENT 2 I{EWS RELEASE A INTERMOUNTAIN GAs COMPANY ASuMdiary of MDU Besrlurcx 6nD,lnc. Intermountain Gas Company requests price increase with Idaho PUC BOISE, lD - December 2,2022 - Intermountain Gas Company filed a request with the Idaho Public Utilities Commission to increase its price to serve its natural gas customers. If approved, it would increase the monthly bill for an average residential customer by about $2.19, or 4.4Yo, and for the average commercial customer by about $3.43 , or l.5oh. The proposed increase is for $l 1.3 million annually over current prices, or a3.2o/o overall increase. This base price change is not impacted by changes in the cost of natural gas. The last base price increase was 2.5yo, effective in 2017. The primary reason for the request is due to the infrastructure investments made by the company since the last regulatory proceeding that was filed in 2016. Intermountain's rate base, which is partially how customer prices are determined, has grown by about $152 million since 2016, or about 640/o. "We recognize prices have increased for many day-to-day necessities because of rising inflation since mid- 2021 ; however, a good portion of the infrastructure investments that are part of this regulatory request were made before rising inflation," said Nicole Kivisto, president and CEO of Intermountain Gas Company. "We believe the infrastructure investments are prudent to ensure safe and reliable natural gas service to our customers. Current prices do not reflect the cost of providing service to our customers, which is why we are requesting this increase." The Idaho PUC has up to seven months to issue a decision on this request. This is just the second general price increase request made by the company over a37-year period. The request is in regard to the cost to serve customers and does not include the cost of natural gas, which is about 64%o of a customer's monthly bill. Intermountain Gas encourages customers to use energy wisely. Conservation tips, information on energy assistance and information on the company's level pay program can be found on the company's website: www.intgas.com. Intermountain Gas Company is a nalural gas distribution company serving approximately 404,880 residential, commercial and industriol customers in 74 communities in southern ldaho. Intermountain is o subsidiary of MDU Resources Group, Inc., a member of the S&P MidCap 400 and the S&P High-Yield Dividend Aristocrats indices, and is Building a Strong America@ by providing essential products and services through its regulated energy delivery and construction maleriols and services businesses. For more information about MDU Resources, see the company's website at www.mdu.com. For more information about Intermountain, visit tutuw.inlgas.com. Media Contact: Mark Hanson at 701-530-1093 or mark.hanson@mduresources.com. 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