20221201Darrington Direct with Exhibits.PDF

Preston N. Carter, ISB No. 8462
Morgan D. Goodin, ISB No. 11184
Blake W. Ringer, ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, Idaho 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]

Attorneys for Intermountain Gas Company

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN GAS COMPANY
FOR AUTHORITY TO INCREASE ITS
RATES AND CHARGES FOR NATURAL
GAS SERVICE IN THE STATE OF IDAHO
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CASE NO. INT-G-22-07

DIRECT TESTIMONY OF JACOB DARRINGTON
FOR INTERMOUNTAIN GAS COMPANY
DECEMBER 1, 2022

PAGE 2 OF 23
J. DARRINGTON, DI
INTERMOUNTAIN GAS
Q. Please state your name, business address, and present position with Intermountain 1
Gas Company. 2
A. My name is Jacob Darrington. I am employed by Intermountain Gas Company 3
(“Intermountain” or “Company”) as a Manager in the Regulatory Affairs 4
department. My business address is 555 South Cole Road, Boise, Idaho 83707. 5
Q. Please summarize your education and professional experience. 6
A. I graduated from Boise State University in May 2011 with a Bachelor of Arts Degree in 7
Accounting-Finance. In January 2012, I began work at Deloitte Tax as a Tax Consultant 8
where I prepared federal and multi-state tax returns for businesses and high-net worth 9
individuals and assisted with auditing the provision for income taxes for a regulated 10
utility. I obtained my CPA license in the summer of 2013 and continue to keep my CPA 11
license active in the state of Idaho. In April of 2015, I took a position with Intermountain 12
Gas Company as a Regulatory Analyst with primary responsibilities related to the 13
preparation and filing of the annual purchased gas cost adjustment (“PGA”) filing as well 14
as the development of revenue requirement related to general rate case filings. In July of 15
2015, I attended the Regulatory Rate School in Chicago sponsored by the American Gas 16
Association. During the fall of 2019, I was promoted to Manager in the Regulatory 17
Affairs department. 18
Q. Please describe your involvement in this proceeding. 19
A. In this proceeding, I support the development and calculation of the proposed revenue 20
requirement. 21
Q. What is the purpose of your testimony? 22

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
A. My testimony will cover four main areas. First, I will present an overview of the 1
proposed revenue requirement in the current case including a high-level discussion of the 2
main drivers of the increase. Second, I will discuss the Company’s proposed test year 3
and the unadjusted results of that test year, including a discussion of the three-month 4
forecast of revenues, expenses, and rate base items. Third, I will discuss the Company’s 5
adjustments to operating revenues and expenses to arrive at net operating income at 6
present rates. Fourth, I will discuss Intermountain’s regulatory adjustments to arrive at 7
the Company’s average rate base. 8
Q. Are you sponsoring any exhibits in this proceeding? 9
A. Yes. I am sponsoring Exhibit Nos. 1-19 which are described throughout my testimony. 10
I. PROPOSED REVENUE REQUIREMENT 11
Q. Please explain Exhibit No. 1. 12
A. Exhibit No. 1 shows the calculation of the proposed deficiency in operating revenue. 13
Lines 1 and 2 show the net operating income at present rates and average rate base, 14
respectively. Based on that information, the Company is currently earning a rate of return 15
of approximately 5.20 percent, as shown on Line 3. The cost of capital of 7.37 percent on 16
Line 4 is discussed in more detail in the direct testimony of Ms. Nygard. The operating 17
income of $28,559,731 at proposed rates on Line 5 is the product of the average rate base 18
multiplied by the proposed cost of capital. Finally, the operating income deficiency is 19
grossed up by the gross revenue conversion factor of 1.34967 on Line 7 to determine the 20
deficiency in operating revenue (or revenue requirement) of $11,337,947. 21
Q. Please explain the gross revenue conversion factor. 22

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
A. The gross revenue conversion factor is based on revenue-sensitive items that change as 1
revenue changes, including uncollectibles, the Commission’s regulatory fee, Idaho state 2
income taxes (reflecting the new corporate tax rate of 5.8 percent which will become 3
effective in 2023), and federal income taxes. The gross revenue conversion factor 4
converts the net operating income deficiency into the additional operating revenues the 5
Company needs to collect from customers in order to earn its authorized rate of return 6
after accounting for the revenue-sensitive items previously mentioned. The components 7
of the gross revenue conversion factor are shown on Exhibit No. 19. 8
Q. What are the main drivers of the proposed revenue requirement? 9
A. There are two main drivers of the revenue requirement in this case. First, the Company’s 10
proposed average rate base has grown by approximately $152 million since its last 11
general rate case. The majority of this growth is related to the Company’s investment in 12
net plant with the biggest increases related to main lines, service lines, and meters. The 13
direct testimony of Mr. Darras will address major plant investments made since the 14
previous rate proceeding. 15
Second, the Company’s proposed test year operations and maintenance (“O&M”) 16
expense has grown over $11 million since its last general rate case. The majority of the 17
growth in O&M is related to employee labor and benefits, subcontractor payments, and 18
software maintenance and hosting services. The direct testimony of Ms. Hourigan will 19
address the increases in labor and benefits, Mr. Darras will address increases in 20
subcontractor payments, and Mr. Boese will address increases in software maintenance 21
and hosting services. 22

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
Q. How do proposed test year base rate revenues compare with the Company’s 1
previous general rate case? 2
A. Proposed test year base rate revenues have grown by nearly $22 million when compared 3
to final base rate revenues in the Company’s last general rate case. This growth is 4
attributable to higher base rates which were implemented as a result of the last general 5
rate case and customer growth. The growth in base rate revenues offsets the growth in 6
average rate base and O&M discussed above and lowers the revenue requirement that 7
otherwise would result. 8
II. PROPOSED TEST YEAR AND UNADJUSTED TEST YEAR RESULTS 9
Q. What is the Company’s proposed test year for this rate case proceeding? 10
A. Intermountain is proposing a test period reflecting nine months of actual financial results 11
(“actuals”) and three months of projected data (“forecast”) for the twelve-months ending 12
December 31, 2022 (“Test Year”). 13
Q. Why is the Company proposing a partially forecasted test year? 14
A. Intermountain is proposing a partially forecasted test year to allow the Company to file 15
this case before the conclusion of calendar year 2022 while still providing the most up-to-16
date information for setting fair and reasonable rates. Filing before the conclusion of 17
calendar year 2022 provides the Idaho Public Utilities Commission (“Commission”) 18
sufficient time to rule upon the Company’s case before the July 1, 2023 settlement 19
deadline to incorporate into base rates the lower depreciation rates which resulted from 20
Case No. INT-G-21-01. 21
Q. Does the Company propose updating the test year and resulting revenue 22
requirement when actual financial data becomes available? 23

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
A. Yes. The Company proposes providing updates to the three months of projections for the 1
period October 1, 2022, through December 31, 2022, to incorporate actual data and a 2
revised revenue requirement request. 3
Q. What are the components of the Company’s test year operating revenues? 4
A. Test year operating revenue consists of gas operating revenue and other revenues. Gas 5
operating revenues are the revenues generated by the sale and transportation of gas under 6
the Company’s sale and transportation rate schedules. Other revenues include revenues 7
associated with miscellaneous services, field collection charges, return check charges, 8
account initiation charges, reconnection charges, interest on past due accounts, other 9
miscellaneous non-operating revenues, cash discounts, rents, interest income, and non-10
utility revenues. 11
Unadjusted total test year revenues are shown on Exhibit No. 2, Column (b), 12
Lines 1-2. Additionally, the breakout of actual and forecast revenues are shown on 13
Exhibit No. 3, Lines 1-2. Finally, Exhibit No. 4 shows the breakout of actual and 14
forecast other revenues by component. 15
Q. How did the Company forecast its revenues? 16
A. Gas operating revenues from residential and commercial customers are based on 17
forecasted customers, weather-normalized usage per customer amounts (as discussed in 18
the testimony of Ms. Blattner), and currently approved base rates. Forecasted gas 19
operating revenues for snowmelt and irrigation customers are based on forecasted 20
customers, usage per customer based on a three-year average, and currently approved 21
base rates. Forecasted gas operating revenues for large volume and transport customers 22

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
are based on currently approved base rates and forecasted usage which is based on 1
historical usage. The forecast of other revenues is primarily based on 2021 amounts. 2
Q. What are the components of the Company’s test year operating expenses? 3
A. The following categories of expenses are included in the Company’s unadjusted test year 4
as shown on Exhibit No. 2, Column (b), Lines 4-25. Additionally, the breakout of actual 5
and forecast expenses are shown on Exhibit No. 3, Lines 4-25: 6
 Cost of Gas 7
 Operating and Maintenance (“O&M”) Expenses 8
 Depreciation and Amortization Expenses 9
 Taxes Other Than Income Taxes 10
 Interest Expense 11
 Income Taxes 12
Q. How did the Company forecast its expenses? 13
A. The Company forecasted its expenses based on expense type and based on the 14
methodology deemed most appropriate by the Company as explained in more detail 15
below: 16
 Cost of Gas: The Company did not forecast cost of gas because it is removed from the 17
calculation of revenue requirement. 18
 O&M Expenses: As part of the budgeting process, department managers are responsible 19
for forecasting O&M expenses for their department for the entire year. The Company 20
forecasts O&M expenses at the object level and not a FERC account level. 21
Consequently, the Company used 2021 historical data to allocate the forecasted O&M to 22
the various FERC accounts. 23

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
 Depreciation and Amortization Expenses: The forecasted depreciation and amortization 1
expenses are based on currently approved depreciation rates, assets currently in service, 2
and forecasted capital additions and retirements. 3
 Taxes Other Than Income Taxes: With the exception of franchise taxes, the forecasted 4
amounts for taxes other than income taxes are based on annualizing the year-to-date 5
amount. The Company did not forecast franchise taxes because they are removed from 6
the calculation of revenue requirement. 7
 Interest Expense: The Company does not forecast interest expense because it is removed 8
from the calculation of revenue requirement. 9
 Income Taxes: Income taxes are calculated based on total unadjusted test year revenues 10
and expenses. The forecast portion is derived by subtracting the year-to-date income 11
taxes booked to the general ledger from the total unadjusted test year amount. 12
Q. What is rate base and what are the components of the Company’s test year rate 13
base? 14
A. Rate base represents the total investment the Company has made in its distribution 15
system in order to serve its customers safely and reliably. The following rate base items 16
are included in the Company’s unadjusted test year as shown on Exhibit No. 2, Column 17
(b), Lines 28-36: 18
 Gas Plant in Service 19
 Accumulated Provision for Depreciation and Amortization 20
 Materials and Supplies Inventory 21
 Gas Storage Inventory 22
 Accumulated Deferred Income Taxes 23

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
 Advances in Aid of Construction 1
Q. Please explain the concept of accumulated deferred income taxes (“ADIT”) and why 2
it is a reduction to rate base. 3
A. Deferred income taxes arise when income tax amounts as recorded in the Company’s 4
financial records differ from the amount of taxes due and payable in the test period. The 5
primary cause of this tax difference is the straight-line depreciation rates used for 6
ratemaking purposes, versus the accelerated depreciation rates used when calculating 7
state and federal income tax obligations. The difference in depreciation methodologies 8
causes a higher depreciation expense for tax purposes than the amount in the financial 9
records during the early years of the asset’s life. In later years, the situation reverses 10
itself. For a utility with a growing rate base this means that the accumulated balances of 11
these deferred taxes are, in essence, a source of funds available to the Company and thus 12
should be subtracted from rate base. 13
Q. What are advances in aid of construction and why are they a reduction to rate base? 14
A. Advances in aid of construction are cash advances received from customers for the 15
construction of distribution system assets to support service to those customers. Similar 16
to ADIT, the advances in aid of construction represent a source of funds available to the 17
Company and thus should be subtracted from rate base. 18
Q. How did the Company forecast its rate base items? 19
A. The Company’s forecasted rate base items, including plant in service, accumulated 20
depreciation, materials and supplies inventory, liquid natural gas storage inventory, 21
accumulated deferred income taxes, and advances in aid of construction were forecasted 22

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
based on the methodology deemed most appropriate by the Company as explained in 1
more detail below: 2
Gas Plant in Service: The Company’s forecasted gas plant in service is based on 3
forecasted capital expenditures and retirements. As part of the budgeting process, project 4
managers are responsible for estimating capital expenditures during the year. Throughout 5
the year, project managers review and update the estimated capital expenditures. The 6
forecasted amounts for the gas plant in service are shown on Exhibit No. 13, Column (b), 7
Lines 11-13. 8
Accumulated Provision for Depreciation and Amortization: The Company’s 9
forecasted accumulated provision for depreciation and amortization is based on currently 10
approved depreciation rates and forecasted capital expenditures and retirements by plant 11
account. The forecasted amounts for accumulated provision for depreciation and 12
amortization are shown on Exhibit No. 14, Column (b), Lines 11-13. 13
Materials and Supplies Inventory: The Company’s forecasted materials and 14
supplies inventory values for the forecasted months are set equal to the most recent 15
month’s balance. The Company considered using a three-year average for the forecast 16
period, however, Intermountain found that using the most recent month’s balance was a 17
better predictor for the forecast balance than a three-year average. 18
The Company’s undistributed stores forecast is based on a three-year historical 19
average. The forecasted amounts for materials and supplies inventory and undistributed 20
stores are shown on Exhibit No. 15, Column (d), Lines 11-13. 21
Gas Storage Inventory: The Company’s gas storage inventory forecast is based 22
on the most recent month’s balance. Using the most recent month’s balance is 23

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
appropriate because the Company does not anticipate any significant adjustments to its 1
ending utility storage balances during the forecast period (see the discussion below 2
regarding utility and non-utility adjustments made related to the Nampa liquified natural 3
gas (“LNG”) facility). The forecasted amounts for liquified natural gas storage are shown 4
on Exhibit No. 16, Colum (b), Lines 11-13. 5
Accumulated Deferred Income Taxes: The Company’s forecasted accumulated 6
deferred income taxes are based on timing differences between the depreciation 7
methodologies used for the Company’s financial records and for income tax purposes 8
related to the approved capital budget and assets previously placed in service. The 9
forecasted amounts for accumulated deferred income taxes are shown on Exhibit No. 17, 10
Column (b), Lines 11-13. 11
Advances in Aid of Construction: Similar to the forecast for materials and 12
supplies inventory, the Company’s advances in aid of construction values for the 13
forecasted months are based on the most recent month’s balance as this was a better 14
predictor than using a three-year average. The forecasted amounts for advances in aid of 15
construction are shown on Exhibit 18, Column (b), Lines 11-13. 16
Q. What are the Company’s unadjusted test year results? 17
A. The Company’s unadjusted test year results, including a three-month forecast of 18
revenues, expenses and rate base items, are shown on Exhibit No. 2, Column (b). As 19
shown on the exhibit, the Company’s unadjusted test year Net Operating Income is 20
$11,328,875. The Company’s unadjusted test year Average Rate Base is $438,853,196. 21
As indicated earlier, the Company proposes to update the test year results by replacing 22
the forecasted amounts with actual results when they become available. 23

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
III. REGULATORY ADJUSTMENTS TO OPERATING REVENUES AND EXPENSES 1
Q. What adjustments did the Company make to the test year operating revenues and 2
expenses? 3
A. Exhibit No. 5 provides a summary of all the adjustments made to test year operating 4
revenues and expenses. Each adjustment will be discussed in more detail below. 5
Q. Please explain the adjustment to remove non-distribution revenues and expenses on 6
Exhibit No. 5, Column (b). 7
A. This adjustment removes all non-distribution revenues and expenses including franchise 8
taxes, cost of gas revenues and expenses, and energy efficiency revenues and expenses 9
included in the Company’s financial records through September 30, 2022. Cost of gas 10
and energy efficiency are non-distribution items that are part of the total rate charged to 11
customers. However, these items do not belong in the calculation of revenue requirement 12
because they are evaluated and changed through separate mechanisms. Franchise taxes 13
are a non-distribution item that is charged to customers. The Company is the collector 14
and remitter of these taxes on behalf of municipalities in Idaho and therefore these taxes 15
should not be included in the calculation of revenue requirement. Removing non-16
distribution revenues and expenses keeps the revenue requirement calculation focused on 17
distribution revenues and expenses. 18
This adjustment also removes unbilled revenues included in the Company’s 19
financial records through September 30, 2022. Unbilled revenues represent the 20
difference in the timing of when gas is provided to customers and when those customers 21
are billed for the gas used. Unbilled revenues are removed because the Company’s 22

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
weather normalization methodology is based on billed consumption data, as discussed in 1
the direct testimony of Ms. Blattner. 2
As shown on Exhibit No. 5, Column (b), Lines 3 and 26, this adjustment reduces 3
test year revenues and expense by $130,308,445 and $136,686,611, respectively. 4
Q. Please explain the billing determinant recalculation adjustment proposed by the 5
Company on Exhibit No. 5, Column (c). 6
A. This adjustment sets distribution revenues equal to tariff rates multiplied by unadjusted 7
billing determinants. The adjustment is calculated on Exhibit No. 6, Columns (e)-(g). 8
This adjustment allows the Company to remove any billing adjustments in the 9
Company’s financial records and reflect only the amount of revenues the Company 10
would receive based on its billing determinants and current tariff rates. The majority of 11
the adjustment is primarily due to the residential customer class. This adjustment reduces 12
revenues by $72,880, as shown on Exhibit No. 5, Column (c), Line 3 and Exhibit No. 6, 13
Column (g), Line 62. 14
Q. Please explain the rate class migration adjustment on Exhibit No. 5, Column (d). 15
A. This adjustment captures the revenue impact of customers migrating between general 16
service, large volume, and transport customer classes throughout the test year. The 17
Company removed these customers’ actual and forecasted volumes from their previous 18
rate class and included them for a full twelve-month period in the new rate class. The 19
adjustment is calculated on Exhibit No. 6, Columns (h)-(j) and increases revenues by 20
$277,482, as shown on Exhibit No. 5, Column (d), Line 3 and Exhibit No. 6, Column (j), 21
Line 62. 22

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
Q. Please explain the normalization adjustment proposed by the Company on Exhibit 1
No. 5, Column (e). 2
A. The weather normalization adjustment removes the impact of weather on gas usage for 3
the RS and GS-1 customer classes. The process for determining weather normalization is 4
addressed in the direct testimony of Ms. Blattner. The revenue impact of the weather 5
normalization adjustment is calculated on Exhibit No. 6, Columns (k)-(m) and reduces 6
revenues by $3,246,807, as shown on Exhibit No. 4, Column (e), Line 3 and Exhibit No. 7
6, Column (m), Line 62. 8
Q. Please explain the adjustment to remove revenues and expenses associated with non-9
utility LNG sales from the Company’s Nampa facility proposed on Exhibit No. 5, 10
Column (f)? 11
A. This adjustment eliminates revenues and cost of gas expenses included in the Company’s 12
financial records through September 30, 2022 related to the sale of LNG from the 13
Company’s Nampa LNG facility. These revenues and cost of gas expenses are not 14
associated with the provision of regulated gas services to Intermountain’s customers. This 15
adjustment reduces operating revenues and cost of gas expenses by $2,612,152 and 16
$2,147,550 as shown on Exhibit No. 5, Column (f), Lines 3 and 5, respectively. 17
Q. Please explain the adjustment to remove other revenues and expenses proposed by 18
the Company on Exhibit No. 5, Column (g). 19
A. This adjustment removes non-utility revenues and expenses included in the Company’s 20
financial records through September 30, 2022. The majority of the adjustment is for the 21
removal of revenues and expenses related to providing renewable natural gas (“RNG”) 22
producers access to the Company’s system in accordance with the Company’s RNG 23

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
facilitation plan approved by the Commission in Order No. 34693 in Case No. INT-G-20-1
03. 2
This adjustment also removes expenses associated with donations, civic, political, 3
and related activities, and other disallowed or non-utility activities. This adjustment 4
reduces revenues and expenses by $504,649 and $701,941 as shown on Exhibit No. 5 5
Column (g), Lines 3 and 26, respectively. 6
Q. Please explain the adjustment to remove interest expense proposed by the Company 7
on Exhibit No. 5, Column (h). 8
A. This adjustment removes interest expense included in the Company’s financial records 9
through September 30, 2022. Instead, the impact of interest is captured through the 10
application of the weighted average cost of capital to the average rate base. 11
Intermountain’s weighted average cost of debt included in the Company’s cost of capital 12
is discussed in more detail in the direct testimony of Ms. Nygard. This adjustment 13
reduces interest expense by $5,213,607 as shown on Exhibit No. 5 Column (h), Line 22. 14
Q. Please explain the adjustment to remove supplemental executive compensation 15
proposed by the Company on Exhibit No. 5, Column (i). 16
A. This adjustment removes all supplemental executive compensation expenses related to 17
the Supplemental Executive Retirement Plan, the Supplemental Income Security Plan, 18
Deferred Compensation, and the Long-Term Incentive Plan. The Company has chosen to 19
not charge its customers for these expenses and has therefore removed them from the 20
revenue requirement calculation. This adjustment reduces expenses by $1,559,109 as 21
shown on Exhibit No. 5 Column (i), Line 26. 22

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
Q. Please explain the payment processor fees adjustment proposed by the Company on 1
Exhibit No. 5, Column (j). 2
A. In Order No. 34099 (Case No. INT-G-18-01), the Commission authorized Intermountain 3
to create a regulatory asset to capture the costs associated with in-person customer pay 4
station transactions handled by Western Union and to recover these costs in its annual 5
PGA until February 1, 2021 or until the Company files a general rate case, whichever 6
comes first. The Company was then authorized to extend the life of the regulatory asset 7
established in Order No. 34099 from February 1, 2021 until February 1, 2023 or until the 8
Company files a general rate case-whichever comes first.1 The Company proposes to 9
embed twelve months of payment processor fees in base rates going forward and to 10
recover the fees deferred from October 1, 2022 through February 1, 2023 through its 11
2023 PGA filing. This adjustment increases expenses by $68,521 as shown on Exhibit 12
No. 5, Column (j), Line 11. 13
Q. Please explain the rate case expense amortization adjustment proposed by the 14
Company on Exhibit No. 5, Column (k). 15
A. The Company has approximately $328,000 of rate case costs remaining that were 16
deferred from the Company’s most recent general rate case, Case No. INT-G-16-02. In 17
the subsequent PGA filing, Case No. INT-G-17-05, the Company requested to include 18
$699,114 to be amortized and recovered over a four-year period. Instead, the 19
Commission authorized the Company to amortize and collect over a five-year period 20

1 See Case No. INT-G-21-01, Order No. 35047, pages 4-5.

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
$378,614 of deferred rate case expenses and determined the remaining amount should be 1
deferred for consideration in the Company’s next general rate case.2 The Company is 2
now requesting recovery of the remaining rate case expenses, amortized over a three-year 3
period. This adjustment is calculated on Exhibit No. 7 and increases expenses by 4
$109,340 as shown on Exhibit No. 5, Column (k), Line 14 and Exhibit No. 7, Column 5
(b), Line 6. 6
Q. Please explain the salary expense adjustment proposed by the Company on Exhibit 7
No. 5, Column (l). 8
A. The salary expense adjustment includes two components. The first component is a 9
normalization adjustment to normalize the salaries of incremental employees (i.e., new 10
employee positions, not backfilled positions) that began their employment at some point 11
during the test year. An adjustment is needed to normalize the incremental employee 12
salaries and create an expense amount that would have existed if the employees had been 13
employed for the entire test year. 14
The second component of the salary expense adjustment is a pro-forma 15
adjustment to account for salary or wage increases that will occur in 2023. The salary and 16
wage increases will occur in 2023 and the adjustment ensures the appropriate level of 17
expenses are included in the revenue requirement to allow recovery of those amounts. 18
Please see the direct testimony of Ms. Hourigan for additional information regarding 19
employee salaries and increases. This adjustment is calculated on Exhibit No. 8 and 20

2 See Order No. 33887, page 5. Please note that the remaining amount computed by the Company is different from
the value stated in Order No. 33887 ($699,114 – $378,614 = $320,500). In addition, legal fees of $7,519 were
invoiced to the Company after Intermountain had submitted its PGA filing in 2017. Therefore, the total remaining
amount of deferred general rate cases costs is $328,019 ($320,500 + 7,519).

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
increases expenses by $1,324,196, as shown on Exhibit No. 5, Column (l), Line 26 and 1
Exhibit No. 8, Column (b), Line 19. 2
Q. Please explain the incentive compensation adjustment proposed by the Company on 3
Exhibit No. 5, Column (m). 4
A. The adjustment to incentive compensation expense reflects 100 percent target incentive 5
payouts to Company employees according to the Company’s incentive compensation 6
plan. As explained in the direct testimony of Ms. Hourigan, the Company’s incentive 7
compensation plan benefits customers by incentivizing employees to improve 8
efficiencies, manage costs, provide high-quality customer service, and maintain the 9
security of customer information. This adjustment also removes allocated incentive 10
compensation expense related to employees associated with the energy efficiency 11
program, employees with time charged to the RNG facilitation program, MDUR 12
employees, and executive employees. The Company removes incentive compensation 13
expenses related to employees associated with the energy efficiency program and 14
employees with time charged to the RNG facilitation program because these amounts are 15
recovered through other mechanisms. The Company removes incentive compensation 16
expenses related to MDUR and executive employees because these amounts are based 17
strictly on earnings and do not directly benefit customers. 18
This adjustment is calculated on Exhibit No. 9 and reduces expenses by $486,118 19
as shown on Exhibit No. 5, Column (m), Line 26 and Exhibit No. 9, Column (b), Line 13. 20
Q. Please explain the income tax adjustment proposed by the Company on Exhibit No. 21
5, Column (n). 22

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
A. Exhibit Nos. 10 and 11 present the entire test year income tax expense calculation and 1
includes the adjusted level of revenues and expenses discussed above, as well as various 2
permanent and temporary timing differences. Additionally, the interest expense value 3
used in the calculation of income taxes is derived by multiplying the weighted average 4
cost of debt by the average rate base. Finally, the tax expense calculation includes an 5
adjustment to reduce the Idaho corporate tax rate to 5.8 percent which will become 6
effective in 2023. The income tax adjustment reduces expense by $4,895 as shown on 7
Exhibit No. 5, Column (n), Line 25 and Exhibit No. 11, Column (c), Line 23. 8
Q. What is the total impact to net operating income as a result of the adjustments the 9
Company is proposing? 10
A. Based on the proposed adjustments discussed above, the total impact to net operating 11
income is an increase of $8,830,323 as shown on Exhibit No. 2, Column (c), Line 27 and 12
Exhibit No. 5, Column (o), Line 27. 13
Q. Does Intermountain expect these adjustments to change as actual financial data 14
becomes available? 15
A. Yes. The Company has proposed to update the test year results by replacing the 16
forecasted amounts with actual results when they become available. The update will 17
impact both the unadjusted test year results and the adjustments. 18
Q. What is the Company’s total proposed net operating income, including all 19
adjustments, for the test year? 20
A. The total proposed net operating income, including adjustments, for the test year is 21
$20,159,198 as shown on Exhibit No. 1, Column (b), Line 1 and Exhibit No. 2, Column 22
(d), Line 27. 23

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J. DARRINGTON, DI
INTERMOUNTAIN GAS
IV. REGULATORY ADJUSTMENTS TO RATE BASE 1
Q. Please describe how the Company’s rate base is calculated. 2
A. All items in the Company’s rate base have been determined using the thirteen-month 3
average of monthly averages (“AMA”) methodology. The AMA methodology reflects 4
the level of investment maintained by the Company during the course of the year and is 5
intended to normalize changes in the balances that occur during the year. 6
Q. Did Intermountain make any adjustments to its rate base? 7
A. Yes. A summary of the adjustments is shown on Exhibit No. 12. Additionally, Exhibit 8
Nos. 13-18 show the calculation of each rate base item including adjustments. Finally, 9
Exhibit No. 2, Lines 28-36 show the Company’s unadjusted and adjusted rate base 10
amounts. Each adjustment to rate base will be described in more detail below. 11
Q. Please describe the adjustment to remove the asset retirement obligation proposed 12
by the Company on Exhibit No. 12, Column (b). 13
A. The Company reduced gross gas plant in service and the accumulated provision for 14
depreciation and amortization by $45,051,804 and $7,067,837 as shown on Exhibit No. 15
12, Column (b), Lines 2 and 3, respectively, to remove the asset retirement obligation 16
(“ARO”) and thereby avoid double charging customers for the cost of removing tangible 17
long-lived assets. The cost of removal is already included in the Company’s approved 18
depreciation rates. The average balances for this adjustment are calculated on Exhibit No. 19
13, Column (c), Line 16 and Exhibit No. 14, Column (c), Line 16. 20
Q. Please explain the adjustment to remove retirement work in progress proposed by 21
the Company on Exhibit No. 12, Column (c). 22

PAGE 21 OF 23
J. DARRINGTON, DI
INTERMOUNTAIN GAS
A. This adjustment removes the balance of retirement work in progress (“RWIP”) which 1
represents the work performed but not yet completed to retire gas plant in service which 2
is still used and useful at the end of the month. The average balance for this adjustment 3
is calculated on Exhibit No.14 and increases the accumulated provision for depreciation 4
and amortization by $632,718 as shown on Exhibit No. 12, Column (c), Line 3 and 5
Exhibit No. 14, Column (d), Line 16. 6
Q. Please explain the adjustments to gas inventory proposed by the Company on 7
Exhibit No. 12, Columns (d) and (e). 8
A. The first adjustment removes the gas storage inventory balances associated with non-9
utility LNG sales as these amounts are recovered through non-utility customers. The 10
second adjustment keeps the utility portion of the gas storage balance at the Nampa LNG 11
facility at 2 million gallons each month. As described in the Company’s Integrated 12
Resource Plan (see Case No. INT-G-21-06), the Company seeks to keep 2 million gallons 13
of LNG available at the Nampa LNG facility to provide for boiloff gas, to maintain 14
operational and training requirements at the Nampa and Rexburg LNG facilities, and for 15
permanent storage to ensure that all LNG does not boiloff. The average balances for 16
these adjustments are calculated on Exhibit No.16. The first adjustment decreases gas 17
storage inventory by $1,189,478 and the second adjustment increases gas storage 18
inventory by $196,132 as shown on Exhibit No. 12, Columns (d) and (e), Line 6 and 19
Exhibit No. 16, Columns (c) and (d), Line 16. 20
Q. Please explain the adjustments to accumulated deferred income taxes (“ADIT”) 21
proposed by the Company on Exhibit No. 12, Columns (f) through (l). 22

PAGE 22 OF 23
J. DARRINGTON, DI
INTERMOUNTAIN GAS
A. The adjustment on Exhibit No. 12, Column (f) removes Idaho deferred taxes in 1
accordance with the Commission’s requirement that the Company flow-through deferred 2
state income taxes. The adjustment on Exhibit No. 12, Column (g) removes ADIT related 3
to construction work in progress (“CWIP”) since CWIP is not allowed in the calculation 4
of rate base. The adjustments on Exhibit No. 12, Columns (h)-(j) remove ADIT in order 5
to comply with Internal Revenue Service normalization rules. The adjustments on Exhibit 6
No. 12, Columns (k) and (l) capture ADIT related to Advances in Aid of Construction 7
and Gas Storage Inventory. The average balances for these adjustments are calculated on 8
Exhibit No.17. The total amount of adjustments is an increase to ADIT of $11,729,852 9
as shown on Exhibit No. 12, Column (m), Line 6. 10
Q. What is the total impact to rate base as a result of the adjustments the Company is 11
proposing? 12
A. Based on the proposed adjustments discussed above, the total impact to average rate base 13
is a decrease of $51,339,883 as shown on Exhibit No. 2, Column (c), Line 36 and Exhibit 14
No. 12, Column (m), Line 9. 15
Q. Does Intermountain expect these adjustments to change as actual financial data 16
becomes available? 17
A. Yes. The Company has proposed to update the test year results by replacing the 18
forecasted amounts with actual results when they become available. The update will 19
impact both the unadjusted test year results and the adjustments. 20
Q. What is the Company’s total proposed average rate base, including all adjustments, 21
for the test year? 22

PAGE 23 OF 23
J. DARRINGTON, DI
INTERMOUNTAIN GAS
A. The Company’s total proposed average rate base, including adjustments, is $387,513,313 1
as shown on Exhibit No. 1, Column (b), Line 2 and Exhibit No. 2, Column (d), Line 36. 2
Q. Does this conclude your testimony? 3
A. Yes, it does. 4
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN GAS COMPANY.
FOR AUTHORITY TO INCREASE ITS
RATES AND CHARGES FOR NATURAL
GAS SERVICE IN THE STATE OF IDAHO
CASE NO. INT-G-22-07
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 1 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Line
No.Description Amount
(a) (b)
1 Operating Income at Present Rates [2] 20,159,198$
2 Rate Base [3] 387,513,313
3 Current Earned Rate of Return [4] 5.20%
4 Cost of Capital [5] 7.37%
5 Operating Income at Proposed Rates [6] 28,559,731
6 Operating Income Deficiency [7] 8,400,533
7 Gross Revenue Conversion Factor [8] 1.34967
8 Deficiency in Operating Revenue [9] 11,337,947$
NOTES
[8] See Exhibit No. 19, Column (c), Line 9.
[9] Line 6 times Line 7.
[2] See Exhibit No. 2, Column (d), Line 27.
[4] Line 1 divided by Line 2.
[5] See the direct testimony of Ms. Nygard.
[6] Line 2 times Line 4.
[7] Line 5 minus Line 1.
Intermountain Gas Company
Deficiency in Operating Revenue
For the Test Year Ending December 31, 2022 [1]
[1] Test Year ending December 31, 2022 is composed of actual
financial data from January 1 - September 30, 2022 and forecasted
financial data from October 1, 2022 - December 31, 2022.
[3] See Exhibit No. 2, Column (f), Line 36.
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 1
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 2 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Proposed
Company Company Revenue Company
Line Unadjusted Company Direct Deficiency Direct
No.Description Direct [2]Adjustments [3]Present [4](Over Collection)Proposed [5]
(a) (b) (c) (d) (e) (f)
1 Gas Operating Revenues 240,406,262$ (133,056,432)$ 107,349,830$ 11,337,947$ 118,687,777$
2 Other Revenues 5,861,944 (3,411,019) 2,450,925 - 2,450,925
3 Total Operating Revenue 246,268,206 (136,467,451) 109,800,755 11,337,947 121,138,702
4 Operating Expenses
5 Cost of Gas 130,355,178 (130,355,178) - - -
6 Operation & Maintenance
7 Production 358,761 11,030 369,791 - 369,791
8 Natural Gas Storage, Terminaling, and Processing 1,109,807 8,581 1,118,388 - 1,118,388
9 Transmission 289,020 5,799 294,819 - 294,819
10 Distribution 24,274,522 684,351 24,958,873 - 24,958,873
11 Customer Accounts 8,735,822 246,901 8,982,723 26,996 [6] 9,009,719
12 Customer Service and Informational 2,994,337 (2,031,806) 962,531 - 962,531
13 Sales 1,460,217 53,834 1,514,051 - 1,514,051
14 Administrative and General 18,413,079 (1,368,374) 17,044,705 17,044,705
15 Other 1,512,119 (1,512,119) - - -
16 Depreciation and Amortization 22,129,750 - 22,129,750 - 22,129,750
17 Taxes Other Than Income Taxes
18 IPUC Fees 520,047 - 520,047 22,619 [6] 542,666
19 Payroll Taxes 2,269,008 13,830 2,282,838 - 2,282,838
20 Property Taxes 3,623,049 - 3,623,049 - 3,623,049
21 Franchise Taxes 5,850,071 (5,836,121) 13,950 - 13,950
22 Interest Expense 5,213,607 (5,213,607) - - -
23 Total Operating Expense
24 Before Income Taxes 229,108,394 (145,292,879) 83,815,515 49,615 83,865,130
25 Income Taxes 5,830,937 (4,895) 5,826,042 2,887,799 [7] 8,713,841
26 Total Operating Expenses 234,939,331 (145,297,774) 89,641,557 2,937,414 92,578,971
27 Net Operating Income 11,328,875$ 8,830,323$ 20,159,198$ 8,400,533$ 28,559,731$
28 Rate Base:
29 Gas Plant in Service [8] 885,040,818$ (45,051,804)$ 839,989,014$ -$ 839,989,014$
30 Less Accumulated Depreciation and Amortization [9] (408,955,880) 6,435,119 (402,520,761) - (402,520,761)
31 Net Gas Plant in Service 476,084,938 (38,616,685) 437,468,253 - 437,468,253
32 Materials & Supplies Inventory [10] 6,477,488 - 6,477,488 - 6,477,488
33 Gas Storage Inventory [11] 4,065,615 (993,346) 3,072,269 - 3,072,269
34 Accumulated Deferred Income Taxes [12] (36,397,501) (11,729,852) (48,127,353) - (48,127,353)
35 Advances in Aid of Construction [13] (11,377,344) - (11,377,344) - (11,377,344)
36 Average Rate Base 438,853,196$ (51,339,883)$ 387,513,313$ -$ 387,513,313$
NOTES
[2] See Exhibit No. 3, Column (d).
[3] See Exhibit No. 5.
[4] Column (b) plus Column (c).
[5] Column (d) plus Column (e).
[6] See Exhibit No. 19 for the Gross Revenue Conversion Factor components.
[7] Reflects statutory income tax rates at 25.582%. Includes the new Idaho corporate tax rate of 5.8% which will become effective in 2023.
[8] See Exhibit No. 13.
[9] See Exhibit No. 14.
[10] See Exhibit No. 15.
[11] See Exhibit No. 16.
[12] See Exhibit No. 17.
[13] See Exhibit No. 18.
Intermountain Gas Company
Statement of Operating Income and Rate Base with Adjustments
For the Test Year Ending December 31, 2022 [1]
[1] Test Year ending December 31, 2022 is composed of actual financial data from January 1 - September 30, 2022 and forecasted financial data from October 1,
2022 - December 31, 2022.
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 2
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 3 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Actual Data Forecasted Data
Line Ending For the Period Total
No.Description 9/30/2022 10/31/2022-12/31/2022 (Cols. (b) + (c))
(a) (b) (c) (d)
1 Gas Operating Revenues 213,304,798$ 27,101,464$ 240,406,262$ [2]
2 Other Revenues 5,262,995 598,949 5,861,944 [3]
3 Total Operating Revenue 218,567,793 27,700,413 246,268,206
4 Operating Expenses
5 Cost of Gas 130,355,178 - [4] 130,355,178
6 Operation & Maintenance
7 Production 271,569 87,192 358,761
8 Natural Gas Storage, Terminaling, and Processing 920,574 189,233 1,109,807
9 Transmission 239,343 49,677 289,020
10 Distribution 18,847,436 5,427,086 24,274,522
11 Customer Accounts 6,811,770 1,924,052 8,735,822
12 Customer Service and Informational 2,190,498 803,839 2,994,337
13 Sales 1,184,876 275,341 1,460,217
14 Administrative and General 14,386,018 4,027,061 18,413,079
15 Other 1,512,119 [4] 1,512,119
16 Depreciation and Amortization 16,401,193 5,728,557 22,129,750
17 Taxes Other Than Income Taxes
18 IPUC Fees 390,035 130,012 520,047
19 Payroll Taxes 1,701,756 567,252 2,269,008
20 Property Taxes 2,717,287 905,762 3,623,049
21 Franchise Taxes 5,850,071 - [4] 5,850,071
22 Interest Expense 5,213,607 - [4] 5,213,607
23 Total Operating Expense
24 Before Incomes Taxes 208,993,330 20,115,064 229,108,394
25 Income Taxes 1,605,965 4,224,972 5,830,937 [5]
26 Total Operating Expenses 210,599,295 24,340,036 234,939,331
27 Net Operating Income 7,968,498$ 3,360,377$ 11,328,875$
NOTES
[4] This item is not forecasted. The actual amount booked to the general ledger is removed from the revenue requirement calculation.
[3] See Exhibit No. 4.
Intermountain Gas Company
Statement of Operating Income
For the Test Year Ending December 31, 2022 [1]
[1] Test Year ending December 31, 2022 is composed of actual financial data from January 1 - September 30, 2022 and forecasted
financial data from October 1, 2022 - December 31, 2022.
[2] See Exhibit No. 6.
[5] See Exhibit No. 11.
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 3
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 4 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Actual Data Forecasted Data
Line Ending For the Period Total
No.Description 9/30/2022 10/31/2022-12/31/2022 (Cols. (b) + (c))
(a) (b) (c) (d)
1 Other Revenues
2 Miscellaneous Service Revenue 165,547$ 61,158$ 226,705$
3 Field Collection Charge 900 435 1,335
4 Return Check Charge 174,871 45,880 220,751
5 Account Initiation Charge 763,698 296,904 1,060,602
6 Reconnection Charge 32,376 9,328 41,704
7 Interest on Past Due Accounts 339,077 46,959 386,036
8 Other Miscellaneous Operating Revenues 94 - 94
9 Other Miscellaneous Non-Operating Revenues 16,695 2,927 19,622
10 Cash Discounts 3,020 1,272 4,292
11 Rent 265,592 104,491 370,083
12 Non-Utility LNG Sales 2,612,152 - [2] 2,612,152
13 Non-Utility RNG Revenue 504,649 - [2] 504,649
14 Full Service Revenue 88,784 29,595 118,379
15 Total 4,967,455 598,949 5,566,404
16 Interest Income 295,540 - [3] 295,540
17 Total Other Revenues and Interest Income 5,262,995$ 598,949$ 5,861,944$
NOTES
[3] This item is not forecasted. The majority of the actual amount booked to the general ledger is removed from the revenue
requirement calculation.
Intermountain Gas Company
Other Revenues and Interest Income
For the Test Year Ending December 31, 2022 [1]
[1] Test Year ending December 31, 2022 is composed of actual financial data from January 1 - September 30, 2022 and forecasted
financial data from October 1, 2022 - December 31, 2022.
[2] This item is not forecasted. The actual amount booked to the general ledger is removed from the revenue requirement
calculation.
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 4
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 5 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Payment Rate Case Total
Remove Billing Determinant Rate Class Weather Remove Remove Remove Remove Processor Expense Salary Incentive Income Operating
Line Non-Distribution Recalculation Migration Normalization Non-Utility Other Revenues Interest Supplemental Executive Fees Amortization Expense Compensation Tax Statement
No.Description Revenues and Expenses [2]Adjustment [3]Adjustment [4]Adjustment [5]LNG Sales [6]and Expenses [7]Expense [8]Compensation Expense [9]Adjustment [10]Adjustment [11]Adjustment [12]Adjustment [13]Adjustment [14]Adjustments [15]
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o)
1 Gas Operating Revenues (130,014,227)$ (72,880) 277,482$ (3,246,807)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (133,056,432)$
2 Other Revenues (294,218) - - - (2,612,152) (504,649) - - - - - - - (3,411,019)
3 Total Operating Revenue (130,308,445) (72,880) 277,482 (3,246,807) (2,612,152) (504,649) - - - - - - - (136,467,451)
4 Operating Expenses
5 Cost of Gas (128,207,628)$ - - - (2,147,550) - - - - - - - - (130,355,178)
6 Operation & Maintenance
7 Production - - - - - - - - 10,186 844 - 11,030
8 Natural Gas Storage, Terminaling, and Processing - - - - - - - - - - 8,417 164 - 8,581
9 Transmission - - - - - - - - - - 5,458 341 - 5,799
10 Distribution - - - - - - - - - 664,438 19,913 - 684,351
11 Customer Accounts (50,205) - - - - - - - 68,521 215,767 12,818 - 246,901
12 Customer Service and Informational (2,033,582) - - - - - - - - 1,640 136 - (2,031,806)
13 Sales - - - - - - - - - 49,779 4,055 - 53,834
14 Administrative and General (529,991) - - - - - - (700,518) - 109,340 274,409 (521,614) - (1,368,374)
15 Other - - - - - (698,500) - (813,619) - - - - - (1,512,119)
16 Depreciation and Amortization - - - - - - - - - - - - - -
17 Taxes Other Than Income Taxes
18 IPUC Fees - - - - - - - - - - - - - -
19 Payroll Taxes (29,084) - - - - (3,441) - (44,972) - - 94,102 (2,775) - 13,830
20 Property Taxes - - - - - - - - - - - - - -
21 Franchise Taxes (5,836,121) - - - - - - - - - - - - (5,836,121)
22 Interest Expense - - - - - - (5,213,607) - - - - - - (5,213,607)
23 Total Operating Expense
24 Before Incomes Taxes (136,686,611) - - - (2,147,550) (701,941) (5,213,607) (1,559,109) 68,521 109,340 1,324,196 (486,118) - (145,292,879)
25 Income Taxes - - - - - - - - - - - - (4,895) (4,895)
26 Total Operating Expenses (136,686,611) - - - (2,147,550) (701,941) (5,213,607) (1,559,109) 68,521 109,340 1,324,196 (486,118) (4,895) (145,297,774)
27 Net Operating Income 6,378,166$ (72,880)$ 277,482$ (3,246,807)$ (464,602)$ 197,292$ 5,213,607$ 1,559,109$ (68,521)$ (109,340)$ (1,324,196)$ 486,118$ 4,895$ 8,830,323$
NOTES
[1] Test Year ending December 31, 2022 is composed of actual financial data from January 1 - September 30, 2022 and forecasted financial data from October 1, 2022 - December 31, 2022.
[2] Removes non-distribution revenues and expenses included in the Company's financial records. Additionally, unbilled revenues are removed.
[3] Sets distribution revenues equal to tariff rates times unadjusted billing determinants. See Exhibit No. 6, Column (g), line 62.
[4] Accounts for the effect on distribution revenues resulting from adjustments related to customers migrating between rate classes during the test year. See Exhibit No. 6, Column (j), line 62.
[5] Captures the effect on distribution revenues resulting from normalizing the weather for the RS and GS-1 rate classes. See Exhibit No. 6, Column (m), line 62.
[6] Removes revenues and expenses included in the Company's financial records related to the sale of non-utility LNG.
[7] Removes other revenues and expenses included in the Company's financial records which do not relate to utility service.
[8] Removes interest expense included in the Company's financial records.
[9] Removes supplemental executive compensation expense included in the Company's financial records.
[10] Adds twelve months of Western Union payment processing fees to test year expense.
[11] See Exhibit No. 7.
[12] See Exhibit No. 8.
[13] See Exhibit No. 9.
[14] See Exhibit Nos.10 & 11.
[15] Sum of Columns (b)-(n).
Intermountain Gas Company
Adjustments to Operating Income
For the Test Year Ending December 31, 2022 [1]
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 5
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 6 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Remove Non-
Distribution Revenues
Line No.Description
Billing Determinants (Therms/Customer Counts)Amount Amount
Billing Determinants (Therms/Customer Counts)Current Rates Amount [2]
Billing Determinants (Therms/Customer Counts)Current Rates Amount Billing Determinants (Therms)Current Rates Amount
Billing Determinants (Therms/Customer Counts)Current Rates Amount
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p)
Billed Revenues:
RSDistribution Revenues
1 Customer Charge 4,420,205 24,381,727$ - 5.50$ (70,599)$ 4,420,205 5.50$ 24,311,128$ 2 Distribution Charge 296,628,651 48,365,210 - 0.16305 92 (14,561,209) 0.16305$ (2,374,205)$ 282,067,442 0.16305 45,991,097
Non-Distribution Revenues3 Energy Efficiency Charge 4,698,016 (4,698,016) -
4 Cost of Gas 93,774,352 (93,774,352) -
5 Total RS Billed Revenues 171,219,305$ (98,472,368)$ (70,507)$ (2,374,205)$ 70,302,225$
GS-1
Distribution Revenues6 Customer Charge 420,640 3,997,832$ - 9.50$ (1,752)$ (1,047) 9.50$ (9,947)$ 419,593 9.50$ 3,986,133$ Distribution Charge:
7 Block 1 39,009,974 7,203,233 - 0.18465 (41) (129,517) 0.18465 (23,915) (604,737) 0.18465 (111,665) 38,275,720 0.18465 7,067,612 8 Block 2 70,008,519 11,283,273 - 0.16117 - (291,013) 0.16117 (46,903) (2,885,811) 0.16117 (465,106) 66,831,695 0.16117 10,771,264
9 Block 3 29,159,692 4,038,617 - 0.13850 - (116,925) 0.13850 (16,194) (1,886,619) 0.13850 (261,297) 27,156,148 0.13850 3,761,126 10 Block 4 6,046,576 422,898 - 0.06994 - (89,427) 0.06994 (6,255) (493,768) 0.06994 (34,534) 5,463,381 0.06994 382,109
Non-Distribution Revenues11 Energy Efficiency Charge 352,147 (352,147) -
12 Cost of Gas 46,546,883 (46,546,883) -
13 Total GS-1 Billed Revenues 73,844,883$ (46,899,030)$ (1,793)$ (103,214)$ (872,602)$ 25,968,244$
GS-1 (Irrigation)
Distribution Revenues14 Customer Charge 109 1,032$ - 9.50$ 4$ 109 9.50$ 1,036$ Distribution Charge
15 Block 1 11,063 2,043 - 0.18465 - 11,063 0.18465 2,043 16 Block 2 47,781 7,701 - 0.16117 - 47,781 0.16117 7,701
17 Block 3 12,661 1,754 - 0.13850 - 12,661 0.13850 1,754 18 Block 4 - - - 0.06994 - - 0.06994 -
Non-Distribution Revenues19 Energy Efficiency Charge 226 (226) -
20 Cost of Gas 33,059 (33,059) -
21 Total GS-1 (Irrigation) Billed Revenues 45,815$ (33,285)$ 4$ 12,534$
GS-1 (CNG Vehicles)
Distribution Revenues22 Customer Charge 6 67$ - 9.50$ (10)$ 6 9.50$ 57$ Distribution Charge
23 Block 1 - - - 0.13850 - - 0.13850 - 24 Block 2 - - - 0.06994 - - 0.06994 -
Non-Distribution Revenues25 Cost of Gas - -$ -
26 Total GS-1 (CNG Vehicles) Billed Revenues 67 -$ (10)$ 57$
IS-RDistribution Revenues
27 Customer Charge 2,643 15,135$ - 5.50$ (598)$ 2,643 5.50$ 14,537$ 28 Distribution Charge 455,543 74,276 - 0.16305 - 455,543 0.16305 74,276
Non-Distribution Revenues29 Cost of Gas 136,287 (136,287) -
30 Total IS-R Billed Revenues 225,698$ (136,287)$ (598)$ 88,813$
Intermountain Gas Company
Adjustments to Gas Operating RevenuesFor the Test Year Ending December 31, 2022 [1]
Test Year Results Weather NormalizationRate Class MigrationsBilling Determinant Recalculation Adjustment Adjusted Test Year Results
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 6
Page 1 of 2
Remove Non-
Distribution Revenues
Line No.Description
Billing Determinants (Therms/Customer Counts)Amount Amount
Billing Determinants (Therms/Customer Counts)Current Rates Amount [2]
Billing Determinants (Therms/Customer Counts)Current Rates Amount Billing Determinants (Therms)Current Rates Amount
Billing Determinants (Therms/Customer Counts)Current Rates Amount
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p)
Intermountain Gas Company
Adjustments to Gas Operating RevenuesFor the Test Year Ending December 31, 2022 [1]
Test Year Results Weather NormalizationRate Class MigrationsBilling Determinant Recalculation Adjustment Adjusted Test Year Results
IS-C
Distribution Revenues31 Customer Charge 635 6,046$ - 9.50$ (13)$ 635 9.50$ 6,033$
Distribution Charge32 Block 1 56,452 10,424 - 0.18465 - 56,452 0.18465 10,424 33 Block 2 157,470 25,379 - 0.16117 - 157,470 0.16117 25,379
34 Block 3 55,522 7,690 - 0.13850 - 55,522 0.13850 7,690 35 Block 4 - - - 0.06994 - - 0.06994 -
Non-Distribution Revenues36 Cost of Gas 78,489 (78,489) -
37 Total IS-R Billed Revenues 128,028$ (78,489)$ (13)$ 49,526$
LV-1Distribution Revenues
38 Demand Charge 850,285 255,146$ - 0.30000$ (60)$ 44,825 0.30000$ 13,448$ 895,110 0.30000$ 268,534$ 39 Overrun Demand Charge 7,978 2,393 - 0.30000 - 7,978 0.30000 2,393
Distribution Charge40 Block 1 12,939,762 388,096 - 0.03000 97 626,882 0.03000 18,806 13,566,644 0.03000 406,999 41 Block 2 - - - 0.01211 - - 0.01211 - - 0.01211 -
42 Block 3 - - - 0.00307 - - 0.00307 - - 0.00307 -
Non-Distribution Revenues43 Cost of Gas 3,589,183 (3,589,183) -
44 Total LV-1 Billed Revenues 4,234,818$ (3,589,183)$ 37$ 32,254$ 677,926$
T-3Distribution RevenuesDistribution Charge
45 Block 1 8,790,121 338,683$ - 0.03853$ -$ (800,000) 0.03853$ (30,824)$ 7,990,121 0.03853$ 307,859$ 46 Block 2 3,976,050 62,384 - 0.01569 - (400,000) 0.01569 (6,276) 3,576,050 0.01569 56,108
47 Block 3 43,717,317 252,686 - 0.00578 - (13,760,344) 0.00578 (79,535) 29,956,973 0.00578 173,151
Non-Distribution Revenues
48 Temporary PGA Adj (17,357) 17,357 -
49 Total T-3 Billed Revenues 636,396$ 17,357$ -$ (116,635)$ 537,118$
T-4
Distribution Revenues50 Demand Charge 16,624,920 4,987,476$ - 0.30000$ -$ 1,200,000 0.30000$ 360,000$ 17,824,920 0.30000$ 5,347,476$
51 Overrun Demand Charge 285,499 85,650 - 0.30000 - 285,499 0.30000 85,650 Distribution Charge52 Block 1 129,975,926 3,112,923 - 0.02395 - 2,000,000 0.02395 47,900 131,975,926 0.02395 3,160,823
53 Block 2 99,237,613 840,543 - 0.00847 - 4,000,000 0.00847 33,880 103,237,613 0.00847 874,423 54 Block 3 85,276,023 221,718 - 0.00260 - 8,960,344 0.00260 23,297 94,236,367 0.00260 245,015
Non-Distribution Revenues55 Temporary PGA Adj (220,375) 220,375 -
56 Total T-4 Billed Revenues 9,027,935$ 220,375$ -$ 465,077$ 9,713,387$
57 Total Billed Revenues 259,362,945$ (148,970,910)$ (72,880)$ 277,482$ (3,246,807)$ 107,349,830$
Other Gross Operating Revenues:58 Residential & Commercial Unbilled Revenue (4009.4895) (22,945,301)$ 22,945,301$ -$
59 Residential & Commercial Energy Efficiency Offset (4004.4800 & 4004.4810) (1,860,809) 1,860,809 - 60 Franchise Taxes (4002.4870) 5,849,427 (5,849,427) -
61 Total Other Gross Operating Revenues (18,956,683)$ 18,956,683$ -$
62 Total Gas Operating Revenues 240,406,262$ (130,014,227)$ (72,880)$ 277,482$ (3,246,807)$ 107,349,830$
NOTES[1] Test Year ending December 31, 2022 is composed of actual financial data from January 1 - September 30, 2022 and forecasted financial data from October 1, 2022 - December 31, 2022.
[2] Column (b) times Column (f) less Column (c).
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 6
Page 2 of 2
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 7 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Line
No.Description Amount
(a) (b)
1 Deferred General Rate Case Costs (INT-G-16-02):
2 External Legal (Account 1823.7000) 7,519$
3 External Regulatory Consultants (1823.7100) 320,500
4 Total Deferred General Rate Case Costs 328,019
5 Amortization Period 3
6 Amortization of Rate Case Expenses 109,340$
7 Adjustment to Exhibit No. 5:
8 Adjustment to Administrative and General 109,340$
NOTES
[1] Test Year ending December 31, 2022 is composed of actual financial data from
January 1 - September 30, 2022 and forecasted financial data from October 1, 2022 -
December 31, 2022.
Intermountain Gas Company
Amortization of Rate Case Expenses Adjustment
For the Test Year Ending December 31, 2022 [1]
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 7
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 8 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Line
No.Description Amount
(a) (b)
1 Incremental Employee Annualized Salary Adjustment:
2 Incremental Non-Union Employee Annualized Salary Adjustment 57,086$
3 Incremental Union Employee Annualized Salary Adjustment 116,628
4 Total Incremental Employee Annualized Salary Adjustment 173,714$
5 2023 Salary Increase Adjustment:
6 2022 Non-Union Employee Eligible Salary 14,265,525$
7 2023 Non-Union Salary Increase % 4.5%
8 2023 Non-Union Salary Increase Adjustment 641,950$
9 2022 MDUR Employee Eligible Salary 2,452,055$
10 2023 MDUR Salary Increase % 4%
11 2023 MDUR Salary Increase Adjustment 98,082$
12 2022 Union Employee Eligible Salary 9,038,524$
13 2023 Estimated Union Salary Increase % 3.50%
14 2023 Non-Union Salary Increase Adjustment 316,348$
15 Total 2023 Salary Increase Adjustment [2] 1,056,380$
16 Subtotal [3]1,230,094$
17 Payroll Tax Percentage 7.65%
18 Payroll Tax Expense 94,102$
19 Total Salary Adjustment 1,324,196$
20 Adjustment to Exhibit No. 5:
21 Adjustment to Production 10,186$
22 Adjustment to Natural Gas Storage, Terminaling, and Processing 8,417
23 Adjustment to Transmission 5,458
24 Adjustment to Distribution 664,438
25 Adjustment to Customer Accounts 215,767
26 Adjustment to Customer Service and Informational 1,640
27 Adjustment to Sales 49,779
28 Adjustment to Administrative and General 274,409
29 Adjustment to Payroll Taxes 94,102
30 Total Adjustment to Exhibit No. 5 1,324,196$
NOTES
[2] Sum of Lines 8, 11, and 14.
[3] Sum of Line 4 and 15.
Intermountain Gas Company
Salary Expense Adjustment
For the Test Year Ending December 31, 2022 [1]
[1] Test Year ending December 31, 2022 is composed of actual financial data from January 1 -
September 30, 2022 and forecasted financial data from October 1, 2022 - December 31, 2022.
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 8
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 9 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Line
No.Description Amount
(a) (b)
1 Annualized Incentive Compensation at 100% Payout 1,103,714$
2 Year-to-Date Incentive Compensation Booked to the General Ledger 1,123,700$
3 Forecast Incentive Compensation 498,326
4 Non-Executive Incentive Compensation Expense Adjustment 1,622,026$
5 Less Amounts Related to Energy Efficiency [2] (32,155)
6 Less Amounts Related to Renewable Natural Gas Access [3] (2,814)
7 Less Amounts Related to MDUR Employees (184,882)
8 Less Amounts Related to Executive Employees (366,745)
9 Test Year Incentive Compensation After Adjustment 1,035,430$
10 Annualization Adjustment [4] 68,284$
11 Payroll Tax Adjustment [5] (2,775)
12 Total Incentive Compensation Expense Adjustment [6] (486,118)$
13 Adjustment to Exhibit No. 5:
14 Adjustment to Production 844$
15 Adjustment to Natural Gas Storage, Terminaling, and Processing 164
16 Adjustment to Transmission 341
17 Adjustment to Distribution 19,913
18 Adjustment to Customer Accounts 12,818
19 Adjustment to Customer Service and Informational 136
20 Adjustment to Sales 4,055
21 Adjustment to Administrative and General (521,614)
22 Adjustment to Payroll Tax (2,775)
23 Total Adjustment to Exhibit No. 5 (486,118)$
NOTES
[6] Sum of Lines 7, 8 , 10, and 11.
[2] This amount is removed as part of the adjustment on Exhibit No. 5, Column (b).
[3] This amount is removed as part of the adjustment on Exhibit No. 4, Column (d).
[5] This captures the payroll tax effect of removing MDUR and executive employees as well as the
effect related to the annualization adjustment.
Intermountain Gas Company
Incentive Compensation Adjustment
For the Test Year Ending December 31, 2022 [1]
[1] Test Year ending December 31, 2022 is composed of actual financial data from January 1 -
September 30, 2022 and forecasted financial data from October 1, 2022 - December 31, 2022.
[4] Line 1 minus Line 9.
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 9
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 10 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Line Proforma Amount
No.Description Forecasted Adjustments (Cols. (b) + (c))
(a) (b) (c) (d)
1 Total Operating Revenue 246,268,206$ [2] (136,467,451)$ [3] 109,800,755$
2 Total Operating Expenses Before Interest Expense and Income Taxes 223,894,787 [4] (140,079,272) [5] 83,815,515
3 Interest Charges 5,213,607 [6] 3,389,189 [7] 8,602,796
4 Pre-Tax Income 17,159,812 222,632 17,382,444
5 Permanent Tax Adjustments:
6 401K Dividend Deduction (87,481) - (87,481)
7 100% Entertainment 38,898 - 38,898
8 Club Dues (2,974) 2,974 -
9 SISP/SERP Premium & CSV 552,432 (552,432) -
10 Accrued Tax Interest 1,810 (1,810) -
11 Executive Compensation 230,560 (230,560) -
12 Unrealized Gan/Losses on Deferred Compensation 12,363 (12,363) -
13 Performance Share Program 177,505 (177,505) -
14 Lobbying Expenses 67,072 (67,072) -
15 Total Permanent 990,185 (1,038,768) (48,583)
16 Temporary Tax Adjustments:
17 Bad Debt Expenses 17,353 - 17,353
18 Customer Advances 433,504 - 433,504
19 Prepaid Expenses 427,426 - 427,426
20 Contingency Reserve (445,692) - (445,692)
21 Deferred Compensation - Officers (121,579) 121,579 [8] -
22 Incentive Compensation (163,416) - (163,416)
23 LNG Sales Deferred Revenue (2,272) 2,272 [8] -
24 Postretirement Benefit Costs (305,309) - (305,309)
25 Postretirement - Reg Asset 170,934 - 170,934
26 Intercompany Deferred Employee Benefit Costs - Reg Asset (413,656) - (413,656)
27 SISP/SERP Expense - Current (1,261,787) 1,261,787 [8] 0
28 Deferred Payment Processor Fee (6,950) - (6,950)
29 Uniform Capitalization - (51,736) [8] (51,736)
30 Vacation Pay 41,194 - 41,194
31 AFUDC Debt - CWIP (391,410) 391,410 [8] -
32 AFUDC Equity - CWIP 2,133 (2,133) [8] -
33 Capitalized Interest - CWIP 130,748 (130,748) [8] -
34 Contribution in aid of construction - CWIP (5,554,321) 5,554,321 [8] -
35 AFUDC Equity - Federal 200,914 - 200,914
36 Plant Temporary Differences Federal (789,438) - (789,438)
37 Total Temporary (8,031,624) 7,146,752 (884,872)
38 Total Tax Adjustments (7,041,439) 6,107,984 (933,455)
39 Taxable income before adjustments 10,118,373$ 6,330,616$ 16,448,989$
Intermountain Gas Company
State Income Tax Calculation
For the Test Year Ending December 31, 2022 [1]
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 10
Page 1 of 2
Line Proforma Amount
No.Description Forecasted Adjustments (Cols. (b) + (c))
(a) (b) (c) (d)
Intermountain Gas Company
State Income Tax Calculation
For the Test Year Ending December 31, 2022 [1]
40 State Current Income Tax Calculation:
41 Taxable income before adjustments 10,118,373$ 6,330,616$ 16,448,989$
42 Bonus Modification (3,150,959) - (3,150,959)
43 State taxable income 6,967,414 6,330,616 13,298,030
44 State tax rate [9] 6.000%5.800%
45 State income tax (expense)/benefit before adjustments (418,045) (353,241) (771,286)
46 State Net Operating Loss - - -
47 State Tax Credits - - -
48 Permanent Building Fund (10) (10)
49 Investment tax credit recapture - - -
50 Investment tax credit - - -
51 Return and other adjustments - - -
52 Total State Current Income Taxes (expense)/benefit (418,055) (353,241) (771,296)
53 State Deferred Income Taxes (expense)/benefit [10] (112,119) 112,119 -
54 Total State Income Taxes (expense)/benefit (530,174)$ (241,122)$ (771,296)$
NOTES
[10] The IPUC requires the flow-through of state income taxes. However, deferred taxes related to deferred gas costs, the Supplemental Income Security
Plan and the Supplemental Executive Retirement Plan are not required to be flowed through. There are no deferred gas costs in this filing and SISP and
SERP expenses have been removed. Additionally, the Company is removing state deferred taxes related to certain below-the-line items.
[8] This adjustment removes or adjusts the tax impact of the underlying item based on an adjustment to the underlying item elsewhere in this model.
[9] Beginning in 2023, the Idaho corporate tax rate will be reduced to 5.8%.
[1] Test Year ending December 31, 2022 is composed of actual financial data from January 1 - September 30, 2022 and forecasted financial data from
October 1, 2022 - December 31, 2022.
[7] Interest expense for purposes of calculating income tax expense is calculated as the weighted average cost of debt multiplied by average rate base.
[2] See Exhibit No. 2, Column (b), Line 3.
[3] See Exhibit No. 2, Column (c), Line 3.
[4] See Exhibit No. 2, Column (b), Line 24 minus Line 22.
[5] See Exhibit No. 2, Column (c), Line 24 minus Line 22.
[6] See Exhibit No. 2, Column (b), Line 22.
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 10
Page 2 of 2
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 11 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Line Proforma Amount
No.Description Forecasted Adjustments (Cols. (b) + (c))
(a) (b) (c) (d)
1 Federal Current Income Tax Calculation:
2 Taxable income before state income taxes 10,118,373$ 6,330,616$ 16,448,989$
3 State income tax - Current year (418,055) (353,241) (771,296)
4 Federal taxable income 9,700,318 5,977,375 15,677,693
5 Federal tax rate 21.00%21.00%21.00%
6 Federal income tax (expense) benefit before adjustments (2,037,067) (1,255,249) (3,292,316)
7 Federal Net Operating Loss - - -
8 State Net Operating Loss - - -
9 Federal Tax Credits - - -
10 State Tax Credits - - -
11 FIN 48 Adjustments - - -
12 Return and other adjustments - - -
13 Total Federal Current Income Taxes (expense)/benefit (2,037,067) (1,255,249) (3,292,316)
14 Federal Deferred Income Tax Calculation
15 Non-Plant asset & CWIP timing differences [2] (7,445,233) 7,148,885 (296,348)
16 Federal deferred tax rate 21.00%21.00%21.00%
17 Non-Plant Deferred taxes (1,563,499) 1,501,266 (62,233)
18 Non-Plant Excess deferred taxes (154,543) - (154,543)
19 Plant Deferred taxes (892,950) - (892,950)
20 Federal Deferred Income Taxes (expense)/benefit (2,610,992) 1,501,266 (1,109,726)
21 Total Federal Income Taxes (expense)/benefit [3] (4,648,059) 246,017 (4,402,042)
22 ITC Amortization (652,704) (652,704)
23 Total tax (expense)/benefit [4] (5,830,937)$ 4,895$ (5,826,042)$
NOTES
[4] See Exhibit No. 10, Line 54 plus the sum of Exhibit No. 11 Lines 21-22.
[2] See Exhibit No. 10, Line 37 minus the sum of Lines 32, 35, and 36.
[1] Test Year ending December 31, 2022 is composed of actual financial data from January 1 - September 30, 2022 and forecasted financial
data from October 1, 2022 - December 31, 2022.
Intermountain Gas Company
Federal Income Tax Calculation
For the Test Year Ending December 31, 2022 [1]
[3] Line 13 plus Line 20.
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 11
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 12 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Non-Utility Utility Idaho Section 1031 Advances in Aid of Uniform Total
Line ARO RWIP Storage Storage Deferred Taxes CWIP FAS109 Gross-Up Like-Kind Exchange Construction Capitalization Rate Base
No.Description Adjustment [2]Adjustment [3]Adjustment [4]Adjustment [4]Adjustment [5]Adjustment [5]Adjustment [5]Adjustment [5]Adjustment [5]Adjustment [5]Adjustment [5]Adjustments [6]
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m)
1 Rate Base:
2 Gas Plant in Service (45,051,804)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (45,051,804)$
3 Less Accumulated Depreciation and Amortization 7,067,837 (632,718) - - - - - - - - - 6,435,119
4 Net Gas Plant in Service (37,983,967) (632,718) - - - - - - - - - (38,616,685)
5 Materials & Supplies Inventory - - - - - - - - - - - -
6 Gas Storage Inventory - - (1,189,478) 196,132 - - - - - - - (993,346)
7 Accumulated Deferred Income Taxes - - - - 7,535,070 (1,592,069) (18,289,684) (2,586,056) 16 2,964,733 238,138 (11,729,852)
8 Advances in Aid of Construction - - - - - - - - - - - -
9 Rate Base (37,983,967)$ (632,718)$ (1,189,478)$ 196,132$ 7,535,070$ (1,592,069)$ (18,289,684)$ (2,586,056)$ 16$ 2,964,733$ 238,138$ (51,339,883)$
NOTES
[1] Test Year ending December 31, 2022 is composed of actual financial data from January 1 - September 30, 2022 and forecasted financial data from October 1, 2022 - December 31, 2022.
[2] See Exhibit No. 13 and Exhibit No. 14.
[3] See Exhibit No. 14, Line 16.
[4] See Exhibit No. 16, Line 16.
[5] See Exhibit No. 17, Line 16.
[6] Sum of Columns (b)-(l).
Intermountain Gas Company
Adjustments to Rate Base
For the Test Year Ending December 31, 2022 [1]
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 12
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 13 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Line Gas Plant in Service ARO Total
No.Month a/c 1010 and 1060 Adjustment [2](Cols. (b) + (c))
(a) (b) (c) (d)
1 December 2021 856,758,673$ (45,051,804)$ 811,706,869$
2 January 2022 859,032,722 (45,051,804) 813,980,918
3 February 867,006,281 (45,051,804) 821,954,477
4 March 869,322,912 (45,051,804) 824,271,108
5 April 873,533,916 (45,051,804) 828,482,112
6 May 876,308,806 (45,051,804) 831,257,002
7 June 880,445,648 (45,051,804) 835,393,844
8 July 884,502,691 (45,051,804) 839,450,887
9 August 890,529,091 (45,051,804) 845,477,287
10 September 897,888,804 (45,051,804) 852,837,000
11 October 912,891,294 (45,051,804) 867,839,490
12 November 918,442,407 (45,051,804) 873,390,603
13 December 924,411,810 (45,051,804) 879,360,006
14 Total of Monthly Averages 10,620,489,814$ (540,621,648)$ 10,079,868,166$
15 Divided by 12 12 12
16 Average Balance 885,040,818$ (45,051,804)$ 839,989,014$
NOTES
[2] As per prior Commission orders, the Asset Retirement Obligation is removed from the
calculation of rate base to avoid double charging customers for the cost of removing
tangible long-lived assets. The cost of removal is already included in the Company's
approved depreciation rates.
Intermountain Gas Company
Gas Plant in Service
For the Test Year Ending December 31, 2022 [1]
[1] Test Year ending December 31, 2022 is composed of actual financial data from January
1 - September 30, 2022 and forecasted financial data from October 1, 2022 - December 31,
2022.
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 13
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 14 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Accumulated Provision
Line for Depreciation and Amortization ARO RWIP Total
No.Month a/c 1080 and 1110 Adjustment [2]Adjustment [3](Cols. (b) + (c) + (d))
(a) (b) (c) (d) (e)
1 December 2021 (400,326,100)$ 6,796,227$ (70,216)$ (393,600,089)$
2 January 2022 (401,890,894) 6,844,513 7,366 (395,039,015)
3 February (403,513,354) 6,892,799 (146,111) (396,766,666)
4 March (404,385,550) 6,941,085 (353,150) (397,797,615)
5 April (405,823,534) 6,989,372 (452,437) (399,286,599)
6 May (407,249,237) 7,037,658 (572,251) (400,783,830)
7 June (408,748,092) 7,085,944 (597,569) (402,259,717)
8 July (410,164,949) 7,134,231 (882,749) (403,913,467)
9 August (411,533,561) 7,182,517 (974,321) (405,325,365)
10 September (413,301,839) 7,230,803 (1,024,653) (407,095,689)
11 October (414,919,036) 7,230,803 (1,024,653) (408,712,886)
12 November (416,614,276) 7,230,803 (1,024,653) (410,408,126)
13 December (418,326,365) 7,230,803 (1,024,653) (412,120,215)
14 Total of Monthly Averages (4,907,470,555)$ 84,814,043$ (7,592,616)$ (4,830,249,127)$
15 Divided by 12 12 12 12
16 Average Balance (408,955,880)$ 7,067,837$ (632,718)$ (402,520,761)$
NOTES
[2] As per prior Commission orders, the Asset Retirement Obligation is removed from the calculation of rate base to avoid
double charging customers for the cost of removing tangible long-lived assets. The cost of removal is already included in the
Company's approved depreciation rates.
[3] Accumulated Provision for Depreciation related to the Retirement Work in Process represents the work performed but not
yet completed to retire plant-in-service. Retirement work in process is removed from the calculation of rate base because it
represents assets that are in the process of being retired but are still used and useful at the end of the month.
Intermountain Gas Company
Accumulated Provision for Depreciation and Amortization
For the Test Year Ending December 31, 2022 [1]
[1] Test Year ending December 31, 2022 is composed of actual financial data from January 1 - September 30, 2022 and
forecasted financial data from October 1, 2022 - December 31, 2022.
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 14
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 15 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Materials & Supplies
Line Inventory Undistributed Stores Total
No.Month a/c 1540 a/c 1630 (Cols. (b) + (c))
(a) (b) (c) (d)
1 December 2021 5,920,355$ -$ 5,920,355$
2 January 2022 5,984,174 (34,591) 5,949,583
3 February 6,077,208 (30,562) 6,046,646
4 March 5,915,396 94,898 6,010,294
5 April 5,980,173 180,965 6,161,138
6 May 6,482,156 211,936 6,694,092
7 June 6,448,446 217,152 6,665,598
8 July 6,589,511 218,928 6,808,439
9 August 6,810,635 263,200 7,073,835
10 September 6,653,014 300,492 6,953,506
11 October 6,653,014 (99,489) 6,553,525
12 November 6,653,014 (126,497) 6,526,517
13 December 6,653,014 - 6,653,014
14 Total of Monthly Averages 76,533,426$ 1,196,432$ 77,729,858$
15 Divided by 12 12 12
16 Average Balance 6,377,785$ 99,703$ 6,477,488$
NOTES
Intermountain Gas Company
Materials & Supplies Inventory
For the Test Year Ending December 31, 2022 [1]
[1] Test Year ending December 31, 2022 is composed of actual financial data from January 1 -
September 30, 2022 and forecasted financial data from October 1, 2022 - December 31, 2022.
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 15
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 16 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Non-Utility Utility
Line Gas Storage Gas Storage Gas Storage Total
No.Month a/c 1642 Adjustment [2]Adjustment [3](Cols. (b) + (c) + (d))
(a) (b) (c) (d) (e)
1 December 2021 2,739,716$ -$ 514,814$ 3,254,530$
2 January 2022 2,630,634 - 514,814 3,145,448
3 February 2,920,379 - 416,260 3,336,639
4 March 3,504,373 (585,210) 112,169 3,031,332
5 April 4,186,187 (1,222,344) 77,471 3,041,314
6 May 4,591,993 (1,602,895) 53,345 3,042,443
7 June 5,148,059 (2,207,049) 57,818 2,998,828
8 July 4,947,337 (2,042,298) 103,413 3,008,452
9 August 4,646,125 (1,777,377) 136,656 3,005,404
10 September 4,240,696 (1,381,874) 172,821 3,031,643
11 October 4,240,696 (1,381,874) 180,564 3,039,386
12 November 4,240,696 (1,381,874) 180,564 3,039,386
13 December 4,240,696 (1,381,874) 180,564 3,039,386
14 Total of Monthly Averages 48,787,381$ (14,273,732)$ 2,353,584$ 36,867,233$
15 Divided by 12 12 12 12
16 Average Balance 4,065,615$ (1,189,478)$ 196,132$ 3,072,269$
NOTES
[3] This includes adjustments to keep the Nampa LNG storage tank inventory level at 2 million gallons.
[2] Non-Utility Gas Storage Inventory represents the balance of LNG that is allocated to non-utility LNG sales
and as a result is removed from the calculation of rate base.
Intermountain Gas Company
Gas Storage Inventory
For the Test Year Ending December 31, 2022 [1]
[1] Test Year ending December 31, 2022 is composed of actual financial data from January 1 - September 30,
2022 and forecasted financial data from October 1, 2022 - December 31, 2022.
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 16
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 17 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Accumulated Deferred Idaho Section 1031 Advances in Aid of Uniform
Line Income Taxes Deferred Taxes CWIP FAS109 Gross-Up Like-Kind Exchange Construction Capitalization
No.Month a/c 2820 Adjustment [2]Adjustment [3]Adjustment [4]Adjustment [5]Adjustment [6]Adjustment [7]Adjustment [8]Total [9]
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j)
1 December 2021 (35,961,772)$ 7,774,889$ (2,103,416)$ (18,875,952)$ (2,610,464)$ -$ 2,955,443$ 254,539$ (48,566,733)$
2 January 2022 (36,174,091) 7,841,382 (1,991,577) (18,795,487) (2,582,529) - 2,946,349 247,949 (48,508,004)
3 February (35,753,099) 7,271,449 (1,877,759) (18,563,693) (2,704,787) - 2,997,066 256,619 (48,374,204)
4 March (35,929,929) 7,325,496 (1,788,946) (18,482,901) (2,677,197) - 3,000,177 239,646 (48,313,654)
5 April (36,126,775) 7,384,209 (1,684,782) (18,402,109) (2,649,607) - 2,993,980 238,958 (48,246,126)
6 May (36,250,831) 7,425,954 (1,636,441) (18,321,317) (2,622,016) - 2,970,345 237,812 (48,196,494)
7 June (36,373,701) 7,467,423 (1,589,010) (18,240,525) (2,594,426) - 2,927,843 234,355 (48,168,041)
8 July (36,559,398) 7,523,537 (1,493,397) (18,159,734) (2,566,836) - 2,938,735 233,648 (48,083,445)
9 August (36,749,062) 7,580,576 (1,394,741) (18,078,942) (2,539,245) - 2,975,809 232,287 (47,973,318)
10 September (36,916,312) 7,632,390 (1,313,275) (17,998,150) (2,511,655) - 2,968,002 232,438 (47,906,562)
11 October (36,841,899) 7,632,390 (1,313,275) (17,998,150) (2,511,655) - 2,959,283 231,634 (47,841,672)
12 November (36,767,487) 7,632,390 (1,313,275) (17,998,150) (2,511,655) 127 2,950,563 230,430 (47,777,057)
13 December (36,693,074) 7,632,390 (1,313,275) (17,998,150) (2,511,655) 127 2,941,844 229,226 (47,712,567)
14 Total of Monthly Averages (436,770,007)$ 90,420,836$ (19,104,824)$ (219,476,209)$ (31,032,668)$ 191$ 35,576,795$ 2,857,659$ (577,528,228)$
15 Divided by 12 12 12 12 12 12 12 12 12
16 Average Balance (36,397,501)$ 7,535,070$ (1,592,069)$ (18,289,684)$ (2,586,056)$ 16$ 2,964,733$ 238,138$ (48,127,353)$
NOTES
[1] Test Year ending December 31, 2022 is composed of actual financial data from January 1 - September 30, 2022 and forecasted financial data from October 1, 2022 - December 31, 2022.
[9] Sum of Columns (b)-(i).
[4] The FAS109 balance represents the measurement of accumulated deferred income taxes at the future tax rate at which the book-tax timing differences are expected to reverse, as required by ASC 740. In order to
comply with IRS normalization rules regarding excess accumulated deferred income taxes, the Average Rate Adjustment Method must be used to measure deferred taxes and therefore the FAS109 balance must be
removed from the calculation of rate base. Additionally, the FAS109 balance also includes the measurement of deferred state income taxes as required by ASC 740. However, IGC is required to flow-through
deferred state income taxes and therefore the FAS109 balance must be removed from the calculation of rate base.
[5] The Gross-Up balance is removed from the calculation of rate base because it relates to the gross-up on the regulatory asset/liability that is created to reflect the difference between the FAS109 deferred income
taxes and the APB11 deferred income taxes. To comply with IRS normalization rules the Company is only including the APB11 deferred taxes in the calculation of rate base, therefore, the Gross-Up amount should be
removed from the calculation of rate base.
[6] In order to comply with the IRS normalization rules, the Company is removing the deferred income taxes associated with Sec. 1031 exchanges.
[7] This adjustment captures the accumulated deferred income taxes related to Advances in Aid of Construction.
[8] This adjustment captures the accumulated deferred income taxes related to Gas Storage Inventory.
[3] Accumulated Deferred Income Taxes related to Construction Work In Process book-tax timing differences are removed from the calculation of rate base because Construction Work in Process is not included in the
calculation of rate base due to the fact that the assets have not been completed and therefore are not considered used and useful.
[2] In prior orders and communications, the Commission has ordered the Company to flow through most deferred state income taxes (DSIT). Generally Accepted Accounting Principles (GAAP) requires the Company
to state the amount of DSIT in its 282 account, offset by a regulatory asset and gross-up. DSIT required to be flowed-through is not recorded on the Company's income statement. This adjustment removes the DSIT
required by GAAP.
Intermountain Gas Company
Accumulated Deferred Income Taxes
For the Test Year Ending December 31, 2022 [1]
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 17
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 18 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Advances in Aid of
Line Construction
No.Month a/c 2520
(a) (b)
1 December 2021 (11,083,974)$
2 January 2022 (11,082,191)
3 February (11,365,224)
4 March (11,421,561)
5 April (11,433,570)
6 May (11,362,546)
7 June (11,201,678)
8 July (11,295,068)
9 August (11,513,129)
10 September (11,517,478)
11 October (11,517,478)
12 November (11,517,478)
13 December (11,517,478)
14 Total of Monthly Averages (136,528,127)$
15 Divided by 12
16 Average Balance (11,377,344)$
NOTES
Intermountain Gas Company
Advances in Aid of Construction
For the Test Year Ending December 31, 2022 [1]
[1] Test Year ending December 31, 2022 is composed
of actual financial data from January 1 - September
30, 2022 and forecasted financial data from October 1,
2022 - December 31, 2022.
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 18
Page 1 of 1
Preston N. Carter ISB No. 8462
Morgan D. Goodin ISB No. 11184
Blake W. Ringer ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN 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
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 19 TO ACCOMPANY THE
DIRECT TESTIMONY OF JACOB DARRINGTON
Line Gross Revenue
No.Description Rate Conversion Factor
(a) (b) (c)
1 Operating Revenues (without add-on taxes) 1.00000
2 Commission Fees [2] 0.1995% 0.00200
3 Uncollectibles Expense 0.2381%0.00238
4 State Taxable Income [3] 0.99562
5 State Income Tax [4] 5.80% 0.05775
6 Income Before Federal Income Tax [5] 0.93787
7 Federal Income Tax [6] 21.00% 0.19695
8 Operating Income After Taxes [7] 0.74092
9 Gross Revenue Conversion Factor [8] 1.34967
NOTES
[2] Per Commission Order No. 35372.
[3] Line 1 minus Line 2 minus Line 3.
[5] Line 4 minus Line 5.
[6] Line 6 times Column (b), Line 7.
[7] Line 6 minus Line 7.
[8] 1 divided by Line 8.
Intermountain Gas Company
Gross Revenue Conversion Factor
For the Test Year Ending December 31, 2022 [1]
[1] Test Year ending December 31, 2022 is composed of actual financial data from
January 1 - September 30, 2022 and forecasted financial data from October 1, 2022
- December 31, 2022.
[4] Line 4 times Column (b), Line 5. This reflects the new Idaho corporate tax rate
which will become effective in 2023.
Case No. INT-G-22-07
J. Darrington, IGC
Exhibit No. 19
Page 1 of 1