20231115Notice_of_Application_Order_No_36002.pdf

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 36002 1

Office of the Secretary
Service Date
November 15, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF INTERMOUNTAIN
GAS COMPANY’S APPLICATION FOR A
DETERMINATION OF 2022 ENERGY
EFFICIENCY EXPENSES AS PRUDENTLY
INCURRED
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CASE NO. INT-G-23-06

NOTICE OF APPLICATION

NOTICE OF INTERVENTION
DEADLINE

ORDER NO. 36002

On October 6, 2023, Intermountain Gas Company (“Company”), a subsidiary of MDU
Resources Group, Inc., applied to the Idaho Public Utilities Commission (“Commission”) for an
order designating $3,364,641 of 2022 Energy Efficiency expenditures as prudently incurred
(“Application”). The Company filed its 2022 Energy Efficiency Annual Report concurrently with
its Application.
With this Order, the Commission provides notice of the Company’s Application and sets
a deadline for interested parties to intervene.
BACKGROUND
In 2017, the Commission authorized the Company to establish the Energy Efficiency
Program (“EE Program”) for its residential customers. Order No. 33757 at 35-37. The purpose of
the EE Program “is to encourage upgrades to, or use of, high efficiency natural gas equipment.”
Rate Schedule EE. On July 27, 2017, in Case No. INT-G-17-03, the Company requested authority
to implement a funding mechanism for the EE Program. The Commission approved the
Company’s requested funding mechanism of an Energy Efficiency Charge (“EEC”), and
ultimately approved Rate Schedule EE, Rate Schedule EEC, and Rate Schedule EEC-RS.
In Case No. INT-G-19-04, the Commission required the Company to conduct a third-
party Evaluation, Measurement, and Verification (“EM&V”) study. This was meant to “review
and update the avoided cost calculation with the Energy Efficiency Stakeholder Committee”
(“EESC”). Application at 4. It was also meant to regularly monitor and update the EE Program
incentives. See Order No. 34536.
In Case No. INT-G-20-04, the Commission granted permission for the Company to
implement a Commercial EE Program. This established a way to fund energy efficiency upgrades
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 36002 2

under Rate Schedule EEC-GS (“EEC-GS”). The Commission instructed the Company to create
an EM&V plan. Additionally, the Company was instructed to submit an Annual Commercial EE
Program Report. This report must include representatives from the GS-1 rate class in its EESC.
Finally, the Commercial EE program was to be regularly monitored and updated.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company represented that the EE Program
expenditures are funded through collections from customers via the EEC. The Company stated
that the EEC-RS of $0.01564 per therm funds the Residential EE Program; the total Residential
EE Program revenues for calendar year 2022 were $5,738,001. The Company represented that the
EEC-GS remained at $0.00320 per therm and funds the Commercial EE Program; the Commercial
Program revenues for 2022 were $472,346.
YOU ARE FURTHER NOTIFIED that the Company represented that the combined
expenditures for the Residential and Commercial EE Programs for January 1, 2022, through
December 31, 2022, were $3,364,641. Approximately $2,608,536 accounts for EE rebates paid
out to residential and commercial customers. Expenditures for program administration accounted
for $756,105 and $650,675 for labor. These represent 4 percent and 2 percent increases over 2021
expenses, respectively. The Company stated that it has assigned EE costs to each respective
program where possible and offered explanations where costs are not assigned in compliance with
Order No. 35663. The Company further stated that employees working on both programs remained
the most cost-effective option until the programs each grow in size.
YOU ARE FURTHER NOTIFIED that the Company represented that the Residential EE
Program began the year with an over-collected deferral balance of $2,834,164 and experienced
growth of the over-collected balance to $4,893,882 by June of 2022, due to measures taken in
compliance with Order No. 35539 in Case No. INT-G-22-05 (transferring $4.85 million in over-
collected funds to the PGA for refund of residential customers), the rider balance was $450,521 at
the end of 2022.
YOU ARE FURTHER NOTIFIED that the Company represented that the Commercial
Program began the year with an over-collected deferral balance of $84,589 and experienced
growth of the over-collected balance to $463,938 at the end of 2022.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 36002 3

YOU ARE FURTHER NOTIFIED that the Company represented that in 2022 the
Residential and Commercial Programs saved an estimated 615,806 and 36,844 therms,
respectively.
YOU ARE FURTHER NOTIFIED that the Company represented that it used the 2021
IRP’s Avoided Costs as calculated in Case No. INT-G-21-06. See Case No. INT-G-21-06, IRP
Exhibit No. 5.
YOU ARE FURTHER NOTIFIED that Intermountain Gas stated that it has hosted two
meetings to address and discuss the parameters of the EESC with its stakeholders.
YOU ARE FURTHER NOTIFIED that the Application and Annual Report have been filed
with the Commission and 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” icon, select “Open Cases,” and then 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 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 72 and 73, IDAPA 31.01.01.072 and -.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. Such persons shall also provide the Commission
Secretary with their email address to facilitate further communications. After the intervention
deadline runs, the Commission Secretary shall issue a Notice of Parties that identifies the parties
and assigns exhibit numbers to each party. Once the Notice of Parties has issued, Commission
Staff shall informally confer with the Company and any intervening parties about how to further
process this case and shall then report back to the Commission on a proposed case schedule.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 36002 4

YOU ARE FURTHER NOTIFIED that persons who would like to present their views
without parties’ rights of participation and cross-examination do not have to intervene but may
present their views by submitting written comments to the Commission.
YOU ARE FURTHER NOTIFIED that the following people are designated as the
Company’s representatives in this matter:
Lori A. Blattner
Intermountain Gas Company
Post Office Box 7608
Boise, ID 83707
[e-mail]
Preston N. Carter
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
[e-mail]
[e-mail]

ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter must file a
Petition to Intervene no later than 21 days from the service date of this Order. Once the deadline
has passed, the Commission Secretary shall prepare and issue a Notice of Parties.
IT IS FURTHER ORDERED that, after the Notice of Parties has issued, Commission Staff
shall confer with the parties regarding a procedural schedule for this matter including, if necessary,
a hearing in this matter.
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.
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NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 36002 5

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 15th day of
November 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER
ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\GAS\INT-G-23-06_EEE\orders\INTG2306_Ntc_App_Int_md.docx