20180511Decision Memo - Intermountain Gas.pdf

DECISION MEMORANDUM
TO COMMISSIONER KIELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:KARL T. KLEIN
DEPUTY ATTORNEY GENERAL
DATE: MAY 11,2018
SUBJECT:PROPOSED SETTLEMENT REGARDING INTERMOUNTAIN GAS
COMPANY IN THE COMMISSION'S IN\/ESTIGATION INTO THE
IMPACT OF FEDERAL TAX CODE REVISIONS ON UTILITY COSTS
AND RATEMAKING - CASE NO. GNR.U.18.O1.
On May 10, 2018, Intermountain Gas Company filed a Stipulation and Settlement
("Stipulation") and a Motion to Approve settlement Stipulation and Request for Moditied
Procedure. The Stipulation is signed by the Company, Commission Staff, and intervenor Alliance
of Western Energy Consumers (the only persons or entities who expressed interest in participating
as to Avista).
If approved, the Stipulation would return to customers 1007o of tax benefits the
Company has realized under the new federal tax law. In summary, the parties have agreed to: (1)
a $5,111,303 decrease to the Company's Revenue Requirement, which represents the benefit to
the Company's customers caused by the revisions to the federal and state tax codes; and (2) a
corresponding deferred liability on 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 ask the Commission to process the Stipulation by Modified Procedure with
Comments due in time for an approving order to issue by June 1, 2018. To meet this deadline, the
Staff recommends the Commission set a May 22,2018 comment deadline, with any reply due two
days later, on May 24,2018.
IDECISION MEMORANDUM
COMMISSION DECISION
Does the Commission wish to issue a Notice of Proposed Settlement and Notice of
Modified Procedure setting a May 22,2018 comment deadline and May 24,2018 reply deadline
relating to the Intermountain Gas Stipulation?
lLl / /,-
Karl T. Klein
Deputy Attorney General
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2DECISION MEMORANDUM