HomeMy WebLinkAbout19970630Final Order No. 27024.pdfOffice of the Secretary
Service Date
June 30,1997
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )INTERMOUNTAIN GAS COMPANY AND ITS )CASE NO.INT-G-97-2REQUESTEDREVISIONTOTHE)COMMISSION'S POLICY STATEMENT ON )NATURAL GAS INTEGRATED RESOURCE )ORDER NO.27024
PLANNING.)
On April 25,1997,Intermountain Gas Company (IGC;Company)filed an Application
with the IdahoPublic Utilities Commission (Commission)requesting a revision to the Commission's
generic policy statement regarding Natural Gas Integrated Resource Planning.Reference Energy
Policy Act of 1992 (EPACT);Case No.GNR-G-93-2,Order No.25342.
In the Commission's letter dated May 15,1996 acknowledging the filing of the
Company's 1996 Natural Gas IntegratedResource Plan,the Commission stated:
We encourage the Company to work with Staff as part of the next
IRP cycle to jointly review and discuss IRP guidelines and
propose recommended changes for Commission consideration,
including the reasonableness of the twenty year planning horizon
implicitlyrequired by Order No.25342.
The Company contends that many of the planning requirements deemed prudent in a fully
regulated environment have now been usurped by the pressures of a more open,competitive
marketplace.IGC seeks with its Application to amend the current IntegratedResource Planning
guidelines in order to:
(1)More closely align the guidelines with IGC's current business
planning practices,thereby making the process a more
meaningful and useful management tool,
(2)Continue to provide for public participation in the overall
planning process,and
(3)Streamline the regulatory filing requirements of the process to
eliminate costly overheads.
More specifically IGC requests that:
ORDER NO.27024 -l-
The forecasting horizon for natural gas supply and demand be limited
to a period of five (5)years to more closely align the Plan with
current business planning practices.
Public participation in the planning process continue on a biennial
basis to allow for outside comment and validation of the Company's
plan for meeting the forecast demand for natural gas.
The requirement for an evaluation of traditional demand side
management (DSM)measures be eliminated from the guidelines.
The Company represents that the avoided gas costs associated with
such programs have shown these traditional programs to be
uneconomic in the competitive marketplace.IGC states that it will
instead continue to emphasize load management opportunities that
benefit all or some customers without disadvantagingany customer.
IGC represents that it will continue its commitment and responsibility
to encourage the efficient use of natural gas and to manage the load
growth on its system in a cost effective manner.The Company
supports the efforts made by organizations such as American Gas
Association and the Gas Research Institute that,on an industry wide
basis,develop products and services designed to enhance and
encourage the efficient use of natural gas.
The filing requirements with the Commission be streamlined to
simply include those supply and demand forecasting materials
provided and reviewed through the public forum.
The Company requested that its Application be processed under Modified Procedure,
i.e.,by written submission rather than by hearing (Reference IDAPA 31.01.01.201-204)and
requested an effective date of June 1,1997.Noting the generic implications of the Company's filing,
the Commission in Order No.26939 suspended the proposed effective date.Reference Idaho Code
§61-622.
Notices of Application and Modified Procedure in Case No.INT-G-97-2 were issued by
the Commission on May 28,1997.The deadline for filing written comments was June 18,1997.
Timely comments were filed by The Washington Water Power Company (Water Power)and
Commission Staff.
Water Power supports the Company's filing and recommends that it be approved.
Regarding its own natural gas operations Water Power notes:
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...(1)Our Company uses a shorter time horizon for business planning than
contemplated by the current IRP guidelines;(2)Water Power continues and
will continue,to seek public involvement in our planning process as the
industrycontinues on its evolution to greater competition;(3)Washington
Water Power does review and make changes as necessary to the needed level
for DSM and natural gas avoided cost "out of the IRP cycle";and (4)Water
Power continues to examine supply and demand forecasting techniques that
allow the Company and our customers with accurate information to make
supply decisions.These actions are taken in the public interest and are
intended to align business practices accordingly.
Commission Staff opposes that portion of the Company's Application that requests the
Commission to eliminate from its natural gas integrated resource planning guidelines any
requirement that the Company in its planning process consider and evaluate Demand Side
Management (DSM)measures.With no requirement to evaluate DSM,Staff contends that some
cost effective conservation savings could be lost.Specifically Staff states its belief that evaluation
of DSM was one the primary intentions of the Energy Policy Act of 1992 (EPACT)which amended
the Public Utility Regulatory Policies Act (PURPA)requiring states to consider the adoption of new
standards pertaining to Integrated Resource Planning and utility investment in conservation and
Demand Side Management.To abandon the foundation upon which IRP requirements were built
would,in Staff's opinion,be premature given the rate of change in the industryin the past several
years.
Staff generally supports the remainder of the Company's Application.Regarding the
Company's request to streamline filing requirements,Staff agreesas long as the Company continues
to prepare a sound,useful and informative plan.Staff recommends that any relevant additional
information relied upon by the Company and not contained in the IRP submitted to the Commission
be identified and made available to Staff upon request.
COMMISSION FINDINGS
The Commission has reviewed the Application and filings of record in Case No.
INT-G-97-2 includingthe comments of the Washington Water Power Company and Commission
Staff.We have also reviewed our previous Order No.25344 in Case No.GNR-G-93-2,wherein we
established the filing requirement for natural gas IntegratedResource Plans.
ORDER NO.27024 -3-
We thank the Company for its efforts in recommending changes in the natural gas IRP
guidelines and the other parties for their thoughtfulcomments.We find that the public interest
regarding the requested changes does not require a public hearingto consider the issues presented
and that it is reasonable to process the Application and issue an order without further notice or public
comment.Reference IDAPA 31.01.01.204.
We acknowledge that the natural gas industry is an industry in transition.
Contemporaneous with this filing we note that Intermountain Gas Company is asking to increase
rates to many of its customers because of increases in the cost of natural gas.We believe it is unwise
at this time to forego consideration in the planning process of conservation and demand side
management measures.The public interest requires consideration of a full spectrum of opportunities
availableto the Company,including conservation and efficiency measures which would be of direct
benefit to its customers.The remainder of the Company's suggested changes we find reasonable to
adopt,including Staff's suggestion that the Company identify relevant information sources relied
upon in preparing its IRP,and share such information with Staff,if requested.As expressed by Staff
we continue to expect that the Company will file with this Commission a sound,useful and
informative plan.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Intermountain Gas
Company,a gas utility,and the issues presented in Case No.INT-G-97-2 pursuant to the power
granted in Title 61 of the Idaho Code and the Commission's Rules of Procedure IDAPA
31.01.01.000 et.seq.
ORDER
In consideration of the foregoing and as more particularly described and qualified above,
IT IS HEREBY ORDERED that with the exception of the proposed elimination of evaluation of
traditional demand side management measures,the proposed changes in the natural gas IRP planning
process and report filed with the Commission pursuant to prior Case No.GNR-G-93-2,Order No.
25342,are adopted.The changes that we approve are applicableto the natural gas operations of both
ORDER NO.27024 -4-
Intermountain Gas Company and The Washington Water Power Company.The Commission
Secretary is directed to file a copy of this Order in Case No.GNR-G-93-2.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)days
after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 30 ^
day of June 1997.
ENNIS S.HAN ,PRESIDENT
RALPH NELSON,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
ATTEST:
Jean ewell O
Assistant Commission Secretary
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