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HomeMy WebLinkAbout20230516Notice_of_Proposed_Settlement_Order_No_35780.pdfNOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF TECHNICAL HEARING NOTICE OF PUBLIC COMMENT DEADLINE ORDER NO. 35780 1 Office of the Secretary Service Date May 16, 2023 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 PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF TECHNICAL HEARING NOTICE OF PUBLIC COMMENT DEADLINE ORDER NO. 35780 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. On December 21, 2022, the Commission issued a Notice of Application, Notice of Suspension of Proposed Effective Date, and Notice of Intervention Deadline. Order No. 35640. Alliance of Western Energy Consumers (“AWEC”), Idaho Conservation League (“ICL”), and the City of Boise City (“Boise City”) (collectively the “Intervenors”) intervened. Order Nos. 35632, 35653, and 35664. On March 6, 2023, the Commission issued a Notice of Schedule, Notice of Public Workshops and Notice of Testimony Deadlines. Order No. 35697. On March 30-31, 2023, the Company, Intervenors and Staff (“Parties”) participated in settlement negotiations which resulted in a proposed settlement. On April 5, 2023, a joint motion was filed notifying the Commission of the proposed settlement and requesting several procedural modifications to the Commission’s current schedule NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF TECHNICAL HEARING NOTICE OF PUBLIC COMMENT DEADLINE ORDER NO. 35780 2 established in Order No. 35697. The Commission vacated the existing deadline for Staff and Intervenor direct testimony and Company rebuttal testimony. Order No. 35746. On May 4, 2023, the Company filed a proposed Stipulation and Settlement (“Settlement”) signed by the Company, Staff, AWEC, and ICL (collectively the “Signing Parties”). The Signing Parties along with Boise City recommended the Commission issue a Scheduling Order establishing a May 17, 2023, deadline for the Parties to file testimony in support of the Settlement; a June 5, 2023, Customer Hearing; and a June 8, 2023, Technical Hearing and public comment deadline. The Commission considered the above recommendations at its May 9, 2023, Decision Meeting. With this Order, the Commission issues a Notice of Proposed Settlement and sets a procedural schedule for processing this case. NOTICE OF PROPOSED SETTLEMENT YOU ARE HEREBY NOTIFIED that under the Settlement, the Company would be allowed a $3.05 million increase in the revenue requirement, reflecting an overall increase in rates of approximately 2.75%. YOU ARE FURTHER NOTIFIED that the components of the revenue requirement include a (1) 9.5% Return on Equity; (2) a total rate base of $385,288,577; and (3) amortization of rate case expenses of $449,635, over a period of five years. If the proposed Settlement is approved as filed, the average residential customer’s bill would increase by $0.70 per month, or 1.21%, and the average commercial customer’s bill would increase by about $.96 or 0.35%. YOU ARE FURTHER NOTIFIED that the rate base includes reductions of $17,580 for the renewable natural gas projects; $50,679 for the Cloverdale Project; and $197,715 for the Burley Land project (which will be moved to Account 121–Non-utility Property until it becomes used and useful). YOU ARE FURTHER NOTIFIED that the Signing Parties agreed to an updated cost of service, rate design and rate spread, including an increase in the monthly residential customer charge to $8.00; and updated customer and demand charges for the remaining classes. The Signing Parties agree the rate design and tariff changes will be consistent with the Company’s agreed-upon NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF TECHNICAL HEARING NOTICE OF PUBLIC COMMENT DEADLINE ORDER NO. 35780 3 revenue allocation in Attachment 2 of the Settlement. The updated customer and demand charges are as originally proposed. YOU ARE FURTHER NOTIFIED that during its next general rate case, the Company agrees to provide information about the allocation of costs and expenses from its parent company, including testimony documenting and describing the methods used to allocate expense to the Company from the Company’s parent company or from any other affiliate. YOU ARE FURTHER NOTIFIED that prior to filing the Company’s next general rate case, the Company and Staff agree to meet and discuss protocols for providing information of the Company’s parent company, or any affiliate, as provided by Idaho Code § 61-610(1). YOU ARE FURTHER NOTIFIED that prior to filing the Company’s next general rate case, the Company and Staff agree to hold a workshop on methods for weather normalization. YOU ARE FURTHER NOTIFIED that the Signing Parties agree to accept the Company’s position, as set forth in the Application and Testimony, related to the Company’s proposals on in- person pay station transaction fees and non-utility liquified natural gas sales credits. YOU ARE FURTHER NOTIFIED that under Commission Rule 275, “[p]roponents of a proposed settlement carry the burden of showing that the settlement is reasonable, in the public interest, or otherwise in accordance with law or regulatory policy.” IDAPA 31.01.01.275. YOU ARE FURTHER NOTIFIED that the Commission is not bound by the proposed Settlement reached by the Parties. The Commission will independently review any proposed settlement to determine whether the settlement is just, fair, and reasonable, and in the public interest, or otherwise in accordance with law or regulatory policy. The Commission may accept a settlement, reject a settlement, or state additional conditions under which a settlement will be accepted. IDAPA 31.01.01.274-.276. YOU ARE FURTHER NOTIFIED that if the Commission rejects any part or all of the Settlement or imposes any additional material conditions on its approval, each Signing Party reserves the right to withdraw from the Settlement within fourteen days of such order. YOU ARE FURTHER NOTIFIED that the Settlement in Case. No. INT-G-22-07 has been filed with the Commission and, along with the rest of the record, is available for public inspection during regular business hours at the Commission’s office or on the Commission’s website at NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF TECHNICAL HEARING NOTICE OF PUBLIC COMMENT DEADLINE ORDER NO. 35780 4 www.puc.idaho.gov. Click on the “GAS” tab in the left-hand column of the home page, click “Open Cases,” and select the case number as shown on the front of this document. 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 SCHEDULE YOU ARE FURTHER NOTIFIED that the Commission sets the following procedural schedule: • May 17, 2023 – Deadline for Parties to file Testimony in Support of the Settlement • June 5, 2023 – Customer Hearing in Boise, Idaho • June 8, 2023 – Technical Hearing in Boise, Idaho, and Public Comment Deadline NOTICE OF DEADLINE TO FILE PREFILED DIRECT TESTIMONY ABOUT THE PROPOSED SETTLEMENT YOU ARE FURTHER NOTIFIED that the Parties have until May 17, 2023, to file their prefiled testimony with the Commission regarding the Settlement. The Parties’ prefiled testimony and exhibits must conform to Rules 231, 266 and 267 of the Commission’s Rules of Procedure. Reference IDAPA 31.01.01.231 and .266-.267. NOTICE OF CUSTOMER HEARING YOU ARE FURTHER NOTIFIED that the Commission will conduct a customer hearing at the Idaho Public Utilities Commission, 11331 W. Chinden Boulevard, Building 8, Suite 201-A, Boise, ID 83714, on MONDAY, JUNE 5, 2023, starting at 6:00 p.m. local time and ending at 9:00 p.m. local time, or after all customers have testified, whichever comes first. The purpose of this hearing is to take testimony from members of the public and customers of the Company. Those interested in testifying for the record are required to attend in-person and are encouraged to join the hearing at 5:30 PM local time. Those interested in listening only and not testifying can call 1-415-655-0001 and enter meeting number 2630 884 3847 and enter password 249 74 983 when prompted. NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF TECHNICAL HEARING NOTICE OF PUBLIC COMMENT DEADLINE ORDER NO. 35780 5 NOTICE OF TECHNICAL HEARING YOU ARE FURTHER NOTIFIED that the Commission will conduct a technical hearing in this matter on THURSDAY, JUNE 8, 2023, starting at 9:00 a.m. local time and ending after all parties have testified. The technical hearing will be held at the Idaho Public Utilities Commission, 11331 W. Chinden Boulevard, Building 8, Suite 201-A, Boise, ID 83714. A technical hearing is an opportunity for the Parties to the case to present witnesses, testimony, and exhibits. IDAPA 31.01.01.241.04. Persons interested in listening to the testimony and presentations at the technical hearing may call 1-415-655-0001 and enter meeting number 2633 028 3230 and enter password 832 46 422 when prompted. To listen online, please visit idahogov.webex.com, and enter meeting number 2633 028 3230. At the next window, please enter your name, e-mail address and this password: TechnicalHearing. YOU ARE FURTHER NOTIFIED that all testimony and exhibits in this matter must comport with the requirements of Rules 231 and 267 of the Commission’s Rules of Procedure. IDAPA 31.01.01.231 and .267. YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in this matter will be held in facilities meeting the accessibility requirements of the Americans with Disabilities Act (“ADA”). Persons needing the help of a sign language interpreter or other assistance in order to participate in or to understand testimony and argument at a public hearing may ask the Commission to provide a sign language interpreter or other assistance at the hearing. The request for assistance must be received at least five working days before the hearing by contacting the Commission Secretary at: IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 Telephone: (208) 334-0338 Facsimile: (208) 334-3762 secretary@puc.idaho.gov NOTICE OF PUBLIC COMMENT DEADLINE YOU ARE FURTHER NOTIFIED that the Commission seeks comments from the public on the Settlement. Persons desiring to state a position on the Settlement may file a written comment NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF TECHNICAL HEARING NOTICE OF PUBLIC COMMENT DEADLINE ORDER NO. 35780 6 explaining why the person supports or opposes the proposed Settlement. Persons shall have until June 8, 2023, to file written comments. Comments must be filed through the Commission’s website or by e-mail unless computer access is unavailable. To comment electronically, please access the Commission’s home page at www.puc.idaho.gov. Click the “Case Comment Form” and complete the form using the case number as it appears on the front of this document. To file by e- mail, the customer must e-mail the comments to the e-mail addresses listed below. In addition to submitting the comments to the Commission Secretary, the customer must also e-mail the Company at the e-mail addresses listed below. If computer access is unavailable, then comments may be mailed to the Commission and Company at these addresses: 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 an amended schedule, as set forth above, is adopted. IT IS FURTHER ORDERED that the Parties have until May 17, 2023, to file prefiled testimony and any exhibits with the Commission about the Settlement. IT IS FURTHER ORDERED that the Commission will conduct a customer hearing in this matter on MONDAY, JUNE 5, 2023, starting at 6:00 p.m. local time and ending at 9:00 p.m. local time, or after all customer testimony has been taken, whichever comes first. The public hearing will be held at the Idaho Public Utilities Commission, 11331 W. Chinden Boulevard, Building 8, Suite 201-A, Boise, ID 83714. Persons interested in listening only can call in as discussed above. IT IS FURTHER ORDERED that the Commission will conduct a technical hearing in this matter on THURSDAY, JUNE 8, 2023, starting at 9:00 a.m. local time. The technical hearing will be held at the Idaho Public Utilities Commission, 11331 W. Chinden Boulevard, Building 8, Suite 201-A, Boise, ID 83714. NOTICE OF PROPOSED SETTLEMENT NOTICE OF AMENDED SCHEDULE NOTICE OF CUSTOMER HEARING NOTICE OF TECHNICAL HEARING NOTICE OF PUBLIC COMMENT DEADLINE ORDER NO. 35780 7 IT IS FURTHER ORDERED that that non-party persons shall have until June 8, 2023, to file written comments. 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. 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 16th day of May, 2023. ERIC ANDERSON, PRESIDENT JOHN R. HAMMOND JR., COMMISSIONER _________________________________________ EDWARD LODGE, COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\GAS\INT-G-22-07 rate\orders\INTG2207_Ntc_Sch_NOHs_Comm_cs.docx