HomeMy WebLinkAbout20230829Application.pdf
August 29, 2023
Ms. Jan Noriyuki Commission Secretary Idaho Public Utilities Commission P.O. Box 83720 Boise, ID 83720-0074
RE: Intermountain Gas Company INT-G-23-05, Application on Depreciation Report
Dear Ms. Noriyuki: Intermountain Gas Company submits the attached application regarding the schedule on which it will file depreciation reports.
If you have any questions or require additional information regarding the attached, please contact me at (208) 377-6015. Sincerely,
/s/ Lori A. Blattner Lori A. Blattner Director – Regulatory Affairs
Intermountain Gas Company Enclosure
RECEIVED
2023 AUGUST 29, 2023 9:42AM
IDAHO PUBLIC
UTILITIES COMMISSION
INTERMOUNTAIN GAS COMPANY
CASE NO. INT-G-23-05
APPLICATION
In the Matter of the Application of INTERMOUNTAIN GAS COMPANY
For Authority to File Its Composite Depreciation and Amortization Rates Every
Five Years Instead of Every Three Years
INTERMOUNTAIN GAS COMPANY’S APPLICATION - 2
Preston N. Carter, ISB No. 8462 Givens Pursley LLP
601 W. Bannock St.
Boise, Idaho 83702 Telephone: (208) 388-1200
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
INTERMOUNTAfor Authority to
Every Five Years Instead of Every Three
Case No. INT-G-23-05 APPLICATION
Intermountain Gas Company (“Intermountain” or “Company”), a subsidiary of MDU
Resources Group, Inc. with general offices located at 555 South Cole Road, Boise, Idaho, pursuant
to the Rules of Procedure of the Idaho Public Utilities Commission (“Commission”), requests the
Commission grant the Company authorization to revise the schedule on which it files its application
to effect a change in composite depreciation and amortization rates. For reasons described more
fully in this Application, the Company requests authorization to submit updated composite
depreciation and amortization rates every five years rather than every three years.
Please address communications regarding this Application to:
Lori A. Blattner
Director – Regulatory Affairs Intermountain Gas Company Post Office Box 7608 Boise, Idaho 83707 lori.blattner@intgas.com
and Preston N. Carter Givens Pursley LLP 601 W. Bannock St. Boise, Idaho 83702
prestoncarter@givenspursley.com stephaniew@givenspursley.com
INTERMOUNTAIN GAS COMPANY’S APPLICATION - 3
In support of this Application, Intermountain alleges and states as follows:
I. INTRODUCTION
Intermountain is a gas utility, subject to the jurisdiction of the Commission, engaged in the
sale of and distribution of natural gas within the State of Idaho under authority of Commission
Certificate No. 219, issued December 2, 1955, as amended and supplemented by Order No. 6564,
dated October 3, 1962.
Intermountain provides natural gas service to the following Idaho communities and counties
and adjoining areas:
Ada County - Boise, Eagle, Garden City, Kuna, Meridian, and Star; Bannock County - Arimo, Chubbuck, Inkom, Lava Hot Springs, McCammon, and Pocatello; Bear Lake County - Georgetown, and Montpelier; Bingham County - Aberdeen, Basalt, Blackfoot, Firth, Fort Hall, Moreland/Riverside, and Shelley;
Blaine County - Bellevue, Hailey, Ketchum, and Sun Valley; Bonneville County - Ammon, Idaho Falls, Iona, and Ucon; Canyon County - Caldwell, Greenleaf, Middleton, Nampa, Parma, and Wilder; Caribou County - Bancroft, Grace, and Soda Springs;
Cassia County - Burley, Declo, Malta, and Raft River; Elmore County - Glenns Ferry, Hammett, and Mountain Home; Fremont County - Parker and St. Anthony; Gem County - Emmett; Gooding County –Gooding and Wendell;
Jefferson County - Lewisville, Menan, Rigby, and Ririe; Jerome County - Jerome; Lincoln County - Shoshone; Madison County - Rexburg and Sugar City;
Minidoka County - Heyburn, Paul, and Rupert; Owyhee County - Bruneau and Homedale; Payette County - Fruitland, New Plymouth, and Payette; Power County - American Falls;
Twin Falls County - Buhl, Filer, Hansen, Kimberly, Murtaugh, and Twin Falls;
Washington County - Weiser. Intermountain's properties in these locations consist of transmission pipelines, liquefied
natural gas storage facilities, compressor stations, distribution mains, services, meters and
regulators, and general plant and equipment.
INTERMOUNTAIN GAS COMPANY’S APPLICATION - 4
II. BACKGROUND
Pursuant to Title 61, Section 61-525 Idaho Code, the Commission may request that a utility
revise its depreciation rates from time to time. Intermountain is in the practice of filing its composite
depreciation and amortization rates every three years. Intermountain’s most recent “Application to
Change Depreciation and Amortization Rates” based on the Company’s books and records as of
December 31, 2019, was submitted on January 12, 2021, in Case No. INT-G-21-01. If the Company
retains its practice stated in its most recent application of “traditionally fil[ing] an update to its
depreciation and amortization rates with this Commission every three years,” the Company should
file its next application based on its books and records through December 31, 2022.
III. PROPOSAL
Intermountain requests that the Commission grant the Company permission to file its
composite depreciation rates and amortization rates every five years, which would mean the
Company’s next filing would be based on the Company’s books and records through December 31,
2024. This request is based on the following:
• Depreciation studies are outsourced, and they are expensive. Reducing the frequency at
which the Company files would result in a cost savings that would benefit both the
Company and its customers.
• Depreciation rates do not change significantly year over year, so extending the filing date by
two years would not result in a substantive impact to the Company’s cost accounting.
• Intermountain embedded its depreciation and amortization rates in its most recently settled
general rate case (Case No. INT-G-22-07), approved by Commission Order No. 35836,
issued on June 30, 2023. Submitting a depreciation study based on the Company’s books
and records through December 31, 2022, would immediately create a disconnect between
INTERMOUNTAIN GAS COMPANY’S APPLICATION - 5
the Company’s base rates and its depreciation and amortization rates. Extending the date of
the Company’s next depreciation and amortization study may provide better alignment
between the study and the Company’s next potential general rate case filing.
IV. MODIFIED PROCEDURE
Intermountain requests that this matter be handled under modified procedure pursuant to
Rules 201-204 of the Commission’s Rules of Procedure. Intermountain stands ready for immediate
consideration of this matter.
V. REQUEST FOR RELIEF
Intermountain respectfully petitions the Idaho Public Utilities Commission to grant the
Company authority to file its composite depreciation and amortization rates every five years rather
than every three years.
DATED: August 29, 2023.