28068.doc

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-99-1

NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
ORDER NO. 28068

YOU ARE HEREBY NOTIFIED that on May 14, 1999, 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 increase of approximately $9.6 million in its annualized revenues. The increase 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-98-4), 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-98-4 Elimination of Temporary Surcharges/Credits ($ 644,603)
 Change in WGP-W rates/charges $1,963,300
 Change in storage costs $ 457,385
 Cost of Gas Supply $5,677,983
Temporary Surcharges or Credits
Deferred Gas Costs (IGC PGA Acct 186)
 NWP Refund Docket No. RP93-5 ($649,565)
 Variable Cost Collection Adjustment ($ 417,248)
 Uncollected Gas Costs $5,195,949
 Market Segmentation ($2,189,891)
 Storage credit ($ 465,603)
Fixed Gas Cost Misc ($ 709,039)
As computed by the Company, the total requested increase in revenue on an annual basis is $9,637,020 or 8.46%. The net increase in sales gas revenues is $9,405,663 or 8.61%. The increase in T-1 transportation service revenues is $182,684 or 4.56%. The net increase in T-2 transportation service revenues is $48,673 or 6.52%. 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
$1,212,193
3.416¢
5.66%
$0.63757
RS-2 Residential
$4,928,297
4.854¢
9.94%
$0.53698
GS-1 Genl Svc
$ 3,265,173
3.883
8.55%
$0.49323
LV-1 Large Vol. *
* T-1 tariff price plus the Weighted Average Cost of Gas (WACOG), $0.18252
(Compare WACOG INT-G-98-4: $0.15684)
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.
$182,684
0.393
4.56%
$0.09003
T-2 Transp.
$ 48,673
0.224
6.52%
$0.03661
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 increase in the T-1 tariff is related to fixed costs (except for TF-1 commodity charge), a cents-per-therm increase 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 increase in the T-2 tariff (except for TF-1 commodity charge) is fixed cost related and, therefore, a cents per therm increase 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.
Intermountain Gas requests that its Application be processed under Modified Procedure, i.e., by written submission rather that by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204. The Company has requested an effective date of July 1, 1999.
YOU ARE FURTHER NOTIFIED that the Commission Staff recommended that the Company’s Application and proposed July 1 effective date be suspended for thirty (30) days for failure to comply with the Commission’s Rules for Notice to Customers of Proposed Changes in Rates (including tracker rate increases) as set out in the Utility Customer Information Rules of the Commission, IDAPA 31.21.02.102. The Commission was apprised that the Company had not provided the individual advance notice to customers required by Rule 102, but had simply done a press release and posted a notice in its offices. Pursuant to Rule 102.05 failure to comply with the Commission’s notice requirements can be grounds for returning an Application for incompleteness.
The Commission was apprised by the Company that individual notice to customers was being prepared and will be provided to all customers before the end of June. The Company reminded the Commission that the Customer Information Rules do not create separate due process or other procedural rights in customers and that the Commission upon a showing of good cause has the discretion under Idaho statute and Commission Rules of Procedure to approve changes in rates on less than thirty (30) days notice. Reference Idaho Code § 61-307.
The Commission considered the recommendation of Staff, the comments of the Company, Title 61 of the Idaho Code, the Commission’s Rules of Procedure and the Commission’s customer notice requirements and determined that based on the existing record in this case no suspension was required at this time. The Commission will consider the comments filed pursuant to Notice in this case to determine whether future suspension is appropriate.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. INT-G-99-1. 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. INTG99-1 is Thursday, June 24, 1999. 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 addresses:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
Street Address for Express Mail:
472 W WASHINGTON ST
BOISE, ID 83702-5983 RUSSELL WORTHAN
VICE PRESIDENT
GOVERNMENTAL AFFAIRS & RESOURCE
PLANNING
INTERMOUNTAIN GAS COMPANY
PO BOX 7608
BOISE, ID 83707

MORGAN W. RICHARDS, JR., ESQ.
PO BOX 829
BOISE, ID 83701
All comments should contain the case caption and case number shown on 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 South 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.
IT IS FURTHER ORDERED that Commission Staff’s recommendation to suspend the proposed effective date of July 1, 1999, by 30 days for failure to provide individual customer notice pursuant to the Commission’s Rules for Notice to Customers of Proposed Changes in Rates is denied. Reference IDAPA 31.21.02.102

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of June 1999.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

vld/O:INT-G-99-1_sw.doc

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
ORDER NO. 28068 1

Office of the Secretary
Service Date
June 4, 1999