20180515notice_of_settlement_order_no_34063_int.pdf

Office of the Secretary
Service Date
May 15,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION )CASE NO.GNR-U-18-01
INTO THE IMPACT OF FEDERAL TAX )CODE REVISIONS ON UTILITY COSTS AND )NOTICE OF SETTLEMENT
RATEMAKING )STIPULATION
)(INTERMOUNTAINGAS)
)NOTICE OF MODIFIED
)PROCEDURE
)ORDER NO.34063
On May 10,2018,Intermountain Gas Company (the "Company")filed a Stipulation and
Settlement ("Settlement Stipulation")and a Motion to Approve settlement Stipulation and Request
for Modified Procedure.The Settlement Stipulation is signed by the Company,Commission Staff,
and intervenor Alliance of Western Energy Consumers and,if approved,would return to customers
100%of the tax benefits the Company realizes under new tax law that decreased the Company's
corporate tax rate and expenses.
With this Order,the Commission provides notice of the Settlement Stipulation and that the
matter will be processed by Modified Procedure,with deadlines to submit comments about the
Settlement Stipulation as set below.
BACKGROUND
The federal Tax Cuts and Jobs Act of 2017 (the "Tax Reform Act")decreased the federal
corporate tax rate from 35%to 21%,effective January 1,2018.In response,the Commission
opened this multi-utilitycase to investigate whether to adjust the rates of certain utilities so that
the benefits from the reduced tax rate can flow through to customers.See Order No.33965.The
Commission directed all affected utilities-includingthe Company-toimmediately account for
the tax benefits as a regulatory liability,and to report on how the tax changes affected them,and
how resulting benefits could be passed on to customers.See id.at 1-2.The Company filed its
report,which the Company styled as an application,on March 23,2018.
ORDER NO.34063 1
NOTICE OF SETTLEMENT STIPULATION
YOU ARE HEREBY NOTIFIED that the Settlement Stipulation is available for public
review as described below.The Settlement Stipulation,if approved,would return to customers
the tax benefits the Company has realized under the Tax Reform Act.In summary,the Settlement
Stipulation provides for:(1)a $5,111,303 decrease to the Company's Revenue Requirement,
which represents the benefit to the Company's customers caused by revisions to the federal and
state tax codes;and (2)a corresponding deferred liabilityon the Company's books,which would
be returned to the Company's customers as a credit through the Company's next Purchased Gas
Cost Adjustment later this year.The parties have asked the Commission to process the Settlement
Stipulation by Modified Procedure in time for an order to issue by June 1,2018.
YOU ARE FURTHER NOTIFIED that this docket,the Settlement Stipulation,and any
supporting workpapers,testimony,and exhibits are available for public inspection during regular
business hours at the Commission offices.They also may be viewed on the Commission's website
at www.puc.idaho.gov by clicking on "File Room"and then "Multi-Utility Cases"and going to
the case number referenced in the above caption.
YOU ARE FURTHER NOTIFIED that the Commission is not bound by the parties'
agreement as reflected in the Settlement Stipulation.The Commission will independentlyreview
the Settlement Stipulation consistent with Commission Rules 271-280,IDAPA 31.01.01.271-280,
to decide whether to approve or reject it,or state conditions under which to accept it.The proposed
settlement's proponents ultimatelybear the burden to prove that it is just,fair,and reasonable,in
the public interest,or otherwise in accordance with law or regulatory policy.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter,and will proceed under Modified Procedure
pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission's Rules of Procedure,
IDAPA 31.01.01.201-204.The Commission notes that Modified Procedure and written comments
have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that the parties,and any person desiring to state a
position on this Settlement Stipulation,may file a written comment about the Settlement
Stipulation with the Commission no later than May 22,2018.The comment must contain a
statement of reasons supporting the comment.Persons desiring a hearing must specifically request
ORDER NO.34063 2
a hearing in their written comments.Written comments concerning this Settlement Stipulation
may be mailed to the Commission and the Company at the addresses reflected below:
Commission Secretary Preston N.Carter
Idaho Public Utilities Commission Givens Pursley LLP
PO Box 83720 601 W.Bannock St.
Boise,ID 83720-0074 Boise,ID 83702
e-mail:[e-mail]
Street Address for Express Mail:
Michael P.McGrath
472 W.Washington Street Director -Regulatory Affairs
Boise,ID 83702-5918 Intermountain Gas Company
PO Box 7608
Boise,ID 83707
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission's home page at www.puc.idaho.gov.Click the "Case Comment or Question Form"
under the "Consumers"tab,and complete the form using the case number on the front of this
document.These comments must also be sent to the Company at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the parties may file reply comments no later than
May 24,2018.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set,the Commission will consider this matter on its merits and enter its Order
without a formal hearing.If written comments are received within the time limit set,the
Commission will consider them and,in its discretion,may set the same for formal hearing.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be conducted
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code,and the Commission
may enter any final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000,et seq.
ORDER
IT IS HEREBY ORDERED that the Settlement Stipulation be processed under Modified
Procedure,Rules 201-204 (IDAPA 31.01.01.201-.204).The parties and any interested persons
RN O.34063 3
shall have until May 22,2018 to file written comments.The parties shall have until May 24,2018
to file reply comments,if any.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of May 2018.
PÁUL KJEL A D PItÉŠÍDÈNT
KPIÚINE ER SS )NER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
GNRUl801 INT Ntc Settlemem Mod kk
ORDER NO.34063 4