20010921Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONERKJELLANDERCOMMISSIONERSMITHCOMMISSIONERHANSENJEANJEWELL
RANDY LOBB
DON HOWELL
DAVE SCHUNKE
BEV BARKER
RON LAW
GENE FADNESS
TONYA CLARK
WORKINGFILE
FROM:TERRI CARLOCK
DATE:SEPTEMBER21,2001
RE:IN THE MATTER OF QUESTARGAS COMPANY'SAPPLICATION FOREXEMPTIONUNDERIDAHOCODE§61-909.CASE NO.MOU-G-01-01.
RECOMMEND:APPROVAL
On September 5,2001,Questar Gas Company (Questar,Company)applied to the IdahoPublicUtilitiesCommissionforanorderememptingitfromtheprovisionsofIdahoCode,Title
61,Chapter 9.In the alternative Questar requests an exemption for the proposed issuance and
sale of $100 million in medium-term notes.
IDAHO CODE §61-909 provides that "The Commission may from time to time by order
or rule,and subject to the terms and conditions as may be prescribed therein,exempt any security
or any class of securities for which an application is required under this chapter or any publicutilityorclassofpublicutilityfromtheprovisionsofthischapterifitfindsthattheapplicationthereoftosuchsecurity,class of securities,public utility or class of public utilityis not requiredbythepublicinterest."
Questar,formerlyMountain Fuel Supply Company,provides gas services to IdahocustomersinandaroundPreston,Idaho.Coincident with the Idaho expansion granted in OrderNo.23282,dated August 9,1990,the Idaho Public Utilities Commission entered into aregulatorycompactwiththeUtahPublicServiceCommission(UPSC)allowingthe Company to
DECISIONMEMORANDUM l September 21,2001
provide service in Idaho under the regulatory tariffs and review of the UPSC.Idaho customers
have full rights of participation in Utah.
Comprehensive regulatory oversight of Questar rates and services has been completed by
the UPSC.This includes audit and scrutiny of all rate case components includingthe cost of
capital.Questar will continue to file annual reports with the Idaho Commission.Staff believes
exemption from IDAHO CODE §61-909 will not hinder the review process necessary to protect
Idaho customers of Questar.Staff recommends that filing under Idaho Code,Title 61,Chapter 9
is not required by the public interest.Accordingly Staff also recommends approval of the
Application to exempt Questar from the provisions of Idaho Code,Title 61,Chapter 9.
There is one housekeepingmatter.In January 1998,Mountain Fuel Supply Company
changed its name to Questar Gas Company.Although the Commission was notified of the name
change,the Company's Certificate No.315 was not changed.The Staff recommends that the
Commission take this opportunityto also amend the Company's Certificate of Public
Convenienceand Necessity to reflect the name change.
COMMISSION DECISION
Should Questar Gas Company be exempt from Idaho Code,Title 61,Chapter 9?
Should Certificate of Public Convenience and Necessity No.315 be changed to reflect the
name change from Mountain Fuel Supply Company to Questar Gas Company?
Terri Carlocktearloc\moug0101.901
DECISION MEMORANDUM 2 September 21,2001