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HomeMy WebLinkAbout20170215Reading Rebuttal.pdfRTCEIVED ttli fiB l5 PH 3: 28 ' , ,lr -i i.iiiLiC:,, - ; r-i,"li;,tiiSSl0N BEFORE TIIE IDAHO PUBLIC UTILMIES COMMISSION IN THE MATTER OF THE APPLICATION OF INTERMOUNTAIN GAS COMPANY FOR TIIE AUTHORITY TO CHANGE ITS RATES AND CHARGES FORNATI.JRAL GAS SERVICE TO NATI..IRAL GAS CUSTOMERS IN TIIE STATE OF IDAHO CASE NO. INT.G-16.02) ) ) ) ) REBUTTAL TESTIMOI\TY OF DR. DON READING ON BEIIALF OF AMALGAMATED SUGAR COMPAI\TY LLC TEBRUARY t5,20t7 1 Z 3 A. a. 4 a. A. ARE YOU THE SAME DON READING WHO FILED DIRECT TESTIMONY ON BEHALF OF THE AMALGAMATED SUGAR COMPAI\TY LLC IN THIS DOCKET ON DECEMBER 16,2016? Yes, I am. BEFORE YOU BEGIN YOUR R"EBUTTAL TESTIMOI\IY DO YOU HAVE AII-Y GENERAL REMARKS REGARDING THIS COMMISSION'S HISTORIC APPROACH TO COST.OF-SERVICE STT]DIES AI\D TIIE MOVEMENT OF CUSTOMERS TOWARDS COST.OF-SERVICE BASED RATES? Yes. This Commission has historically, and appropriately, taken a very conservative approach to movement of customers toward full cost-of-service rates. This conservative approach is evidenced by the following passage from an Idaho Power general rate case order. It is important to note that the Commission has declared, as a general policy, an inherent and healthy skepticism about cost-of-service study results. It has also been very reluctant to make major sudden changes in rates based on a single cost-of-service study. Finally, as is apparent from the following passage, the Commission's view as to what constitutes a "significant" rate change puts both the Company's proposal, as well as StafPs proposal, in this case in much better historic and real- world perspective. Here is what the Commission has had to say about cost-of-service studies and the magnitude of rate changes that ought to be driven by such studies in an Idaho Power general rate case: Important interests in rate stability and continuitv preclude adopting the extremely large shifts in revenues from one class to another that are depicted. In addition, the results of cost-of-service studies are not so precise that the determination of appropriate revenue shifts is an exact certainty. Nonetheless, the passage of time since the Commission's last examination of IPCo's rates has allowed several classes to drift further away from cost- of-service rates. Recognizing that cost-of-service studies are not precise, we think it important that cross subsidies among customer classes should be minimized. Accordingly, as outlined below we take significant steps to move each class closer to its indicated cost-of-service. The increases shown in Appendix 3 for the small general service (Schedule 7) and the irrigation service (Schedule 24) should be tempered by important interests in rate stabilitv and continuitv for these classes. Increases of l50% and 5 6 7 o 9 10 11 t2 13 74 15 76 71 18 19 20 2t 22 24 25 26 21 2B 29 30 Reading, (Di-Reb), Amalgamated Sugar INT-G-16-02 1 1 2 3 4 5 6 1 8 10.230% respectively in these schedules represent significant moves toward cost-of- service and send an important price signal to customers making consumption decisions within these classes.l a. ARE THERE OTHER INDTCATIONS OF THE COMMISSION'S GRADUALISM Ar\tD SKEPTICAL POLICIES TOWARD IMPLEMENTATION OF COST.OF.SERVICE STUDIES? A. Yes in a Washington Water Power (now Avista) general rate case the Commission articulated and implemented the very same policy: Important interests in rate stability and continuity preclude adopting the extremely large double digit shifts in revenues from one class to another that were requested. In addition, we recognized that the results of cost-of-service studies are not so precise that the determination of appropriate revenue shifts is an exact certainty. The number of years between examinations of cost-of-service and revenue allocation issues for the Company has allowed several classes . . . to drift a considerable distance from full cost-of-service and requires gradual incremental moves to cost-of-service rates. We approve a two step move to accomplish the Company's one-third move to full cost-of-service, a20o/o move the first year reflected in the rates approved by this Order, and an additional 1504 move to begin one year from the date of this Order.2 It is important to note that even a "one-third move to full cost-of-service" was too extreme for the Commission. Instead, the Commission rejected the one-third movement toward cost-of-service in favor of two, much smaller, rate changes equal to a one-fifth (20%) movement toward cost-of- service followed by a one-seventh (15%) move toward cost-of-service. Of course, those Commission findings are completely in line with my recommendation in my direct testimony of a one-fifth movement toward cost-of-service in each subsequent IGC general rate case. HAVE THE COMMISSION STAFF OR THE COMPAI\IY ADHERED TO THESE COMMISSION POLICIES IN THIS CASE? No. I have seen nothing in this case that would warrant a departure from the Commission's historical ffeatment of cost-of-service study results - both in terms of its skepticism as to the results and as to its temperance in making "significant" changes to rates in response. I have also seen nothing in this case that suggests either the Staffor IGC have even considered these cost-of- service guidelines that have been so well articulated and consistently enforced by the Y 10 11 72 13 74 15 \6 77 18 t9 20 2l 22 Z3 24 25 26 a. 21 28 29 30 31 I IPUC Docket No. IPC-E-95-5, Order No. 25880 at page 34. Emphasis provided 2 IPUC Docket No. WWP-E-98-l l, Order No. 28097 at page 30. Reading, (Di-Reb), Amalgamated Sugar rNT-G-16-02 2 32 1 2 3 4 5 6 1 8 9 Commission. Amalgamated is, quite simply, relying on this Commission to adhere to its existing policies relative to cost-of-service studies. This is especially important because no other party has even mentioned those policies, let alone articulated any rationale for departure from those policies. Although those policies are not embedded in a rule or regulation, I believe that Amalgamated, and customers in general, are welljustified in their reliance on prior Commission declared policies dealing with very gradual movement toward cost-of-service study results. All that assumes, of course, that there is a valid cost-of-service study in the first place - which is simply not the situation in this case regardless of one's view of the Commission's established policies with regard to implementing rate changes based on cost-of-service studies. WHOSE DIRECT TESTIMOI\TY WILL YOU BE ADDRESSING IN YOTTR R"EBUTTAL TESTIMOITY? The tdaho Commission Staffs' (Staff witnesses Michael Morrison and Bentley Erdwurm. My Rebuttal Testimony will focus on why it is inappropriate for the Staff to make rate design changes while at the same time Staffcompletely and unequivocally rejects the company's rate design study (a.k.a. its cost-of-service study or'COS"). This inconsistency leads me to the conclusion that the rate design for the transportation customers proposed by the Commission Staff is not founded on sound rate making principles. It is simply not reasonable to make rate design changes without at [east some certainty that those changes are supported by a valid cost-of- service study. Rather than shooting in the dark, my recommendation to the Commission is that, whatever revenue increase is granted Intermountain Gas (lGC, Company) that it be spread on an equal percentage on the individual customers' bills. Significant changes to rate design should only be implemented only after a valid, acceptable, cost-of-service (COS) is completed. This is especially critical because of the thirty-plus years of commodity-usage-only rates; thirty-plus years of no demand charge; and thirty plus years without a cost-of-service study. 10 a 11 12 A. 13 l4 15 t6 l1 18 !9 20 2L 22 23 Reading, (Di-Reb), Amalgamated Sugar [NT-G-16-02 3 24 1 2 3 4 5 6 1 8 9 a. A. 11 72 13 t4 1s o. t6 IN YOUR DIRECT TESTIMOI\IY DIDN'T YOU RECOMMEND THAT IT'THE COMMISSION WERE TO ADOPT IGC'S COST-OF'.SERVICE STUDY THAT DEMAI\D CHARGES SHOULD BE PHASED IN OVER THE COMPAIIY'S NEXT FTVE GENERAL RATE CASES? Yes. I am generally comfortable with and often supportive of some levelof demand charge as part of an appropriate rate design. A critical caveat, and as I stated in my direct testimony, is that my recommendation assumed the Company's COS sfudy was 'accurate'.3 That recommendation changes now that I have reviewed Staff s thorough and thoughtful testimony regarding IGC's cost-of-service study. I agree with Staff that, in its present form, the Company's COS should not be used as the basis of determining an acceptable rate design. That, of course includes both the proposed allocation among the customer classes, as well as the level of a demand charge. I will review my recommendations, including the five rate case phase in for a demand charge, based on the criteria discussed in my direct testimony - after an acceptable cost-of-service study is prepared and adopted by the Commission. WHAT IS THE TRANSPORTATION RATE STAFF RECOMMENDED IN ITS DIRECT TESTIMOITY? Despite its reasoned rejection of the Company's cost-of-service study, Staff still supports the imposition of a demand charge. This is a dramatic change after more than thirty years of commodity-only charges. Staffdoes recommend reducing the Company's proposed demand charge for Transportation customers by only 28o/o, evan though it rejects the cost-of-service study upon which that charge is based. IGC recommends that Transportation customer classes T-4 and T-5 be consolidated and the imposition of a demand charge, based on the Minimum Daily Firm Quantity (MDFQ), of $0.27923 per therm.4 Staffrecommends a reduction to the MDFQ based 3 Direct Testimony D. Reading, Amalgamated, p. 6, lines 6-7 a Application, Rate Schedule T-4. Reading, (Di-Reb), Amalgamated Sugar INT-G-16-02 10 tl A. 18 L9 2L 22 4 Z5 1 demand charge to $0.20 per therm without the benefit of a valid cost of service studys. WHAT DID STAFF USE AS A BASIS FOR ITS RECOMMENDATION OF $0.20 Pf,R THER}I OF NOMINATED MDFQ FOR TITE DEMAND PORTION OF THE T.4 RATE DESIGN? Staff witness Erdwurm stated: Introducing a demand charge into the Company's large volume and transportation rates recognizes that the Company's costs to serve these customers are driven in large part by the maximum demands they place on the system. At this time, the Company has not supported the amount of its proposed MDFQ charge with a cost-of-service study. Consequently, Staffrecommends that the amount of the MDFQ charges be addressed at the aforementioned workshop proposed by Staff.6 Therefore, Staffsimply accepts the introduction of a demand charge for transportation customers, even though it rejects the use of IGC's cost-of-service study as a basis for determining the level of what that demand charge should be. IF THE COMMISSION STAFF AFFIRMATMLY REJECTS IGC's COST-OF- SERVTCE STUDY TO DETER]VTTNE THE MDFQ RATE, WHAT COULD FORM THE BASIS OF ITS RECOMMANDATION? The level of the MDFQ demand rate per therm is admittedly not based on any cost-of-service justification. I can only conclude, therefore, that it is arbitrary. Staff witness Erdwurm justifies this recommendation only by observing that his proposed rate is lower than that proposed by the Company: The recommendation to reduce the charge is based on the impact on specific customers. Introducing a demand charge will shift costs from higher load factor customers to lower load factor customers. Staffbelieves this is appropriate, and that lower load factor customers should pay more, because they are more costly to serve (other things being constant). s Direct Testimony B. Erdwurm, IPUC Stafl p. 19, lines 9-l l. 6 Direct Testimony B. Erdwurm,IPUC Stafl pgs. 18, 19, lines l8-2. Reading, (Di-Reb), Amalgamated Sugar rNT-G-16-02 2 3 4 a. A.q 6 7 d 9 10 11 L2 13 74 1s o. 76 L7 18 A. 19 20 27 22 z5 24 25 5 1 2 3 4 5 6 1 However, Staff supports a more gradual phase-in of demand charges than proposed by the Company.T Therefore, the goal of Staffs proposed rate design is to moderate the impact of the Company's proposed rate design on 'specific customers' by proposing a lower demand charge than that offered by IGC. However, if the starting point, (the Company's demand charge proposal) is based on afatally flawed cost-of-service study, it seems illogical and arbitrary to use that same starting point to set rates at all - even if the goal is to moderate the effect. DO YOU BELIEVE STAFF WAS ABLE TO ACCOMPLISH ITS GOAL OF MODERATING THE RATE IMPACT OF THE COMPANY'S DEMAND CHARGE PROPOSAL? No. It is certainly not true for Amalgamated Sugar. It is hard to make an exact apples to apples comparison because Staff s rates are based on its proposed lower revenue requirement, however as pointed out in my Direct Testimony, IGC's proposal would result in a72.2%o rate increase for Amalgamated's three plants based on the original nomination of MDFQ and a 48.5%o increase based on updated MDFQ. Based on the updated MDFQ and StafPs lower recommended revenue requirement, Staffls rate design would still mean an unacceptable 68.2%o rate increase for Amalgamated. Mr. Erdwurm points out in his Direct Testimony that T-4 transportation customers' percentage changes in rates, based on the Company's original proposal would range from a decrease of 56%o to an increase of 190%.8 I do not have monthly therm data for all T-4 customers and therefore cannot calculate StafPs rate design recommendations in order to judge the moderating impact StafPs proposal would have on individual customers in the class. Nevertheless, just looking at a very small moderating impact on the rate shock concerns I have for Amalgamated it would be safe to assume there would still be a wildly disparate rate impacts (both plus and minus rate changes) among customers in the T-4 class. 7 Direct Testimony B. Erdwurm, IPUC Staff, p.19, lines l8-20. 8 Direct Testimony B. Erdwurm, IPUC Staff, pgs. 20, 21, lines 25-3 Reading, (Di-Reb), Amalgamated Sugar INT-G-16-02 B 9 a. 10 11 A. L2 13 t4 15 L6 1,1 1B 79 20 27 22 23 24 6 1 2 3 a. A WHAT IS THE CAUSE OF THESE WILDLY DISPARATE RATE IMPACTS AMONG IGC'S CUSTOMERS IN THE T-4 CLASS WITH THE INTRODUCTION OF DEMAi\D CHAI\GES BASED ON MDTQ? As pointed out in StafPs testimony, an individual customer's load factor plays a major role the percentage change in rates with the introduction of a full, as determined by the Company, COS demand charge. I do not have load factors for all of IGC's T-4 customers; however a proxy for a T-4 customers' Ioad factor can be developed by dividing the annual therm consumption by the total customers' nominated MDFQ. The chart below depicts this load factor proxy on the left axis plotted against the percentage rate change on the right axis as proposed by the Company for the T-4 customer class for 2016 as provided by IGC in a Production Request Response.e The chart also identifies the three Amalgamated Sugar plants (Nampa, Paul, Twin Falls). tGC T4 Customers 2016: Therms/MDFQ (teft Axis) and Percentage lncrease in Proposed Rates (Right Axis) 4 5 6 1 I 9 10 11 L2 13 (,uco o Gol E{, oE 650 600 550 ot s00t!rE 450(!ot' rooo - 3soo o. 300 dB 2so \. 2000 Eb 1soE 100 50 200% t50% too% 50% ovo -50% -100% I i PAIII, TWIN FATISNAMPA +Therms/ MDFQ (Proxyfor Load Factor): LeftAxis -o%Rate change Line As the chart clearly indicates most (84%) T-4 customers that have the highest load factors would receive a rate decrease, while the other 16%T-4 customers with the lowest load factors would 9 Response to IPUC Staff Production Request #199 Reading, (Di-Reb), Amalgamated Sugar rNT-G-16-02 G PercentaSe Rate ChanSe: Right Axis 1 L4 1 2 experience rate increases, with just four or five customers exceedin g a l00Yo increase, including Amalgamated's Paul facility. WITH THE LARGE PERCENTAGE INCREASE FOR AMALGAMATED'S THREE PLAIITS RELATM TO THE MAJORITY OF OTHER T-4 CUSTOMRS, CAN ONE DEDUCE TJNDER THE COMPAIIY'S PROPOSAL, THAT THEY ARE BEING ASKED TO CONTRIBUTE A SIGNIFICANT SHARE OF THE CLASS RATE INCREASE? Yes, and then some. As originally filed by IGC, the T-4 class as a whole is slated to receive a DECREASE of $1,386,472.10 Amalgamated, on the other hand would see an INCREASE in its rates of $839,529.11 Keep in mind that rate design is a 'zero sum game.' That is, one customer's rate decrease is directly funded by its neighbor's rate increase. So, then, Amalgamated is solely funding the majority of the rate decreases for the bulk of IGC's transmission customers. TRANSPORTATION CUSTOMERS WERE GryEN A CHANCE TO ADJUST THEIR NOIYIMATED MDFQ AFTER IGC FILED ITS RATE CASE. WERE THE PROXY LOAD FACTORS tN THE CHART ABOVE CALCULATED WITH THE ORGINAL MDFQs OR THE ADJUSTED FACTORS THAT WERE ALLOW BY IGC AFTER CUSTOMERS CAME TO UNDERSTAND THE IMPACT IT WOULD HAYE ON RATES? I do not have individual firms' data for the adjusted MDFQ so the above chart was developed using the originally filed values. However the Company did provide the values for changes in MDFQ for the LV-1, T-4, and T5 classes.12 The data shows the MDFQ for the LV-l and T-5 classes were actually adjusted upward by 4.0% and 21.7%o respectively. While the T-4 classes adjusted MDFQs 252,722 therms lower or down l7.lYo. Amalgamated dropped its MDFQ for the three plants by 85,000 therms or 17.9%o. An indication of the magnitude of the importance l0 Direct Testimony Lori Blattner, IGC, Table B-2, p. 17.ll Response to Amalgamated Production Request #4. 12 Email from Mike McGrath, IGC, to Bentley Erdwurm, IPUC Staff, December 24,2016. Reading, (Di-Reb), Amalgamated Sugar INT-G-16-02 3 4 5 6 1 8 9 a. A. 11 72 a. 13 L4 15 76 L1 18 A. L9 20 2t 22 23 10 8 1 2 Amalgamated is to IGCs system is that for both the original and adjusted MDFQs Amalgamated comprised 32%o of total revenue for the T-4 class. STAFF WITNESS ERDWUR]VI DEVELOPED HIS RATE DESIGN PROPOSALS USING THE REVENUE REQUIREMENT FOR EACH RATE CLASS AS PROPOSED BY STAFF WITNESS MICHAEL MORRISON. HOW DID DR. MORRISON ASSIGN STAFF'S RECOMMENDED REVENUE REQUIREMENT AMONG THE VARIOUS RATE CLASSES? According to Dr. Morrison, because the Company's cost-of-service study was fatally flawed and could not be used, he spread Staff s recommended revenue requirement proportionally to each customer class based on the revenue collected at current rates. The Company's methodology will not result in a fair allocation of the Company's revenue requirement among its rate classes and, absent a load study, it is not possible to develop a suitable alternative revenue allocation methodology. I propose that the Company, Commission Stafl and the Company's stakeholders hold workshops in order to develop a suitable load study and cost-of-service methodology. Until a satisfactory cost-of-service study is completed, I propose that the Company's revenue requirement be allocated in proportion to the normalized revenue currently being collected from each rate class.l3 It would take a giant leap of faith to assume the current revenue allocation among customer classes on IGC's system has any relationship to current cost causation. As stated above, the current rates have been in place for 31 years and no matter how those allocations were determined three decades ago, the Company's customer class profile has certainly undergone enoffnous changes in that time. COULD YOU PLEASE BRIEFLY DISCUSS SOME OF THOSE 'ENORMOUS' CHANIGES THAT HAVE OCCI]RRED TO INTERIVIOI]NTAIN GAS OVER THE PAST 31 YEARS? 13 Direct Testimony M. Morrison, IPUC Staff, pgs. 2,3,lines 22-8. Reading, (Di-Reb), Amalgamated Sugar INT-G-16-02 3 4 5 6 1 x 9 a. A. 10 11 L2 13 t4 15 16 t1 18 t9 20 27 22 23 24 a. 25 9 26 Z 3 4 5 6 1 I 9 1 A. According to the Company, a. The Company's rate base of approximately $66.4 million as filed in its last rate proceeding in 1985 has increased to about $237 million, as filed in this proceeding. Operating costs, excluding Cost of Gas and income taxes, have also increased since the last rate filing from approximately $26.8 million to approximately $71.7 million, or an increase of $44.9 million.la Therefore since IGC's last general rate proceeding back in 1985, the Company's rate base has more than tripled and it operating costs have increase by 268%. DO YOU KNOW WIIAT RELATIYE SHIFTS THERE HAVE BEEN AMONG TI{E VARIOUS CUSTOMER RATE CLASSES ON INTERMOI]NTAIN'S SYSTEM SINCE THE LAST RATE CASE THAT WOULD IMPACT TI{E RESULTS OF ANY VALII) COST.OF.SERVICE STUDY? Only to a certain extent. For example, consider just two consolidated rate classes; the residential class and the commercial class for the number of customers. There has been a significantly higher growth rate in the number of residential customers than in the number of commercial customers. The number of residential customers grew from 85,418 in 1985 to 302,790 in 2015 or by 254%o, whereas commercial customers increased from 13,3 l0 to 3 1,860 or by a rate about half as fast at 139%o.ts The slower growth in the number of commercial customers is due, in part, to the fact that the Company did not have transportation rates in place in 1985. With the deregulation of interstate pipelines in the 1990s IGC put in place an evolving set of 'T' rates that were approved by the Commission. As a result, large use customers migrated from the commercial class to the various transportation classes. The current T-4 rate was approved by the IPUC in July 1998.t0 It is axiomatic that different customer classes have different load profiles. 10 13 A. 11 72 74 15 76 71 1B 19 20 27 Z3 14 Direct Testimony Nicole Kivisto, IGC, p. 2, lines l8-23. l5 Direct Testimony Scott Madison, IGC, p. I l, Table M.5. l6 ldaho Public Utilities Commission Order No. 27656, Case No. INT-G-98-2, July 1998. Reading, (Di-Reb), Amalgamated Sugar rNT-G-16-02 10 1 2 3 4 5 6 't a. A. These different load profiles form the foundation of cost allocation studies and drive the cost responsibility for each class. Therefore, there is no way to determine what cost responsibility each customer class might have simply by looking at the current revenue from current rate classes. IN YOTIR DIRECT TESTIMOI\IY, YOU PROVIDED A BRIEF PROFILE OF AMALGAMATED SUGAR'S EXTENSIVE OPERATIONS AI{D ITS IMPORTANCE TO IDAHO'S ECONOMY. HOW DOES AMALGAMATED'S NATIIRAL GAS CONSUMPTION COMPARE TO OTHER T.4 CUSTOMERS ON IGCS SYSTEM? The chart below clearly shows Amalgamated is, by far, IGCs largest individual transportation customer. The thinner lower bars to the right of the Amalgamated three plants' combined bar include other T-4 customers that have more than one facility in IGC's service territory along with those single site customers. IGC T-4 Customer Class Therm Consumption 2015: Combined Plants 8 9 10 11 L2 13 74 o E os 70,000,000 50,000,000 s0,000,000 40,000,000 30,000,000 20,000,000 10,000,000 - 3 Plants T-4 Customers Ifjust individual locations of T-4 customers are considered the pattern looks much the same with Amalgamated ranking first, second, and seventh in annual therm consumption. Reading, (Di-Reb), Amalgamated Sugar INT-G-16-02 11 1 2 3 4 5 6 1 B 9 IGC T-4 Cnstomer Class Therm Consumptiou 201530,000,000 25,000,000 % 20,000,000 615,OOO,OOO H 10,000,000 5,000,000 0 T:.1Custorners Frankly, Amalgamated was ambushed by the Company's filing in this case. By that I mean the recommendation of fullcost-of-service-based rates (flawed as the COS may be) by IGC and the proposed imposition of demand charges after paying only commodity charges for well over thirty years. As I explained in my direct testimony, customers must have adequate time (years) and advance notice (years) to adjust to such dramatic rate structure changes, especially those as dramatic as filed by IGC in this case. The Commission Staffhas recommended rate design workshops with the Company and interested parties. Amalgamated plans to fully participate in those workshops. In conjunction with those workshops Amalgamated plans to explore a range of alternative rate designs that might include seasonal rates, ratchet rates, establishing a new customer class for the largest transportation customers or have special contracts that would better accommodate the utility and the customers' load profile, along with other, yet to be defined, possible approaches. WHAT ARE YOUR RECOMMENDATIONS TO THE COMMISSION? My recommendations are, once the Commission determines the revenue requirement for Intermountain Gas that it be spread on an equal percentage on each customer's individual bills and that any significant rate design changes are made only after the Company prepares a cost-of- Reading, (Di-Reb), Amalgamated Sugar 72 INT-G-16-02 10 11 72 13 L4 a. 15 A. 76 71 1 service (COS) that is acceptable, reasonable and approved by the IPUC 2 Q, DOES TIIIS EI\[D YOLIRTESTIMOI\IY AS OF FEBRUARY 15,2016? 3 A. Yes Reading, (Di-Reb), Amalgamated Sugar [NT-G-16-02 13 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 1Sft day of February, 2Ol7 , a true and correct copy of this Rebuttal Testimony of Dr. Don Reading on behalf of the AMALGAMATED SUGAR COMPANY, LLC to be served on the following both electronically and via U.S. Mail, First Class, Postage Prepaid (unless otherwise indicated). Diane Hainan, Secretary (Hand Delivery) Idaho hrblic Utilities Commission 472 W Washington Street Boise, ID 83702 Michael C. Creamer Givens Pursley LLP mc@givenspursley.com Electronic Copies Only Ron Williams Williams Bradbury PC 1015 W Hays Boise ID 83702 ron@williamsbradbury. com Brad Purdy CAPAI 2Ol9 N 17th Street Boise ID 83702 bmpurdv@hotmail.com Chad Stokes Cable Huston LLP 1001 SW Fifth Ave, Suite 2OOO Portland, OR 972O4-L136 c stoke s@cablehuston. com Karl Klein IPUC 472 W Washington Boise, ID 83702 Karl. klein@puc. idaho. sov Benjamin J. Otto Idaho Conservation League 710 N 6ft Street Boise, ID 83702 botto@idahoconservation. org Mike McGrath Intermountain Gas Company PO Box 7608 Boise ID 837OT mike. mcsrath@intqas. com Edward Finklea Northwest Industrial Gas Users 545 Grandview Drive Ashland, OR 97520 efinklea@nwisu.ore Tommy Brooks Cable Huston LLP 1001 SW Fifth Ave, Suite 2OO0 Portland, OR 97204-1136 tbrook@cablehuston. com Sean Costello IPUC 472 W Washington Boise, ID 83702 sean. co stello(Epuc. idaho. qov Ken Miller Snake River Alliance 223 N 6th St, Suite 317 Boise, ID 83702 kmiller@.snakeriveralliance. org Andrew J. Unsicker Lanny L. Zieman Natalie A. Cepak Thomas A. Jernigan Ebony M. Payton AFLOA/JA-ULFSC 139 Barnes Dr, Suite 1 Tlndall AFB, FL 32403 Andrew. unsicker@us. af. mil Lanny ziernan(dts.af.mil Natalie. cepak@us. af. mil Thomas. i ernisan@us. af. mil Ebonv. payton@us. af. mil Dated, this 15u, day of February Kandi Walters, Administrative Assistant Richardson Adams, PLLC