Loading...
HomeMy WebLinkAboutINTG973.SWM.docÿWPCò  RFã9›>Ò´Ñx ZÒQЁ<zK<ç¬i×™Út˜Å&+¿<M^ï¶SÇuHNSÅ̯ 8SÈ¢úeEŸE‰t‡É¹&  ™â &+E×(ôê]葐îà_QVe‚Nêië¬'͍4*~ŽB¡¹ð¡xƒ»>¶ÒöîÍ¡Õ·"%%ð­ÇZÞÛrºôA=J&´WLœÍð”³GÒzG+ôI~eÊÝÎārÌ.ø¨ãPh ¾¥ÉÙ$¬r‡EJ¾F¬àŸùÝÒï'&«g/ :”jꢟ“1¹†WY¡žïÌ`-–( r{×R`ñ6bż “²>y£Õ/¶tKI±N?VSO4}j‚ͱtçÁ„&«I=÷ä¥>åñ‰ì¢ãÁ.Wf!YjÕ‰O;œG¥^`Ä­r‚úÅE6ÊuUÆ,•…–“ÕÃ4jLë"¶ê€Š®ÀÑ9ªU«\Êk(ŽnÜr®elaø"Ä eO­²ùÚ4×Cüd;‘¬Å]]aèp›‘öh­ €fÂ'4´“æ&#±`¾ËrÜ혂yM[‰¢rí·¡o\û ’"m:öƒäÅžÚÿ¶jÊå&¤É–Ýá¥,12Ýír‡5U;™¦o7I>¹¯4}&†™†@''ˆ# üU#N %U 0([UBƒw@Å4 0J( {ªr {J {Jf {J° ¬ú 0D¦ ¦ ê ˜HP LaserJet 4Si/4Si MXHPPCL5E,,,,0 (ÈhH  Z ‹6Times New Roman RegularX($¡¡ô\  `*Times New RomanTT mnEopršsUtuDvwÁ…×"ÿÿÿÿÿÿÿÿÿÿÿÿ"|xw<‡‡D>Û:QuickFormat1Ô€X>ÃXXXÔÔ€X>ÃXXX>ÃÔÔÔÓ9%° ‚X¦*D%Šx: Ð ŽX°œX9ÓÔ€X>ÃXXXÔÔ€X>ÃXXX>ÃÔÔÔÓ9%° ‚X¦*D%Šx: Ð ŽX°œX9Ó<77Dp4:QuickFormat1Ô‡XÔÔ‡XÿÿXÔÔ  ÔÔ‡XÔÔ‡XÿÿXÔÔ  Ô<‡‡D1m:QuickFormat1Ô€X>ÃXXXÔÔ€X>ÃXXX>ÃÔÔÔÓ9%° ‚X<*D% x‚,(#X°œX9ÓÔ€X>ÃXXXÔÔ€X>ÃXXX>ÃÔÔÔÓ9%° ‚X<*D% x‚,(#X°œX9Ó<‡‡D{Ú:QuickFormat1Ô€X>ÃXXXÔÔ€X>ÃXXX>ÃÔÔÔÓ9%° ‚X<*D%Šx‚,(#X°œX9ÓÔ€X>ÃXXXÔÔ€X>ÃXXX>ÃÔÔÔÓ9%° ‚X<*D%Šx‚,(#X°œX9Ó<‡‡Dj4:QuickFormat1Ô€X>ÃXXXÔÔ€X>ÃXXX>ÃÔÔÔÓ9%° ‚X<*D%Šx: Ð ŽX°œX9ÓÔ€X>ÃXXXÔÔ€X>ÃXXX>ÃÔÔÔÓ9%° ‚X<*D%Šx: Ð ŽX°œX9Ó ¢Ý ƒ¯)ÝÝ  ÝSTAFF€COMMENTSà  àà h àà À àà  àÚ  Ú1Ú  Úà p àà È àà  àJUNE€25,€1997(3¯$©©Ý ƒ!ÝÝ  ÝÝ ƒ!ÝÝ  ÝÖ€ÿÿÖ›Ò(°ÒÔ‡X.ˆXXXÔSCOTT€WOODBURYÐ ° ÐDEPUTY€ATTORNEY€GENERALÌIDAHO€PUBLIC€UTILITIES€COMMISSIONÌPO€BOX€83720ÌBOISE,€IDAHO€€83720„0074Ì(208)€334„0320ÌÌStreet€Address€for€Express€Mail:Ì472€W.€WASHINGTONÌBOISE,€IDAHO€€83702„5983ÌÌAttorney€for€the€Commission€StaffÌÌÌÌÓ  Óò òÔ‡¼“ž¼XX.ˆÔBEFORE€€THE€€IDAHO€€PUBLIC€€UTILITIES€€COMMISSIONÔ#†X.ˆX¼¼“žr#ÔÐ À ÐÓ  ÓÌÓWC°h*ì xÐ (#€%Ø'0*ˆ,à.813è5@8˜:ð<H? A°œXWÓ€€ÌÓ`C°h®D% xÐ (#€%Ø'0*ˆ,à.813è5@8˜:ð<H? A°h‚ X`ÓIN€THE€MATTER€OF€THE€APPLICATION€OF€à ® à)Ð ¶ ÐÓ`@°h®Ú xÐ (#€%Ø'0*ˆ,à.813è5@8˜:ð<H? A°h®D% X`ÓINTERMOUNTAIN€GAS€COMPANY€FORà ® à)à Ú àCASENO.€INT„G„97„3Ð ¦ö ÐAUTHORITY€TO€CHANGE€ITS€PRICES.à ® à)Ð –æ Ѐà h à€à ® à)à Ú àCOMMENTS€OF€THEÔ#†X.ˆXXX.ˆ?#ÔÔ‡X.ˆXXX.ˆÔÐ †Ö Ѐà h àà ® à)à Ú àCOMMISSION€STAFFÔ#†X.ˆXXX.ˆa#ÔÔ‡X.ˆXXX.ˆÔÐ vÆ ÐÓ]@°h®Ú xÐ (#€%Ø'0*ˆ,à.813è5@8˜:ð<H? A°h®Ú X]Ó_________________________________________à ® à)Ð f¶ ÐÓ@ÓÓiL°` ¸ h*D% xÐ (#€%Ø'0*ˆ,à.813è5@8˜:ð<H? A°h®Ú XiÓÌó óñrñÒe(Òñrñà  àò òCOMES€€NOW€€ó óthe€Staff€of€the€Idaho€Public€Utilities€Commission,€by€and€through€itsÐ ‚Ò ÐAttorney€of€record,€Scott€Woodbury,€Deputy€Attorney€General,€and€in€response€to€the€œApplication›Ïfiled€by€Intermountain€Gas€Company€(IGC)€on€May€30,€1997,€submits€the€following€œcomments.€ÏStaff€recommends€that€the€Companyððs€Application€and€requested€changes€to€tariffed€rates€beÏapproved€for€effective€date€July€1,€1997.›Ìà  àÔ#†X.ˆXXX.ˆî#ÔIntermountain€Gas€Company€œin€Case€No.€INT„G„97„3€has›€applied€for€authority€toÐ ^"® Ðimplement€new€rates€for€the€Companyððs€œannual€purchaseñvñdñvñ€gas›€cost€œadjustment€tracker.›€€TheÏCommission€Staff€has€reviewed€the€Companyððs€œfiling›€and€performed€a€limited€audit.€€Staff€foundÏthe€Company€has:€(1)€moved€fixed€transportation€cost€out€of€the€commodity€charges€(weightedÏaverage€cost€of€gas€(WACOG))€to€the€demand€charges,€(2)€has€continued€to€hedge€gas€supplies,Ï(3)€has€actively€pursued€capacity€release€and€segmentation€(the€capacity€release€of€a€segment€ofÏIntermountain€Gas€Companyððs€transportation€rights),€(4)€has€paid€the€termination€cost€of€firmÏtransportation€on€Northwest€Pipelineððs€Expansion€II€and€is€now€passing€the€savings€from€firmÏtransportation€contracts€purchased€to€cover€additional€needs€for€transportation€to€ratepayersÐ ¾+'& Ð(Order€œNo.€26022,›€Case€œNo.›€INT„G„95„2,€dated€May€24,€1995),€(5)€has€used€normalized€volumesÏfor€fixed€demand€costs€per€Order€26019,€Case€œNo.€INT„G„95„1,›€dated€May€24,€1995,€and€(6)€hasÏproperly€added€the€T„2€tariff€changes.€€Staffððs€audit€of€gas€supply,€swaps,€capacity€release,Ïsegmentation,€added€firm€transportation€capacity,€tariff€allocations€and€PGA€changes€revealed€noÏirregularities.Ìà  àIntermountain€Gas€Company€included€œin€INT„G„96„3›€œthe€WACOG›€transportation€firmÏcapacity€costs€on€Pacific€Gas€Transmission€Company,€Alberta€Natural€Gas€Company€and€NovaÏGas€Transmission€Services€Ltd.€€The€Company€also€included€in€the€WACOG€œcosts›€for€firmÏð ðsupply€areaðð€storage€at€Clay€Basin€in€Utah€and€AECO€in€œAlbertañwñ,ñwñ›€Canada€used€to€provide€loadÏbalancing€and€peak€day€service€to€all€customer€classes.€€After€auditing€and€analyzing€these€costsÏStaff€agrees€the€additional€transportation,€load€balancing€capability€and€peak€day€service€benefitsÏtransportation€customers€as€well€as€the€core€customers.€€Therefore,€Staff€agrees€œthat€in€ñsñÌñsñINT„G„97„3€these›€costs€should€be€removed€from€the€WACOG€that€is€billed€to€core€customersÏonly€and€moved€to€fixed€demand€costs€that€are€billed€to€all€customers.€€If€this€adjustment€had€beenÏmade€to€the€WACOG€in€INT„G„96„3€the€WACOG€would€have€been€reduced€by€approximatelyÏ$6.8€million€and€the€fixed€demand€costs€increased€by€approximately€$6.8€œmillion.€€›€Ìà  àIn€examining€the€WACOG€for€this€case€and€comparing€it€with€the€WACOG€in€ÌINT„G„96„3,€Staff€finds€that€with€the€fixed€demand€costs€removed,€the€actual€cost€for€gas€on€cityÏgate€volumes€has€increased€by€approximately€3.9%.€€This€increase€is€consistent€with€the€increaseÏin€gas€costs€through€the€1996€heating€year€and€reflects€the€approximate€$5.9€million€additionalÏgas€cost€deferred€in€the€186„218€account.€€Ìà  àIntermountain€Gas€Company€has€made€an€adjustment€for€Fixed€Cost€Collection€(ExhibitÏNo.€4,€line€36).€€This€adjustment€is€necessary€to€correct€for€changes€in€the€number€of€customersÏthat€cover€the€fixed€costs.€€The€annual€therms€shown€on€Exhibit€No.€4,€Column€B,€does€notÏchange€but€the€number€of€customers€have€increased.€€The€make€up€of€customers€has€also€changed.€ÏRS„2€customers€account€for€approximately€84%€of€the€core€customer€growth.€€This€adjustmentÏresults€in€a€RS„1€decrease€of€$1,061,699,€a€RS„2€increase€of€$1,002,701,€a€GS„1€decrease€ofÏ$1,308,718,€a€T„1€decrease€of€$162,967€and€a€T„2€decrease€of€œ$214,615.€€›€€Ìà  àIntermountain€Gas€Company€has€been€entering€into€swap€transactions€for€gas€œsupply.€€In›ÏStaffððs€comments€in€Case€No.€INT„G„95„3,€Staff€noted€that€this€was€a€new€event€and€there€wasÏnot€enough€data€available€to€determine€the€effect€the€swap€contracts€would€have€on€œratepayers.€ÏStaff›€has€examined€the€swap€transactions€and€found€that€with€the€rise€in€gas€prices€in€the€1996Ïheating€season€the€swaps€saved€the€core€customers€approximately€$4€million€in€deferred€gas€œcosts.€Ï›Ð \+¬&! Ðà  àÌò òTRACKER€IMPACTó óÐ Ü, Ðà  àThe€overall€effect€of€the€proposed€changes€would€be€to€increase€Idaho€revenues€byÏ$2,174,581.€€œThe›€œnet€increase›€is€made€up€of:ÌÌà  àPermanent€Adjustments:ÌÓ@Óà  àà ` àChange€in€NWP€rates/chargesà D àà % àà  àà x à$€€119,388Ð ¸  Ðà  àà ` àCapacity€costs€discountsà * àà D àà % àà  àà x à(3,033,378)Ð ¨ ø Ðà  àà ` à7/1/96„6/30/97€commodity€costsà D àà % àà  àà x à€1,461,689Ð ˜ è Ðà  àà ` àCommodity€charges€distribution€cost€removalà  àà x à(6,867,141)Ð ˆØ  Ðà  àà ` àIncremental€distribution€cost€from€commodityà  àà x à€7,373,539Ð xÈ  Ðà  àà ` àFixed€cost€collectionà h àà * àà D àà % àà  àà x à(1,745,298)Ð h¸  ÐÌÓ@~Óà  àTemporary€Surcharges€or€Credits:ÌÓ@Óà  àà ` àSpecial€Contract€Shared€Marginà D àà % àà  àà x à($€222,532)Ð tÄ Ðà  àà ` àFixed€Cost€Collection€Adjustmentà D àà % àà  àà x à(2,904,228)Ð d´ Ðà  àà ` àUncollected€Gas€Costsà * àà D àà % àà  àà x à€€5,747,429Ð T¤ Ðà  àà ` àTransportation€Segmentationà D àà % àà  àà x à€(2,720,219)Ð D” Ðà  àà ` àNWP€Surcharge€Docket€No€RP91„116à D àà % à€à  àà x à€€€€€353,264Ð 4„ Ðà  àà ` àCapacity€Release€&€Purchaseà D àà % àà  àà x à€€€œ€(591,959)›Ð $t Ðà  àà ` àDeferred€Gas€Balanceà * àà D àà % àà  àà x à€€€€€œ277,934›Ð d Ðà  àà ` àDeferred€NWP€Settlement€offer€Docket€No.€€RP94„220à  à€€€€à x à€€€€€œ105,142›Ð T Ðà  àà ` àDeferred€Account€186€Miscellaneousà D àà % àà  à€€€€€€à x à€€€€€€€œ37,876›Ð ôD ÐÓ@òÓà  àÌà  àPrior€Year€Temporary€Charge:€à * àà D àà % àà  àà x à€€œ4,783,075›Ð ` Ðà  àà ` àAny€over/€under€collections€will€be€trued€up€in€the€next€tracker.ÌÌÝ‚ >ÛÿÝÔ€X.ˆXXX.ˆÔÔ€X.ˆXXX.ˆÔÔÔÓK%° ‚X¦*D%Šx: Ð ŽX°‚Xh*D% XKÓÝ  ÝÝ‚ >ÛÝ!ÝÝ  Ýà  àThe€Staff€computes€the€annualized€increase/(decrease)€by€class€of€service€per€therm€in€theÐ ” ä Ðfollowing€manner:݃ >ÛÝ!‘"݌̌Ô€X.ˆXXX.ˆÔÔ€X.ˆXXX.ˆÔÔÔÓK°‚Xh*D% X° ‚X¦*D%Šx: Ð ŽXKÓÝ  ÝÒeÒÓB°‚X¦*D% X°‚Xh*D% XBÓÓ@Óà  àà ` àà ¸ àà ¦ à€€Averageà * à€€à D à€Averageà  àà x à€€€€€€€€€€œñmñ€€ñmñAverage›Ð ì"< ÐÓE° ‚X¦*D%ŠxX°‚X¦*D% XEÓà  àà ` àà ¸ àà ¦ àIncrementalà D àIncrementalà Š à€Proposedà Ð à€PriceÐ Ü#, ÐÝ‚ >ÛÿÝÔ€X.ˆXXX.ˆÔÔ€X.ˆXXX.ˆÔÔÔÓN%° ‚X¦*D%Šx: Ð ŽX° ‚X¦*D%ŠxXNÓÝ  ÝÝ‚ >ÛÕ%ÝÝ  ÝGas€Salesà ` àà ¸ àà ¦ àÔT€ Ô€€Revenueà * à€€à D à€ðÅð/Thermà Š àÔT€ Ô%€Changeà : àà Ð à/Therm݃ >ÛÕ%Œ&݌РÌ$  ЌԀX.ˆXXX.ˆÔÔ€X.ˆXXX.ˆÔÔÔÓN° ‚X¦*D%ŠxX° ‚X¦*D%Šx: Ð ŽXNÓÝ  ÝÌÝ‚ >ÛÿÝÔ€X.ˆXXX.ˆÔÔ€X.ˆXXX.ˆÔÔÔÓN%° ‚X¦*D%Šx: Ð ŽX° ‚X¦*D%ŠxXNÓÝ  ÝÝ‚ >Û+(ÝÝ  ÝRS„1€Residentialà ¸ àà ¦ à€€($€480,301)à D à€(1.373ðÅð)à Š à€€œ€›€(2.21%)ÔT€ Ôà : à€€à Ð àÔT€ Ô$0.60810݃ >Û+(â(݌Р¬&ü!! ЌԀX.ˆXXX.ˆÔÔ€X.ˆXXX.ˆÔÔÔÓN° ‚X¦*D%ŠxX° ‚X¦*D%Šx: Ð ŽXNÓÝ  ÝÓN%° ‚X¦*D% x‚,(#X° ‚X¦*D%ŠxXNÓRS„2€Residentialà ¸ àà ¦ àœ€›€$1,582,842à D à€€1.798ðÅðà  à€œ€€3.75%›à ¤ à€€€€€€$0.49802Ð œ'ì"" ÐGS„1€General€Serviceà ¸ àà ¦ à€€œñnñ€ñnñ›€($455,380)à D à€(0.571ðÅð)à  àœ€(1.24%)›à ¤ à€€€€€€$0.45394Ð Œ(Ü## ÐÓW(° ‚X¦*D%ô x‚,(#X° ‚X¦*D% x‚,(#XWÓT„1€Transportationà ¸ à€à ¦ à€€$1,544,975à D à€€œ1.204ðÅðà ô à€€€€€€ñpñ€ñpñ16.04%›à ¤ à€€€€€€$0.08710Ð |)Ì$$ ÐT„2€Transportationà ¸ àà ¦ à€œñuñ€ñuñ›€œñoñ€ñoñ›€($€17,555)à D à€(0.075ðÅð)à ô à€œà  à€(2.14%)›à ¤ à€€€€€€$0.03423Ð l*¼%% ЀÐ \+¬&& ЇÌÓ@Óà  àWith€the€exception€of€the€industrial€class,€Intermountain€Gas€Company€proposes€to€allocateÏthe€increase€(decrease)€to€each€of€its€customer€classes€in€accordance€with€its€Purchase€Gas€CostÏAdjustment€tariff€and€approved€cost„of„service€methodology€œ(Ref.€Case›€œNos.€INT„G„95„1,€ÌINT„G„88„2,›€œand€U„1034„137).›€€Because€there€are€no€fixed€costs€currently€recovered€in€theÏtailblock€of€Intermountain€Gas€Companyððs€T„1€tariff€and€because€the€proposed€œincrease›€in€the€T„1Ïtariff€is€related€to€fixed€costs€(except€for€the€TF„1€commodity€charge),€a€cents„per„therm€œincrease›€isÏmade€only€to€the€first€two€blocks€of€the€T„1€tariff.€€Two€blocks€of€Intermountain€Gas€CompanyððsÏproposed€T„1€tariff€and€the€T„2€tariff€have€been€adjusted€to€include€a€share€of€the€demand€chargesÏremoved€from€the€œWACOG.€€›€ÌÌò òPERMANENT€ADJUSTMENTó óÐ X¨  Ðà  àThe€Tracker€permanent€adjustment€transportation/storage€fixed€charges€reflect€increases€inÏthe€œtransportation€demand›€charge€by€NWP€of€$606,049,€the€addition€of€upstream€capacity€that€wasÏremoved€from€the€WACOG€of€$3,233,361,€and€discounts€on€contracted€transportation€pegged€toÏNWPððs€tariffs€of€($3,033,378).€€While€storage€demand,€reservation,€liquefaction€and€vaporizationÏcosts€had€increases€and€decreases€the€largest€dollar€changes€were€for€other€storage€facilities€cost€ofÏ$4,140,178€that€were€removed€from€the€WACOG€and€added€to€transportation.€€After€adjusting€œtheÏ1996€WACOG€for›€the€removal€of€transportation€cost€of€($6,867,141)€from€the€gas€supplies,€theÏcost€for€gas€increased€3.9%€or€$1,461,689€due€to€increasing€prices€and€the€continued€outlook€ofÏgas€supply€in€the€Northwest.ÌÌò òTEMPORARY€SURCHARGES€OR€CREDITSó óÐ <Œ Ðà  àThe€temporary€surcharges/credits€reflect€the€true„up€of€prior€period€costs€deferred€inÏIntermountain€Gas€Companyððs€186€accounts.€€The€surcharges/credits€are€broken€into€fixed€gas€andÏtransportation€costs,€variable€gas€and€transportation€costs,€shared€revenue,€interest,€NWPððs€refunds,Ïthe€removal€of€the€prior€year€temporary€œadjustment›€and€the€œsale›€of€segmented€space€underÏIntermountain€Gas€Companyððs€transportation€agreements.Ìà  àThe€largest€adjustments€contributing€to€holding€costs€down€were€œthe€Market›€SegmentationÏat€$2,720,219€and€the€Fixed€Cost€Collection€Adjustment€of€$2,904,228.€€The€deferred€cost€of€gasÏwas€an€increase€of€$5,747,429.ÌÌÔ‡X.ˆXXX.ˆÔÌÐ  +p&! Ðà  àÌà  àò òDATEDó ó€at€Boise,€Idaho,€this€€€€€€€€€€€€day€of€June€1997.Ð Ü, ÐñsñœñsñÌÌÌÓuC°ÀpÈ xÐ (#€%Ø'0*ˆ,à.813è5@8˜:ð<H? A° ‚X¦*D%ô x‚,(#XuÓà  àà À à___________________________________ÌñtñÓ@Óñtñà  àà À àScott€WoodburyÌà  àà À àDeputy€Attorney€GeneralÌÌÓ-°ö Àp’X°Àp’X-ÓTechnical€Staff:à ö àÐ ˆØ  Ðà  àà ö àMadonna€FaunceÌÌÔ‡\yXX.ˆÔSW:RPS:jo/comments\intg973.swmÐ X¨  ÐÔ#†X.ˆX\y¨9#ÔÔ#†X.ˆXXX.ˆN7#ÔñtñÓ@³8Óñtñ