20160406order_no_33496.pdf

Office of the Secretary
Service Date
April 6.2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT NOTICE )
AND APPLICATION OF QUESTAR GAS )CASE NO.QST-G-16-O1
COMPANY AND DOMINION RESOURCES,)
INC.OF THEIR PROPOSED MERGER )ORDER NO.33496
________________________________________________________________________________________________
)
In August 1990,the Commission issued Order No.23282 granting a Certificate of
Public Convenience and Necessity to Questar Gas Company’s predecessor,Mountain Fuel
Supply Company.The Commission’s Certificate authorized the utility to serve customers in
Franklin County,Idaho with natural gas utility services.Order No.23282 also approved “a
regulatory service contract”with the Utah Public Service Commission pursuant to Idaho Code §
61-505.This section allows the Idaho Commission “to contract with regulatory agencies of
neighboring states ...[to]set rates and charges for customers in Idaho located in or nearby
border communities served by utilities principally located in’neighboring states.
On March 3,2016,Questar filed a “Notice of Agreement and Plan of Merger”
between itself and Dominion Resources,Inc.dated January 31,2016.Dominion is a utility
holding company headquartered in Virginia and operates natural gas and electric utilities in a
number of states.In their Notice,the parties assert that Dominion Resources will acquire
Questar Corporation and change the name of the utility serving Idaho to Dominion Questar Gas.
The gas utility “will continue its tradition of providing safe and reliable service at reasonable
costs to its customers in Utah,Idaho and Wyoming.Regulation of Questar Gas will not be
affected by the Merger.”Transmittal Letter at 1-2.In their Notice,the parties state that “no
change will be made to Questar Gas’s existing filed rates,rules,regulations and classifications
under its existing tariff as a result of the Merger.”Notice at 13.
Given the pending transaction between Dominion and Questar,the Idaho Staff
recommended that the 1990 regulatory contract between the Utah and Idaho Commissions be
updated.The Idaho Staff submitted an updated draft regulatory contract for review by the Utah
Commission.The Utah Commission opened a docket inviting public comment on the proposed
contract on March 11,2016.No comments were filed in the Utah docket and the Chairman of
the Utah Commission executed the contract on March 23,2016.
ORDER NO.33496
THE UPDATED CONTRACT
The updated regulatory contract between the two Commissions removes all
references to “Mountain Fuel Supply Company”;updates citations concerning references to the
Idaho Commission’s winter moratorium Rule 306,IDAPA 3 1.21.01.306;and provides that the
contract shall be renewed automatically each year on April 1 subject to termination by either
party upon written notice.The new contract also deletes a former provision regarding the
sharing of Idaho regulatory fees for Questar.The Idaho Staff recommended deleting this clause
because the Idaho Commission currently performs natural gas safety inspections for Questar —
authority that Idaho did not exercise when the regulatory contract was first initiated in 1990.The
new contract contains other minor changes regarding notice provisions and formatting changes.
LEGAL STANDARDS
Idaho Code §61-505 provides that before the Commission may enter into a
regulatory service contract with a neighboring state,it must make several findings.These
findings include:(1)the continued provision of utility service by Questar is in the public
interest;(2)it is impractical or not in the public interest for the Idaho Commission to regulate the
utility principally-located in Utah;(3)affected Idaho residents have full rights of participation
before the Utah Public Service Commission and exercise the same rights as Utah customers;and
(4)the rates,charges and service regulations for Idaho customers are not less favorable than
those in Utah.
DISCUSSION AND FINDINGS
We have reviewed the updated contract for regulatory services between the Idaho and
Utah Commissions.We find the changes to the agreement outlined above to be reasonable and
appropriate.We also note that the Utah Commission opened a docket and invited public
comment on the proposed contract.No comments were received and the Chairman of the Utah
Commission executed the contract and returned it to Idaho on March 23,2016.
Consistent with the criteria laid out in Idaho Code §6 1-505(3),we find that:
1.The continued provision of natural gas utility service to Franklin County
by Questar and any successor is in the public interest;
2.It is impractical or not in the public interest for the Idaho Commission to
conduct proceedings for Questar’s operation in Franklin County separate
from proceedings conducted by the Utah Commission for Questar
ratepayers located in Utah;
ORDER NO.33496
3.Questar’s Idaho customers located in Franklin County have full rights of
participation in hearings conducted by the Utah Commission and the same
rights as Utah customers have to pursue service-related issues against
Questar;and
4.The rates,charges and services applicable to Questar’s Idaho customers
are not less favorable than those of Questar’s customers located in Utah.
Consequently,we find that it is in the public interest for us to execute the new
contract for regulatory services with the Utah Commission.As the case with our prior contract,
Idaho’s winter moratorium Rule 306,IDAPA 3 1.21.01.306,shall apply to Questar’s customers
located in Idaho.We appreciate the assistance of the Utah Commission for its services in
regulating the rates and services provided by Questar to Idaho customers.
ORDER
IT IS HEREBY ORDERED that the updated contract for regulatory services between
the Idaho Public Utilities Commission and the Utah Public Service Commission is approved.
IT IS FURTHER ORDERED that the Commission Secretary forward a copy of the
executed contract to the Utah Commission for its records.The Utah Commission may serve its
orders and notices regarding its Questar proceedings to our Commission Secretary at:
ccretary puc.a gpv
ORDER NO.33496 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of April 2016.
ATTEST:
KRISTINE RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
/1tJ /Q
J4n D.Jewell(/
Gmmission S4écretary
bIs/O:QST-G 16-01 don
ORDER NO.33496 4
CONTRACT FOR REGULATORY SERVICES
This contract is entered into by and between the IDAHO PUBLIC UTILITIES
COMMISSION (hereinafter IPUC),whose principal office is located at 472 West Washington
Street,Boise,Idaho 83702-59 18,telephone [phone],and the UTAH PUBLIC SERVICE
COMMISSION (hereinafter UPSC),whose principal office is located at 160 East 300 South,Salt
Lake City,Utah 84111,telephone [phone].
WHEREAS,IPUC has the power and authority pursuant to Idaho Code §61-505(2)to
“contract with the regulatory agencies of neighboring states to ...set rates and charges for
customers in Idaho located in or near border communities served by utilities principally located
in”neighboring states,and,
WHEREAS,Questar Gas Company,whose principal office is located at 180 East First
South,P0 Box 11368,Salt Lake City,Utah 84139,serves natural gas customers in Utah,
Wyoming,and Idaho,and,
WHEREAS,Questar Gas is a public utility regulated by UPSC,and,
WHEREAS,IPUC has found that the provision of utility service to customers in Franklin
County by Questar Gas is in the public interest and has issued Certificate of Public Convenience
and Necessity No.315 to Questar Gas,and,
WHEREAS,the IPUC and UPSC previously entered into a contract for regulatory
services dated August 1990,and,
WHEREAS,the IPUC shall maintain its pipeline safety supervision over Questar Gas’s
facilities located in Idaho,and,
WHEREAS,IPUC has found that it is impractical or not in the public interest to conduct
regulatory proceedings for affected Idaho residents separate from the proceedings conducted by
UPSC for Questar Gas’s Utah ratepayers,and,
WHEREAS,Questar Gas’s parent (Questar Corporation)and Dominion Resources,Inc.,
have entered into an Agreement and Plan of Merger dated January 3 1,2016,by which (if
approved)Questar Corporation will become a wholly owned subsidiary of Dominion and
Questar Gas will subsequently be known as Dominion Questar Gas.
CONTRACT FOR
REGULATORY SERVICES 1
WITNES SETH:
1.Scope.The IPUC and UPSC hereby contract and agree that the rates,charges and
service regulations adopted by UPSC for Questar Gas in Utah shall be applied to similarly
situated customers served by Questar Gas in Idaho and that the findings,decisions and orders of
the UPSC are presumptively correct and will take effect according to the terms of the order of
the UPSC,with review as provided by idaho Code §61-505(4).Idaho residents who receive
utility service from Questar Gas will be accorded full rights of representation and participation in
the hearings conducted by UPSC concerning Questar Gas as well as the same rights that Utah
customers have to pursue service-related issues.The rates,charges and service regulations for
Idaho customers will not be less favorable than those of similarly situated Utah customers.
2.Winter Moratorium,It is further agreed that Idaho customers of Questar Gas will be
subject to Rule 306 of the IPUC Customer Relations Rules for Gas,Electric and Water Public
Utilities,IDAPA 31.21.01.306,for purposes of disconnection of natural gas service during the
winter months of December through February.
3.Revenue,Expenses,Service.UPSC agrees to include the revenue,investment and
expenses of Questar Gas’s Idaho service territory in its calculation of rates and charges for
Questar Gas.UPSC agrees to place the IPUC on its service lists for any cases involving Questar
Gas so that IPUC may receive all orders,notices,etc.that are issued in cases that involve
Questar Gas.
4.Toll-Free Number.UPSC agrees to provide toll-free telephone access to Idaho
customers of Questar Gas to contact the UPSC.
5.Term and Renewal.It is the intent of IPUC and UPSC that this contract have an
initial term of one (1)full calendar year from April 1,2016,and shall be renewed automatically
for additional one (1)year terms,subject to the Termination provision below.
6.Termination.Either party may provide written notice of termination of this contract
prior to the expiration of the initial term or each one (1)year renewal term.This contract may be
discontinued and terminated pursuant to the applicable laws of either Idaho or Utah.
7.IPUC Review.IPUC may review this contract or rates applied to Idaho residents
pursuant to this contract upon petition of Idaho customers of Questar Gas upon the conditions
provided by Idaho Code §61-505(4),namely:a showing that all remedies with the UPSC have
been exhausted,that all remedies with Questar Gas have been exhausted and that Idaho
CONTRACT FOR
REGULATORY SERVICES 2
customers have been discriminatorily,preferentially or otherwise unlawfully treated by the
UPSC.
8.Written Notice.Any notice given in connection with this contract shall be in writing
and shall be delivered either by hand to the other party,by certified mail,postage prepaid,return
receipt requested,to the addressee provided below or by facsimile transmission to the other party
at the facsimile number below.Notice shall be deemed delivered immediately upon personal
service or facsimile transmission or forty-eight (48)hours after depositing notice or demand in
the United States mail.Either party may change its address by giving written notice of the
change to the other party.
TO:TO:
Idaho Public Utilities Commission Utah Public Service Commission
P0 Box 83720 160 East 300 South
Boise,ID 83720-0074 Salt Lake City,UT 84111
Telephone:[phone] Telephone:[phone]
FAX:[phone] FAX:[phone]
ATTN:Commission Secretary ATTN:Commission Secretary
Street Address for Express Mail:
472 W.Washington Street
Boise,ID 83702-5918
9.Headings.The headings have been inserted for convenience solely and are not to be
considered when interpreting the provisions of this contract.
10.Counterparts.This contract may be executed in two (2)or more counterparts,each
of which shall be deemed an original but all of which together shall constitute one and the same
instrument.
12.Sovereign Immunity.Nothing in this contract shall be construed as a waiver of
Idaho’s or Utah’s sovereign immunity,which immunity is hereby expressly reserved.
CONTRACT FOR
REGULATORY SERVICES 3
DATED this day of M1arch 2016.
IDAHO PUBLIC UTILITIES COMMISSION
By
Paul Kjellander,Presl4 t
UTAH PUBLIC SERVICE COMMISSION
By
Thad LeVar,Chairman
bls/M:ContractUPSCdh
CONTRACT FOR
REGULATORY SERVICES 4