20180323Intermountain Gas Report.pdf

EXECUTIVE OFFICES
I urgnvouNTArru Gns Corraparuv
555 SOUTH COLE ROAD . P.O. BOX 7608 . BOISE, |DAHO 83707 . [phone] o FAX:[phone]
REC E IVE D
?fi10 H&R 23 PH 3: 5 |
March 23,2018
Ms. Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472 W . Washington Street
P.O. Box 83720
Boise, ID 83720-0074
Intermountain Gas Company
Case No. GNR-U-18-01
Dear Ms. Hanian:
Enclosed for filing with this Commission is an original and seven (7) copies of Intermountain
Gas Company's Application seeking approval to place into effect a Decrease in Its Rates to
Reflect the Impact of Tax Code Revisions.
Please acknowledge receipt of this filing by stamping and returning a copy of this Application
cover letter to us.
Should you have any suggestions regarding the attached, please don't hesitate to contact me at
[phone].
Very truly yours,
RE
Michael P.
Director, Regulatory Affairs
Intermountain Gas Company
Enclosure
cc: Mark Chiles
INTERMOUNTAIN GAS COMPANY
CASE NO. GNR.U.18.O1
APPLICATION,
EXHIBITS,
ANI)
WORKPAPERS
In the Matter of the Application of INTERMOUNTAIN GAS COMPANY
for Approval to Place into Effect
a Decrease in Its Rates to Reflect the Impact of Tax Code Revisions
Morgan W. Richards, Jr. ISB 1913
Richards Law Office
P.O. Box 2076
Boise, Idaho 83701
Telephone: [phone]
Attorney for Intermountain Gas Company
In the Matter of the Application of
INTERMOUNTAIN GAS COMPANY fOT
Approval to Place into Effbct a Decrease in
Its Rates to Reflect the Impact of Tax Code
Revisions
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
Case No. GNR-U-18-01
APPLICATION
COMES NOW, Intermountain Gas Company ("lntermountain" or "Company"), a subsidiary
of MDU Resources Group, lnc. with general offices located at 555 South Cole Road, Boise, Idaho,
pursuant to the Rules of Procedure ofthe Idaho Public Utilities Commission ("Commission"), hereby
requests authority, pursuant to Idaho Code Sections 6l-307 and 6l-622, to place into effect April l,
2018 new rate schedules which will decrease its annualized revenues by $4,966,895. Because of
changes in Intermountain's income tax related costs, as described more fully in this Application,
Intermountain's earnings will not be impacted as a result of the proposed decreases in prices and
revenue. Intermountain's current rate schedules showing proposed changes are attached hereto as
ExhibitNo. I and are incorporated herein by reference. Intermountain's proposed rate schedules are
attached hereto as Exhibit No. 2 and are incorporated herein by reference.
Communications in reference to this Application should be addressed to:
Michael P. McGrath
Director - Regulatory Affairs
Intermountain Gas Company
Post Office Box 7608
Boise, lD 83707
and
Morgan W. Richards, Jr.
Richards Law Office
P.O. Box 2076
Boise, Idaho 83701
APPLICATION.2
In supporl of this Application, Intermountain does allege and state as follows:
I.
Intermountain is a gas utility, subject to the jurisdiction of the Idaho Public Utilities
Commission, engaged in the sale of and distribution of natural gas within the State of ldaho under
authority of Commission Certificate No. 219 issued December 2,1955, as amended and
supplemented by Order No. 6564, dated October 3, 1962.
Intermountain provides natural gas service to the following Idaho communities and counties
and adjoining areas:
Ada County - Boise, Eagle, Garden City, Kuna, Meridian, and Star;
Bannock County - Arimo, Chubbuck,Inkom, Lava Hot Springs, McCammon, and Pocatello;
Bear Lake County - Georgetown, and Montpelier;
Bingham County - Aberdeen, Basalt, Blackfoot, Firth, Fort Hall, Moreland/Riverside, and Shelley;
Blaine County - Bellevue, Hailey, Ketchum, and Sun Valley;
Bonneville County - Ammon, Idaho Falls, Iona, and Ucon;
Canyon County - Caldwell, Greenleaf, Middleton, Nampa, Panna, and Wilder;
Caribou County - Bancroft, Grace, and Soda Springs;
Cassia County - Burley, Declo, Malta, and Raft River;
Elmore County - Glenns Ferry, Hammett, and Mountain Home;
Fremont County - Parker, and St. Anthony;
Gem County - Emmett;
Gooding County - Gooding, and Wendell;
Jefferson County - Lewisville, Menan, Rigby, and Ririe;
Jerome County - Jerome;
Lincoln County - Shoshone;
Madison County - Rexburg, and Sugar City;
Minidoka County - Heyburn, Paul, and Rupert;
Owyhee County - Bruneau, and Homedale;
Payette County - Fruitland, New Plymouth, and Payette;
Power County - American Falls;
Twin Falls County - Buhl, Filer, Hansen, Kimberly, Murtaugh, and Twin Falls;
Washington County - Weiser.
Intermountain's propefties in these locations consist of transmission pipelines, a liquefied
natural gas storage facility, distribution mains, services, meters and regulators, and general plant and
equipment.
II.
Intermountain seeks with this Application to pass through to each of its customer classes a
decrease in its rates to reflect the impact of tax code revisions at both the state and federal level.
APPLICATION.3
IIL
Intermountain's currently effective rates were approved by this Commission in Case No.
INT-G-17-05 (October 1,2017 Purchased Gas Cost Adjustment Filing), OrderNo.33887, dated
September 25,2017. These same rates included the base rates established as part of Case No. INT-G-
l6-02, Order No. 33879.
Iv.
As part of Case No. GNR-U-18-01, OrderNo. 33965, the Commission directed each rate-
regulated utility (besides small water companies with less than 200 customers, and the small electric
utility, Atlanta Power) to file, among other things, revised tariffs that reflect changes in the federal
income tax code that resulted from the passage of the Tax Cuts and Jobs Act of 2017.
v.
Changes to the federal income tax code applicable to Intermountain Gas Company included:
l) A reduction in the tax rate from 35%o to 27oh and,2) A requirement to remeasure regulatory
deferred taxes representing the difference between the old and new federal tax rates.
VI.
Subsequent to Order No . 33965 , on March 12,2018, the Govemor of the State of Idaho signed
into law a decrease in the state corporate income tax rate from7.4%oto 6.925oh retroactive to January
l,20lg.
VII.
The change in plant related deferred income taxes as promulgated by the new federaltax code,
or "excess deferred tax", becornes a regulatory liability and is subsequently amortized over the life of
the underlying plant in order to comply with income tax normalization as prescribed by the Intemal
Revenue Code. "Non-plant" deferred taxes are likewise remeasured, and the difference is included
herein as a regulatory asset to be amortized over a proposed ten (10) year life.
YIIL
The rates included within this Application reflect: l) A change in both the federal and state
income tax rates and,2) The amortization of the change in the Company's excess deferred income
taxes as referred to in paragraph VII above.
APPLICATION - 4
IX.
The base rates of Intermountain Gas Company were established as part of Case No. INT-G-
16-02, Order No. 33879. These same base rates reflected federal and state taxable income, as well as
total tax expenses, as attached hereto on Exhibit No. 3 and as incorporated herein by reference.
x.
The re-measurement of the Company's excess deferred income taxes, both plant and non-
plant, is included, and incorporated herein by reference, as Exhibit No. 4.
xI.
The new, and lower, federal and state income tax rates, along with the application of the
amortization of the re-measured excess deferred income taxes, are applied to the Company's existing
base rates as shown on Exhibit No. 5. After the application of these aforementioned changes, the
resultant decrease to the Company's base rate revenues is $4,966,895 as shown on Line 16, Col. (d)
of Exhibit No. 5. Exhibit No. 5 is incorporated herein by reference.
XII.
Also included as part of Commission Order No. 33965 is a requirement to report 2017 taxes
pre, and post, tax reform. Exhibit No. 6 provides this reporting on a norrnalized basis to include the
removal of expense category items eliminated as part of Case No. INT-G-16-02, Order No. 33879.
However, the remaining expenses included in O&M, book depreciation, and other expense items are
included on ExhibitNo.6 at 20l7levels. These types of expense variances are not, and should not
be, flowed through to the Company's base rates designed herein to capture only the impact of the
change in federal and state income tax codes. Exhibit No. 6 is incorporated herein by reference.
xIIL
The $4,966,895 shown on Line 16, Col. (d) of Exhibit No. 5 has been spread to the Company's
customer classes in a manner identical to the Base Rate Revenue allocation included in Case No. INT-
G-16-02, Order No. 33879. Exhibit No. 7 details that customer class allocation and is incorporated
herein by reference.
XIV.
Also as part of Case No. GNR-U-18-01, Order No. 33965, the Commission required
Intermountain to establish a regulatory liability, effective January 1,2018, to capture an estimate of
the difference in the Company's rates pre, and post, tax reform. Intermountain has established this
regulatory liability and is hereby requesting that those same deferred customer benefits be included,
APPLICATION.5
and audited by the Commission Staff, as part of the Company's 201 8 PGA Application and be passed-
back over the subsequent twelve (12) month PGA period.
xv.
ExhibitNo.8 is an analysis of the overall price reduction by class of customer. ExhibitNo.
8 is attached hereto and incorporated herein by reference
XVI.
The proposed price changes herein requested among the classes of service of Intermountain
reflect a just, fair, and equitable pass-through of changes in federal and state income taxes to
Intermountain' s customers.
XVII.
This Application has been brought to the attention of Intermountain's customers through a
Customer Notice and by a Press Release sent to daily and weekly newspapers, and major radio and
television stations in Intermountain's service area. The Press Release and Customer Notice are
attached hereto and incorporated herein by reference. Copies of this Application, its Exhibits, and
Workpapers have been provided to those parties who have intervened in Intermountain's portion of
this generic rate proceeding.
XVIII.
lntermountain requests that this matter be processed pursuant to Rules 201-204 under the
Commission's Rules of Modified Procedure. Intermountain stands ready to respond to any requests
for information in this matter.
APPLICATION - 6
WHEREFORE, Intermountain respectfully petitions this Commission for relief as follows:
1. That the proposed rate schedules herewith submitted as Exhibit No. 2 be approved without
suspension and made effective as of April l, 2018 in the manner shown on Exhibit No. 2.
2. That this Application be heard and acted upon without hearing under modified procedure.
3. That Applicant be authorized to pass-back the regulatory liability established pursuant to
OrderNo. 33965 as part of the Company's 2018 PGA Application, and
4. For such other relief as this Commission may determine proper herein
DATED at Boise,ldaho, this 23rd day of March,2018.
INTERMOUNTAIN GAS COMPANY Richards Law Office
By
Michael
D Regulatory Affairs
By il*r^Q. P,-CJY,uorg-nF. ni"h*ds, Ji. /
Attorney for Intermountain Gas Company
APPLICATION - 7
CERI'IF ICATE OF MAILINC
I HEREBY CERTIFY that on this 23rd day of March, 2018, I served a copy of the foregoing Case
No. GNR-U-18-01 upon:
Ed Finklea
Northwest Industrial Gas Users
545 Grandview Drive
Ashland, OR 97520
by depositing true copies thereof in the United States Mail, postage prepaid, in envelopes addressed
to said persons at the above addresses.
- Regulatory Affairs
APPLICATION.8
EXHIBIT NO. 1
CASE NO. GNR-U-18.01
INTERMOUNTAIN GAS COMPANY
CURRENT TARJFFS
Showing Proposed Price Changes
(9 pages)
Exhibit No. 1
Case No. GNR-U-18-01
lntermountain Gas Company
Page 'l of 9
INTERMOUNTAIN GAS COMPANY
Comparison of Proposed Aprill,2018 Prices
To October 1,2017 Prices
Line
No.Rate Class
October 1, 2017
Prices
Proposed
Adjustment(1)
Proposed
Aprill,2018
Prices
(a)(b)(d)(c)
1RS
GS-1
1o ls'R (2)
Block 1
Block 2
Block 3
Block 4
CNG Fuel
Block 1
Block 2
0 59648
0.57130
0,54699
0.47347
0.54699
0.47347
0 58408
0.59648
0 571 30
0 54699
0.47347
0.30000
0 37890
0 3591 7
0 26988
0.04019
0 01 599
0 00549
0 28092
0.02713
0.00959
0.00294
(0 01 2e8)
(0.01133)
(0.00974)
(0.004e2)
(0.00974)
(0.00492)
(0 0 1 500)
(0 01298)
(0 01133)
(0 00974)
(0 00492)
(0.00301)
(0 001 22)
(0 00031)
(0 00226)
(0 0ooe2)
(0 00034)
(0.0030e)
(0.0010e)
(0.00033)
0.58350
0.55997
0.53725
0 46855
0 53725
0 46855
0 56908
0.58350
n (Aoo7
0.53725
0.4685s
0.30000
0.37589
0.35795
0.26957
0.03793
0.01507
0.0051s
0 28092
0.02404
0 00850
0 00261
$0 5877s $ (0.01500) $ 0.57275
11
12
13
14
15
2
3
4
5
6
7
8
o
21
22
23
24
25
to
LI
28
29
ls-c (3)
LV.1
T-3
r-4
Block '1
Block 2
Block 3
Block 4
Demand Charge
Block'l
Block 2
Block 3
Block 1
Block 2
Block 3
Demand Charge
Block 1
Block 2
Block 3
16
17
18
19
20
(1) See Workpaper No. 2, Page 2, Column (d).
{') Th. lS-R price is based on the RS price excluding the EE charge,
(t) Th. lS-C price is based on the GS-1 price.
Exhibit No. "l
Case No. GNR-U-18-01
lntermountain Gas Company
Page 2 of 9
LP.U.C. Gas Tariff
Rate Schedules
S€€€nd Revised fIUd Sheet No. 1 (Page 1 of 1 )
Name lntermountain Gas Companyof Utility
IDAHO PUBLIC UTILITIES COMMISSIONApproved EffectiveS€pfr-l+r4o4+ Oet, lr 2017W
Diane M. Hanian Secretary
Rate Schedule RS
RESIDENTIAL SERVICE
APPLICABILITY:
Applicable to any customer using natural gas for residential purposes.
RATE:
Monthly minimum charge is the Customer Charge.
Customer Charge:
Per Therm Charge:
$5.50 per bill
$e58+75', $0.5727s
'lncludes the following
Cost of Gas 1 ) Temporary purchased gas cost adjustment
2) Weighted average cost of gas
3) Gas transportation cost
($0.0542s)
$0.26020
$0.1 9964
Distribution Cost
EE Charge:
$e#€49 $0.16349
$0.00367
PURCHASED GAS COST,ADJUSTMENT:
This tariff is subject to an adJustment for the cost of purchased gas as provided for in Rate Schedule PGA.
This adlustment is incorporated into the calculation of the Cost of Gas stated on customer bills.
ENERGY EFFICIENCY CHARG E ADJUSTMENT:
This tariff is subject to an adjustment for costs relaled to the Company's Energy Efficiency program as
provided for in Rate Schedule EEC. The Energy Efficiency Charge is separately stated on customer bills.
SERVICE CONDITIONS:
All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of
which this rate schedule rs a part.
rssued by lntermountain GaSBy: Michael P. Mccrath
Effective: eeteber-.@g Aoril 1. 2018
Director - Regulatory Affairs
Company
Title:
Exhibit No. 'l
Case No. GNR-U-18-01
lntermountain Gas Company
Page 3 of 9
IDAHO PUBLIC UTILITIES COMMISSIONApproved EffectiveSep*+:r:gf+ Oc{.Jrr047W
Diane M. Hanian Secretary
Rate Schedule GS-'t
GENERAL SERVICE
APPLICABILITY:
Applicable to customers whose requirenrents for natural gas do not exceed 2,000 therms per day, at any point
on the Company's distribution system. Requirements in excess of 2,000 therms per day may be served under
this rate schedule upon execution of a one-year written service contract.
RATE:
Ivlonthly minimum charge is the Customer Charge.
Customer Charge:
Per Therm Charge:
$9.50 per bill
*lncludes the following:
Cosl of Gas:
Distribution Cost:
Block One:
Block Two:
Block Three:
Block Four:
Block One:
Block Two:
Block Three:
Block Four:
200 therms per bill @
1,800 therms per bill @8,000 therms per bill @
10,000 therms per bill @
200 therms per bill
'1 ,800 therms per bill
8.000 therms per bill
10,000 therms per bill
$os964S- $0.58350
$o?5++3€" $0.55997
e€5{69€. $0.53725$ffi47. $0.46855
($0.06300)
$0.26020
$0.20127
se+98e+ $0.18503
9e.F283 $0.16150
sH485" $0.13878
$€:ffi€e $0.07008
1 ) Temporary purchased gas cost adjustment
2) Weighted average cost of gas
3) Gas transportation cost
First
Next
Next
Over
First
Next
Next
Over
@
@
@
@
tssued by: lntermountain Gas Company
By: Michael P. McGrath Title: Director- Regulatory Affairs
Effective: €etebe*-*,-?S*7 Aoril 1, 201 I
l.P.U.C. Gas Tariff
Rate Schedules
Fifty-$dhRevised Seventh Sheel No.3 (Page'l of 2)
Name
of Utility lntermountain Gas Company
Exhibit No. 1
Case No. GNR-U-18-01
lntermountain Gas Company
Page 4 of I
l.P.U.C. Gas Tariff
Rate Schedules
Fifty-$x{h Revised Seventh Sheet No.3 (Page 2 of 2)
Name
of Utrlity lntermountain Gas Company
IDAHO PUBLIC UTILITIES COMMISSIONApproved EffectiveSept-a+ag++ e€&JT+e47W
Diane M. Hanian Secretary
Rate Schedule GS.'l
GENERAL SERVICE
(Continued)
For separately metered deliveries of gas utilized solely as Compressed Natural Gas Fuel in vehicular internal
combustion engines.
Customer Charger $9.50 per bill
Per Therm Charge:Block One.
Block Two;
First 10.000 therms per bill @
Over 10,000 therms per bill @
$€-54€9S* $0.53725
$e4R+7* $0.468ss
'lncludes the following
Cost of Gas 1) Temporary purchased gas cost adjustment
2) Weighted average cost of gas
3) Gas transportation cost
($0.06s00)
$0.26020
$0.20127
Distributron Cost:Block One:
Block Two:
First 10.000 therms per bill
Over 10,000 therms per bill
@
@
$e,44962 $0.13878
$s.g76e€ $0.07008
PURCHASED GAS COST ADJUSTMENT:
This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased
Gas Cost Adjustment Schedule.
SERVICE CONDITIONS
All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff,
of which this rate schedule is a part.
BILLING ADJUSTMENTS
Any GS-1 customer who leaves the GS-1 service will pay to lntermountain Gas Company, upon exiting
the GS-1 service, all gas and transportation relaled costs incurred to serve the customer during the GS-
1 service period not paid by the customer during the time the customer was using GS-1 service. Any
GS-1 customer who leaves the GS-1 service will have refunded to them, upon exiting the GS-1 service,
any excess gas commodity or transportation paynrents made by the customer during the time they were
a GS-'1 customer.
tssued by: lntermountain Gas Company
By: Michael P. Mccrath Title: Director - Regulatory Affairs
Effective. €etebei.-*,-?e*7 April 1, 201 8
1.
Exhibit No. 1
Case No. GNR-U-18-01
lntermountain Gas Company
Page 5 of 9
l,P.U.C. Gas Tariff
Rate Schedules
+hi*eenth p"ui."6 Fourteenth Sheet No. 4 (Paqe 1 of 2)
Name
of Lltrlrtv lntermountain Gas Companv
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Sept"+++e++ O€L4r3017W
Diane M. Hanian Secretary
Rate Schedule lS-R
RESIDENTIAL INTERRUPTIBLE SNOWMELT SERVICE
APPLICABILITY:
Applicable to any residential customer otheMise eligible to receive service under Rale Schedule RS who
has added natural gas snowmelt equipment after 6/1/201 0. The intended use of the snowmelt equipment is
to melt snow and/or ice on sidewalks, driveways or any other similar appurtenances. Any and all such
applications meeting the above criteria will be subject to service under Rate Schedule lS-R and will be
separately and individually metered. All service hereunder is interruptible at the sole discretion of the
Company.
FACILITY REIMBURSEMENT CHARGE:
All new interruptible Snowmelt service customers are required to pay for the cost of the Snowmelt meter set
and other related facility and equipment costs. prior to the installation of the meter set. Any request to alter
the physical location of the meter set and related facilities from Company s initial design may be granted
provided, however, the Company can reasonably accommodate said relocation and Customer agrees to
pay all related costs.
RATE:
Monthly minimum charge is the Customer Charge.
Customer Charge:
Per Therm Charge:
$5.50 per bill
$€i584€e- $0.56908
-lncludes the following
Cost of Gas:1 ) Temporary purchased gas cost adjustment
2) Werghted average cost of gas
3) Gas transportation cost
($0.0s42s)
$0.26020
$0.1 9964
Distrrbution Cosl $e.F8a9 $0.16349
PURCHASED GAS COST ADJUSTMENT:
This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased
Gas Cost Adjustment Schedule.
rssued by lntermountain Gas Company
By: Michael P. lVlcGrath Title: Director- Regulatory Affairs
Effective: Oe{ob€+-ffiil April 12018
Exhibit No. 1
Case No. GNR-U-18-01
lntermountain Gas Company
Page 6 of 9
LP.U.C. Gas Tariff
Rate Schedules
+hiftoe,Fth Revised E-QlUedI Sheet No. 5 (Paoe 1 ot 2)
Name
ol Utililv lntermountain Gas Company
IDAHO PUBLIC UTILITIES COMMISSIONApproved EffectiveSept-:++er+ QeLltZg17W
Diane M. Hanian Secretary
Rate Schedule lS-C
SMALL COMMERICAL INTERRUPTIBLE SNOWMELT SERVICE
APPLICABILITY:
Applicable lo any customer othemise eligible to receive gas service under Rate Schedule GS-1 who has
added natural gas snowmelt equipment afler 6/1/2010, The intended use of the snowmelt equipment is to
melt snow and/or ice on sidewalks, driveways or any other similar appurtenances. Any and all such
applications meeting the above criteria will be subject to service under Rate Schedule lS-C and will be
separately and individually metered. All service hereunder is interruptible at the sole discretion of the
Company.
FACILITY REIMBURSEMENT CHARGE:
All new interruptible Snowmelt service customers are required to pay for the cost of the Snowmelt meter set
and other related facilily and equipment costs. pnor to the installation of the meter set. Any request to alter
the physical location of the meter set and related facilities from Company's initial design may be granted
provided, however. the Company can reasonably accommodate said relocation and Customer agrees to pay
all related costs.
RATE:
Monlhly minimum charge is the Customer Charge.
Customer Charge:
Per Therm Charge.
$9.50 per bill
Block One:
Block Twor
Block Three:
Block Four:
First
Next
Ne)d
Over
200 lherms per bill @
1,800 therms per bill @
8,000 therms per bill @10,000 therms per bill @
$+.s954s- $0.58350
$€s#{€o. $0.55997
$€:s4699- $0.53725
$.&473r++* $0.46855
'lncludes the following:
Cost of Gas:1) Temporary purchased gas cost adjustment
2) Weighted average cost of gas
3) Gas transponation cost
($0.06300)
$0.26020
$0.20127
Distribution Charge:Block One:
Block Two.
Block Three:
Block Four:
First
Next
Next
Over
200 therms per
1,800 therms per
8,000 therms per
10,000 therms per
biil @
biil @
bilr @
biil @
$O1S8e+ $0.18503
$'ffi3 $0.161s0
9e-1'4.852 $0.13878
$ffi€€ $0.07008
rssued by: lntermountain Gas Company
Byr Michael P. Mccrath Title: Director - Regulatory Affairs
Effective: e€tober-@g April '1, 2018
Exhibit No. 1
Case No. GNR-U-18-0'l
lntermountain Gas Company
Page 7 of I
l.P.U.C. Gas Tarifi
Rate SchedulesSixtyful't Revised Fifth Sheet No. 7 (Paqe 1 of 2)
Name
of Utilitv lntermountain Gas Company
IDAHO PUBLIC UTILITIES COMMISSIONApproved EffectiveS,ee+.at+e++ ffi++@
Diane M. Hanian Secretary
Rate Schedule LV-1
LARGE VOLUME FIRM SALES SERVICE
AVAILABILITY:
Available at any mutually agreeable delivery point on the Company's distribution system to any existing
customer receiving service under the Company's rate schedule LV-1 or any customer not previously served
under this schedule whose usage does not exceed 500,000 therms annually, upon execution of a one-year
minimum written service contract for firm sales service in excess of 200,000 therms per year.
MONTHLY RATE:
Demand Charge: $0.30000 per MDFQ therm
Per Therm Charge;Block One:
Block Two:
Block Three:
First
Next
Over
250.000 therms per
500,000 therms per
750,000 therms per
biil @
biil @
brll @
$ffi. $0.37589
$e36S.+7- $0.3579s
$sr59€8t $0.26957
*lncludes the following:
Cost of Gas: 1 ) Temporary purchased gas cost adjustment
Block One and Two
Block Three
2) Weighted average cost of gas
3) Gas transportation cost (Block One and Two only)
($0.01 984)
$0.00629
$0.26020
$0, 1 0545
Drstribution Costi Block One:
Block Two:
Block Three:
First
Next
Over
250,000 therms per bill @
500,000 therms per bill @
750.000 therms per bill @
SO€giO+ $0.03008
$+.s+:)3cg+€ffi39 $0.00308
PURCHASED GAS COST ADJUSTMENT:
This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased
Gas Cost Adjustment Schedule.
SERVICE CONDITIONS:
All natLrral gas service hereunder is subject to the General Service Provisions of the Company's
Tariff, of which this Rate Schedule is a part.
2.The customer shall negotiate with the Company, a mutually agreeable Maximum Daily Firm Quantity
(MDFQ) amount. which will be stated in and will be in effect throughout the term of the service
contract.
ln the event the Customer requires daily usage in excess of the MDFQ, and subject to the
availability of firrn interstate transportation to serve lntermountain's system, all such excess
usage will be billed under rate schedule LV-1 Additionally, all excess MDFQ above the customer's
contracted MDFO for the month will be billed at the monthly Demand Charge rate.
rssued by: lntermountain Gas Company
By: Michael P. Mccrath Title: Director - Regulatory Affairs
Effective: €€fobeF-.4--2+H April 1, 2018
Exhibit No. 1
Case No. GNR-U-I8-01
lntermountain Gas Company
Page 8 of I
l.P.U.C. Gas Tariff
Rate Schedules
ffi€en{hRevased Sixteenth Sheet No.8 (Paqe 1 of 2)
Name
of Utility Intermountain Gas Company
IDAHO PUBLIC UTILITIES COMMISSIONApproved Etfective
Sept ++,+g+Z e€$+*e47W
Diane M. Hanian Secretary
Rate Schedule T-3
INTERRUPTIBLE DISTRIBUTION TRANSPORTATION SERVICE
AVAILABILITY:
Available at any point on the Company's distribution system to any customer upon execution of a one year
minimum written service contract.
MONTHLY RATE:
Per Therm Charge: Block One:
Block Two:
Block Three:
First
Next
Over
100,OOO therms transported @ $e€4+1€' $0.03793
50,000 therms transported @$e+{{sg. s0.01507
1 50,000 therms transported @ $OSO548' $0.0051 5
*lncludes temporary purchased gas cost adjustment of ($0.00063)
ANNUAL MINIMUM BILL:
The customer shall be subject to the payment of an annual minimum bill of $30,000 during each annual
contract period, unless a higher minimunr is required under the service contract to cover special conditions.
PURCHASED GAS COST ADJUSTMENT:
This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased
Gas Cost Adjustment Schedule.
SERVICE CONDITIONS:
The Company, in its sole discretion, shall determine whether or not it has adequate capacity lo
accommodate transportation of the customer's gas supply on the Company's distribution system.
All natural gas service hereunder is subject to the General Service Provisions of the Company's
Tariff, of which this Rate Schedule is a part.
lnterruptible Distribution Transportation Service may be made firm by a wrilten agreement between
the parties rf the customer has a dedicated line,
lf requested by the Company, the customer expressly agrees to immediately curtail or interrupt its
operations during periods of capacity constraints on the Company's distribution system.
This service does not include the cost of the customer's gas supply or the interstate pipeline capacity.
The customer is responsible for procuring its own supply of natural gas and transportation to
lntermountain's distribution system under this rate.
The customer understands and agrees that the Company is not responsible to deliver gas supplies
to the customer which have not been nominated and accepted for delivery by the interstate pipeline.
An existing T-4 customer electing this schedule may concurrently utilize Rate Schedule T-3 on the
same or contiguous property.
rssued byr lntermountain Gas Company
By: Michael P. McGrath Title: Director - Regulatory Affairs
Effective: e€+ob€F{.ie+t7 Aoril 1, 2018
2.
4.
5.
6.
7.
Exhibit No. 1
Case No. GNR-U-18-01
lntermountain Gas Company
Page 9 of 9
l.P.U.C. Gas Taritf
Rate Schedules
F€ud€€n{h Revised Fifteenth Sheet No.9 (Paqe 1 of 2)
Name
of Utilrtv lntermountain Gas Company
IDAHO PUBLIC UTILITIES COMMISSIONApproved EffectiveS€?tJJ1-2s{+ Oct, 1,2017W
Diane M. Hanian Secretary
Rate Schedule T-4
FIRM DISTRIBUTION ONLY TRANSPORTATION SERVICE
AVAILABILITY:
Available at any mutually agreeable delivery point on the Company's distribution system to any customer
upon execution of a one year minimum written service contracl for flrm distribution transportation service in
excess ol 200,000 therms per year.
MONTHLY RATE:
Demand Charge:$0.28092 per MDFQ therm'
Per Therm Charge:
*lncludes temporary purchased gas cost adjustment of ($0.01 908)
PURCHASED GAS COST ADJUSTMENT:
This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased
Gas Cost Adjustment Schedule.
SERVICE CONDITIONS:
1. This service excludes the service and cost of firm interstate pipeline charges.
2.The customer is responsible for procuring its own supply of natural gas and interstate transportation
under this Rate Schedule. The customer understands and agrees that the Company is not
responsible to deliver gas supplies to the customer which have not been nominated, scheduled, and
delivered by the interstate pipe|ne to the designated city gate.
All natural gas servrce hereunder is subJect to the General Service Provisions of the Company's
Tariff, of which this Rate Schedule is a part.
The customer shall negotiate with the Company, a mutually agreeable Maxrmum Daily Firm Ouantity
(MDFO), which will be stated in and in etfect throughout the term of the service contracl.
The monthly demand charge will be equal to the MDFQ times the demand charge rate. Demand
charge relief will be afforded to those T-4 customers when circumstances impacted by force majeure
evenls prevent the Company from delivering natural gas to the customer's meter.
An existing LV-1 or T-3 custoner electing this schedule may concurrently utilize Rate Schedule T-4
on the customer's same or contiguous property,
tssued by: lntermountain Gas Company
By: Michael P. Mccrath Title: Director - Regulatory Affairs
Effective. €e{ober,*,-2€*7 Aoril 1 . 201 8
Block One:
Block Two:
Block Three:
First
Next
Over
250,000 therms transported @ $+e27+e $0.02404
500,000 therms transported @ $€:eOS59 !0 q99?0
750,000 therms transported @ $e$.e2€+ $0 00261
3.
4.
5.
6,
EXHIBIT NO.2
CASE NO. GNR-U-18-01
INTERMOUNTAIN GAS COMPANY
PROPOSED TARIFFS
(8 pages)
l.P.U.C. Gas Tariff
Rate Schedules
Third Revised Sheet No. 1 (Page 1 of 1)
Name lntermountain Gas Gom panyof Utility
Exhibit No. 2
Case No. GNR-U-18-01
lntermountain Gas Company
Page '1 of B
Rate Schedule RS
RESIDENTIAL SERVICE
APPLICABILITY:
Applicable to any customer using natural gas for residential purposes
RATE:
Monthly minimum charge is the Customer Charge.
Customer Charge:
Per Therm Charge:
*l ncludes the following:
Cost of Gas:
$5.50 per bill
$0.57275.
'l) Temporary purchased gas cost adjustment
2) Weighted average cost of gas
3) Gas transportation cost
($0.05425)
$0.26020
$0.19964
Distribution Cost:
EE Charge:
$0.1 6349
$0.00367
PURCHASED GAS COST ADJUSTMENT:
This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA
This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills.
ENERGY EFFICIENCY CHARGE ADJUSTMENT:
This tariff is subject to an adjustment for costs related to the Company's Energy Efficiency program as
provided for in Rate Schedule EEC. The Energy Efficiency Charge is separately stated on customer bills.
SERVICE CONDITIONS
All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of
which this rate schedule is a part.
rssued by: lntermountain Gas Company
By: Michael P. McGrath Title: Director- Regulatory Affairs
Effective:1,2018
l.P.U.C. Gas Tariff
Rate Schedules
Fifty-Seventh Revised Sheet No. 3 (Page 1 of 2)
Name
of Utility Intermountain Gas Company
Rate Schedule GS-1
GENERAL SERVICE
APPLICABILITY:
Applicable to customers whose requirements for natural gas do not exceed 2,000 therms per day, at any point
on the Company's distribution system. Requirements in excess of 2,000 therms per day may be served under
this rate schedule upon execution of a one-year written service contract.
RATE:
Monthly minimum charge is the Customer Charge.
Customer Charge:
Per Therm Charge:
$9.50 per bill
*lncludes the following
Cost of Gas:
Distribution Cost:
Block One:
Block Two:
Block Three:
Block Four:
Block One:
Block Two:
Block Three:
Block Four:
200 therms per bill @
1,800 therms per bill @
8,000 therms per bill @
10,000 therms per bill @
200 therms per bill @
1,800 therms per bill @
8,000 therms per bill @
10,000 therms per bill@
Exhibit No. 2
Case No. GNR-U-18-01
lntermountain Gas Company
Page 2 of 8
$0.58350.
$0.55997.
$0.53725.
$0.46855"
($0.06300)
$0.26020
$0.20127
$0.1 8503
$0.1 61 50
$0.1 3878
$0.07008
1) Temporary purchased gas cost adjustment
2) Weighted average cost of gas
3) Gas transportation cost
First
Next
Next
Over
tssued by: Intermountain Gas Company
By: Michael P. McGrath Title: Director- Regulatory Affairs
Effective 1, 2018
First
Next
Next
Over
l.P U.C. Gas Tariff
Rate Schedules
Fifty-Seventh Revised Sheet No. 3 (Page 2 ol 2)
Name
of Utility lntermountain Gas Company
Rate Schedule GS-1
GENERAL SERVICE
(Continued)
For separately metered deliveries of gas utilized solely as Compressed Natural Gas Fuel in vehicular internal
combustion engines.
Customer Charge: $9.50 per bill
Per Therm Charge:
*lncludes the following
Cost of Gas:
First 10,000 therms per bill @
Over 10,000 therms per bill @
Exhibit No. 2
Case No. GNR-U-18-01
lntermountain Gas Company
Page 3 of 8
$0.53725.
$0.46855.
($0.06300)
$0.26020
$0.20127
$0.1 3878
$0.07008
Block One:
Block Two:
1) Temporary purchased gas cost adjustment
2) Weighted average cost of gas
3) Gas transportation cost
Block One, First 10,000 therms per bill@
Block Two: Over 10,000 therms per bill@
1
Distribution Cost
PURCHASED GAS COST ADJUSTMENT:
This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased
Gas Cost Adjustment Schedule.
SERVICE CONDITIONS:
All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff,
of which this rate schedule is a pad.
BILLING ADJUSTMENTS:
Any GS-1 customer who leaves the GS-1 service will pay to lntermountain Gas Company, upon exiting
the GS-1 service, all gas and transportation related costs incurred to serve the customer during the
GS-1 service period not paid by the customer during the time the customer was using GS-1 service.
Any GS-1 customer who leaves the GS-1 service will have refunded to them, upon exiting the GS-1
service, any excess gas commodity or transportation payments made by the customer during the time
they were a GS-'1 customer.
tssued by: lntermountain Gas Company
By: Michael P. McGrath Title: Director- Regulatory Affairs
Effective: April 1, 2018
1
l.P.U.C. Gas Tariff
Rate Schedules
Fourteenth Revised Sheet No. 4 (Paqe 1 of 2)
Name
of Utilitv lntermountain Gas Company
Exhibit No. 2
Case No. GNR-U-18-01
lntermountain Gas Company
Page 4 of 8
Rate Schedule lS-R
RESIDENTIAL INTERRUPTIBLE SNOWMELT SERVICE
APPLICABILITY:
Applicable to any residential customer otherwise eligible to receive service under Rate Schedule RS who
has added natural gas snowmelt equipment after 61112010. The intended use of the snowmelt equipment is
to melt snow and/or ice on sidewalks, driveways or any other similar appurtenances. Any and all such
applications meeting the above criteria will be subject to service under Rate Schedule lS-R and will be
separately and individually metered. All service hereunder is interruptible at the sole discretion of the
Company.
FACILITY REIMBURSEMENT CHARGE:
All new interruptible Snowmelt service customers are required to pay for the cost of the Snowmelt meter set
and other related facility and equipment costs, prior to the installation of the meter set. Any request to alter
the physical location of the meter set and related facilities from Company's initial design may be granted
provided, however, the Company can reasonably accommodate said relocation and Customer agrees to
pay all related costs.
RATE:
Monthly minimum charge is the Customer Charge.
Customer Charge:
Per Therm Charge
$5.50 per bill
$0.56908.
.lncludes the following
Cost of Gas:1)Temporary purchased gas cost adjustment
2) Weighted average cost of gas
3) Gas transportation cost
($0.05425)
$0.26020
$0.19964
Distribution Cost:$0.'16349
PURCHASED GAS COST ADJUSTMENT:
This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased
Gas Cost Adjustment Schedule.
tssued by: lntermountain Gas Company
By: Michael P. McGrath Title: Director - Regulatory Affairs
Effective: April 1, 2018
l.P.U.C. Gas Tariff
Rate Schedules
Fourteenth Revised Sheet No. 5 (Paqe 1 of 2)
Name
of Utility lntermountain Gas Company
1) Temporary purchased gas cost adjustment
2) Weighted average cost of gas
3) Gas transportation cost
200 therms per bill@
1,800 therms per bill @
8,000 therms per bill @
10,000 therms per bill@
200 therms per bill @
1,800 therms per bill @
8,000 therms per bill@
10,000 therms per bill@
Exhibit No. 2
Case No. GNR-U-18-01
lntermountain Gas Company
Page 5 of B
$0.58350.
$0.55997.
$0.53725.
$0.46855.
($o.063oo)
$0.26020
$0.20127
$0.18503
$0.1 61 50
$0.13878
$0.07008
Rate Schedule IS-C
SMALL COMM ERICAL INTERRU PTIBLE SNOWM ELT SERVICE
APPLICABILITY:
Applicable to any customer othenrvise eligible to receive gas service under Rate Schedule GS-1 who has
added natural gas snowmelt equipment after 61112010. The intended use of the snowmelt equipment is to
melt snow and/or ice on sidewalks, driveways or any other similar appurtenances. Any and all such
applications meeting the above criteria will be subject to service under Rate Schedule lS-C and will be
separately and individually metered. All service hereunder is interruptible at the sole discretion of the
Company.
FACILITY REIMBURSEMENT CHARGE:
All new interruptible Snowmelt service customers are required to pay for the cost of the Snowmelt meter set
and other related facility and equipment costs, prior to the installation of the meter set. Any request to alter
the physical location of the meter set and related facilities from Company's initial design may be granted
provided, however, the Company can reasonably accommodate said relocation and Customer agrees to pay
all related costs.
RATE
Monthly minimum charge is the Customer Charge
Customer Charge:
Per Therm Charge:
$9.50 per bill
"lncludes the following:
Cost of Gas:
Distribution Charge:
Block One:
Block Two:
Block Three:
Block Four
Block One:
Block Two:
Block Three:
Block Four:
First
Next
Next
Over
First
Next
Next
Over
tssued by: Intermountain Gas Company
By: Michael P. McGrath Title: Director - Regulatory Affairs
Effective: April 1, 2018
l.P.U.C. Gas Tariff
Rate Schedules
Sixty-Fifth Revised Sheet No. 7 (Page 1 of 2)
Name
of Utility lntermountain Gas Company
Exhibit No. 2
Case No. GNR-U-18-0'1
lntermountain Gas Company
Page 6 of I
Rate Schedule LV-1
LARGE VOLUME FIRM SALES SERVICE
AVAILABILITY:
Available at any mutually agreeable delivery point on the Company's distribution system to any existing
customer receiving service under the Company's rate schedule LV-1 or any customer not previously served
under this schedule whose usage does not exceed 500,000 therms annually, upon execution of a one-year
minimum written service contract for firm sales service in excess of 200,000 therms per year.
MONTHLY RATE
Demand Charge: $0.30000 per MDFQ therm
Per Therm Charge Block One:
Block Two.
Block Three
First
Next
Over
250,000 therms per bill @
500,000 therms per bill @
750,000 therms per bill @
$0.37589.
$0.35795.
$0.26957.
*lncludes the following
Cost of Gas:1)Temporary purchased gas cost adjustment
Block One and Two
Block Three
2) Weighted average cost of gas
3) Gas transportation cost (Block One and Two only)
($0.01e84)
$0.00629
$0.26020
$0.1 0545
Distribution Cost:Block One:
Block Two:
Block Three
First
Next
Over
250,000 therms per bill @
500,000 therms per bill @
750,000 therms per bill@
$0.03008
$0,01214
$0.00308
PURCHASED GAS COST ADJUSTMENT:
This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased
Gas Cost Adjustment Schedule.
SERVICE CONDITIONS:
All natural gas service hereunder is subject to the General Service Provisions of the Company's
Tariff, of which this Rate Schedule is a part.
2 The customer shall negotiate with the Company, a mutually agreeable Maximum Daily Firm Quantity
(MDFO)amount, which will be stated in and will be in effect throughout the term of the service
contract.
ln the event the Customer requires daily usage in excess of the MDFQ, and subject to the
availability of firm interstate transportation to serye lntermountain's system, all such excess
usage will be billed under rate schedule LV-1. Additionally, all excess MDFQ above the customer's
contracted MDFQ for the month will be billed at the monthly Demand Charge rate.
lssued by: lntermountain Gas Gompany
By: Michael P. McGrath Title: Director- Regulatory Affairs
Effective:1, 2018
1.
l.P.U.C. Gas Tariff
Rate Schedules
Sixteenth Revised Sheet No.8 (Page 1 ot 2\
Name
of Utilitv Intermountain Gas Company
Exhibit No. 2
Case No. GNR-U-18-0't
lntermountain Gas Company
Page 7 of 8
Rate Schedule T-3
INTERRUPTIBLE DISTRIBUTION TRANSPORTATION SERVICE
AVAILABILITY:
Available at any point on the Company's distribution system to any customer upon execution of a one year
minimum written service contract.
MONTHLY RATE:
Per Therm Charge: Block One: First 100,000 therms transported @ $0.03793.
Block Two: Next 50,000 therms transported @ $0.0'1507.
Block Three: Over 150,000 therms transported @ $0.00515.
.lncludes temporary purchased gas cost adjustment of ($0.00063)
ANNUAL MINIMUM BILL:
The customer shall be subject to the payment of an annual minimum bill of $30,000 during each annual
contract period, unless a higher minimum is required under the service contract to cover special conditions.
PURCHASED GAS COST ADJUSTMENT:
This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased
Gas Cost Adjustment Schedule.
SERVICE CONDITIONS:
The Company, in its sole discretion, shall determine whether or not it has adequate capacity to
accommodate transportation of the customer's gas supply on the Company's distribution system.
All natural gas service hereunder is subject to the General Service Provisions of the Company's
Tariff, of which this Rate Schedule is a part.
lnterruptible Distribution Transportation Service may be made firm by a written agreement between
the parties if the customer has a dedicated line.
lf requested by the Company, the customer expressly agrees to immediately curtail or interrupt its
operations during periods of capacity constraints on the Company's distribution system.
This service does not include the cost of the customer's gas supply or the interstate pipeline capacity.
The customer is responsible for procuring its own supply of natural gas and transportation to
lntermountain's distribution system under this rate.
The customer understands and agrees that the Company is not responsible to deliver gas supplies
to the customerwhich have not been nominated and accepted for delivery by the interstate pipeline.
An existing T4 customer electing this schedule may concurrently utilize Rate Schedule T-3 on the
same or contiguous property.
tssued by: Intermountain Gas Company
By: lVlichael P. McGrath Title: Director- Regulatory Affairs
Effective: April 1, 2018
2.
3.
4.
5.
6.
7.
l.P.U.C. Gas Tariff
Rate Schedules
Fifteenth Revised Sheet No.9 (Page 1 ol 2)
Name
of Utility lntermountain Gas Company
Exhibit No. 2
Case No. GNR-U-18-01
lntermountain Gas Company
Page B of 8
Rate Schedule T-4
FIRM DISTRIBUTION ONLY TRANSPORTATION SERVICE
AVAILABILITY:
Available at any mutually agreeable delivery point on the Company's distribution system to any customer
upon execution of a one year minimum written service contract for firm distribution transportation service in
excess of 200,000 therms per year.
MONTHLY RATE
Demand Charge:$0.28092 per MDFQ therm*
Per Therm Charge:Block One:
Block Two:
Block Three
First
Next
Over
250 000 therms transported @ $0.02404
500,000 therms transported @ $0.00850
750,000 therms transported @ $0.00261
*lncludes temporary purchased gas cost adjustment of ($0.01908)
PURCHASED GAS COST ADJUSTMENT:
This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased
Gas Cost Adjustment Schedule.
SERVICE CONDITIONS:
1. This service excludes the service and cost of firm interstate pipeline charges
2 The customer is responsible for procuring its own supply of natural gas and interstate transportation
under this Rate Schedule. The customer understands and agrees that the Company is not
responsible to deliver gas supplies to the customer which have not been nominated, scheduled, and
delivered by the interstate pipeline to the designated city gate.
All natural gas service hereunder is subject to the General Service Provisions of the Company's
Tariff, of which this Rate Schedule is a part.
The customer shall negotiate with the Company, a mutually agreeable Maximum Daily Firm Quantity
(MDFO), which will be stated in and in effect throughout the term of the service contract.
The monthly demand charge will be equal to the MDFQ times the demand charge rate. Demand
charge relief will be afforded to those T-4 customers when circumstances impacted by force majeure
events prevent the Company from delivering natural gas to the customer's meter.
An existing LV-1 or T-3 customer electing this schedule may concurrently utilize Rate Schedule T-4
on the customer's same or contiguous property.
tssued by: lntermountain Gas Company
By: Michael P. McGrath Title: Director- Regulatory Affairs
Effective: April '1 ,2018
3
4
5
6
EXHIBIT NO.3
CASE NO. GNR.U.18-01
INTERMOUNTAIN GAS COMPANY
TOTAL TAX EXPENSE PER IPUC ORDER NO.33879
(2 pages)
Exhibit No. 3
Case No. GNR-U-18-01
lntermountain Gas Company
Page 1 o12
Line No.
lntermountain Gas Company
2015 Total Tax Expense Per IPUC Order No. 33879
Descri ton
(a)
FederalTaxable lncome
Nonconform ing Bonus Depreciation Adjustment
State Taxable lncome
State lncome Tax
Misc. Credits and Adj. (ldaho Bldg Fund)
Total State lncome Tax Expense
Federal lncome Tax
Deduction for State lncome Taxes
Deferred lncome Taxes - Non-Plant
Deferred lncome Taxes - Plant
Amortization of ITC
Total Federal lncome Tax Expense
13 Total lncome Tax Expense
(') E*hibit No. 3, p. 2, Line 13, column (b),
(') Workpaper No. 1, p. L, Line 37, Column (d).
(3) Line 3 times 7 .4%.
{+) Workpaper No. 1, p. 1", Line 42, Column (d).
(s) Line L times 35%.
(6) Line 5 times 35%.
(') Workpaper No. L, p. 2, Line 68, Column (d).
(t) Workpaper No. 1, p. 2, Line 74, Column (d).
(') Workpaper No. 1, p. 2, Line 77, Column (d).
('o) Lin" 6 plus Line 12.
Amount
(b)
S rg,o+2,s72 \t')
(s,s80,07s) (2)
5 L4,062,497
1
2
3
4
5
6
S 1,,040,625
10
(3)
7
8
9
10
Lt
12
S
(4)
S r,o+o,oEs
6,g74,gOO (s)
(364,2221$)
(240,4591o)
(247,030) (8)
(179,903) (s)
S 5,843,286
S 0,4s3,921 (10)
Line
No.
lntermountain Gas Company
2015 FederalTaxable lncome per IPUC Order No. 33879
Description
Exhibit No. 3
Case No. GNR-U-18-01
lntermountain Gas Company
Page 2 ol 2
Amount
1
(a)
Federal Taxable lncome
Com mission Adiustments
lncentive Compensation
Affiliated Expenses
Profit Sharing
Customer Service Center
M iscellaneous Expenses
lnjuries and Damages
Normalization
Stipu lation and Settlement
Final Revenue Requirement per IPUC Order No. 33879
Commission Fees and Uncollectibles Expenses
2016 Federal Taxable lncome per Order No. 33879
(b)
S 11,032,s55 (1)
2
3
4
5
6
7
8
9
10
703,6\7 Ql
1,3gl,,ooo (3)
go,106 (4)
g,620 (s)
20g,394 (6)
107,239 17)
2,013,515 (8)
(2,30g,484) (e)
1.1.
t2
13
6,440,245 lr.o't
(35,235) (11)
$ 19,642,572
(') Workpaper No. L, p. 1, Line 34, Column (d).
(') Workpaper No. 1,, p. 3-4. See also Workpaper No. 1, p. 5, Column (b), the sum of Lines 5-6.
(3) Workpaper No. L, p. 6-7.
(o) Workpaper No. L, g.9, Column 5, Line 3 less Line 22.
{t) Workpaper No. L, g.9, Column 6, Line 3 less Line 22.
(0) Workpaper No. 1,g.9, Column 7, Line 3 less Line 22, less S1,598 as discussed on Workpaper No. 1,
p. 8, footnote 5.
1') Workpaper No. L, p.9, Column 8, Line 3 less Line 22.
(8) Workpaper No. L, g.9, Column 9, Line 3 less Line 22.
{e) Workpaper No. 1, p. 10, Column (f), Line 3 less Line 22.
(to) Workpaper No. L, p. L0, Line 43, Column (g).
(11) Commission fee and uncollectibles expenses on the additional revenue requirement of S6.+lV. tlne
lL times 50.005471 (see Exhibit No. 5, p. i., Column (d), the sum of Lines 19-20).
EXHIBIT NO.4
CASE NO. GNR-U.18.01
INTERMOUNTAIN GAS COMPANY
EXCESS DEFERRED INCOME TAXES AND AMORTIZATIONS
(4 pages)
Exhibit No. 4
Case No. GNR-U-18-01
lntermountain Gas Company
Page 1 of4lntermountain Gas Company
Excess Deferred lncome Tax Amortization - 2018 Forecast
Remaining Excess
Line No.Description Total Excess DIT 2018 Amortization DIT
(a)(b)(c)(d)
1
2
J
4
5
Excess DIT Amortization - Plant
Excess DIT Amortization - Non-Plant Rate Base
Excess DIT Amortization - Non-Plant Other
Excess DIT Amortization - ldaho ITC
Total
s 19,812,401 (1) s
(1,183,612) (3)
(351,817) (s)
(474,8L71 t7l
(1,189,021) ('?) s
119,361 (4)
36,182 (6)
47,487 t8l
18,623,380
( 1,065,251)
(32s,63s)
(427,33s1
5 L7,t9z,7ss S (986,996) S 16,80s,1s9
(t) Erhibit No. 4, p
(') E*hibit No, 4, p
(') Erhibit No. 4, p
(o) Exhibit No. 4, p
(t) Exhibit No. 4, p
(') Exhibit No. 4, p
(') Erhibit No. 4, p
(t) Erhibit No. 4, p
2, Line 13, Column (b).
3, Line 21, Column (e).
4, Line 5, Column (b).
4, Line 5, Column (c).
4, Line 15, Column (b).
4, Line 16, Column (c).
4, Line 19, Column (b).
4, Line 19, Column (c).
Exhibit No. 4
Case No. GNR-U-18-01
lntermountain Gas Company
Page 2 oI 4
Line
No.
!ntermountain Gas Company
Excess Deferred lncome Taxes - Plant
Description Amount
1
2
3
4
5
6
7
8
9
10
11
t2
13
(a)
Plant - Fed
Plant - State
AFUDC Debt - Capitalized
AFUDC Debt - lncurred - Fed
AFUDC Equity - Capitalized
AFUDC Equity - lncurred - Fed
CIAC - Capitalized
CIAC - lncurred
CPI- Capitalized
CPI - lncurred
Plant R&D Capitalized
Plant R&D lncurred
Total
(b)
S 2L,'1,62,093
(1, L91,068)
(364,563)
323,030
(292,447)
290,281,
652,359
(767,6831
77,L44
(76,74s)
(2,564,818)
2,664,8'J.8
s 19,81,2,401
Exhibit No. 4
Case No. GNR-U-18-01
lntermountain Gas Company
Page 3 of 4
I ntermountain Gas Company
2018 Excess Deferred lncome Tax Amortization - Plant
Line
No.Description
Beginning
Difference Provision Reversal
Rate
Differential(r)
(a)(b)(c)(d)(e)
7
2
3
4
5
6
7
8
9
10
11
t2
13
t4
15
16
17
18
19
20
2t
2017 Vintage
2016 Vintage
2015 Vintage
2014 Vintage
2013 Vintage
2012 Vintage
2011 Vintage
2010 Vintage
2009 Vintage
2008 Vintage
2007 Vintage
2006 Vintage
2005 Vintage
2004 Vintage
2003 Vintage
2002 Vintage
2001Vintage
2000 Vintage
1959-1999 Vintage
Exclude AFUDC
Total
s 301,62L
3,838,303
26,973,451
75,788,765
12,237,673
16,647,883
8,287,639
3,681,881
3,750,383
8,163,338
6,260,1.30
8,234,Lt3
s,613,765
4,115,569
8,264,874
4,937,404
7,778,71.6
2,567,86t
11,549,538
(1,83s,043)
s 1,773,126
7,783,357
7,460,807
879
57
2,595
6t
3,845
599
64,353
372,986
446,562
198,285
851
169
88
64,444
70,997
6,236
27,079
(34s)
(2,tt2,ss6l
(s44,46s)
(615,852)
(879,536)
(684,673)
(4s2,s40)
(41,6,7921
(181,610)
23,949
23,473
(2,L821
( 183,981)
( 166,7 16)
(99,310)
55,746
(s7,3s8)
(2,3e9,624)
774,343
s 3,783
(48)
(295,758)
(76,22s)
(86,219)
( 123,13s)
(95,854)
(63,356)
(58,35 L)
(2s,42s)
3,353
3,286
(306)
(25,757l.
(23,3401
(13,903)
7,804
(8,030)
(33s,947)
24,408S 1s1,1s7,80s 5 a,zso,zgg S (8,4e3,00e) S (1,18e,021)
{') Colrmn (d)times 14%.
s
Exhibit No. 4
Case No. GNR-U-18-01
lntermountain Gas Company
Page 4 of 4
lntermountain Gas Company
Excess Deferred lncome Taxes - Non-Plant
Line Annual
Amortization(1)No.Description Amount
(a)
Excess Deferred lncome Taxes - Non-Plant Rate Base
Unamortized Loss on Reacquired Debt
Uniform Capitalization
Customer Advances
Total
(b)(c)
L
2
3
4
5
5 7,223
(144,488)
(1,046,347],
s (722)
14,449
5 (1,183,612)
104,635
l_+8,361_
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Excess Deferred lncome Taxes - Non-Plant Other
Deferred Postretirement Benefit Costs - Reg Asset
Prepaid Expenses
Deferred Rate Case Costs
Deferred Medicare Part D
Accrued 401K Pension
Bad Debts Expense
lntercompany Deferred Employee Benefit Costs - Reg Asset
Vacation Pay
Postretirement Benefit Costs
Total
5 ao,zst
51,683
45,961-
(2,3321
(14,674)
(37,6411
(s6,3s3)
(173,455)
(23s,2621
)(6,026)
(5,168)
(4,595)
233
1,467
3,764
5,635
t7,346
23,526
s (361,817) s :0,r8z
Excess Deferred lncome Taxes - ldaho ITC
Deferred ITC - State
Total
5 $74,877) 5 47,482
5 (474,817\ $ qt,q\z
(') The Cornpany proposes to amortize the Non-Plant excess deferred income taxes over 10 years
EXHIBIT NO.5
CASE NO. GNR.U-18-01
INTERMOUNTAIN GAS COMPANY
REVENUE REQUIREMENT IMPACT OF TAX REFORM
(1 page)
Line No.Description
lntermountain Gas Company
2015 Revenue Requirement lmpact of Tax Reform
IPUC Order No.
33879(t)
Tax Reform
Adiustments
Exhibit No. 5
Case No. GNR-U-18-01
lntermountain Gas Company
Page 1 of 'l
Ad.iusted for Tax
Reform
(a)
Federal Taxable lncome
Nonconforming Bonus Depreciation Ad.iustment
State Taxable lncome
State lncome Tax
Misc. Credits and Adj. (ldaho Bldg Fund)
Total State lncome Tax Expense
Federal lncome Tax
Deduction for State lncome Taxes
Deferred lncome Taxes - Non-Plant
Deferred lncome Taxes - Plant
Amortization of ITC
Total Federal lncome Tax Expense
(b)
19,642,572
(5,s80,07s)
5 45,OOO ('?)
S
(d)
19,687,572
(s,s80,07s)
L4,107,497
976,944 t4l
1.0
976,954
4,134,390 l6)
(205,160) (7)
{8s,9 16)
(1,436,05 1)
(L32,42L1
s
2,274,842
3,25L,796 tt'zl
s (3,632,12s) (13)
1.36749
-ffif''o'1.000000
0.001877 (15)
0.003594 (16)
0.994529
0.068870 (!7)
0.925659
o.'194390 (18)
0.731 269
1.367490 (le)
(c)
1
L4,062,497
1,040,625
10
45,000
(63,681) (3)
5
S
s
s
5
5
4
5
6
7
8
9
10
11
t2
13
14
15
16
77
18
19
20
21
22
23
24
25
26
S 1,040,63s S (63,681) S
6,874,900 s
(364,222)
(24O,4s91
(247,030)
( 179,903)
(2,740,510) (s) 5
159,062 (u)
154,543 {8',{s)
(1,189,021.) {8r(10)
47,4g2 tBt,tlrl
5,843,286
6,883,92 1
s (3,s68,444)
Total lncome Tax Expense
lncome Tax Expense lncrease (Decrease)
Gross Revenue Conversion Factor
Revenue Requirement Adjustment
6ross Revenue Conversion Factor Calculation
OperatinE Revenues (without add-on taxes)
Commission Fees
Uncollectibles Expense
State Taxable lncome
State lncome Tax
lncome Before Federal lncome Tax
Federal lncome Tax
Operatint lncome After Taxes
Gross Revenue Conversion Fador
(1) Exhibit No. 3, p. 1, Column (b).
(2) The S45,000 is an estimate of the amount of entertainment expenses that would be nondeductible due to the new tax reform.
(3) Change in tax expense due to the reduction in the ldaho corporate tax rate.
(a) Line 3 times 6.925%.
{s) Change in tax expense due to the reduction in the Federal corporate tax rate.
(6) Line l times 21%.
u) Line 6 times 21%.
{8) Change in tax expense due to excess deferred income tax amortization.
{e) Exhibit No.4, p. L, Column (c), the sum of Lines 2-3.
{10) Exhibit No.4, p. L, Line 1, Column (c).
I11) Exhibit No.4, p. L, Line 4, Column (c).
{12) Line 6 plus Line 12.
{13) Line 13, Column (d) less Column (b).
(14) Required change in base rate revenues due to tax reform.
l1s) Workpaper No. 1, p. 11, Line 2, Column (c).
{16) Workpaper No. 1, p. u, Line 3, Column (c).
{17) Line 21 multiplied by 6.925%.
118) Line 23 multiplied by 21%.
(1e) 1 divided by Line 25.
5
s
5
EXHIBIT NO. 6
CASE NO. GNR.U.18-01
INTERMOUNTAIN GAS COMPANY
REPORTING OF 2017 PRE, AND POST, TAX REFORM
(5 pages)
lntermountain Gas Company
Exhibit No. 6
Case No. GNR-U-18-01
lntermountain Gas Company
Page 1 of 5
2017 Tax Provision
2017 GAAP Tax Provision 2017 GAAP Tax Provision - Normaliled
Une No.Des(rlption Prior Law With Tax Reform Prior Law With Tax Reform
(a)(c)(d)(e)
zo,qse,gga t')I Federal Taxable lncome S ze,zszlle t') 5 2a,zg2,lle t') S 2o,ase,ssa l') 5
Tax Cuts and .lobs Act of 2017 Changes:
Executave Compensation Adjustment
Meals & Entedainment
Total Changes
164,481
42,140N/A N/A 42,740
Adjusted Federal Taxable lncome
- 207,22r - 42,740
1
8
9
10
11
12
13
14
15
15
t7
18
19
20
21
22
23
24
25
26
27
28
29
State
NonconforminB Bonus Depreciation Adjustmenl
State Taxable lncome
State lncome Tax
M iscellaneous Credits and Adjustments
Total State lncome Tax Expense
s (4,411,s63)
21,981,213(tr
t,ezo,eto(ul
|29,1741S 1,597,43G
s (4,411.s63)s (4,4r1,s63)
16,oas,a31 l'r
t,taz,:szlu)
l2e,17 4)
5 1,1s8,188
5 (4,411,s63)
16,ogg,tz1lt)
t,ttq,to6 l'1
l.29,1.74)
22,188,434 t'l
t,s:e,sqg l')
l2e,11a)S 1.s07,37s S 1,084,932
Fed era I
Federal lncome Tax
Oeduction for State lncome Taxes
Deferred lncome Taxes - Non-Plant
Deferred lncome Taxes - Plant
Amortization of ITC
Miscellaneous Credits and Adjustments
Total Federal lncome Tax Expense
9,237,a72 t")
lsss,to:1 r'o)
11,101,355) lr'1)
(sg,zog) I'o)
(139,394) lrsl
s.sgs,gggl")
(316,549) r1')
11,101,355) (1r)
(58,208) r14)
1r:s,:sa1r")
'1.39,1221
5 7,ts9,gq8 (') s
(405,3GG) [o)
(1,1s1,183) 113)
(s8,208) (ro)
1r:s,rsa1l")
t,3o4,gu t')
1zzz,a:e1(")
(1,151,183) (rr)
1se.zoa1{")
(139,394) rls)
1139,1221(139,122)
5 7,240,279 s 3,831,360
l'139,r22)s s,266,67s 5 2,s89,201
'rrr l-----lJ[]lfourTotal lncome Tax Expense s 8,837,71s 5 s,338,73s 5 d rr,*,
lncome Tax Expense lncrease (0ecreasel Befor€ Excess DIT Amoftization
Excess DIT Amodization - Plant
Excess DIT Amortization - Non-Plant
Excess DIT Amortization - ITC
Total Excess DIT Amodization
Total lncome Tax Expense lncrease (oecrease)
Gross Revenue Conversion Factor
Revenue Requirement Adjustment
s (:,cgg,gso)r")
(1,189,021) i:'!)
tsa,sa: l'o)
---_-_----!/y-""(986,996)
s 1z,zso,z:01(")
1r,ras,ozt1l")
r5q,s43 l'o)
al,aaz t")
5 (a,aas,sze)1")5 \3,137,-126)
1.367 49
S {6J34Jr?)
lrl 1.36149
l-----l!.r.u!93)
l') E*htbit No.6, p. z, Line40, column (b),
l'l Exhibit No.6, p. z, Lihe40, column (d).
(31 This adjustment is eliminated because executive incentive compensation ls removed from tarable income.
l') Line 1 plus Line 5.
(si tine 6 plus Line 8.
(61 l"ine 9 times 7.4%.
{71 tine I times 6.925%.
(3j Line 6 times 35%.
{el Line 6 times 21%.
llo) [ine 12 times 35%.
[r) Line 12 times 21%.l") Erhibit No. 6, p. 3, Line s1, column (b),
lt') Exhibit tto. s, p. l, Line 51, column (d).
Ito) Erhibit No.6, p.4, Line 18, column (b).l"l Exhibit No. 5, p. 5, Line 4, column (b).
(16l Line 12 plus Line 20-(rtr Line 21, Column (c) less column (b).
(13) Line 21, column (e) less Column (d).(t'l Exhibit No.4, p. 1, Line 1, column (c).
('o) Erhibit No.4, p. 1, column (c), the sum of Lines 2-3.
l") Erhibit No.4, p. 1, Line 4, column (c).
112) Line 22 plus Line 26.
l") Erhibit No.5, p. 1, Line 26, column (d).
(986,996)
lntermountain Gas Company
Exhibit No. 6
Case No. GNR-U-'18-0'l
lntermountain Gas Company
Page 2 of 5
2017 Taxable lncome
Line Normalized
Amount
(d)
No.Description Amount
(b)
Adjustments
(a)(c)
1 Pre-Tax lncome
Norma lization
S 23,157,399 S s 23,167,399
2
3
4
5
Nonutility Sales
Executive/non-executive lncentive Comp & Affiliate Charges
Adjusted Pre-Tax lncome S 23,157,399
(8,86s,000) 1r)
(519,000) {'?)
2,190,000 (2r
s (7,194,000)
(8,86s,000)
(519,000)
2,190,000
s 15,973,399
6
7
8
9
10
11
L2
13
L4
15
16
18
19
20
2r
22
,1
24
25
26
28
29
30
31
32
33
34
35
36
37
38
39
40
Permanent Tax Adiustments
50% Meals and Entertainment
Lobbying Expenses
Club Dues
Performance Share Program
Total Permanent Tax Adjustments
s 81344
59,352
2,895
It47,338)
s 5 87,344
cq ?q?
2,895
5 13,7471 - rj@t'l
S 147,338 5 143,s91
Temoorarv Tax Adiustments
Uniform Capitalization
Accrued 401K Pension
Bad Debt Expenses
lncentive Compensation
Payroll Taxes - lncentive Compensation
Vacation Pay
Customer Advances
Prepaid Expenses
SISP/SERP Expense - Current
Deferred Rate Case Costs
LNG Sales Deferred Revenue
Postretirement Benefit Costs
Deferred Compensation - Officers
Unamortized Loss on Reacquired Debt
SISP/SERP Expense Officers
SISP/SERP Expense Officers - PBO
lntercompany Deferred Employee Benefit Costs - Reg Asset
Deferred Postretirement Benefit Costs - Reg Asset
Deferred Medicare Part D
AFUDC Equity - Federal
AFUDC Debt - CWIP
AFUDC Equity - CWIP
Contribution in aid of construction - CWIP
Capitalized lnterest - CWIP
Plant Temporary Differences Federal
Total Temporary Tax Adjustments
822,s82
t5,537
6,631
( 1,10s,130)
( 1 1s,ss9 )
126,2041
{861,9 19)
( 142,300)
994
52,587
1243,286)
(80,023)
( 178,5 13)
12,2t6
(8 1,469)
(t76,77s)
24,910
4,4t9,9rt
14,t74l
( 1,83s,043 )
l4t,7s6\
34,750
33,794
709,84L
t,927,62L
s s 822,582
15,537
6,631
(s52,s6s )
ls7,78o)
126,204)
(861,9 19)
( 142,300)
552,565 (3)
57,780 l3)
(994) (3)
243,286 t3l
52,587
(80,023)
( 178,5 13)
72,276
81,469 (3)
1.76,775 t3)
24,9!O
4,4t9,811
14,t74l
( 1,83s,043 )
(4t,7s6].
34,750
33,794
709,84L
5 3,22s,123 S 1J1o.8 so
L,927,627
5 4,340,003
Total Tax Adjustments 5 3,22s,376 {o} S t,2s8,218 (4) S 4,483,s94 (4)
Federal Taxable lncome 5 26,392,775 \5)l-l!,e!!282.)- ('' lqotlrgo_'''
(') Sales variance times margin.
(2)These adlustments are based on expense category items eliminated as a part ofCase No. INT-G-16-02.
(3)These ad;ustments remove the permanent and timing differences related to Column (c), lines 2-4 above.
(a) Line 11 plus Line 38.
(s) Line 5 plus Line 39.
5
Exhibit No. 6
Case No. GNR-U-18-01
lntermountain Gas Company
Page 3 of 5
Line No.
lntermountain Gas Company
2017 Deferred lncome Tax Expense - Non-Plant
Description
Normalized
Amount Adjustments(Il Amount(b) (c) (d)
s
1
2
3
4
5
5
(a)
Deferred lncome Taxes - Non-Plant
Deferred compensation - Officers
LNG sales Deferred Revenue - Capital Replacement *New*
SISP/SERP Expense - Officers
5lsP/SERP Expense - Officers P8O
Total For Account 1900.854
Charitable Contributions
SlSP/SERP Expense - Current
Total For Account 1900.874
Deferred compensation " Officers
LNc Sales Deferred Revenue - Capital Replacement
LNG Sales Deferred Revenue - capital Replacement 'New*
SlSP/5ERP Expense - Officers
SISP/SERP Expense - Officers P80
Total For Account 1900.964
Customer Advances
Deferred Medicare Part D
lntercompany Deferred Employee Benefit Costs - ReE Asset
Postretirement Benefit Costs
R&D Tax Credit Carryforward
Total For Account 1900.955
Charitable Contributions
SlSP/SERP Expense - Current
Total For Account 1900.974
Accrued 401K Pension
Bad Debts Expense
lncentive Compensation
Payroll Taxes - lncentive compensation
U niform Capitalization
Vacation Pay
s (23,493)
(36,s37)
s (60,030)
L6,2!8
104,439
(222,73t)
26,404
(16,218)
( 104,439)
222,t31.
{26,404)
3,535
r,461
(8,71s)
7,91,8
155,346 ______: 155,346s1ss,542ss1ss,s42
t45,547 (145,541)
s 7o,47t s (70,471) s
s (61.e40)
(s0,718)
6,029
(480,484)
s (s87,114)
'12,77s!
383,579
s82,023
49,',114
222,4O1
(31,293)
s 1,193,448
298,136
67,940
( 1,545,934)
(18,405)
220,594
20,090
84,501
12s,276].s (8se,3s4)
s 61,940
50,718
(6,029)
480,484
s s87,114
36,537s 36,s37
{291,011)
l24,ss7l
s (31sJ681
s
(67,940)
(220,594)
(84,501)
S (373,034)
s
s
s (23,4e3)
s (23,4s3)
s
7
8
10
11
12
13
14
15
16
r7
18
19
20
2l
22
23
24
25
26
28
29
30
31
32
34
35
36
37
38
39
40
4t
42
43
44
45
46
47
48
49
50
51
s s 3,536
L,46L
(8,719)
7,978
t2,44O (12,440)
S 60,348 S {12,440)
s 47,908 s s 47,908
s 4?B0s
5 O2,77s)
383,579
297,O77
24,557
222,807
(31,293)
s 877,880
s 298,136
( 1,s46,934)
( 18,40s)
20,090
7,338
(38s,900)
(3s,68s)
(97,6141
(4,334)
Total For Account 1900.975
Customer Advances
Total For Account 2830.975
Total Deferred lncome Taxes - Non-Plant
Deferred Compensation - Officers
Deferred Postretirement Benefit Costs - Reg Asset
Deferred Rate Case Costs
LNG Sales Deferred Revenue - capital Replacement
Postretirement Benefit Costs
SlSP/5ERP Expense - Officers PBo
Unamortized Loss On Reacquired Debt
Total For Account 2830.965
Accrued 401K Pension
Bad Debts Expense
Charitable Contributions
lncentive Compensation
Payroll Taxes - lncentive Compensation
Performance Share Program S/f
Prepaid Expenses
U niform Capitalization
Vacation Pay
97,614
4,334
(3,901)
49,805
(s10,70s)40,464 40,464s (1,038,677) s 98,046 s (s40,530)
s (1,101,366) s (4s,817) s (1,1s1,183)
12s,275]
s (1,272,38s)
ss7,338
(38s,900)
(39,58s)
179s,227]
(8,568)
3,901
49,805
(s10,70s)
(1) These adlustments are based on expense category items eliminated as a part of Case No. INT-G-16-02.
5
ss
s
s
Exhibit No. 6
Case No. GNR-U-18-01
lntermountain Gas Company
Page 4 of 5
lntermounta:n Gas Company
2017 Deferred lncome Tax Expense - Plant
Line
No.Desc n Amount
(a)(b)
1
2
3
4
5
6
7
8
9
Deferred lncome Taxes - Plant
AFUDC Debt - Capitalized
AFUDC Debt - lncurred - Fed
CIAC - Capitalized
CIAC - lncurred
CPI - Capitalized
CPI - lncurred
Plant - Fed
Total For Account 2820.96301
s (54,304)
23,482
605,404
(28,090)
(75,871l.
(et)
(592,074l.
s
$
(L2t,5521
10
L1.
T2
13
L4
15
16
L7
AFUDC Debt - Capitalized
AFUDC Debt - lncurred - Fed
CIAC - Capitalized
CIAC - lncurred
CPI - Capitalized
CPI - lncurred
Plant - Fed
Total For Account 2820.965
(28,644)
24,734
431,765
(979,378)
31,266
(2s,s04)
609,103
s
$
63,344
18 Total Deferred lncome Taxes - Plant (58,208)
Line
Intermountain Gas Company
20t7 Delerred lncome Tax Expense - Amortization of ITC
Description
Exhibit No. 6
Case No. GNR-U-18-01
lntermountain Gas Company
Page 5 of 5
AmountNo
(a)
Deferred lncome Taxes - Amortization of ITC
Amortization of ITC
Deferred ITC - State - ldaho
Total Amortization of ITC
(b)
1
2
3
4
S (2L4,4521
75,058
$ (139,394)
EXHIBIT NO.7
CASE NO. GNR-U.18.0I
INTERMOUNTAIN GAS COMPANY
COST OF SERVICE ALLOCATION OF TAX REFORM BENEFITS
(l page)
Exhibit No. 7
Case No. GNR-U-18-01
lntermountain Gas Company
Page 1 of 1s>RssN s'4 Ll r/) 4 u] rrltnL/)rnLntnu.)
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EXHIBIT NO.8
CASE NO. GNR-U-I8-01
INTERMOUNTAIN GAS COMPANY
ANALYSIS OF RATE REDUCTION BY CUTOMER CLASS
(1 pages)
Exhibit No. 8
Case No. GNR-U-18-01
lntermountain Gas Company
Page 1 of 1
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NEWS RELEASE
and
CUSTOMER NOTICE
CASE NO. GNR-U-T8-01
INTERMOUNTAIN GAS COMPANY
(2 pages)
NEWS RELEASE
il INTHKMOUNTAIN
CAS COMPANY
A Subsdary ol L!0U Resour,:es itoq :nc.
|;AA
:::.:t::::.::::=l
Intermountain Gas Company files decrease in prices due to federal and state tax relief
BOISE, IDAHO - March 23,2018 - Intermountain Gas Company filed an application with the Idaho
Public Utilities Commission (IPUC) to reduce its base rates by an overall average of 5.5 percent or
approximately $4.97 million. The proposed decrease to Intermountain's base rate is a result of the recent
federal and state reductions in the corporate tax rate. If approved, the decrease would be effective April
1.2018.
If the proposed reduction is approved, residential customers of the company will see an average decrease
of 2.2 percent for the total price of their natural gas service or $10.40 per year based on average weather
and usage. Commercial customers, on average, would see a decrease of 1.9 percent; an annual savings
of approxirnately $3 8. 1 7.
Even with this proposed price decrease, Intermountain continues to urge all its customers to use energy
wisely. Intermountain has recently launched a new Energy Efficiency Program offering rebates for installing
high efficiency gas appliances. Details on this program as well as conservation tips, budget payment plans
and [ow-income heating assistance programs, can be found at the company's website rvvyry.ir''ltgas.com.
The request is subject to public review and approval by the IPUC. A copy of the application is
available fbr review at the commission, the company's website at u,wrv.intgas.corn as well as the
IPUC website at tnyy.;;1u0..Ugho.gov. Written comments regarding the application may be filed with
the commission. Customers may also subscribe to the commission's RSS feed to receive periodic
updates via email.
Intermountain Gas Company is a natural gas distribution company serving approximately 355,000
residential, commercial and industrial customers in 74 communities in soulhern Idaho. Intermountain is a
subsidiary of MDU Resources Group, Inc., which provides essential products and services through its
regulated energy delivery and construclion malerials and services businesses. It is traded on the New York
Stock Exchange as "MDU." For more information about MDU Resources, visit the company's website ot
\vu,y,. m d.u.. c ts tn. For mor e informatio n ab out Intermountain,vi s i t t+'tt' tt'. i n I g0.\. c om
***'*{<****trl.*
Media Contact: Cheryl Imlach, Manager Energy Utilization, 208-377-6179
-^<)+..'
6 $${THRfi.$SUNTAIh{"
CAs COMPANY
A Subsrdiary ol M\U Fesourcw 6Mp tY.
Customer Notice
Intermountain Gas Company files decrease in prices due to federal and state tax relief
On March 23,2018- - lntermountain Gas Company filed an application with the ldaho
Public Utilities Commission (IPUC) to reduce its base rates by an overall average of 5.5
percent or approximately $4.97 million. The proposed decrease to lntermountain's base
rate is a result of the recent federal and state reductions in the corporate tax rate. lf
approved, the decrease would be effective April 1,2018.
lf the proposed reduction is approved, residential customers of the company will see an
average decrease of 2.2 percent for the total price of their natural gas service or $10.40
per year based on average weather and usage. Commercial customers, on average,
would see a decrease of 1.9 percent; an annual savings of approximately $38.17.
Even with this proposed price decrease, lntermountain continues to urge all its customers to
use energy wisely. lntermountain has recently launched a new Energy Efficiency Program
offering rebates for installing high efficiency gas appliances. Details on this program as well
as conservation tips, budget payment plans and low-income heating assistance programs,
can be found at the company's website www.in as.com
The request is subject to public review and approval by the IPUC. A copy of the
application is available for review at the commission, the company's website at
www.inlggs..cpm as well as the IPUC website at www.puc.,i!hho.qov. Written comments
regarding the application may be filed with the commission. Customers may also
subscribe to the commission's RSS feed to receive periodic updates via email.
/^*^\
WORKPAPER NO. 1
CASE NO. GNR.U.l8-OI
INTERMOUNTAIN GAS COMPANY
PERTINENT EXCERPTS FROM CASE NO.INT-G-I6.02
(ll pages)
Workpaper No. 1
Case No. GNR-U-18-01
lntermountain Gas Company
Page 1 of 'l 'l
lntermountain Gas Company
lncome Tax Calculalion
For tho Tssl Ysa, Ending Decomber 31, 2Oldrl
UN Company
AdirrtrEnl.No.06rdiptbn &ptcmbrr updrrlr'PEldm! Aheil
(a)(D)(c)(d)
I Toirl OFillhg Reruo
2 fohl Opcntho Fjeans! 8!loo l.ilcnrt Exporlc lnd hcom! T.x.t@
g lntlrc.t ChlEsE
2S5.!9a,! I r 3
2i10.'196,356
.t
(s89.884)
255,39,t'r I
2ts,s?,.e72
5,880,82t -----!!q 5.801,705
6 PrTq h@mo 9,038,926 56a.748 9,805,67,0
P€lm.nt Tu Arrjustmonla:
t0tK DMd.nd Dodudlon (r23.100)
7,r,516
(t23.18E,
74,5/t0
Club Dsat
Lotoyhg Expcnu
10 Totrl Pamucnl (48.8,t31 (4E.6,t3)
t'l
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at
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lr|conthtr Cot|lpcmlha
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SISP/SERP Ep.nae . Csrt l
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Unrmor0aod Lu oo Rc8cqutq, o.bl
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Vsdtlon Pay
AFULTC DlDt. C]WP
AFUOC Equity - cwP
cspiqllzod IntlDd - CWP
Cotrtlbut on h rld otEndrudlon " CwlP
Plut TmD@ry Onlronsor FodtralE
(!,608)
(39,0r8)
(5,508)
(39,018)
1128,577)(.28,57O
652.855 4t2.655
37.230
(235,817)
37236
(235.6S7)
72,2'16
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s0.692
72,218
595.m7
36.692
1,358,102 (550.8841 76E.,(98
Tohl Tohpor!ry
Tol!| fd Adjudmnl!
Tubh lncomr bobE drlc lnMetilel
St!t. Clr.rd lnEm fu Cdculltiod:
2,015,208 (560.884)'1,475.52,r
t,ee8,565 (5c9,88,1) 1.42s,881
'll.G33,ilol (938) 11.Gt2.555
r1.033.,40r
(5.580.075)
(036)'r 1,q)2.565
8on6 Modfllca0or
stlto laat{c lnom
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ln[lrurn tlr crudh @plun F
lnwdmttu@dltH
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(5.580.075)
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(938)
?J!E!
69
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7.ao?6
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Amended Response to IPUC Staff Production Request No. 178
Amended Exhibit No. l5
Case No. INT-G-16-02
J. Danlngton, IGC
Page?4 ot27
Workpaper No. 'l
Case No. GNR-U-18-01
lnlermountain Gas Company
Page 2 of 11
lntermountain Gas Company
lncome Tax Calculation
For the Teal Yssr Endlng Decembor 31. 2O1dtl
Llno
No.o.rcrFtlm Foocrdad Adludn.ntr PE ma Arnount
(.)
Strt! O.llmd lrum Tu Colculatlon
oabmd Glr Cott rnd S8RP llmbo dlttomtt
a)(c)(d)
4€
17
40
48
5o
5r
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53
54
55
58
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59
60
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EE
e7
68
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Satc OlLmd ln@mo Tqor (lxplntoybon.fi
Totsl StBl€ lnom! furt (rxprnE)/D!natl
FldcolCqBnl lncoD. Tu Cakuhud:
7.a0!a 7.40!t 7.a6r
(220,8.2)(r82,852)(1Ol.40it)
Stalr hcmo t3r. cmnl yrar
1t,O3e.,aSl
tuo.0.zl
(036)
(182.852)
t r.032.665
(it03.10{)
Fcddal tu rdc
Frdffil lmm tu (o9.ntr)bon.,i blforo orrjwlmnt!
FrdlEl Nd Or.rrtlne Lot.
stltr Ncl Opanllne Lox
Fadlnl Tu Crcdltt
51alr Tu cEditt
FIN i10 Adrudncnlt
RGtm rnC othcr ECrudnlnta
Tolrl FodlnlCumnt lnom! Ter (c)ecntcybrncnt
r0.0t2.0a9
ltlof,
o,784..07)
(r03.788)
35.OOra
64.320
10,620.06r
35.00*
cJ,720.t71)
(3.720. r 7 r)
Fadanl Oahmd lnc@c TuCakul8uon
tlon 0sd rut e cwlP ilnrlng dlthrlnot
F.dcEl drhrtd lu Etc
Orbmd tarcr
887,023
il,00,t
24q{l9
687.026
35.009(35.mta
240,a59
80 O.fcrrd 6E! Corl e SERP tinine dit,ltrnsl
70 Frd.El d.r.md trr r8lr
7l O6t r.i, m!
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72 tJlllt turd .sl llmhg df'tFncct
73 Foda[l dltorld tu rllo
la Ort!rcd U&!
76 Fcdcnl Drtrrrd lnona TBI (rT.ntolrbonoil
75 Total FldGrl lm Tut (c$oMyD.notit
r, lrc Amorttsiibntr
78 Tollltq(.rprnr),b.ntf,
r.35C,182
3.l,33!a
.25,508
(569.684)
31.33*
(t78.a78t
,88.ae8
lrur
2.?.030
385.e8'
(3.r'r8.550)
(r ?8.a?E)487.lt9
0 14.r52)r3232.884
ra.r87 (128.284) r7e.9o3
I (3.032.s8s) 3 (.4.2881 !_try!!)
NO'I3
Itl Ttrr rmurn. mdch thr CohPt,Va urdtt.d ilt! bar &d EW oqdEmftt vhkt elr oad ln ntpoot. lo IPUC St t PrcduCroo Rlqucrt tlc. t78.
Bl rh6 Ecrudn.nl @nGlt tor u lruilfre crcr patuting to t r! commltgon rprmd daprccabh [E tor tha lo!*lng !!!d ct3st: 391 . ofioFumtunandEqdpmrrl.3ea.Toq[,slEp,OrEg!Equlpmml.rnd3lT.CmnurlelbnEqutpmnt. ThoffiorlghlladlnJmuary20lS.rltd,Enoaln
lAa Odobar 20t0 and wtt omcrd h ho.mbrr m18. Th. rdFdDril to (bprElruon cpcns mtlocr only tlul am!il ot mnlatad d!!6dation $rt
[3] hl.Eai .)e!nt6 b elcd.lcd by mullp]ytrg toul [lo blp by tir rolgriad a6n!. @rt gl CcU. fh]r adludnrd lt l,rc otrA ol thc Rclmt Adpdmnl
a,et lrod l^ foobrotc [4 rbovc.
lal ln th! qcClon ot Ul3 lix tdlodria. Urr Comprny h8d€n0rnly lEludod thr ctbtt ot ldrho lmdn.rn Tu Cndlt (lfCO ln th. 6E{ls!on ol ill drtaq@nt hom tar GrOan3G. ThB aqrdm!il nmoEt t ra .t d or ldrho lTCr lo mrl.6 tho Compsryt @ro.t eMurl0 lDd6.d m tlr bootr lid ree,{t
[5] fhb odlvtmctrt lr updstct th. ltlinsttd ITC rnoiluum to r.fbci lCul ,IC rmoni:nbn. nat ol mrtu6 lnodEltjon lnd tldoEt tu ot d.
Amended Response to IPUC Staff Production Request No. 178
Amencled Exhibit No. 15
Case No, INT-G-16-02
J. Danington, IGC
Page2i ol 27
Slato dolorad ls rat!
*(sDd dlrlng tb l.d y.3 o, 20 I 5.
Workpaper No. 1
Case No. GNR-U-18-01
lntermountain Gas Company
Page3of11
B, Disputed Expense Adjustments
(1) Incentive Compensation
Intermountain requested S704,000 in Non-Executive lncentive Compensation Plan
funds because, it argued, the compensation is attributed to Intermountain employees meeting
metrics for net income, cost contol and customer satisfaction. Tr. at 255-256. Intermountain
removed the portion of compensation expense related to achieving a target level of incorne,
because it did not consider this mekic related to customer benefits. Tr. al1524. On the other
hand, it sought recovery of incentive compensation expense metrics related to cost control and
customer service because, they were "designed to benefit the Company's customers by
incentivizing Company employees to contol costs while maintaining a safe, reliable system and
a high level of customer satisfaction ." Id. at257 .
Intermourtain stated that the individual employee effort of each MDU subsidiary
combine to benefit customers because, for example, if lntermountain met cost control goals by
underspending, customers benefit through decreased cost recovery. Tr. at 1522, Further,
customer satisfaction is measured through inclusion of MDU Resources in the top 35 companies
in the JD Power Gas Utility Customer Satisfaction Study, benefiting customers because each
utility works diligently to achieve the highest level of customer satisfaction, .Id.
Intermountain further argued that the Commission has allowed incentive
compensation for other utilities that show a direct benefit to customers or show a sufficient link
to operational efficiency, customer service, and safety, Id, at 1524,
NIGU
NIGU argued that Intermountain's adjusted incentive compensation is measured
against the combined results achieved by all utility subsidiaries of MDU Resources spread across
eight states, and that there is no proof that specific employee performance resulting in customer
benefits or employee safety is tied to Intermountain's stated customer benefits. Rather than help
ratepayers, the benefits inure to shareholders through enhanced stock valuation, earnings growth
and reduced investment risk. Tr. at713-716.
Commission Ftndings
We find that Intermountain has not met its burden of showing that lntermountain's
customers directly beneht from MDU's incentive compensation plans related to cost control and
customer satisfaction. Intermountain must attempt to make a showing that these expenses
ORDERNO. 33757 l5
Workpaper No. 1
Case No. GNR-U-18-01
lntermountain Gas ComPanY
Page4of11
directly relate to improving service or reducing costs to lntermountain customers. lntermountain
cited several cases to show that the Commission has allowed other utilities to recover employee
incentive compensation. These cases are, however, distinguishable. Here, the incentive
compensation metrics for Intermountain are inexEicably linked to MDU. Accordingly, we
decline to include incentive compensation related to cost contol and customer satisfaction in the
revenue requirement for this case.
(2) Salary Expenses
Stafftestified that lntermountain's labor cost, as a percent of revenue, is higher than
Avista Gas: 7.05% versus 4.75%. Tr. at 1086. Staff used a weighted average of three salary
studies, including the Occupational Employment Survey (OES) used by the Bureau of Labor
Statistics, which was double weighted in StafPs analysis. Id. at 1087. Staff believes that the
labor surveys utilized by Intermountain minimize the effects of regional markets on salaries,
where BLS data provides an analytical component related to regional pricing. /d. at 1087-1090.
As a result, Staff proposed a $214,296 reduction of salary expense in revenue requirement. /d.
Intermountain
lntermountain disagreed with Staffs analysis. Tr. at 1831-1836. Intermountain
maintained that the OES encompasses too many organizations, too broad of job descriptions,
does not take into account rural areas with lower salaries, and uses out-of-date data. Id.
Intermountain contended that its use of more current market survey data is sound and consistent
with the practices of other utilities. Id. at 1837.
To develop its salary expenses analysis, Intermountain used its own in-house survey
as well as contracting with independent consultants to review compensation. Id. at 1837-1844.
Intermountain claims that its 2013 independent survey, contracted through Aon Hewitt, showed
its compensation pro$ams were well-designed and aligned well with other utilities, with
Intermountain paying slightly below market. Id. at 1840. Intermountain stated that it will
conduct another independent review in20l7. Id. at 1839.
Commission Findings
The Commission finds the Company's salary expenses to be reasonable and
appropriate. Intermountain's salary expense analytical approach is sound overall. While Staff s
analysis may be reasonable when specific studies are not available, we are inclined to use the
most current, specific studies.
0RDER NO. 33757 l6
lntermountain Gas Company
Workpaper No. 1
Case No. GNR-U-18-01
lntermountain Gas Company
Page 5 of '1 'l
Non-Executive lncentive Compensation Expense Adjustment
For the Test Year Ending December 31 , 2O16t1l
Line
No.Description Amount
(a)(b)
1 Test Year
2 lncentive Compensation Expense
3 Payroll Tax Expense
1,038,672
70,942
4 Pro Forma
5 lncentiveCompensation Expensel2l
6 Payroll Tax Expenset3l
665,403
38,214
7
o
o
10
Adjustment
lncentive Compensation Expense
Payroll Tax Expense
Total lncentive Compensation Adjustment
(373,269)
(32,728)
$(405,997)
11
12
13
14
'15
16
17
Adjustment to Transmission
Adjustment to Distribution
Adjustment to Customer Accounts
Adjustment to Sales
Adjustment to Administrative and General
Adjustment to Payroll Taxes
Total lncentive Compensation Adjustment
aI (3,297)
(1 18,581)
(111,430)
(26,782)
(1 13,179)
(32,728)
$ (405,e%
PURPOSE OF ADJUSTMENT
To remove the earnings metric from the Company's non-executive incentive
compensation expense.
NOTES
[1] Test Year ending December 31, 2016 is composed of actual financial data
from January 1 - June 30, 2016 and forecasted financial data from July 1, 2016 -
December 31, 2016.
[2] See Exhibit No. 15, Page '18, Column (f1, Line 6.
[3] See Exhibit No. 15, Page 18, Column (g), Line 6.
Exhibit No. l5
Case No. INT-G- l6-02
J. Darrington, IGC
p. 17 of25
Workpaper No. 1
Case No. GNR-U-18-01
lntermountain Gas Company
Page6of11
(3) Affiliate Expenses
NIGU argued that affiliate tansaction costs, which are costs directly or indirectly
charged to the Company by affiliated companies, should be reduced to the five-year average
level experienced during 2011 through 2015, or by $1,381,000 in the test year, because
insufficient explanation or justification was provided for the Company's forecast. Tr. at 712-
713,
InteLmounloin
Intermountain proposed including affiliated tansaction costs related to the provision
of service to and between subsidiary companies of MDU Resources, such as payroll,
procnrement, Enterprise, and General and Administrative Services. Tr. at2l9, ln response to
NIGU's argument, Intermountain updated its affiliate costs and showed that its test year
forecasted affiliate costs were $15.55 million. The Company argued these costs are reasonable,
because they were only $52,500 (0.34%) lower than actuals. Tr. at 1519. Because the
Company's actual updated data is more accurate than the previously-submitted forecasted data
that NIGU rejected, Intermountain asked that its updated level of affiliate costs be accepted. 1d.
Commission Findings
The Commission finds that Intermountain failed to prove the reasonableness of its
affiliated transaction costs. Normally, a utility can establish a prima facie case of reasonableness
simply by showing it actually incurred the expenses through arms-length bargaining with another
company. See Boise ll/ater Corporation v. Idaho Public Utilities Commission,9T (daho 832,
838, 555 P.2d 163, 169 (1976). Payments to affiliates, on the other hand, do "not establish a
prima facie case of reasonableness," and it is not enough for the utility to argue it has incuned
the expense or that the affiliate provided the goods or services "at cost," Id. at836-837. Rather,
the burden of affirmatively proving the reasonableness of expenses incurred between affiliates
falls upon the utility. General Telephone Company v. Idaho Public Utiltties Commission, T09
Idaho 942, 950, 712 P.2d 643, 651 (1986). The Idaho Supreme Court provides the rationale for
applying a more rigorous standard to affiliated transactions, stating that the:
desire of public utility management, evidenced by various methods, to secure
the highest possible return to the ultimate owners is incompatible with the
semi-public nature of the utility business, which the management directs. [t
therefore follows that the [C]ommission should scrutinize carefully charges by
affiliates, as inflated charges to [the] operating company may be a means to
improperly increase the allowable revenue and raise the cost to consumers of
ORDER NO. 33757 l7
Workpaper No. 1
Case No. GNR-U-18-01
lntermountain Gas Company
Page7of11
utility service as well as the unwarranted source of profit to the ultimate
holding company.
Id, (citing Solar Electric Company v. Pennsylvania PUC,137 Pa. Super. 325,9 A.zd 447,473
(1939)). The Commission may in its discretion find that it was unpersuaded by a utility's
evidence conceming the reasonableness of its expenses. .Id
Here, the Commission finds the Company failed to prove that its proposed affiliated
tansaction expenses are reasonable. A showing of costs is not enough to overcome the burden
of proving reasonableness with regard to affiliates. However, we acknowledge that some
allocation is reasonable and appropriate. ln the absence of other proposals, and based on our
review of the extensive record in this case, we find NIGU's proposal to be a fair and reasonable
alternative. When test year expenses are abnormal, higher or lower, it is common to use an
average. Therefore, we approve affiliate expenses based on the five-year average experienced
from 201I through 2015, which amounts to a reduction of $1,381,000 in test year expenses.
(4) Miscellaneous Expense Adjustments
Staff argued that expenses to enhance a utility's image, including donations to
charities or sponsorships of charitable events or golf tournaments, do not directly benefit
ratepayers. Also, ratepayers should not be forced to support organizations whose ideology may
not agree with theirs, Tr. at 1059-1060, and see Re Intermountain Gas Co. (1978) Order No.
l4l4l. Staffthus recommended that the Commission disallow the Company's expense related to
the following events and activities, because those expenses are not safety related and do not
directly benefit customers: (1) Chamber of Commerce (Chamber) and Rotary and Lions Club,
Tr. at I 062 ; (2) 532,7 65 from the 201 6 test year actual expenses for monies spent on golf-related
activities and sponsorships, Id. at 1060-1061; and (3) $53,566 from test year actual expenses for
payments made in donations or contribution to charities. Id. StafPs adjustments, above,
included adjusting the forecast expenses based on actuals.
Intermountain
Intermountain accepted Staffs recommended adjustments for management expenses,
injuries and damages and "other proposed adjustments in Staff Exhibit No. 101." These
adjustments are reflected in the Commission's approved revenue requirement, as illustrated by
Attachment A to this Order, Tr. a|1524. On the other hand, Intermountain did not accept Staff s
adjustments for: (l) Chamber of Commerce (Chamber) expenses; (2) Rotary and Lions Club
oRDER NO. 33757 18
Workpaper No. 1
Case No. GNR-U-18-01
lntermountain Gas Company
Page 8 of 'l 1
dues; (3) certain expenses which were duplicated;s (4) a refunded expense; and (5) Staffs
determination of disallowed expenses in the forecast period. Tr. at 1525.
Intermountain stated that Chamber fees ($18,150) should be allowed because
Intermountain faces competition from electricity and other heating fuels and Chambers "help the
Company compete in the marketplace thereby enabling it to offler its customers more and lower-
priced options for energy." Tr. at 1530-1531. Intermountain stated that the Commission has
allowed Chamber expense recovery in other cases before it. Id. However, at hearing,
Intermountain admitted that in past cases cited by the Company, Chamber expenses were
grouped together with expenses related to several groups and organizations, including Edison
Electric Institute, (Order No, 29505) and, therefore, were only partially allowed. In another case,
Chamber expenses were totally disallowed (AVU-E-04-01). Id. at 1538-1539.
Intermountain further argued that the networking advantages provided as a result of
its participation in the Rotary Club of Idaho Falls and Twin Falls Lions Club ($275) directly
benefit customers by providing opportunities to network with the Company's customers and help
strengthen the communities in which they live. Id. at 1532.
Intennountain also argued that Staff should recalculate its disallowed expense
adjustment because certain expenses, specifically golf sponsorships and the American Heart
Association Heart Walk sponsorship, do not occur in the last three months of the year and should
be adjusted. Tr. at 1534. Intermountain argued that Staff used relative percentages of its
proposed disallowed expenses "to the total expenses for the period January through September of
2016 and applied that percentage to the forecast period October through December of 2016." Id.
Therefore, the Company argued that its proposed recalculated adjustment, with these expenses
removed, should be used. ,See Exhibit 32, Page l,Line26.
Commisston Findings
We continue to follow our well-established precedent as it relates to the disallowance
of expenses related to lobbying, enhancing the Company's image in the community, and
maximizing shareholder value. Therefore, we find it just and reasonable to disallow the
Company's claimed expenses related to the Chamber or service clubs, charitable sponsorships,
5 At hearing, Staff also noted that there were two expenses in Staff Witness Romano's exhibits that were double
counted and one expense that was not removed that was later reimbursed. Tr. at 1053-1054, Staffs proposed
adjustments were amended by $ 1,598 to reflect these mistakes.
ORDER NO, 33757 l9
Workpaper No. "l
Case No. GNR-U-18-01
lntermountain Gas Company
Page9of11
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Case No. GNR-U-18-0'
lntermountain Gas Con
Page10of11
Revised Commission Order Revenue Requiremenl Summary . Attachment A
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EXHIBIT A to Settlement Stipulatron Case No ll.'iT'G-16-02 Page 1
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Workpaper No. 1
Case No. GNR-U-18-01
lntermountain Gas Company
Page 11 of 'l 1
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Case No. INT-G- l6-02
J. Darrington, IGC
p.2 of 2
o.lcol-zl
WORKPAPER NO.2
CASE NO. GNR.U-l8-OI
INTERMOUNTAIN GAS COMPANY
DISTRIBUTION COST CALCULATION AND REVENUE PROOF
(2 pages)
Workpaper No. 2
Case No. GNR-U-18-01
lntermountain Gas Company
Page 1 of 2INTERMOUNTAIN GAS COMPANY
0istribution cost Calculation and Revenue Proof
Line
No.ClasE
Bllllng Prcposed Revised
Oetemlnater o) Rate
(,, (r/
Proposed Revised Revenue
(d)(a)
RS
ts-R
rs-c
Annual Bills
Therms
RS Total
3,697,216
213,439,341
1,008
137,397
385,416
31,302,760
51,760,307
21,983,924
3,932,226
$5.50
0.16349
20,334,688
34,895,198
$
55,229,886
I RS E ,S-R (Residentla/) Ioaa/
Annual Bills
Th6ms
lS-R Total
Annual Bills
5.50
0 16349
5,544
22,463
28,007
$
10
11
12
13
14
15
16
17
18
19
20
21
22
24
25
26
27
28
29
30
31
32
Th6rms - Block 'l
Therms - Block 2
Therms - Block 3
Therms - Block 4
Total Therms
0.18503
0.16150
0.13878
0.07008
9.50 $3,661,452
5,791,950
6,359,290
3,050,929
275,570
108,979,217
102
6,823
3,276
17,477,739
GS 1 Total
Annual Bills
MDFO
Thorms - Ebck 1
Therms - Block 2
Therms - Bbck 3
Thems - Block 4
Total Therms
Thems - Block 1
Thoms - Bbck 2
Therms - Ebck 3
Total Th6ms
16,010
450,360
6,317,560
6,317,560
7,613,251
3,000,000
29,296,036
0,18503
0.16150
0.13878
0.07008
0.03008
0.01214
0.00308
0.02404
0.00850
0.00261
2,650
9.50 $
1,094
1,102
455
lS-C Total
cS., 6,S'C (Gerera, Seryice) fotal
LV-1
I\,lDFQ
3,619
21,142,810
o.3oooo $1 35,108
190,032
190,032
33 LV.1 Tolal
T-3
325,140
34
35
36
37
38
Therms " Block 1
Thorms - Block 2
Therms " Block 3
Total Thorms
0.03856
0.01570
0.00578
293,567
47,100
169,331
39,909,287
15,321,300
1 15,948,332
96,712,653
71,751 847
509,998
39 I.3 lola/
T,4
$ 509,SS8
40
41
42
43
44
45
Therms-Block 1
Therms - Block 2
Therms'Block 3
Total Therms
0.30000 s 4,596,390
2,787,398
822,058
107,272
284,412.832 3,196,728
46 T-4Total
47 fotal (excludes gas costs)
48 Target Revenuo Requirement
49 Dllference (Lino 47 minu! Line 4E)
{')Bllingd6leminantsftomCas6 No INT'G-16{2 oderNo.33879
{')s66 Exh bt No 7, Lne6 coumn (l)
s 8,393,118
85,628,959
0s,628,s74 r2)
$
385
1
2
3
4
5
6
7
8
55,257,893
21,139,191
Workpaper No. 2
Case No. GNR-U-18-01
lntermountain Gas Company
Page 2 of 2
Line
No.Class
INTERMOUNTAIN GAS COMPANY
Proposed Distribution Cost Change
Proposed Revised
Rate{1)
Cunently
Effective Rate
Proposed Rate
Change
(a)
Customer Charge
Distribution Cost
Cuslomer Charge
Distribution Cost
Customer Charge
Distribution Cost - Block 1
Distribution Cost - Block 2
Distribution Cost - Block 3
Distribution Cost - Block 4
Customer Charge
(b)(c)(d)
1
2
3
4
E
6
RS
IS-R
GS.1
LV.1
T.?
r-4
$$5.50
0.1 6349
5.50
0.1 6349
950
9,50
0,30000
0.03008
0.01214
0.00308
0.03856
0 01 570
0.00578
0 30000
0 02404
0 00850
0.00261
550
0.1 7849
E EA
0.1 7849
0.1 9801
0.17283
0,1 48s2
0 07500
o(n
01980'l
0.1 7283
0.1 4852
0 07500
0.30000
0.03309
0.01336
0.00339
0.04082
0.01662
0.00612
0 30000
0.02713
0 009s9
0 00294
(0 01 500)
(0 01500)
(0.01298)
(0 01 1 33)
(0.00974)
(0.00492)
(0.01 298)
(0 01 133)
(0 00974)
(0 00492)
(0 00301 )
(0 00122)
(0.00031 )
(0 00226)
(0 000e2)
(0 00034)
(0 0030e)
(0.0010e)
(0.00033)
$
7
8 950
I
10
11
12
0 18503
0 16150
0 13878
0 07008
15
tb
17
1B
0 1 8503
0 16150
0,1 3B7B
0.07008
13
14
19
20
Distribution Cost - Block 1
Distribution Cost - Block 2
Distribution Cost - Block 3
Distribution Cost - Block 4
Demand Charge
Distribution Cost - Block 1
Distribution Cost - Block 2
Distribution Cost - Block 3
Distribution Cost - Block 1
Distribution Cost - Block 2
Distribution Cost - Block 3
Demand Charge
Dishibution Cost - Block '1
Distribulion Cost - Block 2
Distribution Cost - Block 3
21
22
IJ
24
to
27
28
29
30
JI
(') See Workpaper No. 2, Page 1, Column (c).