HomeMy WebLinkAbout27562.docx(text box: 1)BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF INTERMOUNTAIN GAS COMPANY FOR AUTHORITY TO CHANGE ITS PRICES.
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CASE NO. INT-G-98-4
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
ORDER NO. 27562
YOU ARE HEREBY NOTIFIED that on May 29, 1998, Intermountain Gas Company (IGC; Company) filed an Application with the Idaho Public Utilities Commission (Commission) for authority to place into effect new rate schedules that would result in an overall decrease of approximately $1.1 million in its annualized revenues. The decrease reflects a change in the Company’s cost of gas and the elimination and/or imposition of a number of temporary gas and transportation cost adjustments, surcharges and credits. The Company in its filing also proposes to balance out its Purchased Gas Cost Adjustment (PGA), Account 186. The PGA Account is a deferral mechanism for over- and under-collections and for realized savings on spot market gas purchases.
The proposed adjustments reflected in the Application include changes in costs billed IGC by Williams Gas Pipelines-West (WGP-W) and other transportation companies, the elimination of temporary surcharges and credits (INT-G-97-3), an increase in the Company’s weighted average cost of gas (WACOG), the benefits generated from the Company’s segmentation of its firm capacity rights on WGP-W’s system, the inclusion of temporary surcharges and credits relating to gas and transportation related costs from the Company’s deferred gas cost account (PGA Account 186), and an updated customer allocation of gas-related costs.
The Application proposes implementation of the following permanent and temporary changes, adjustments, surcharges and credits to IGC’s tariff rates for natural gas service, sales and transportation:
Permanent Adjustments:
●INT-G-97-3 Elimination of Temporary Surcharges/Credits($ 120,813)
●Change in WGP-W rates/charges ($294,183)
●Fixed Cost Collection($196,798)
Temporary Surcharges or Credits
Deferred Gas Costs (IGC PGA Acct 186)
●NWP Refund Docket No. RP96-367($2,000,000)
●Variable Cost Collection Adjustment($ 44,772)
●Uncollected Gas Costs $4,953,484
●Market Segmentation($2,433,688)
●Fixed Gas Cost Misc ($ 952,176)
As computed by the Company, the total requested decrease in revenue on an annual basis is $1,091,471 or 0.94%. The net decrease in sales gas revenues is ($1,031,435) or (1.00%). The decrease in T-1 transportation service revenues is ($130,501) or (1.15%). The net increase in T-2 transportation service revenues is $70,465 or 18.83%. The annualized change in rates by class of service per Company calculation is as follows:
Gas Sales
Revenue
Avg Increase (Decrease)
¢/Therm
Avg Increase (Decrease)
% Change
Proposed Avg Price
$/Therm
RS-1 Residential
($162,712)
(0.469¢)
(0.77%)
$0.60341
RS-2 Residential
($ 904,852)
(0.958¢)
(1.92%)
$0.48844
GS-1 Genl Svc
$ 36,129
0.046¢
0.10%
$0.45440
LV-1 Large Vol. *
* T-1 tariff price plus the Weighted Average Cost of Gas (WACOG), $0.15684
(Compare WACOG INT-G-97-3: $0.14869)
WACOG = total commodity cost of gas ÷ total purchase therms
Transportation
Revenue
Avg Increase (Decrease)
¢/Therm
Avg Increase (Decrease)
% Change
Proposed Avg Price
$/Therm
T-1 Transp.
($ 130,501)
(0.100¢)
(1.15%)
$0.08610
T-2 Transp.
$ 70,465
0.311¢
18.83%
$0.01963
With the exception of the Industrial Class, IGC proposes to allocate the change in rates to each of its customer classes in accordance with its Purchased Gas Cost Adjustment tariff and approved cost-of-service methodology. (Ref. Case Nos. INT-G-95-1, INT-G-88-2, U-1034-137). Because there are no fixed costs currently recovered in the tailblock of IGC’s T-1 tariff and because the proposed decrease in the T-1 tariff is related to fixed costs (except for TF-1 commodity charge), a cents-per-therm decrease is made only to the first two blocks of the T-1 tariff. All three blocks of IGC’s proposed T-1 tariff have been adjusted to include WGP-W’s firm transportation TF-1 commodity charge. The proposed decrease in the T-2 tariff (except for TF-1 commodity charge) is fixed cost related and, therefore, a cents per therm decrease was made only to the T-2 demand charge. The commodity charge component of the T-2 tariff was adjusted to include WGP-W’s firm transportation TF-1 commodity charge.
IGC contends that the overall change in prices requested will not affect its earnings and is fair, just and equitable. IGC further contends that the public interest does not require suspension of the Application or further investigation into its reasonableness by hearing. The Company requests that the matter be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204. The Company requests an effective implementation date of July 1, 1998.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. INT-G-98-4. The Commission has preliminarily determined that the public interest may not require a hearing to consider the issues presented, and that the issues raised by the Company’s filing may be processed under Modified Procedure.
YOU ARE FURTHER NOTIFIED that the Commission will not hold a hearing in this proceeding unless it receives written protests or comments opposing the use of Modified Procedure and stating why Modified Procedure should not be used. Reference IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or protests with respect to the Application and the use of Modified Procedure in Case No. INT-G-98-4 is Wednesday, June 24, 1998. Persons desiring a hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that if no protests or comments are received within the deadline, the Commission may consider the matter and enter its order without a hearing. If protests or comments are filed within the deadline, the Commission will consider them and may set the matter for hearing or may decide the matter and issue its order on the basis of the written positions before it. Reference IDAPA 31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning this Application must be mailed to the Idaho Public Utilities Commission and the Intermountain Gas Company at the following address:
COMMISSION SECRETARYRUSSELL L. WORTHAN, VICE PRESIDENT
IDAHO PUBLIC UTILITIES COMMISSIONGOVERNMENTAL AFFAIRS & RESOURCE PLANNING
PO BOX 83720INTERMOUNTAIN GAS COMPANY
BOISE, IDAHO 83720-0074PO BOX 7608
BOISE, ID 83707
Street Address for Express Mail:
And
472 W WASHINGTON ST
BOISE, IDAHO 83702-5983MORGAN W. RICHARDS, JR., ESQ.
PO BOX 829
BOISE, ID 83701
All comments filed should contain the case caption and case number shown the first page of this document.
YOU ARE FURTHER NOTIFIED that the Application in Case No. INT-G-98-4 together with accompanying exhibits and workpapers can be reviewed at the Commission’s office and at the principal office of Intermountain Gas Company during regular business hours. Intermountain Gas Company is located at 555 S. Cole Road in Boise, Idaho (377-6000).
O R D E R
In consideration of the foregoing and as more particularly described above, IT IS HEREBY ORDERED that the foregoing scheduling be adopted.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this day of June 1998.
DENNIS S. HANSEN, PRESIDENT
RALPH NELSON, COMMISSIONER
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Myrna J. Walters
Commission Secretary
vld/O-intg984.sw
COMMENTS AND ANNOTATIONS
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Service Date
June 5, 1998