20230309Updated Direct Darrington 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
UPDATED DIRECT TESTIMONY OF JACOB DARRINGTON
FOR INTERMOUNTAIN GAS COMPANY
MARCH 9, 2023
RECEIVED
2023 March, 9 2:09PM
IDAHO PUBLIC
UTILITIES COMMISSION
PAGE 2 OF 18
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. Third, I will discuss the Company’s 4
adjustments to operating revenues and expenses to arrive at net operating income at 5
present rates. Fourth, I will discuss Intermountain’s regulatory adjustments to arrive at 6
the Company’s average rate base. 7
Q.Are you sponsoring any exhibits in this proceeding? 8
A. Yes. I am sponsoring Exhibit Nos. 1-19 which are described throughout my testimony. 9
I. PROPOSED REVENUE REQUIREMENT 10
Q.Please explain Exhibit No. 1. 11
A. Exhibit No. 1 shows the calculation of the proposed deficiency in operating revenue. 12
Lines 1 and 2 show the net operating income at present rates and average rate base, 13
respectively. Based on that information, the Company is currently earning a rate of return 14
of approximately 6.07 percent, as shown on Line 3. The cost of capital of 7.37 percent on 15
Line 4 is discussed in more detail in the direct testimony of Ms. Nygard. The operating 16
income of $28,415,370 at proposed rates on Line 5 is the product of the average rate base 17
multiplied by the proposed cost of capital. Finally, the operating income deficiency is 18
grossed up by the gross revenue conversion factor of 1.34977 on Line 7 to determine the 19
deficiency in operating revenue (or revenue requirement) of $6,752,224. 20
Q.Please explain the gross revenue conversion factor. 21
A. The gross revenue conversion factor is based on revenue-sensitive items that change as 22
revenue changes, including uncollectibles, the Commission’s regulatory fee, Idaho state 23
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J. DARRINGTON, DI
INTERMOUNTAIN GAS
income taxes (reflecting the new corporate tax rate of 5.8 percent which will become 1
effective in 2023), and federal income taxes. The gross revenue conversion factor 2
converts the net operating income deficiency into the additional operating revenues the 3
Company needs to collect from customers in order to earn its authorized rate of return 4
after accounting for the revenue-sensitive items previously mentioned. The components 5
of the gross revenue conversion factor are shown on Exhibit No. 19. 6
Q.What are the main drivers of the proposed revenue requirement? 7
A. There are two main drivers of the revenue requirement in this case. First, the Company’s 8
proposed average rate base has grown by approximately $150 million since its last 9
general rate case. The majority of this growth is related to the Company’s investment in 10
net plant with the biggest increases related to main lines, service lines, and meters. The 11
direct testimony of Mr. Darras will address major plant investments made since the 12
previous rate proceeding. 13
Second, the Company’s proposed test year operations and maintenance (“O&M”) 14
expense has grown almost $14 million since its last general rate case. The majority of the 15
growth in O&M is related to employee labor and benefits, subcontractor payments, and 16
software maintenance and hosting services. The direct testimony of Ms. Hourigan will 17
address the increases in labor and benefits, Mr. Darras will address increases in 18
subcontractor payments, and Mr. Boese will address increases in software maintenance 19
and hosting services. 20
Q.How do proposed test year base rate revenues compare with the Company’s 21
previous general rate case? 22
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J. DARRINGTON, DI
INTERMOUNTAIN GAS
A. Proposed test year base rate revenues have grown by nearly $23 million when compared 1
to final base rate revenues in the Company’s last general rate case. This growth is 2
attributable to higher base rates which were implemented as a result of the last general 3
rate case and customer growth. The growth in base rate revenues offsets the growth in 4
average rate base and O&M discussed above and lowers the revenue requirement that 5
otherwise would result. 6
II. PROPOSED TEST YEAR AND UNADJUSTED TEST YEAR RESULTS 7
Q.What is the Company’s proposed test year for this rate case proceeding? 8
A. Intermountain is proposing a test period reflecting twelve months of actual financial 9
results (“actuals”) for the twelve-months ending December 31, 2022 (“Test Year”). 10
Q.What are the components of the Company’s test year operating revenues? 11
A. Test year operating revenue consists of gas operating revenue and other revenues. Gas 12
operating revenues are the revenues generated by the sale and transportation of gas under 13
the Company’s sale and transportation rate schedules. Other revenues include revenues 14
associated with miscellaneous services, field collection charges, return check charges, 15
account initiation charges, reconnection charges, interest on past due accounts, other 16
miscellaneous non-operating revenues, cash discounts, rents, interest income, and non-17
utility revenues. 18
Unadjusted total test year revenues are shown on Exhibit No. 2, Column (b), 19
Lines 1-2 and Exhibit No. 3, Lines 1-2. Finally, Exhibit No. 4 shows the breakout of 20
actual other revenues by component. 21
Q.What are the components of the Company’s test year operating expenses? 22
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J. DARRINGTON, DI
INTERMOUNTAIN GAS
A. The following categories of expenses are included in the Company’s unadjusted test year 1
as shown on Exhibit No. 2, Column (b), Lines 4-25 and Exhibit No. 3, Lines 4-25: 2
Cost of Gas3
Operating and Maintenance (“O&M”) Expenses4
Depreciation and Amortization Expenses 5
Taxes Other Than Income Taxes 6
Interest Expense7
Income Taxes8
Q.What is rate base and what are the components of the Company’s test year rate 9
base? 10
A. Rate base represents the total investment the Company has made in its distribution 11
system in order to serve its customers safely and reliably. The following rate base items 12
are included in the Company’s unadjusted test year as shown on Exhibit No. 2, Column 13
(b), Lines 28-36: 14
Gas Plant in Service 15
Accumulated Provision for Depreciation and Amortization 16
Materials and Supplies Inventory 17
Gas Storage Inventory 18
Accumulated Deferred Income Taxes 19
Advances in Aid of Construction 20
Q.Please explain the concept of accumulated deferred income taxes (“ADIT”) and why 21
it is a reduction to rate base. 22
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J. DARRINGTON, DI
INTERMOUNTAIN GAS
A. Deferred income taxes arise when income tax amounts as recorded in the Company’s 1
financial records differ from the amount of taxes due and payable in the test period. The 2
primary cause of this tax difference is the straight-line depreciation rates used for 3
ratemaking purposes, versus the accelerated depreciation rates used when calculating 4
state and federal income tax obligations. The difference in depreciation methodologies 5
causes a higher depreciation expense for tax purposes than the amount in the financial 6
records during the early years of the asset’s life. In later years, the situation reverses 7
itself. For a utility with a growing rate base this means that the accumulated balances of 8
these deferred taxes are, in essence, a source of funds available to the Company and thus 9
should be subtracted from rate base. 10
Q.What are advances in aid of construction and why are they a reduction to rate base? 11
A. Advances in aid of construction are cash advances received from customers for the 12
construction of distribution system assets to support service to those customers. Similar 13
to ADIT, the advances in aid of construction represent a source of funds available to the 14
Company and thus should be subtracted from rate base. 15
Q.What are the Company’s unadjusted test year results? 16
A. The Company’s unadjusted test year results, are shown on Exhibit No. 2, Column (b). As 17
shown on the exhibit, the Company’s unadjusted test year Net Operating Income is 18
$19,097,236. The Company’s unadjusted test year Average Rate Base is $424,047,551. 19
III. REGULATORY ADJUSTMENTS TO OPERATING REVENUES AND EXPENSES 20
Q.What adjustments did the Company make to the test year operating revenues and 21
expenses? 22
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J. DARRINGTON, DI
INTERMOUNTAIN GAS
A. Exhibit No. 5 provides a summary of all the adjustments made to test year operating 1
revenues and expenses. Each adjustment will be discussed in more detail below. 2
Q.Please explain the adjustment to remove non-distribution revenues and expenses on 3
Exhibit No. 5, Column (b). 4
A. This adjustment removes all non-distribution revenues and expenses including franchise 5
taxes, cost of gas revenues and expenses, and energy efficiency revenues and expenses 6
included in the Company’s financial records through December 31, 2022. Cost of gas and 7
energy efficiency are non-distribution items that are part of the total rate charged to 8
customers. However, these items do not belong in the calculation of revenue requirement 9
because they are evaluated and changed through separate mechanisms. Franchise taxes 10
are a non-distribution item that is charged to customers. The Company is the collector 11
and remitter of these taxes on behalf of municipalities in Idaho and therefore these taxes 12
should not be included in the calculation of revenue requirement. Removing non-13
distribution revenues and expenses keeps the revenue requirement calculation focused on 14
distribution revenues and expenses. 15
This adjustment also removes unbilled revenues included in the Company’s 16
financial records through December 31, 2022. Unbilled revenues represent the difference 17
in the timing of when gas is provided to customers and when those customers are billed 18
for the gas used. Unbilled revenues are removed because the Company’s weather 19
normalization methodology is based on billed consumption data, as discussed in the 20
direct testimony of Ms. Blattner. 21
As shown on Exhibit No. 5, Column (b), Lines 3 and 26, this adjustment reduces 22
test year revenues and expense by $236,431,022 and $234,652,144, respectively. 23
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J. DARRINGTON, DI
INTERMOUNTAIN GAS
Q.Please explain the billing determinant recalculation adjustment proposed by the 1
Company on Exhibit No. 5, Column (c). 2
A. This adjustment sets distribution revenues equal to tariff rates multiplied by unadjusted 3
billing determinants. The adjustment is calculated on Exhibit No. 6, Columns (e)-(g). 4
This adjustment allows the Company to remove any billing adjustments in the 5
Company’s financial records and reflect only the amount of revenues the Company 6
would receive based on its billing determinants and current tariff rates. The majority of 7
the adjustment is primarily due to the residential customer class. This adjustment reduces 8
revenues by $83,580, as shown on Exhibit No. 5, Column (c), Line 3 and Exhibit No. 6, 9
Column (g), Line 62. 10
Q.Please explain the rate class migration adjustment on Exhibit No. 5, Column (d). 11
A. This adjustment captures the revenue impact of customers migrating between general 12
service, large volume, and transport customer classes throughout the test year and 13
through February 2023. The Company removed these customers’ actual volumes from 14
their previous rate class and included them for a full twelve-month period in the new rate 15
class. The adjustment is calculated on Exhibit No. 6, Columns (h)-(j) and increases 16
revenues by $287,015, as shown on Exhibit No. 5, Column (d), Line 3 and Exhibit No. 6, 17
Column (j), Line 62. 18
Q.Please explain the normalization adjustment proposed by the Company on Exhibit 19
No. 5, Column (e). 20
A. The weather normalization adjustment removes the impact of weather on gas usage for 21
the RS and GS-1 customer classes. The process for determining weather normalization is 22
addressed in the direct testimony of Ms. Blattner. The revenue impact of the weather 23
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J. DARRINGTON, DI
INTERMOUNTAIN GAS
normalization adjustment is calculated on Exhibit No. 6, Columns (k)-(m) and reduces 1
revenues by $3,835,552, as shown on Exhibit No. 5, Column (e), Line 3 and Exhibit No. 2
6, Column (m), Line 62. 3
Q.Please explain the adjustment to remove revenues and expenses associated with non-4
utility LNG sales from the Company’s Nampa facility proposed on Exhibit No. 5, 5
Column (f)? 6
A. This adjustment eliminates revenues and cost of gas expenses included in the Company’s 7
financial records through December 31, 2022 related to the sale of LNG from the 8
Company’s Nampa LNG facility. These revenues and cost of gas expenses are not 9
associated with the provision of regulated gas services to Intermountain’s customers. This 10
adjustment reduces operating revenues and cost of gas expenses by $4,022,067 and 11
$3,309,029 as shown on Exhibit No. 5, Column (f), Lines 3 and 5, respectively. 12
Q.Please explain the adjustment to remove other revenues and expenses proposed by 13
the Company on Exhibit No. 5, Column (g). 14
A. This adjustment removes non-utility revenues and expenses included in the Company’s 15
financial records through December 31, 2022. The majority of the adjustment is for the 16
removal of revenues and expenses related to providing renewable natural gas (“RNG”) 17
producers access to the Company’s system in accordance with the Company’s RNG 18
facilitation plan approved by the Commission in Order No. 34693 in Case No. INT-G-20-19
03. 20
This adjustment also removes expenses associated with donations, civic, political, 21
and related activities, and other disallowed or non-utility activities. This adjustment 22
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J. DARRINGTON, DI
INTERMOUNTAIN GAS
reduces revenues and expenses by $573,541 and $814,073 as shown on Exhibit No. 5 1
Column (g), Lines 3 and 26, respectively. 2
Q.Please explain the adjustment to remove interest expense proposed by the Company 3
on Exhibit No. 5, Column (h). 4
A. This adjustment removes interest expense included in the Company’s financial records 5
through December 31, 2022. Instead, the impact of interest is captured through the 6
application of the weighted average cost of capital to the average rate base. 7
Intermountain’s weighted average cost of debt included in the Company’s cost of capital 8
is discussed in more detail in the direct testimony of Ms. Nygard. This adjustment 9
reduces interest expense by $7,927,070 as shown on Exhibit No. 5 Column (h), Line 22. 10
Q.Please explain the adjustment to remove supplemental executive compensation 11
proposed by the Company on Exhibit No. 5, Column (i). 12
A. This adjustment removes all supplemental executive compensation expenses related to 13
the Supplemental Executive Retirement Plan, the Supplemental Income Security Plan, 14
Deferred Compensation, and the Long-Term Incentive Plan. The Company has chosen to 15
not charge its customers for these expenses and has therefore removed them from the 16
revenue requirement calculation. This adjustment reduces expenses by $1,980,940 as 17
shown on Exhibit No. 5 Column (i), Line 26. 18
Q.Please explain the payment processor fees adjustment proposed by the Company on 19
Exhibit No. 5, Column (j). 20
A. In Order No. 34099 (Case No. INT-G-18-01), the Commission authorized Intermountain 21
to create a regulatory asset to capture the costs associated with in-person customer pay 22
station transactions handled by Western Union and to recover these costs in its annual 23
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J. DARRINGTON, DI
INTERMOUNTAIN GAS
PGA until February 1, 2021 or until the Company files a general rate case, whichever 1
comes first. The Company was then authorized to extend the life of the regulatory asset 2
established in Order No. 34099 from February 1, 2021 until February 1, 2023 or until the 3
Company files a general rate case-whichever comes first.1 The Company proposes to 4
embed twelve months of payment processor fees in base rates going forward and to 5
recover the fees deferred from October 1, 2022 through February 1, 2023 through its 6
2023 PGA filing. This adjustment increases expenses by $68,977 as shown on Exhibit 7
No. 5, Column (j), Line 11. 8
Q.Please explain the rate case expense amortization adjustment proposed by the 9
Company on Exhibit No. 5, Column (k). 10
A. The Company has approximately $328,000 of rate case costs remaining that were 11
deferred from the Company’s most recent general rate case, Case No. INT-G-16-02. In 12
the subsequent PGA filing, Case No. INT-G-17-05, the Company requested to include 13
$699,114 to be amortized and recovered over a four-year period. Instead, the 14
Commission authorized the Company to amortize and collect over a five-year period 15
$378,614 of deferred rate case expenses and determined the remaining amount should be 16
deferred for consideration in the Company’s next general rate case.2 The Company is 17
now requesting recovery of the remaining rate case expenses, amortized over a three-year 18
period. This adjustment is calculated on Exhibit No. 7 and increases expenses by 19
1 See Case No. INT-G-21-01, Order No. 35047, pages 4-5.
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
$109,340 as shown on Exhibit No. 5, Column (k), Line 14 and Exhibit No. 7, Column 1
(b), Line 6. 2
Q.Please explain the salary expense adjustment proposed by the Company on Exhibit 3
No. 5, Column (l). 4
A. The salary expense adjustment includes two components. The first component is a 5
normalization adjustment to normalize the salaries of incremental employees (i.e., new 6
employee positions, not backfilled positions) that began their employment at some point 7
during the test year. An adjustment is needed to normalize the incremental employee 8
salaries and create an expense amount that would have existed if the employees had been 9
employed for the entire test year. 10
The second component of the salary expense adjustment is a pro-forma 11
adjustment to account for salary or wage increases that began in 2023. The salary and 12
wage increases began in 2023 and the adjustment ensures the appropriate level of 13
expenses are included in the revenue requirement to allow recovery of those amounts. 14
Please see the direct testimony of Ms. Hourigan for additional information regarding 15
employee salaries and increases. This adjustment is calculated on Exhibit No. 8 and 16
increases expenses by $1,328,045, as shown on Exhibit No. 5, Column (l), Line 26 and 17
Exhibit No. 8, Column (b), Line 19. 18
Q.Please explain the incentive compensation adjustment proposed by the Company on 19
Exhibit No. 5, Column (m). 20
A. The adjustment to incentive compensation expense reflects 100 percent target incentive 21
payouts to Company employees according to the Company’s incentive compensation 22
plan. As explained in the direct testimony of Ms. Hourigan, the Company’s incentive 23
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J. DARRINGTON, DI
INTERMOUNTAIN GAS
compensation plan benefits customers by incentivizing employees to improve 1
efficiencies, manage costs, provide high-quality customer service, and maintain the 2
security of customer information. This adjustment also removes allocated incentive 3
compensation expense related to employees associated with the energy efficiency 4
program, employees with time charged to the RNG facilitation program, MDUR 5
employees, and executive employees. The Company removes incentive compensation 6
expenses related to employees associated with the energy efficiency program and 7
employees with time charged to the RNG facilitation program because these amounts are 8
recovered through other mechanisms. The Company removes incentive compensation 9
expenses related to MDUR and executive employees because these amounts are based 10
strictly on earnings and do not directly benefit customers. 11
This adjustment is calculated on Exhibit No. 9 and increases expenses by 12
$170,989 as shown on Exhibit No. 5, Column (m), Line 26 and Exhibit No. 9, Column 13
(b), Line 12. 14
Q.Please explain the income tax adjustment proposed by the Company on Exhibit No. 15
5, Column (n). 16
A. Exhibit Nos. 10 and 11 present the entire test year income tax expense calculation and 17
includes the adjusted level of revenues and expenses discussed above, as well as various 18
permanent and temporary timing differences. Additionally, the interest expense value 19
used in the calculation of income taxes is derived by multiplying the weighted average 20
cost of debt by the average rate base. Finally, the tax expense calculation includes an 21
adjustment to reduce the Idaho corporate tax rate to 5.8 percent which will become 22
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J. DARRINGTON, DI
INTERMOUNTAIN GAS
effective in 2023. The income tax adjustment reduces expense by $1,968,476 as shown 1
on Exhibit No. 5, Column (n), Line 25 and Exhibit No. 11, Column (c), Line 16. 2
Q.What is the total impact to net operating income as a result of the adjustments the 3
Company is proposing? 4
A. Based on the proposed adjustments discussed above, the total impact to net operating 5
income is an increase of $4,315,634 as shown on Exhibit No. 2, Column (c), Line 27 and 6
Exhibit No. 5, Column (o), Line 27.7
Q.What is the Company’s total proposed net operating income, including all 8
adjustments, for the test year? 9
A. The total proposed net operating income, including adjustments, for the test year is 10
$23,412,870 as shown on Exhibit No. 1, Column (b), Line 1 and Exhibit No. 2, Column 11
(d), Line 27. 12
IV. REGULATORY ADJUSTMENTS TO RATE BASE 13
Q.Please describe how the Company’s rate base is calculated. 14
A. All items in the Company’s rate base have been determined using the thirteen-month 15
average of monthly averages (“AMA”) methodology. The AMA methodology reflects 16
the level of investment maintained by the Company during the course of the year and is 17
intended to normalize changes in the balances that occur during the year. 18
Q.Did Intermountain make any adjustments to its rate base? 19
A. Yes. A summary of the adjustments is shown on Exhibit No. 12. Additionally, Exhibit 20
Nos. 13-18 show the calculation of each rate base item including adjustments. Finally, 21
Exhibit No. 2, Lines 28-36 show the Company’s unadjusted and adjusted rate base 22
amounts. Each adjustment to rate base will be described in more detail below. 23
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J. DARRINGTON, DI
INTERMOUNTAIN GAS
Q.Please describe the adjustment to remove the asset retirement obligation proposed 1
by the Company on Exhibit No. 12, Column (b). 2
A. The Company reduced gross gas plant in service and the accumulated provision for 3
depreciation and amortization by $43,921,225 and $6,858,240 as shown on Exhibit No. 4
12, Column (b), Lines 2 and 3, respectively, to remove the asset retirement obligation 5
(“ARO”) and thereby avoid double charging customers for the cost of removing tangible 6
long-lived assets. The cost of removal is already included in the Company’s approved 7
depreciation rates. The average balances for this adjustment are calculated on Exhibit No. 8
13, Column (c), Line 16 and Exhibit No. 14, Column (c), Line 16. 9
Q.Please explain the adjustment to remove retirement work in progress proposed by 10
the Company on Exhibit No. 12, Column (c). 11
A. This adjustment removes the balance of retirement work in progress (“RWIP”) which 12
represents the work performed but not yet completed to retire gas plant in service which 13
is still used and useful at the end of the month. The average balance for this adjustment 14
is calculated on Exhibit No.14 and increases the accumulated provision for depreciation 15
and amortization by $568,179 as shown on Exhibit No. 12, Column (c), Line 3 and 16
Exhibit No. 14, Column (d), Line 16. 17
Q.Please explain the adjustments to gas inventory proposed by the Company on 18
Exhibit No. 12, Columns (d) and (e). 19
A. The first adjustment removes the gas storage inventory balances associated with non-20
utility LNG sales as these amounts are recovered through non-utility customers. The 21
second adjustment keeps the utility portion of the gas storage balance at the Nampa LNG 22
facility at 2 million gallons each month. As described in the Company’s Integrated 23
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J. DARRINGTON, DI
INTERMOUNTAIN GAS
Resource Plan (see Case No. INT-G-21-06), the Company seeks to keep 2 million gallons 1
of LNG available at the Nampa LNG facility to provide for boiloff gas, to maintain 2
operational and training requirements at the Nampa and Rexburg LNG facilities, and for 3
permanent storage to ensure that all LNG does not boiloff. The average balances for 4
these adjustments are calculated on Exhibit No.16. The first adjustment decreases gas 5
storage inventory by $1,056,784 and the second adjustment increases gas storage 6
inventory by $177,066 as shown on Exhibit No. 12, Columns (d) and (e), Line 6 and 7
Exhibit No. 16, Columns (c) and (d), Line 16. 8
Q.Please explain the adjustments to accumulated deferred income taxes (“ADIT”) 9
proposed by the Company on Exhibit No. 12, Columns (f) through (g). 10
A. The adjustment on Exhibit No. 12, Column (f) removes ADIT in order to comply with 11
Internal Revenue Service normalization rules. The adjustment on Exhibit No. 12, Column 12
(g) adjusts the ADIT related to Gas Storage Inventory to capture the deferred income tax 13
impacts related to the adjustments to storage inventory shown on Exhibit No. 16. The 14
average balances for these adjustments are calculated on Exhibit No.17. The total 15
amount of adjustments is a decrease to ADIT of $17,873 as shown on Exhibit No. 12, 16
Column (h), Line 7. 17
Q.What is the total impact to rate base as a result of the adjustments the Company is 18
proposing? 19
A. Based on the proposed adjustments discussed above, the total impact to average rate base 20
is a decrease of $38,493,009 as shown on Exhibit No. 2, Column (c), Line 36 and Exhibit 21
No. 12, Column (h), Line 9.22
23
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J. DARRINGTON, DI
INTERMOUNTAIN GAS
Q.What is the Company’s total proposed average rate base, including all adjustments, 1
for the test year? 2
A. The Company’s total proposed average rate base, including adjustments, is $385,554,542 3
as shown on Exhibit No. 1, Column (b), Line 2 and Exhibit No. 2, Column (d), Line 36. 4
Q.Does this conclude your testimony? 5
A. Yes, it does.6
Preston N. Carter, ISB No. 8462
Morgan D. Goodin, ISB No. 11184
Blake Ringer, ISB No. 11223
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN GAS COMPANY.
FOR AUTHORITY TO INCREASE ITS
RATES AND CHARGES FOR NATURAL
GAS SERVICE IN THE STATE OF IDAHO
Case No. INT-G-22-07
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
UPDATED EXHIBITS 1-19 TO ACCOMPANY THE
UPDATED DIRECT TESTIMONY OF JACOB DARRINGTON
Line
No.Description Amount
(a) (b)
1 Operating Income at Present Rates [2] 23,412,870$
2 Rate Base [3] 385,554,542
3 Current Earned Rate of Return [4] 6.07%
4 Cost of Capital [5] 7.37%
5 Operating Income at Proposed Rates [6] 28,415,370
6 Operating Income Deficiency [7] 5,002,500
7 Gross Revenue Conversion Factor [8] 1.34977
8 Deficiency in Operating Revenue [9] 6,752,224$
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] Includes actual data and Company adjustments for the 12
months ending December 31, 2022.
[3] See Exhibit No. 2, Column (f), Line 36.
INT-G-22-07
J. Darrington, IGC
Exhibit No. 1 - Update
Page 1 of 1
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 347,642,652$ (239,294,072)$ 108,348,580$ 6,752,224$ 115,100,804$
2 Other Revenues 7,827,530 (5,364,675) 2,462,855 - 2,462,855
3 Total Operating Revenue 355,470,182 (244,658,747) 110,811,435 6,752,224 117,563,659
4 Operating Expenses
5 Cost of Gas 226,202,879 (226,202,879) - - -
6 Operation & Maintenance
7 Production 336,061 18,969 355,030 - 355,030
8 Natural Gas Storage, Terminaling, and Processing 1,342,749 10,127 1,352,876 - 1,352,876
9 Transmission 399,059 9,010 408,069 - 408,069
10 Distribution 25,445,521 871,640 26,317,161 - 26,317,161
11 Customer Accounts 9,527,936 342,316 9,870,252 16,597 [6] 9,886,849
12 Customer Service and Informational 2,921,508 (2,701,186) 220,322 - 220,322
13 Sales 1,524,732 91,970 1,616,702 - 1,616,702
14 Administrative and General 19,214,712 (1,665,474) 17,549,238 17,549,238
15 Other 1,637,455 (1,637,455) - - -
16 Depreciation and Amortization 22,007,089 - 22,007,089 - 22,007,089
17 Taxes Other Than Income Taxes
18 IPUC Fees 520,047 - 520,047 13,471 [6] 533,518
19 Payroll Taxes 2,171,364 49,080 2,220,444 - 2,220,444
20 Property Taxes 2,182,729 - 2,182,729 - 2,182,729
21 Franchise Taxes 8,283,458 (8,264,953) 18,505 - 18,505
22 Interest Expense 7,927,070 (7,927,070) - - -
23 Total Operating Expense
24 Before Income Taxes 331,644,369 (247,005,905) 84,638,464 30,068 84,668,532
25 Income Taxes 4,728,577 (1,968,476) 2,760,101 1,719,657 [7] 4,479,758
26 Total Operating Expenses 336,372,946 (248,974,381) 87,398,565 1,749,725 89,148,290
27 Net Operating Income 19,097,236$ 4,315,634$ 23,412,870$ 5,002,499$ 28,415,369$
28 Rate Base:
29 Gas Plant in Service [8] 881,965,314$ (43,921,225)$ 838,044,089$ -$ 838,044,089$
30 Less Accumulated Depreciation and Amortization [9] (408,758,438) 6,290,061 (402,468,377) - (402,468,377)
31 Net Gas Plant in Service 473,206,876 (37,631,164) 435,575,712 - 435,575,712
32 Materials & Supplies Inventory [10] 6,402,638 - 6,402,638 - 6,402,638
33 Gas Storage Inventory [11] 4,008,193 (879,718) 3,128,475 - 3,128,475
34 Accumulated Deferred Income Taxes [12] (48,153,611) 17,873 (48,135,738) - (48,135,738)
35 Advances in Aid of Construction [13] (11,416,545) - (11,416,545) - (11,416,545)
36 Average Rate Base 424,047,551$ (38,493,009)$ 385,554,542$ -$ 385,554,542$
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] Includes actual data and Company adjustments for the 12 months ending December 31, 2022.
INT-G-22-07
J. Darrington, IGC
Exhibit No. 2 - Update
Page 1 of 1
Actual Data
Line Ending
No.Description 12/31/2022
(a) (b)
1 Gas Operating Revenues 347,642,652$ [2]
2 Other Revenues 7,827,530 [3]
3 Total Operating Revenue 355,470,182
4 Operating Expenses
5 Cost of Gas 226,202,879
6 Operation & Maintenance
7 Production 336,061
8 Natural Gas Storage, Terminaling, and Processing 1,342,749
9 Transmission 399,059
10 Distribution 25,445,521
11 Customer Accounts 9,527,936
12 Customer Service and Informational 2,921,508
13 Sales 1,524,732
14 Administrative and General 19,214,712
15 Other 1,637,455
16 Depreciation and Amortization 22,007,089
17 Taxes Other Than Income Taxes
18 IPUC Fees 520,047
19 Payroll Taxes 2,171,364
20 Property Taxes 2,182,729
21 Franchise Taxes 8,283,458
22 Interest Expense 7,927,070
23 Total Operating Expense
24 Before Incomes Taxes 331,644,369
25 Income Taxes 4,728,577 [4]
26 Total Operating Expenses 336,372,946
27 Net Operating Income 19,097,236$
NOTES
[3] See Exhibit No. 4.
Intermountain Gas Company
Statement of Operating Income
For the Test Year Ending December 31, 2022 [1]
[1] Includes actual data for the 12 months ending December 31, 2022.
[2] See Exhibit No. 6.
[4] See Exhibit No. 11.
INT-G-22-07
J. Darrington, IGC
Exhibit No. 3 - Update
Page 1 of 1
Actual Data
Line Ending
No.Description 12/31/2022
(a) (b)
1 Other Revenues
2 Miscellaneous Service Revenue 228,495$
3 Field Collection Charge 1,665
4 Return Check Charge 241,931
5 Account Initiation Charge 1,027,812
6 Reconnection Charge 44,256
7 Interest on Past Due Accounts 415,524
8 Other Miscellaneous Operating Revenues 94
9 Other Miscellaneous Non-Operating Revenues 19,031
10 Cash Discounts 3,458
11 Rent 356,512
12 Non-Utility LNG Sales 4,022,067
13 Non-Utility RNG Revenue 573,541
14 Full Service Revenue 118,379
15 Total 7,052,765
16 Interest Income 774,765
17 Total Other Revenues and Interest Income 7,827,530$
NOTES
Intermountain Gas Company
Other Revenues and Interest Income
For the Test Year Ending December 31, 2022 [1]
[1] Includes actual data for the 12 months ending December 31, 2022.
INT-G-22-07
J. Darrington, IGC
Exhibit No. 4 - Update
Page 1 of 1
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 (235,661,955)$ (83,580) 287,015$ (3,835,552)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (239,294,072)$
2 Other Revenues (769,067) - - - (4,022,067) (573,541) - - - - - - - (5,364,675)
3 Total Operating Revenue (236,431,022) (83,580) 287,015 (3,835,552) (4,022,067) (573,541) - - - - - - - (244,658,747)
4 Operating Expenses
5 Cost of Gas (222,893,850)$ - - - (3,309,029) - - - - - - - - (226,202,879)
6 Operation & Maintenance
7 Production - - - - - - - - 10,186 8,783 - 18,969
8 Natural Gas Storage, Terminaling, and Processing - - - - - - - - - - 8,417 1,710 - 10,127
9 Transmission - - - - - - - - - - 5,458 3,552 - 9,010
10 Distribution - - - - - - - - - 664,438 207,202 - 871,640
11 Customer Accounts (75,801) - - - - - - - 68,977 215,767 133,373 - 342,316
12 Customer Service and Informational (2,704,237) - - - - - - - - 1,640 1,411 - (2,701,186)
13 Sales - - - - - - - - - 49,779 42,191 - 91,970
14 Administrative and General (675,865) - - - - - - (1,103,833) - 109,340 277,984 (273,100) - (1,665,474)
15 Other - - - - - (810,430) - (827,025) - - - - - (1,637,455)
16 Depreciation and Amortization - - - - - - - - - - - - - -
17 Taxes Other Than Income Taxes
18 IPUC Fees - - - - - - - - - - - - - -
19 Payroll Taxes (37,438) - - - - (3,643) - (50,082) - - 94,376 45,867 - 49,080
20 Property Taxes - - - - - - - - - - - - - -
21 Franchise Taxes (8,264,953) - - - - - - - - - - - - (8,264,953)
22 Interest Expense - - - - - - (7,927,070) - - - - - - (7,927,070)
23 Total Operating Expense
24 Before Incomes Taxes (234,652,144) - - - (3,309,029) (814,073) (7,927,070) (1,980,940) 68,977 109,340 1,328,045 170,989 - (247,005,905)
25 Income Taxes - - - - - - - - - - - - (1,968,476) (1,968,476)
26 Total Operating Expenses (234,652,144) - - - (3,309,029) (814,073) (7,927,070) (1,980,940) 68,977 109,340 1,328,045 170,989 (1,968,476) (248,974,381)
27 Net Operating Income (1,778,878)$ (83,580)$ 287,015$ (3,835,552)$ (713,038)$ 240,532$ 7,927,070$ 1,980,940$ (68,977)$ (109,340)$ (1,328,045)$ (170,989)$ 1,968,476$ 4,315,634$
NOTES
[1] Includes actual data and Company adjustments for the 12 months ending 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]
INT-G-22-07
J. Darrington, IGC
Exhibit No. 5 - Update
Page 1 of 1
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:
RS
Distribution Revenues
1 Customer Charge 4,423,383 24,411,277$ - 5.50$ (82,670)$ 4,423,383 5.50$ 24,328,607$
2 Distribution Charge 301,987,426 49,238,838 - 0.16305 212 (17,211,268) 0.16305$ (2,806,297)$ 284,776,158 0.16305 46,432,753
Non-Distribution Revenues
3 Energy Efficiency Charge 5,935,205 (5,935,205) -
4 Cost of Gas 136,921,426 (136,921,426) -
5 Total RS Billed Revenues 216,506,746$ (142,856,631)$ (82,458)$ (2,806,297)$ 70,761,360$
GS-1
Distribution Revenues
6 Customer Charge 421,167 4,001,288$ - 9.50$ (201)$ (1,067) 9.50$ (10,137)$ 420,100 9.50$ 3,990,950$
Distribution Charge:
7 Block 1 39,315,730 7,259,983 - 0.18465 (333) (132,578) 0.18465 (24,481) (596,682) 0.18465 (110,177) 38,586,470 0.18465 7,124,992
8 Block 2 72,310,245 11,654,242 - 0.16117 - (315,910) 0.16117 (50,915) (3,428,730) 0.16117 (552,608) 68,565,605 0.16117 11,050,719
9 Block 3 30,174,761 4,179,204 - 0.13850 - (171,018) 0.13850 (23,686) (2,421,571) 0.13850 (335,388) 27,582,172 0.13850 3,820,130
10 Block 4 5,803,477 405,895 - 0.06994 - (136,529) 0.06994 (9,549) (444,408) 0.06994 (31,082) 5,222,540 0.06994 365,264
Non-Distribution Revenues
11 Energy Efficiency Charge 472,354 (472,354) -
12 Cost of Gas 67,876,664 (67,876,664) -
13 Total GS-1 Billed Revenues 95,849,630$ (68,349,018)$ (534)$ (118,768)$ (1,029,255)$ 26,352,055$
GS-1 (Irrigation)
Distribution Revenues
14 Customer Charge 105 1,004$ - 9.50$ (6)$ 105 9.50$ 998$
Distribution Charge
15 Block 1 10,699 1,976 - 0.18465 - 10,699 0.18465 1,976
16 Block 2 47,686 7,686 - 0.16117 - 47,686 0.16117 7,686
17 Block 3 12,661 1,754 - 0.13850 - 12,661 0.13850 1,754
18 Block 4 - - - 0.06994 - - 0.06994 -
Non-Distribution Revenues
19 Energy Efficiency Charge 227 (227) -
20 Cost of Gas 33,317 (33,317) -
21 Total GS-1 (Irrigation) Billed Revenues 45,964$ (33,544)$ (6)$ 12,414$
GS-1 (CNG Vehicles)
Distribution Revenues
22 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 Revenues
25 Cost of Gas - -$ -
26 Total GS-1 (CNG Vehicles) Billed Revenues 67 -$ (10)$ 57$
IS-R
Distribution Revenues
27 Customer Charge 2,694 15,394$ - 5.50$ (577)$ 2,694 5.50$ 14,817$
28 Distribution Charge 556,168 90,683 - 0.16305 - 556,168 0.16305 90,683
Non-Distribution Revenues
29 Cost of Gas 264,973 (264,973) -
30 Total IS-R Billed Revenues 371,050$ (264,973)$ (577)$ 105,500$
Intermountain Gas Company
Adjustments to Gas Operating Revenues
For the Test Year Ending December 31, 2022 [1]
Test Year Results Weather NormalizationRate Class MigrationsBilling Determinant Recalculation Adjustment Adjusted Test Year Results
INT-G-22-07
J. Darrington, IGC
Exhibit No. 6 - Update
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 Revenues
For 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 Revenues
31 Customer Charge 638 6,094$ - 9.50$ (33)$ 638 9.50$ 6,061$
Distribution Charge
32 Block 1 51,865 9,577 - 0.18465 - 51,865 0.18465 9,577
33 Block 2 162,461 26,184 - 0.16117 - 162,461 0.16117 26,184
34 Block 3 71,277 9,872 - 0.13850 - 71,277 0.13850 9,872
35 Block 4 - - - 0.06994 - - 0.06994 -
Non-Distribution Revenues
36 Cost of Gas 133,544 (133,544) -
37 Total IS-R Billed Revenues 185,271$ (133,544)$ (33)$ 51,694$
LV-1
Distribution Revenues
38 Demand Charge 850,285 255,146$ - 0.30000$ (60)$ 80,825 0.30000$ 24,248$ 931,110 0.30000$ 279,334$
39 Overrun Demand Charge 10,229 3,069 - 0.30000 - 10,229 0.30000 3,069
Distribution Charge
40 Block 1 13,399,789 401,896 - 0.03000 98 731,205 0.03000 21,936 14,130,994 0.03000 423,930
41 Block 2 - - - 0.01211 - - 0.01211 - - 0.01211 -
42 Block 3 - - - 0.00307 - - 0.00307 - - 0.00307 -
Non-Distribution Revenues
43 Cost of Gas 5,628,141 (5,628,141) -
44 Total LV-1 Billed Revenues 6,288,252$ (5,628,141)$ 38$ 46,184$ 706,333$
T-3
Distribution Revenues
Distribution Charge
45 Block 1 8,967,249 345,508$ - 0.03853$ -$ (775,170) 0.03853$ (29,867)$ 8,192,079 0.03853$ 315,641$
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 46,281,956 267,510 - 0.00578 - (13,760,344) 0.00578 (79,535) 32,521,612 0.00578 187,975
Non-Distribution Revenues
48 Temporary PGA Adj (27,455) 27,455 -
49 Total T-3 Billed Revenues 647,947$ 27,455$ -$ (115,678)$ 559,724$
T-4
Distribution Revenues
50 Demand Charge 16,626,920 4,988,076$ - 0.30000$ -$ 1,234,000 0.30000$ 370,200$ 17,860,920 0.30000$ 5,358,276$
51 Overrun Demand Charge 409,210 122,763 - 0.30000 - 409,210 0.30000 122,763
Distribution Charge
52 Block 1 130,575,848 3,127,292 - 0.02395 - 2,000,000 0.02395 47,900 132,575,848 0.02395 3,175,192
53 Block 2 99,757,423 844,945 - 0.00847 - 4,000,000 0.00847 33,880 103,757,423 0.00847 878,825
54 Block 3 92,726,992 241,090 - 0.00260 - 8,960,344 0.00260 23,297 101,687,336 0.00260 264,387
Non-Distribution Revenues
55 Temporary PGA Adj (308,113) 308,113 -
56 Total T-4 Billed Revenues 9,016,053$ 308,113$ -$ 475,277$ 9,799,443$
57 Total Billed Revenues 328,910,980$ (216,930,283)$ (83,580)$ 287,015$ (3,835,552)$ 108,348,580$
Other Gross Operating Revenues:
58 Residential & Commercial Unbilled Revenue (4009.4895) 11,303,090$ (11,303,090)$ -$
59 Residential & Commercial Energy Efficiency Offset (4004.4800 & 4004.4810) (854,134) 854,134 -
60 Franchise Taxes (4002.4870) 8,282,716 (8,282,716) -
61 Total Other Gross Operating Revenues 18,731,672$ (18,731,672)$ -$
62 Total Gas Operating Revenues 347,642,652$ (235,661,955)$ (83,580)$ 287,015$ (3,835,552)$ 108,348,580$
NOTES
[1] Includes actual data and Company adjustments for the 12 months ending December 31, 2022.
[2] Column (b) times Column (f) less Column (c).
INT-G-22-07
J. Darrington, IGC
Exhibit No. 6 - Update
Page 2 of 2
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] Includes actual data and Company adjustments for the 12 months ending
December 31, 2022.
Intermountain Gas Company
Amortization of Rate Case Expenses Adjustment
For the Test Year Ending December 31, 2022 [1]
INT-G-22-07
J. Darrington, IGC
Exhibit No. 7 - Update
Page 1 of 1
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 2,541,442$
10 2023 MDUR Salary Increase % 4%
11 2023 MDUR Salary Increase Adjustment 101,657$
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] 1,059,955$
16 Subtotal [3]1,233,669$
17 Payroll Tax Percentage 7.65%
18 Payroll Tax Expense 94,376$
19 Total Salary Adjustment 1,328,045$
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 277,984
29 Adjustment to Payroll Taxes 94,376
30 Total Adjustment to Exhibit No. 5 1,328,045$
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] Includes actual data and Company adjustments for the 12 months ending December 31, 2022.
INT-G-22-07
J. Darrington, IGC
Exhibit No. 8 - Update
Page 1 of 1
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 998,912$
3 Forecast Incentive Compensation -
4 Non-Executive Incentive Compensation Expense Adjustment 998,912$
5 Less Amounts Related to Energy Efficiency [2] (18,035)
6 Less Amounts Related to Renewable Natural Gas Access [3] (2,285)
7 Less Amounts Related to MDUR Employees (300,045)
8 Less Amounts Related to Executive Employees (285,350)
9 Test Year Incentive Compensation After Adjustment 393,197$
10 Annualization Adjustment [4] 710,517$
11 Payroll Tax Adjustment [5] 45,867
12 Total Incentive Compensation Expense Adjustment [6] 170,989$
13 Adjustment to Exhibit No. 5:
14 Adjustment to Production 8,783$
15 Adjustment to Natural Gas Storage, Terminaling, and Processing 1,710
16 Adjustment to Transmission 3,552
17 Adjustment to Distribution 207,202
18 Adjustment to Customer Accounts 133,373
19 Adjustment to Customer Service and Informational 1,411
20 Adjustment to Sales 42,191
21 Adjustment to Administrative and General (273,100)
22 Adjustment to Payroll Tax 45,867
23 Total Adjustment to Exhibit No. 5 170,989$
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] Includes actual data and Company adjustments for the 12 months ending December 31, 2022.
[4] Line 1 minus Line 9.
INT-G-22-07
J. Darrington, IGC
Exhibit No. 9 - Update
Page 1 of 1
Line Company Proforma Amount
No.Description Unadjusted Adjustments (Cols. (b) + (c))
(a) (b) (c) (d)
1 Total Operating Revenue 355,470,182$ [2] (244,658,747)$ [3] 110,811,435$
2 Total Operating Expenses Before Interest Expense and Income Taxes 323,717,299 [4] (239,078,835) [5] 84,638,464
3 Interest Charges 7,927,070 [6] 632,241 [7] 8,559,311
4 Pre-Tax Income 23,825,813 (6,212,153) 17,613,660
5 Permanent Tax Adjustments:
6 401K Dividend Deduction (94,988) - (94,988)
7 100% Entertainment 40,963 - 40,963
8 Club Dues 4,020 (4,020) -
9 SISP/SERP Premium & CSV 465,892 (465,892) -
10 Accrued Tax Interest (363) - (363)
11 Executive Compensation 537,426 (537,426) -
12 Unrealized Gan/Losses on Deferred Compensation 14,624 (14,624) -
13 Performance Share Program 198,869 (198,869) -
14 Lobbying Expenses 99,917 (99,917) -
15 Total Permanent 1,266,360 (1,320,748) (54,388)
16 Temporary Tax Adjustments:
17 Bad Debt Expenses 241,485 - 241,485
18 Customer Advances 570,306 - 570,306
19 Prepaid Expenses 55,761 - 55,761
20 Purchased Gas Adjustment (38,740,137) 38,740,137 -
21 Contingency Reserve (594,941) - (594,941)
22 Deferred Compensation - Officers (113,930) 113,930 [8] -
23 Incentive Compensation (307,448) - (307,448)
24 LNG Sales Deferred Revenue 241,354 (241,354) [8] -
25 Postretirement Benefit Costs 907,706 - 907,706
26 Postretirement - Reg Asset (1,436,910) - (1,436,910)
27 Intercompany Deferred Employee Benefit Costs - Reg Asset (413,656) - (413,656)
28 SISP/SERP Expense - Current (1,328,558) 1,328,558 [8] 0
29 Deferred Payment Processor Fee 6,820 - 6,820
30 Uniform Capitalization 274,009 (263,965) [8] 10,044
31 Vacation Pay 156,634 - 156,634
32 Deferred Medicare Part D (3,014) - (3,014)
33 Payroll Tax Deferral (430,768) - (430,768)
34 AFUDC Debt - CWIP (386,554) - (386,554)
35 AFUDC Equity - CWIP - - -
36 Capitalized Interest - CWIP 211,169 - 211,169
37 Contribution in aid of construction - CWIP (4,811,721) - (4,811,721)
38 AFUDC Equity - Federal 217,065 - 217,065
39 Plant Temporary Differences Federal (2,085,790) (361) (2,086,151)
40 Total Temporary (47,771,118) 39,676,945 (8,094,173)
41 Total Tax Adjustments (46,504,758) 38,356,197 (8,148,561)
42 Taxable income before adjustments (22,678,945)$ 32,144,044$ 9,465,099$
Intermountain Gas Company
State Income Tax Calculation
For the Test Year Ending December 31, 2022 [1]
INT-G-22-07
J. Darrington, IGC
Exhibit No. 10 - Update
Page 1 of 2
Line Company Proforma Amount
No.Description Unadjusted Adjustments (Cols. (b) + (c))
(a) (b) (c) (d)
Intermountain Gas Company
State Income Tax Calculation
For the Test Year Ending December 31, 2022 [1]
43 State Current Income Tax Calculation:
44 Taxable income before adjustments (22,678,945)$ 32,144,044$ 9,465,099$
45 Bonus Modification (5,887,947) - (5,887,947)
46 State taxable income (28,566,892) 32,144,044 3,577,152
47 State tax rate [9] 6.051%5.800%
48 State income tax (expense)/benefit before adjustments 1,728,593 (1,936,068) (207,475)
49 State Net Operating Loss - - -
50 State Tax Credits 5,500 - 5,500
51 Permanent Building Fund (10) (10)
52 Investment tax credit recapture - - -
53 Investment tax credit 932,467 - 932,467
54 Return and other adjustments 661 - 661
55 Total State Current Income Taxes (expense)/benefit 2,667,211 (1,936,068) 731,143
56 State Deferred Income Taxes (expense)/benefit [10] (2,425,457) 2,425,457 -
57 Idaho Investment Tax Credit Amortization Calculation:
58 Reverse Idaho Investment Tax Credit Generated (932,467) - (932,467)
59 Idaho ITC Amortization 256,134 - 256,134
60 Return to Accrual Adjustment 69,279 - 69,279
61 Total Idaho Investment Tax Credit Amoritzation (expense)/benefit (607,054) - (607,054)
62 Total State Income Taxes (expense)/benefit (365,300)$ 489,389$ 124,089$
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] Includes actual data and Company adjustments for the 12 months ending 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.
INT-G-22-07
J. Darrington, IGC
Exhibit No. 10 - Update
Page 2 of 2
Line Company Proforma Amount
No.Description Unadjusted Adjustments (Cols. (b) + (c))
(a) (b) (c) (d)
1 Federal Current Income Tax Calculation:
2 Taxable income before state income taxes (22,678,945)$ 32,144,044$ 9,465,099$
3 State income tax - Current year 2,667,211 (1,936,068) 731,143
4 Federal taxable income (20,011,734) 30,207,976 10,196,242
5 Federal tax rate 21.00%21.00%21.00%
6 Federal income tax (expense) benefit before adjustments 4,202,464 (6,343,675) (2,141,211)
7 Federal Net Operating Loss - - -
8 State Net Operating Loss - - -
9 Federal Tax Credits 88,497 - 88,497
10 State Tax Credits - - -
11 FIN 48 Adjustments 1,928 - 1,928
12 Return and other adjustments 1,550 - 1,550
13 Total Federal Current Income Taxes (expense)/benefit 4,294,439 (6,343,675) (2,049,236)
14 Federal Deferred Income Taxes (expense)/benefit (8,657,716) 7,822,762 (834,954)
15 Total Federal Income Taxes (expense)/benefit [2] (4,363,277) 1,479,087 (2,884,190)
16 Total Federal and State Income Tax (expense)/benefit [3] (4,728,577)$ 1,968,476$ (2,760,101)$
NOTES
[2] Line 13 plus Line 14.
[1] Includes actual data and Company adjustments for the 12 months ending December 31, 2022.
Intermountain Gas Company
Federal Income Tax Calculation
For the Test Year Ending December 31, 2022 [1]
[3] Line 15 plus Exhibit No. 10, Line 62.
INT-G-22-07
J. Darrington, IGC
Exhibit No. 11 - Update
Page 1 of 1
Non-Utility Utility ADIT - Section 1031 ADIT - Uniform Total
Line ARO RWIP Storage Storage Like-Kind Exchange Capitalization Rate Base
No.Description Adjustment [2]Adjustment [3]Adjustment [4]Adjustment [4]Adjustment [5]Adjustment [5]Adjustments [6]
(a) (b) (c) (d) (e) (f) (g) (h)
1 Rate Base:
2 Gas Plant in Service (43,921,225)$ -$ -$ -$ -$ -$ (43,921,225)$
3 Less Accumulated Depreciation and Amortization 6,858,240 (568,179) - - - - 6,290,061
4 Net Gas Plant in Service (37,062,985) (568,179) - - - - (37,631,164)
5 Materials & Supplies Inventory - - - - - - -
6 Gas Storage Inventory - - (1,056,784) 177,066 - - (879,718)
7 Accumulated Deferred Income Taxes - - - - 11 17,862 17,873
8 Advances in Aid of Construction - - - - - - -
9 Rate Base (37,062,985)$ (568,179)$ (1,056,784)$ 177,066$ 11$ 17,862$ (38,493,009)$
NOTES
[1] Includes actual data and Company adjustments for the 12 months ending 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)-(g).
Intermountain Gas Company
Adjustments to Rate Base
For the Test Year Ending December 31, 2022 [1]
INT-G-22-07
J. Darrington, IGC
Exhibit No. 12 - Update
Page 1 of 1
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 904,455,103 (45,051,804) 859,403,299
12 November 899,382,481 (36,007,169) 863,375,312
13 December 905,591,951 (36,007,169) 869,584,782
14 Total of Monthly Averages 10,583,583,767$ (527,054,696)$ 10,056,529,072$
15 Divided by 12 12 12
16 Average Balance 881,965,314$ (43,921,225)$ 838,044,089$
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] Includes actual data and Company adjustments for the 12 months ending December 31,
2022.
INT-G-22-07
J. Darrington, IGC
Exhibit No. 13 - Update
Page 1 of 1
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 (415,360,244) 7,279,089 (788,449) (408,869,604)
12 November (414,694,237) 5,508,996 (1,180,185) (410,365,426)
13 December (416,545,420) 5,547,523 362,936 (410,634,961)
14 Total of Monthly Averages (4,905,101,251)$ 82,298,882$ (6,818,149)$ (4,829,620,518)$
15 Divided by 12 12 12 12
16 Average Balance (408,758,438)$ 6,858,240$ (568,179)$ (402,468,377)$
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] Includes actual data and Company adjustments for the 12 months ending December 31, 2022.
INT-G-22-07
J. Darrington, IGC
Exhibit No. 14 - Update
Page 1 of 1
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 6,519,682 332,982 6,852,664
12 November 5,593,502 368,321 5,961,823
13 December 5,387,713 - 5,387,713
14 Total of Monthly Averages 74,707,931$ 2,123,721$ 76,831,652$
15 Divided by 12 12 12
16 Average Balance 6,225,661$ 176,977$ 6,402,638$
NOTES
Intermountain Gas Company
Materials & Supplies Inventory
For the Test Year Ending December 31, 2022 [1]
[1] Includes actual data for the 12 months ending December 31, 2022.
INT-G-22-07
J. Darrington, IGC
Exhibit No. 15 - Update
Page 1 of 1
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$ (2,821)$ 514,814$ 3,251,709$
2 January 2022 2,630,634 (61,767) 514,814 3,083,681
3 February 2,920,379 (18,361) 416,260 3,318,278
4 March 3,504,373 (583,012) 112,169 3,033,530
5 April 4,186,187 (1,222,187) 77,471 3,041,471
6 May 4,591,993 (1,602,879) 53,345 3,042,459
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 (1,381,875) 172,821 3,031,642
11 October 3,903,321 (1,063,409) 180,564 3,020,476
12 November 3,799,159 (303,424) 192,015 3,687,750
13 December 4,420,398 (832,708) (299,929) 3,287,761
14 Total of Monthly Averages 48,098,320$ (12,681,403)$ 2,124,789$ 37,541,706$
15 Divided by 12 12 12 12
16 Average Balance 4,008,193$ (1,056,784)$ 177,066$ 3,128,475$
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] Includes actual data and Company adjustments for the 12 months ending December 31, 2022.
INT-G-22-07
J. Darrington, IGC
Exhibit No. 16 - Update
Page 1 of 1
ADIT - Advances ADIT - Uniform ADIT - Section 1031 ADIT - Uniform
Line ADIT - Plant n Aid of Constructio Capitalization Like-Kind Exchange Capitalization
No.Month a/c 2820 a/c 1900 a/c 1900 Adjustment [2]Adjustment [3]Total [4]
(a) (b) (c) (d) (e) (f) (g)
1 December 2021 (51,776,714)$ 2,955,443$ 227,989$ -$ 26,405$ (48,566,877)$
2 January 2022 (51,702,302) 2,946,349 226,785 - 17,973 (48,511,195)
3 February (51,627,889) 2,997,066 225,580 - 30,091 (48,375,152)
4 March (51,553,477) 3,000,177 224,376 - 15,384 (48,313,540)
5 April (51,479,064) 2,993,980 223,172 - 15,794 (48,246,118)
6 May (51,404,652) 2,970,345 221,968 - 15,845 (48,196,494)
7 June (51,330,239) 2,927,843 220,764 - 13,591 (48,168,041)
8 July (51,255,827) 2,938,735 219,560 - 14,088 (48,083,444)
9 August (51,181,414) 2,975,809 218,356 - 13,931 (47,973,318)
10 September (51,107,001) 2,968,002 217,152 - 15,286 (47,906,561)
11 October (51,032,589) 3,000,543 215,948 - 14,709 (47,801,389)
12 November (51,019,376) 2,993,726 214,952 127 48,965 (47,761,606)
13 December (51,229,738) 2,970,572 271,082 - (29,028) (48,017,112)
14 Total of Monthly Averages (616,197,056)$ 35,675,583$ 2,678,149$ 127$ 214,346$ (577,628,853)$
15 Divided by 12 12 12 12 12 12
16 Average Balance (51,349,755)$ 2,972,965$ 223,179$ 11$ 17,862$ (48,135,738)$
NOTES
[4] Sum of Columns (b)-(f).
[1] Includes actual data and Company adjustments for the 12 months ending December 31, 2022.
[2] In order to comply with the IRS normalization rules, the Company is removing the deferred income taxes associated with Sec. 1031 exchanges.
[3] This adjustment accounts for the deferred tax impacts related to the adjustments to storage inventory shown on Exhibit No. 16.
Intermountain Gas Company
Accumulated Deferred Income Taxes
For the Test Year Ending December 31, 2022 [1]
INT-G-22-07
J. Darrington, IGC
Exhibit No. 17 - Update
Page 1 of 1
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 (11,713,954)
12 November (11,723,013)
13 December (11,654,280)
14 Total of Monthly Averages (136,998,539)$
15 Divided by 12
16 Average Balance (11,416,545)$
NOTES
Intermountain Gas Company
Advances in Aid of Construction
For the Test Year Ending December 31, 2022 [1]
[1] Includes actual data for the 12 months ending
December 31, 2022.
INT-G-22-07
J. Darrington, IGC
Exhibit No. 18 - Update
Page 1 of 1
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 0.2458%0.00246
4 State Taxable Income [3] 0.99555
5 State Income Tax [4] 5.80% 0.05774
6 Income Before Federal Income Tax [5] 0.93781
7 Federal Income Tax [6] 21.00% 0.19694
8 Operating Income After Taxes [7] 0.74087
9 Gross Revenue Conversion Factor [8] 1.34977
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] Includes actual data and Company adjustments for the 12 months ending
December 31, 2022.
[4] Line 4 times Column (b), Line 5. This reflects the new Idaho corporate tax rate
INT-G-22-07
J. Darrington, IGC
Exhibit No. 19 - Update
Page 1 of 1