20230105Notice_of_Application_Order_No_35656.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35656 1

Office of the Secretary
Service Date
January 5, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On December 27, 2022, Intermountain Gas Company (“Intermountain” or “Company”), a
subsidiary of MDU Resources Group, Inc., filed an application (“Application”) with the Idaho
Public Utilities Commission (“Commission”) requesting authority to increase its rates for its RS,
GS-1, IS-R, IS-C, and LV-1 customer classes. The Company represents that the proposed changes
will increase the Company’s annualized revenues by approximately $56 million; however, the
proposed changes in prices and revenues will not increase the Company’s earnings. The Company
requests that the Commission approve the requested changes effective as of February 1, 2023.
The Commission now issues this Notice of Application and Notice of Modified Procedure
establishing deadlines for interested parties to comment, and the Company’s reply.
BACKGROUND
The Company’s Purchased Gas Adjustment (“PGA”) is a Commission approved
mechanism that adjusts rates up or down to reflect changes in the Company’s costs to buy natural
gas from suppliers. The PGA includes changes in transportation, storage, and other related costs.
The Company defers these costs into its PGA account and then passes them on to customers
through an increase or decrease in rates. The Commission approved the current prices related to
the cost of natural gas in Order No. 35538, Case No. INT-G-22-04.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company seeks to pass through to each of its
customer classes changes in natural gas related costs resulting from an increase in the Company’s
Weighted Average Cost of Gas (“WACOG”). The Company represents that over the last several
months, natural gas prices have climbed across the United States including in the three supply
basins that affect the Company’s WACOG.
IN THE MATTER OF INTERMOUNTAIN
GAS COMPANY’S APPLICATION FOR
AUTHORITY TO CHANGE ITS PRICES
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CASE NO. INT-G-22-08

NOTICE OF APPLICATION

NOTICE OF MODIFIED
PROCEDURE

ORDER NO. 35656
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35656 2

YOU ARE FURTHER NOTIFIED that the Company represents that an interim filing is
needed to update the Company’s currently approved WACOG rate to better reflect current natural
gas cost levels and reduce the amount of deferred gas costs that will need to be included in the
Company’s regular PGA filing.
YOU ARE FURTHER NOTIFIED that the Company requests to increase the current
WACOG amount of $0.39216 per therm to a proposed WACOG of $0.52808 per therm for the
Company’s RS, GS-1, IS-R, IS-C, and LV-1 customer classes.
YOU ARE FURTHER NOTIFIED that the Company represents that, if approved, a typical
residential customer would see an increase of $8.58, or 16.6%, per month based on average
weather and usage. Commercial customers, on average, would see an increase of $43.10, or 17.9%,
per month.
YOU ARE FURTHER NOTIFIED that the Company does not propose to change its gas
transportation cost or temporary purchased gas cost adjustment as they will be adjusted as part of
the Company’s regular 2023 PGA filing.
YOU ARE FURTHER NOTIFIED that the Company represents that its Application has
been brought to the attention of its customers through a Customer Notice and by a Press Release
sent to daily and weekly newspapers, and major radio and television stations in the Company’s
service area.
YOU ARE FURTHER NOTIFIED that the Application and submitted materials are
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
“NATURAL GAS” tab, select “Open Cases,” and then locate and click on the case number as
shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant
to the Commission’s jurisdiction under Title 61 of the Idaho Code. The Commission may enter
any final order consistent with its authority under Title 61.
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 APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35656 3

NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and that it will proceed under Modified
Procedure pursuant to Commission’s Rules of Procedure 201-204, IDAPA 31.01.01.201-.204. The
Commission notes that Modified Procedure and written comments have proven to be an effective
means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this
Application may file a written comment explaining why they support or oppose the Application.
Persons who would like a hearing must specifically request a hearing in their written comments.
Persons shall have until January 19, 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 website 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 Commission
Secretary and 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:
For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
[e-mail]

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, ID 83714
For Intermountain Gas:

Lori A. Blattner
Intermountain Gas Company
P.O. Box 7608
Boise, ID 83707
[e-mail]

Preston N. Carter
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
[e-mail]
[e-mail]

YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
January 24, 2023.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set, the Commission will consider this matter on its merits and enter its order
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35656 4

without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
ORDER
IT IS HEREBY ORDERED that the Company’s Application be processed by Modified
Procedure, Rules 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting written
comments must do so by January 19, 2023. The Company must file any reply comments by
January 24, 2023.
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 5th day of
January 2023.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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