Opinion ID: 1305149
Heading Depth: 2
Heading Rank: 4

Heading: summary of rate issues:

Text: With respect to the Commission's adjustments to the working capital allowance from the last rate-making proceeding to which Intermountain was a party, we hold that the Commission properly excluded an allowance for purchased gas costs from the working capital allowance, but if further rate-setting proceedings are held Intermountain has a right to present evidence from a lead-lag study to show there is a payment lag that will justify some allowance for purchased gas costs in working capital. We further hold that it was not error for the Commission to reduce the working capital allowance by an amount equal to one half of the franchise taxes annually collected by Intermountain, but also hold that in the event of further proceedings upon the rate-setting issue that pursuant to the Commission's announced policy of basing this reduction of working capital upon exact data that Intermountain may introduce evidence to show what portion of the amounts collected are on the average available to it, and that the working capital allowance shall be adjusted accordingly. We hold that if these adjustments to working capital have caused any of Intermountain's test year data to be inaccurate that Intermountain has a right to request further proceedings under the authority of I.C. §§ 61-624, 61-629, to introduce evidence adjusting the data. We uphold the Commission's determination of Intermountain's net operating income and hold that the Commission did not err in basing its computations upon the first revised exhibit 4, schedule 1, but that Intermountain is not precluded from requesting further opportunity to explain the second revised exhibit and to prove that the adjustments contained therein are accurate. Finally, we hold that the rates of return allowed Intermountain upon its rate base and upon equity capital are not confiscatory in violation of Intermountain's rights under the Fourteenth Amendment to the Constitution of the United States or the due process clause of the Constitution of Idaho.