20230831Notice_of_Application_Order_No_35910.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE ORDER NO. 35910 1
Service Date
August 31, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF INTERMOUNTAIN GAS COMPANY’S REQUEST FOR AUTHORITY TO CHANGE ITS PRICES
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NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE

On August 14, 2023, Intermountain Gas Company (“Intermountain” or “Company”)
applied to the Idaho Public Utilities Commission (“Commission”) for new rate schedules that will
reduce its annualized revenues collected through the Purchased Gas Cost (“PGA”) by about $86.9
million. If approved, the Company represents that the typical residential customer would see a
monthly decrease of $11.96, or 19.3 percent, and the typical commercial customer would see a
monthly decrease of $72.88, or 24.4 percent.
The Commission now issues this Notice of Application and Notice of Modified Procedure
setting public comment and Company reply deadlines.
BACKGROUND
The Company’s rates include a base-rate component and a gas-related cost—PGA—
component. The base-rate component is intended to cover the Company’s fixed costs to serve its
customers—for example, the Company’s costs for equipment and facilities to provide service—
and rarely change. The Company’s 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—including
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.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company seeks to pass through various changes
in gas-related costs from: (1) firm transportation providers; (2) a decrease in the Company’s
Weighted Average Cost of Gas (“WACOG”); (3) short-term debt interest expenses from 2022-
2023; (4) the customer allocation of costs related to the PGA; (5) temporary surcharges and credits
related to purchases and interstate transportation costs; (6) benefits from the Company’s
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE ORDER NO. 35910 2
management of storage and firm capacity rights; (7) the sale of liquefied natural gas through its
Nampa facility; (8) recovery of in-person customer payment fees’ that were deferred; and, (9)
over-refunded Residential Energy Efficiency fund recovery. Id. at 4. The Company also asks to
end the temporary surcharges and credits established in Case No. INT-G-22-04.
YOU ARE FURTHER NOTIFIED that the proposed reduction in annualized revenues will
not impact the Company’s earnings.
YOU ARE FURTHER NOTIFIED that the proposed WACOG in the Company’s
Application would change from the $0.52808 per therm currently included in rates to $0.30455
per therm—a decrease of approximately $98.5 million in natural gas costs compared to those
currently included in rates.
YOU ARE FURTHER NOTIFIED that the Company included about $17.5 million in
additional transportation costs due to increases in associated rates. The Company anticipates the
increase in transportation costs will be offset through access to less expensive gas with the
additional transportation it secured for supply form the Aeco basin in Alberta, Canada.
YOU ARE FURTHER NOTIFIED that the Company’s Application includes descriptions
of all components that make up the PGA along with exhibits that show the summaries of all price
changes by customer class and proposed tariffs.
YOU ARE FURTHER NOTIFIED that the proposed tariffs 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 “GAS” icon, select
“Open Cases,” 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.
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 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 it will review the case through written
submissions under the Commission’s Rules of Modified Procedure Rules 201-204 of the Idaho
Public Utilities Commission’s Rules of Procedure, IDAPA 31.01.01.201-204. The Commission
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE ORDER NO. 35910 3
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 September 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:

YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
September 21, 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
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.

For the Idaho PUC: 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]
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE ORDER NO. 35910 4
O R D E R
IT IS HEREBY ORDERED that the Company’s Application be processed by Modified
Procedure. Persons interested in submitting written comments must do so by September 19, 2023.
The Company must file any reply comments by September 21, 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 31st day of
August 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER

ATTEST:

Jan Noriyuki Commission Secretary
I:\Legal\GAS\INT-G-23-04 (PGA)\orders\INTG2304_ntc app mod_dh.docx