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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