HomeMy WebLinkAbout20221221Notice_of_Application_Order_No_35640.pdfNOTICE OF APPLICATION
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35640 1
Office of the Secretary
Service Date
December 21, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF INTERMOUNTAIN
GAS COMPANY’S APPLICATION FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR NATURAL GAS
SERVICE IN THE STATE OF IDAHO.
)
)
)
)
)
)
)
)
)
)
)
CASE NO. INT-G-22-07
NOTICE OF APPLICATION
NOTICE OF SUSPENSION OF
PROPOSED EFFECTIVE DATE
NOTICE OF
INTERVENTION DEADLINE
ORDER NO. 35640
On December 1, 2022, Intermountain Gas Company (“Company”), applied for authority
to increase its rates and charges for natural gas service in the State of Idaho effective January 1,
2023.
The Company concurrently filed the direct testimony of several company witnesses, which
include numerous exhibits concerning the Company’s finances, revenue analysis, analysis of cost
of service, and work papers in support of its proposed changes.
We now issue this Notice of Application, Notice of Suspension of Proposed Effective Date,
and Notice of Intervention Deadline setting a deadline for interested persons to intervene.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company requests to increase the revenue
collected through rates by approximately $11.3 million, representing a marginal revenue increase
of 10.3%, or an overall revenue increase of 3.2%, and a 7.37% rate of return. Application at 3. The
Company’s current base rates and charges were approved by the Commission in Case No. INT-G-
16-02 and thereafter decreased in Case No. GNR-U-18-01.1 Id. The Company asserts its present
rate of return is approximately 5.20%, based on a test year ending December 31, 2022. Id. If the
Application is approved as filed, the Company represents that the average residential customer’s
bill would increase by $2.19 per month, or 4.41%, and the average commercial customer’s bill
would increase by about $3.43, or 1.5%. See Attachment 2 to the Application.
1 Case No. GNR-U-18-01 was a generic docket to investigate the impact of the 2017 Tax Cuts and Jobs Act on utilities.
NOTICE OF APPLICATION
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35640 2
YOU ARE FURTHER NOTIFIED that the Company proposes that for Residential Service
(Rate Schedule RS), the Company proposes to increase the minimum monthly customer charge
and decrease the per therm charge, which includes a decrease in the distribution cost. Blattner
direct, Exhibit No. 5 at 1.
Rate Schedule – RS Current
Customer
Charge
Proposed
Customer
Charge
Current
Per Therm Charge
Proposed Per Therm
Charge
$5.50 per bill $9.00 per bill $0.73392 $0.71203
Distribution Charge
$0.16305
Distribution Charge
$0.14116
YOU ARE FURTHER NOTIFIED that for General Service (Rate Schedule GS-1), the
Company proposes to increase the monthly minimum customer charge from $9.50 to $15.00 and
decrease the per therm charges and distribution cost for Blocks one through four. Id. at 2. For
Compressed Natural Gas Fuel customers served under GS-1, the Company also proposes to
increase the customer charge and decrease the per them charge and distribution cost in Blocks one
and two. Id. at 3.
YOU ARE FURTHER NOTIFIED that the Company proposes to add a monthly customer
charge of $150.00 per bill for Large Volume Firm Sales Service customers (Rate Schedule LV-1).
Id. at 6. The Company also proposes the following for customers served under Rate Schedule LV-
1: (1) increase the Demand Charge from $0.30000 per Maximum Daily Fixed Quantity (“MDFQ”)
therm to $0.32000 per MDFQ therm; (2) adjust the amount of therms included in Blocks one
through three including a new per them charge for Block one and increased per therm charge for
Blocks two and three; and (3) for the distribution cost, adjust the amount of therms included in
Blocks one through three to be consistent with the proposed per therm charge Blocks and set a
new distribution rate for Block one and increase the distribution cost for Blocks two and three. Id.
The Company also proposes to use the same Temporary Purchased Gas Cost Adjustment and Gas
Transportation Cost for Blocks One through Three. Id.2
YOU ARE FURTHER NOTIFIED that the Company represents that it provided notice to
its customers of its Application through news media and by a notice mailed to each customer. The
Company attached copies of the press release and customer notice to the Application.
2 The Company also proposes changes to the following Rate Schedules: IS-R, IS-C, T-3, and T-4. These proposed
changes can be found in Exhibit No. 5 of the Direct Testimony of Lori A. Blattner at 4,5,7,8, respectively.
NOTICE OF APPLICATION
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35640 3
YOU ARE FURTHER NOTIFIED that the Application and supporting testimony has been
filed with the Commission and is available for public inspection during regular business hours at
the Commission’s office. These documents are also available on the Commission’s website at
www.puc.idaho.gov. Click on the “GAS” icon, select “Open Cases,” and click on the case number
as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that the Commission has designated this case as a
general rate case. As such, the Company’s intrastate revenue requirement, and every component
of it, both rate base and expense, are at issue. The Commission may grant, deny, or modify the
revenue requirement requested and may find a revenue requirement different from that proposed
by any party is just, fair, and reasonable. IDAPA 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject, or modify
existing or proposed relationships between and among rates and charges within, between, or
among customer classes or rate groupings and may approve, reject, or modify existing or proposed
relationships among and between customer classes or rate groupings. Id.
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce, or create rate
blocks or categories of rates and charges; abolish, create, or reduce components of rates and
charges; abolish, reduce, or create customer classes or rate groupings; and abolish, reduce, or create
absolute or relative differences among and between existing classes or rate groupings of customers.
Id.
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules and regulations, service,
instrumentalities, equipment, facilities, classifications, and customer relations of the utility are at
issue, and the Commission may address any of them in its order. Id.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over
Intermountain, its filing, and the issues pertaining to this case pursuant to Title 61 of the Idaho
Code.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
YOU ARE FURTHER NOTIFIED that the Company filed its Application on December 1,
2022, with a proposed January 1, 2023, effective date. The Commission finds that the Company’s
NOTICE OF APPLICATION
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35640 4
proposed effective date does not provide adequate time for Commission Staff and interested
persons and parties to evaluate the Company’s proposal. Pursuant to Idaho Code § 61-622, the
Commission suspends the Company’s proposed effective date for thirty (30) days and five (5)
months or until an order is entered accepting, rejecting, or modifying the proposed rate increases.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter to
obtain parties’ rights of participation must file a Petition to Intervene with the Commission
pursuant to this Commission’s Rules of Procedure 71-73, IDAPA 31.01.01.072-073. Persons who
wish to intervene as a party must file a Petition to Intervene no later than 21 days after the
date of service of this Order. Persons desiring to present their views without parties’ rights of
participation do not have to intervene and may present their comments without prior notification
to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a Notice of
Parties after the deadline for intervention has passed. The Notice of Parties shall assign exhibit
numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued, Commission
Staff will informally confer with the parties to discuss a schedule to process this case and other
issues as may be raised by the parties.
YOU ARE FURTHER NOTIFIED that the following persons are designated as the
Company’s representatives in this matter:
Preston N. Carter
Givens Pursley, LLP
601 W. Bannock Street
Boise, ID 83702
prestoncarter@givenspursley.com
stephaniew@givenspursley.com
Lori A. Blattner
Director of Regulatory Affairs
Intermountain Gas Company
P.O. Box 7608
Boise, ID 83707
lori.blattner@intgas.com
ORDER
IT IS HEREBY ORDERED that the Company’s proposed January 1, 2023, effective date
is suspended for thirty (30) days plus five (5) months or until the Commission enters its order
accepting, rejecting, or modifying the proposed rate changes.
NOTICE OF APPLICATION
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35640 5
IT IS FURTHER ORDERED that persons desiring to intervene in this case for the purpose
of obtaining parties’ rights of participation must file a Petition to Intervene with the Commission,
under Rules 71-73, IDAPA 31.01.01.071-073, no later than 21 days after the service date of this
Order.
IT IS FURTHER ORDERED that, after the Secretary issues a Notice of Parties, Staff will
informally confer with the parties to discuss the appropriate scheduling of this case.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 21st day of
December 2022.
ERIC ANDERSON, PRESIDENT
JOHN CHATBURN, COMMISSIONER
__________________________________________
JOHN R. HAMMOND JR., COMMISSIONER
ATTEST:
Jan Noriyuki
Commission Secretary
I:\Legal\GAS\INT-G-22-07 rate\orders\INTG2207_Ntc_App_Int_Susp_cs.docx