20231024Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:MATTHEW SUESS
DATE:OCTOBER 24,2023
SUBJECT:TARIFF ADVICE REGARDING REVISIONS TO SECTION C OF
INTERMOUNTAIN GAS COMPANY'S GENERAL SERVICE
PROVISIONS
BACKGROUND
On September 29,2023,Intermountain Gas Company ("Company")filed Tariff Advice
Case No.INT-TAG-23-01 ("TariffAdvice")with the Idaho Public Utilities Commission
("Commission")requesting to revise Section C of the tariff's General Service Provisions,
Installation and Extension of Natural Gas Mains and Services for Residential and Commercial
Customers.The Company's Tariff Advice proposes to update the Allowable Investment Factors
("AIF"),the Service Line Cost per Foot ("SLCPF"),and the construction overhead charge in
accordance with Commission Order No.34735 ("Order").The Company requests these
revisions be approvedby November 1,2023,and become effective on December 1,2023.
STAFF ANALYSIS
Staff reviewed the updates proposed in the Tariff Advice and recommends the
Commission approvethe revised Section C of the tariff,as filed,with an effective date of
December 1,2023.The Company is required by the Order to file an annual tariff advice,by
October 1,to update the three AIFs and other standard charges.The Company filed this year's
Tariff Advice on September 29,2023.
DECISION MEMORANDUM -1 -OCTOBER 24,2022
Staff reviewed the Company's workpapers,calculations,and data inputs for the three
proposed AIFs,the SLCPF and overhead standard charges.Throughits review,Staff verified
that the calculation methods used to update Section C of the tariff are consistent with the Order.
For Service Line extensions,the proposed AIFs increased between 2.3 and 3.2 percent,
and the SLCPF increased 7.7 percent.For Main Line extensions,the proposed AIFs increased
between 13.4 and 14.2 percent,and the construction overhead charge increased from 9.0 to l1.0
percent.Staff believes these higher AIFs and standard charges are reasonable due to ongoing
inflationarypressure on labor and materials.
RECOMMENDATION
Staff recommends the Commission approve the revised tariff sheet as filed,reflecting
updates to the AIFs,the SLCPF,and the construction overhead charge,with an effective date of
December 1,2023.
COMMISSION DECISION
Does the Commission wish to accept the Company's proposed revisions and the
submitted revised Section C tariff sheet with an effective date of December 1,2023?
Matthew Sue
Udmemos/INT-TAG-23-01 Decision Memo
DECISION MEMORANDUM -2 -OCTOBER 24,2022