edocs.puc.state.or.usAugust 30, 2013 NWN OPUC Advice No. 13-17 /UG ________ (UM 1406) VIA ELECTRONIC FILING Public Utility Commission of Oregon 3930 Fairview Industrial Park Drive

August 30, 2013 NWN OPUC Advice No. 13-17 /UG ________

(UM 1406) VIA ELECTRONIC FILING Public Utility Commission of Oregon 3930 Fairview Industrial Park Drive SE Post Office Box 1088 Salem, Oregon 97308-1088 Attn: Filing Center Re: Schedule 177: Adjustments to Rates for System Integrity Program (SIP)

Northwest Natural Gas Company, dba NW Natural (“NW Natural” or the “Company”), files herewith revisions to its Tariff, P.U.C. Or. 25, stated to become effective with service on and after November 1, 2013, as follows: First Revision of Sheet 177-3, Schedule 177, “System Integrity Program Rate Adjustment (continued);” and

First Revision of Sheet 177-4, Schedule 177, “System Integrity Program Rate Adjustment (continued).”

The purpose of this filing is to develop the permanent rate increments associated with the Company’s System Integrity Program (SIP).

For purposes of this filing, the temporary adjustments to permanent rates that

relate to SIP include: Part A: Bare Steel, Part B: Transmission Integrity Management (TIMP); and Part C: Distribution Integrity Management (DIMP) pursuant to a Stipulation adopted by the Commission in Docket UG 221.

The number of customers affected by the proposed change is 556,922

residential customers, 57,339 commercial customers, and 296 industrial customers. The effect of this filing is to increase the Company’s annual revenues by $2,236,202. The effect of applying adjustments to customer rates is a net increase of $0.00407 on residential Schedule 2 customer rates, and a net increase of $0.00341 on

ONITA R. KING

Rates & Regulatory Affairs Tel: 503.721.2452 Fax: 503.721.2516 email: [email protected]

Public Utility Commission of Oregon UG ___; NWN Advice No. OPUC 13-17 August 30, 2013, Page 2

commercial Schedule 3 rates. The adjustments for all other rate schedules can be found in Exhibit A to this filing.

In addition to the supporting materials submitted as part of this filing, the

Company separately provided work papers in electronic format, all of which are incorporated herein by reference. The Company requests that the tariff sheets filed herewith be permitted to become effective with service on and after November 1, 2013. Copies of this letter and the filing made herewith are available in the Company's main office in Oregon and on its website at www.nwnatural.com. The Company waives paper service in this proceeding. Please address correspondence on this matter to me at [email protected], with copies to the following:

Kelley C. Miller, Rates Specialist Cristan Kelley, Rate Analyst Rates & Regulatory Affairs Rates & Regulatory Affairs NW Natural NW Natural 220 NW Second Avenue 220 NW Second Avenue Portland, Oregon 97209 Portland, Oregon 29709 Telecopier: (503) 721-2516 Telecopier: (503) 721-2516 Telephone: (503) 226-4211, x3589 Telephone: (503) 226-4211, x3582 [email protected] and [email protected] [email protected]

Sincerely, NW NATURAL /s/ Onita R. King Onita R. King Rates & Regulatory Affairs

Attachments: Exhibit A – Supporting Materials

http://www.nwnatural.com/

mailto:[email protected]

NORTHWEST NATURAL GAS COMPANY P.U.C. Or. 25 First Revision of Sheet 177-3 Cancels Original Sheet 177-3

Issued August 30, 2013 Effective with service on NWN OPUC Advice No. 13-17 and after November 1, 2013

Issued by: NORTHWEST NATURAL GAS COMPANY d.b.a. NW Natural

220 N.W. Second Avenue Portland, Oregon 97209-3991

SCHEDULE 177 SYSTEM INTEGRITY PROGRAM RATE ADJUSTMENT

(continued)

APPLICATION TO RATE SCHEDULES: Effective: November 1, 2013 The Adjustments shown below are included in the Base Adjustments in the listed Rate Schedules:

Schedule

Block

Part A

Part B Part C Total Adjustment

70% 30%

2 $0.00190 $0.00088 $0.00095 $0.00034 $0.00407

3 (CSF) $0.00190 $0.00061 $0.00066 $0.00024 $0.00341

3 (ISF) $0.00190 $0.00052 $0.00057 $0.00021 $0.00320

27 $0.00190 $0.00088 $0.00095 $0.00034 $0.00407

31 (CSF) Block 1 $0.00190 $0.00043 $0.00046 $0.00017 $0.00296

Block 2 $0.00190 $0.00039 $0.00042 $0.00015 $0.00286

31(CTF) Block 1 $0.00190 $0.00047 $0.00051 $0.00019 $0.00307

Block 2 $0.00190 $0.00043 $0.00047 $0.00017 $0.00297

31 (ISF) Block 1 $0.00000 $0.00033 $0.00036 $0.00013 $0.00082

Block 2 $0.00000 $0.00030 $0.00032 $0.00012 $0.00074

31 (IFT) Block 1 $0.00000 $0.00034 $0.00037 $0.00013 $0.00084

Block 2 $0.00000 $0.00031 $0.00033 $0.00012 $0.00076

32 (CSF) Block 1 $0.00000 $0.00026 $0.00028 $0.00010 $0.00064

Block 2 $0.00000 $0.00022 $0.00024 $0.00009 $0.00055

Block 3 $0.00000 $0.00016 $0.00017 $0.00006 $0.00039

Block 4 $0.00000 $0.00009 $0.00010 $0.00004 $0.00023

Block 5 $0.00000 $0.00005 $0.00006 $0.00002 $0.00013

Block 6 $0.00000 $0.00003 $0.00003 $0.00001 $0.00007

(continue to Sheet 177-4)

(T) (C)

(C)

NORTHWEST NATURAL GAS COMPANY P.U.C. Or. 25 First Revision of Sheet 177-4 Cancels Original Sheet 177-4

Issued August 30, 2013 Effective with service on NWN OPUC Advice No. 13-17 and after November 1, 2013

Issued by: NORTHWEST NATURAL GAS COMPANY d.b.a. NW Natural

220 N.W. Second Avenue Portland, Oregon 97209-3991

SCHEDULE 177 SYSTEM INTEGRITY PROGRAM RATE ADJUSTMENT

(continued)

APPLICATION TO RATE SCHEDULES: Effective: November 1, 2013 The Adjustments shown below are included in the Base Adjustments in the listed Rate Schedules:

Schedule

Block

Part A

Part B Part C Total Adjustment

70% 30%

32 (ISF) Block 1 $0.00000 $0.00020 $0.00022 $0.00008 $0.00050

Block 2 $0.00000 $0.00017 $0.00019 $0.00007 $0.00043

Block 3 $0.00000 $0.00012 $0.00013 $0.00005 $0.00030

Block 4 $0.00000 $0.00007 $0.00008 $0.00003 $0.00018

Block 5 $0.00000 $0.00004 $0.00004 $0.00002 $0.00010

Block 6 $0.00000 $0.00002 $0.00002 $0.00001 $0.00005

32 (TF) Block 1 $0.00000 $0.00019 $0.00021 $0.00008 $0.00048

Block 2 $0.00000 $0.00017 $0.00018 $0.00006 $0.00041

Block 3 $0.00000 $0.00012 $0.00013 $0.00005 $0.00030

Block 4 $0.00000 $0.00007 $0.00007 $0.00003 $0.00017

Block 5 $0.00000 $0.00004 $0.00004 $0.00002 $0.00010

Block 6 $0.00000 $0.00002 $0.00002 $0.00001 $0.00005

32 (CSI) Block 1 $0.00000 $0.00019 $0.00021 $0.00007 $0.00047

Block 2 $0.00000 $0.00016 $0.00018 $0.00006 $0.00040

Block 3 $0.00000 $0.00011 $0.00012 $0.00004 $0.00027

Block 4 $0.00000 $0.00007 $0.00007 $0.00003 $0.00017

Block 5 $0.00000 $0.00004 $0.00004 $0.00001 $0.00009

Block 6 $0.00000 $0.00002 $0.00002 $0.00001 $0.00005

32 (ISI) Block 1 $0.00000 $0.00019 $0.00020 $0.00007 $0.00046

Block 2 $0.00000 $0.00016 $0.00017 $0.00006 $0.00039

Block 3 $0.00000 $0.00011 $0.00012 $0.00004 $0.00027

Block 4 $0.00000 $0.00007 $0.00007 $0.00003 $0.00017

Block 5 $0.00000 $0.00004 $0.00004 $0.00001 $0.00009

Block 6 $0.00000 $0.00002 $0.00002 $0.00001 $0.00005

32 (TI) Block 1 $0.00000 $0.00017 $0.00019 $0.00007 $0.00043

Block 2 $0.00000 $0.00015 $0.00016 $0.00006 $0.00037

Block 3 $0.00000 $0.00010 $0.00011 $0.00004 $0.00025

Block 4 $0.00000 $0.00006 $0.00006 $0.00002 $0.00014

Block 5 $0.00000 $0.00003 $0.00004 $0.00001 $0.00008

Block 6 $0.00000 $0.00002 $0.00002 $0.00001 $0.00005

33 (all) $0.00000 $0.00001 $0.00001 $0.00000 $0.00002

(T) (C) (C)

EXHIBIT A

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

NW NATURALSUPPORTING MATERIALS

NWN OPUC Advice No. 13-17August 30, 2013

UM 1406System Integrity Program (SIP)

Page No.

Net Effect of Increments 1Calculation of Increments Allocated on Equal Percentage of Margin 2Calculation of Increments Allocated on Equal Cent per Therm 3Cost of Service Summary 4Bare Steel Cost of Service 5Transmission Integrity Management Program (TIMP) Cost of Service 6Distribution Integrity Management Program (DIMP) Cost of Service 7Effects on Revenue 8

Exhibit ASupporting Materials

System Integrity Program - UM 1406

NWN OPUC Advice No. 13-17

NW Natural

Rates & Regulatory Affairs

2013-14 PGA: August Filing

Summary of PERMANENT Increments

1

2 REMOVE REMOVE REMOVE

Permanent

Increments ADD ADD ADD ADD Net Effect

3 Current Current Current to Remove Proposed Proposed Proposed Proposed of

4 Bare Steel SIP: DIMP SIP: TIMP Subtotal

SIP: Bare

Steel 70%

SIP: Bare

Steel 30% SIP: DIMP SIP: TIMP

SIP

Increments

5 (K=sum E thru J)

6 Schedule Block A C D E F G I J K

7 Intentionally blank


9 2R 0.00000 0.00000 0.00000 0.00000 0.00190 0.00088 0.00034 0.00095 0.00407

10 3C Firm Sales 0.00000 0.00000 0.00000 0.00000 0.00190 0.00061 0.00024 0.00066 0.00341


12 3I Firm Sales 0.00000 0.00000 0.00000 0.00000 0.00190 0.00052 0.00021 0.00057 0.00320


14 27 Dry Out 0.00000 0.00000 0.00000 0.00000 0.00190 0.00088 0.00034 0.00095 0.00407


16 31C Firm Sales Block 1 0.00000 0.00000 0.00000 0.00000 0.00190 0.00043 0.00017 0.00046 0.00296

17 Block 2 0.00000 0.00000 0.00000 0.00000 0.00190 0.00039 0.00015 0.00042 0.00286

18 31C Firm Trans Block 1 0.00000 0.00000 0.00000 0.00000 0.00190 0.00047 0.00019 0.00051 0.00307

19 Block 2 0.00000 0.00000 0.00000 0.00000 0.00190 0.00043 0.00017 0.00047 0.00297



22 31I Firm Sales Block 1 0.00000 0.00000 0.00000 0.00000 0.00000 0.00033 0.00013 0.00036 0.00082

23 Block 2 0.00000 0.00000 0.00000 0.00000 0.00000 0.00030 0.00012 0.00032 0.00074

24 31I Firm Trans Block 1 0.00000 0.00000 0.00000 0.00000 0.00000 0.00034 0.00013 0.00037 0.00084

25 Block 2 0.00000 0.00000 0.00000 0.00000 0.00000 0.00031 0.00012 0.00033 0.00076



28 32C Firm Sales Block 1 0.00000 0.00000 0.00000 0.00000 0.00000 0.00026 0.00010 0.00028 0.00064

29 Block 2 0.00000 0.00000 0.00000 0.00000 0.00000 0.00022 0.00009 0.00024 0.00055

30 Block 3 0.00000 0.00000 0.00000 0.00000 0.00000 0.00016 0.00006 0.00017 0.00039

31 Block 4 0.00000 0.00000 0.00000 0.00000 0.00000 0.00009 0.00004 0.00010 0.00023

32 Block 5 0.00000 0.00000 0.00000 0.00000 0.00000 0.00005 0.00002 0.00006 0.00013

33 Block 6 0.00000 0.00000 0.00000 0.00000 0.00000 0.00003 0.00001 0.00003 0.00007

34 32I Firm Sales Block 1 0.00000 0.00000 0.00000 0.00000 0.00000 0.00020 0.00008 0.00022 0.00050

35 Block 2 0.00000 0.00000 0.00000 0.00000 0.00000 0.00017 0.00007 0.00019 0.00043

36 Block 3 0.00000 0.00000 0.00000 0.00000 0.00000 0.00012 0.00005 0.00013 0.00030

37 Block 4 0.00000 0.00000 0.00000 0.00000 0.00000 0.00007 0.00003 0.00008 0.00018

38 Block 5 0.00000 0.00000 0.00000 0.00000 0.00000 0.00004 0.00002 0.00004 0.00010

39 Block 6 0.00000 0.00000 0.00000 0.00000 0.00000 0.00002 0.00001 0.00002 0.00005

40 32 Firm Trans Block 1 0.00000 0.00000 0.00000 0.00000 0.00000 0.00019 0.00008 0.00021 0.00048

41 Block 2 0.00000 0.00000 0.00000 0.00000 0.00000 0.00017 0.00006 0.00018 0.00041

42 Block 3 0.00000 0.00000 0.00000 0.00000 0.00000 0.00012 0.00005 0.00013 0.00030

43 Block 4 0.00000 0.00000 0.00000 0.00000 0.00000 0.00007 0.00003 0.00007 0.00017

44 Block 5 0.00000 0.00000 0.00000 0.00000 0.00000 0.00004 0.00002 0.00004 0.00010

45 Block 6 0.00000 0.00000 0.00000 0.00000 0.00000 0.00002 0.00001 0.00002 0.00005

46 32C Interr Sales Block 1 0.00000 0.00000 0.00000 0.00000 0.00000 0.00019 0.00007 0.00021 0.00047

47 Block 2 0.00000 0.00000 0.00000 0.00000 0.00000 0.00016 0.00006 0.00018 0.00040

48 Block 3 0.00000 0.00000 0.00000 0.00000 0.00000 0.00011 0.00004 0.00012 0.00027

49 Block 4 0.00000 0.00000 0.00000 0.00000 0.00000 0.00007 0.00003 0.00007 0.00017

50 Block 5 0.00000 0.00000 0.00000 0.00000 0.00000 0.00004 0.00001 0.00004 0.00009

51 Block 6 0.00000 0.00000 0.00000 0.00000 0.00000 0.00002 0.00001 0.00002 0.00005

52 32I Interr Sales Block 1 0.00000 0.00000 0.00000 0.00000 0.00000 0.00019 0.00007 0.00020 0.00046

53 Block 2 0.00000 0.00000 0.00000 0.00000 0.00000 0.00016 0.00006 0.00017 0.00039

54 Block 3 0.00000 0.00000 0.00000 0.00000 0.00000 0.00011 0.00004 0.00012 0.00027

55 Block 4 0.00000 0.00000 0.00000 0.00000 0.00000 0.00007 0.00003 0.00007 0.00017

56 Block 5 0.00000 0.00000 0.00000 0.00000 0.00000 0.00004 0.00001 0.00004 0.00009

57 Block 6 0.00000 0.00000 0.00000 0.00000 0.00000 0.00002 0.00001 0.00002 0.00005

58 32 Interr Trans Block 1 0.00000 0.00000 0.00000 0.00000 0.00000 0.00017 0.00007 0.00019 0.00043

59 Block 2 0.00000 0.00000 0.00000 0.00000 0.00000 0.00015 0.00006 0.00016 0.00037

60 Block 3 0.00000 0.00000 0.00000 0.00000 0.00000 0.00010 0.00004 0.00011 0.00025

61 Block 4 0.00000 0.00000 0.00000 0.00000 0.00000 0.00006 0.00002 0.00006 0.00014

62 Block 5 0.00000 0.00000 0.00000 0.00000 0.00000 0.00003 0.00001 0.00004 0.00008

63 Block 6 0.00000 0.00000 0.00000 0.00000 0.00000 0.00002 0.00001 0.00002 0.00005


65 33 0.00000 0.00000 0.00000 0.00000 0.00000 0.00001 0.00000 0.00001 0.00002

66

67 Sources:

68 Direct Inputs 12-13 PGA 12-13 PGA 12-13 PGA

69

70 Equal ¢ per therm Column AB

71 Equal % of margin Column X Column AA Column AD

OPUC Advice 13-17 Exhibit A Supporting Materials.xlsx 8/29/2013 4:04 PMP1 Net Increments

Exhibit A - Supporting Materials NWN OPUC Advice No. 13-17/UG___

Page 1 of 8

NW Natural



Calculation of Increments Allocated on the EQUAL PERCENTAGE OF MARGIN BASISALL VOLUMES IN THERMS

1 Billing WACOG & Temps from

2 Oregon PGA Rate from Demand from Temporary

3 Volumes page, Rates page, Rates page, Increment page, MARGIN Volumetric Customer

4 Column F Column A Column B+C+D* Column A Rate Margin Charge Customers

5 E=B-C-D

6 Schedule Block A B C D E F = E * A G H



9 2R 345,986,258 0.97604 0.53760 0.02683 0.41161 142,411,403 $8.00 555,784

10 3C Firm Sales 160,594,802 0.86302 0.53760 (0.00456) 0.32998 52,993,073 $15.00 56,183


12 3I Firm Sales 4,603,863 0.86948 0.53760 0.00628 0.32560 1,499,018 $15.00 296


14 27 Dry Out 316,316 0.84631 0.53760 0.00000 0.30871 97,650 $6.00 1,138


16 31C Firm Sales Block 1 25,514,212 0.58396 0.39275 (0.00418) 0.19539 10,935,510 $325.00 1,156

17 Block 2 33,376,084 0.56694 0.39275 (0.00409) 0.17828

18 31C Firm Trans Block 1 339,634 0.17470 0.00000 0.00919 0.16551 124,251 $575.00 15

19 Block 2 450,526 0.16028 0.00000 0.00926 0.15102



22 31I Firm Sales Block 1 4,531,677 0.55721 0.39275 0.00665 0.15781 2,267,503 $325.00 201

23 Block 2 10,886,875 0.54207 0.39275 0.00673 0.14259

24 31I Firm Trans Block 1 175,761 0.15543 0.00000 (0.00068) 0.15611 151,545 $575.00 9

25 Block 2 879,756 0.14046 0.00000 (0.00061) 0.14107



28 32C Firm Sales Block 1 7,200,325 0.49011 0.39275 0.00688 0.09048 1,107,260 $675.00 119

29 Block 2 5,057,888 0.47663 0.39275 0.00696 0.07692

30 Block 3 1,121,673 0.45415 0.39275 0.00709 0.05431

31 Block 4 183,141 0.43166 0.39275 0.00722 0.03169

32 Block 5 0 0.41817 0.39275 0.00730 0.01812

33 Block 6 0 0.40916 0.39275 0.00735 0.00906

34 32I Firm Sales Block 1 4,362,043 0.49051 0.39275 0.00696 0.09080 892,759 $675.00 48

35 Block 2 5,138,786 0.47695 0.39275 0.00702 0.07718

36 Block 3 1,674,458 0.45438 0.39275 0.00714 0.05449

37 Block 4 277,850 0.43180 0.39275 0.00726 0.03179

38 Block 5 1 0.41824 0.39275 0.00733 0.01816

39 Block 6 0 0.40924 0.39275 0.00737 0.00912

40 32 Firm Trans Block 1 10,284,238 0.09229 0.00000 (0.00040) 0.09269 3,266,612 $925.00 103

41 Block 2 14,038,829 0.07842 0.00000 (0.00034) 0.07876

42 Block 3 8,164,269 0.05539 0.00000 (0.00023) 0.05562

43 Block 4 14,589,342 0.03232 0.00000 (0.00013) 0.03245

44 Block 5 14,980,259 0.01848 0.00000 (0.00006) 0.01854

45 Block 6 259,450 0.00928 0.00000 (0.00002) 0.00930

46 32C Interr Sales Block 1 6,290,942 0.49610 0.39275 0.00923 0.09412 1,689,730 $675.00 63

47 Block 2 8,284,738 0.48205 0.39275 0.00929 0.08001

48 Block 3 4,323,780 0.45862 0.39275 0.00940 0.05647

49 Block 4 5,677,051 0.43522 0.39275 0.00952 0.03295

50 Block 5 188,317 0.42114 0.39275 0.00958 0.01881

51 Block 6 0 0.41182 0.39275 0.00963 0.00944

52 32I Interr Sales Block 1 7,497,760 0.49616 0.39275 0.00926 0.09415 2,198,495 $675.00 73

53 Block 2 9,553,188 0.48210 0.39275 0.00932 0.08003

54 Block 3 5,054,254 0.45867 0.39275 0.00943 0.05649

55 Block 4 11,103,963 0.43525 0.39275 0.00954 0.03296

56 Block 5 4,064,661 0.42118 0.39275 0.00960 0.01883

57 Block 6 0 0.41183 0.39275 0.00965 0.00943

58 32 Interr Trans Block 1 9,349,524 0.09389 0.00000 (0.00037) 0.09426 5,858,865 $925.00 90

59 Block 2 16,390,454 0.07981 0.00000 (0.00031) 0.08012

60 Block 3 11,821,897 0.05635 0.00000 (0.00022) 0.05657

61 Block 4 30,348,048 0.03288 0.00000 (0.00012) 0.03300

62 Block 5 61,577,844 0.01880 0.00000 (0.00006) 0.01886

63 Block 6 88,123,517 0.00943 0.00000 (0.00002) 0.00945


65 33 0 0.00539 0.00000 (0.00002) 0.00541 0 $38,000.00 0

66

67 TOTALS 954,638,253 225,493,674

6869 Sources for line 2 above:

70 Inputs page

7172 Tariff Schedules

73 Rate Adjustment Schedule


Page 2 of 8

NW Natural



Calculation of Increments Allocated on the EQUAL CENT PER THERM BASISALL VOLUMES IN THERMS

1 SIP: Bare Steel - 70%

2 Oregon PGA Proposed Amount: 1,085,924 PERMANENT Increment

3 Volumes page, Revenue Sensitive Multiplier: N/A rev sensitive factor is built in

4 Column F Amount to Amortize: 1,085,924 to residential & commercial

5 Multiplier Volumes Increment

6 Schedule Block A Z AA AB



9 2R 345,986,258 1.0 345,986,258 0.00190

10 3C Firm Sales 160,594,802 1.0 160,594,802 0.00190


12 3I Firm Sales 4,603,863 1.0 4,603,863 0.00190


14 27 Dry Out 316,316 1.0 316,316 0.00190


16 31C Firm Sales Block 1 25,514,212 1.0 25,514,212 0.00190

17 Block 2 33,376,084 1.0 33,376,084 0.00190

18 31C Firm Trans Block 1 339,634 1.0 339,634 0.00190

19 Block 2 450,526 1.0 450,526 0.00190



22 31I Firm Sales Block 1 4,531,677 0.0 0 0.00000

23 Block 2 10,886,875 0.0 0 0.00000

24 31I Firm Trans Block 1 175,761 0.0 0 0.00000

25 Block 2 879,756 0.0 0 0.00000



28 32C Firm Sales Block 1 7,200,325 0.0 0 0.00000

29 Block 2 5,057,888 0.0 0 0.00000

30 Block 3 1,121,673 0.0 0 0.00000

31 Block 4 183,141 0.0 0 0.00000

32 Block 5 0 0.0 0 0.00000

33 Block 6 0 0.0 0 0.00000

34 32I Firm Sales Block 1 4,362,043 0.0 0 0.00000

35 Block 2 5,138,786 0.0 0 0.00000

36 Block 3 1,674,458 0.0 0 0.00000

37 Block 4 277,850 0.0 0 0.00000

38 Block 5 1 0.0 0 0.00000

39 Block 6 0 0.0 0 0.00000

40 32 Firm Trans Block 1 10,284,238 0.0 0 0.00000

41 Block 2 14,038,829 0.0 0 0.00000

42 Block 3 8,164,269 0.0 0 0.00000

43 Block 4 14,589,342 0.0 0 0.00000

44 Block 5 14,980,259 0.0 0 0.00000

45 Block 6 259,450 0.0 0 0.00000

46 32C Interr Sales Block 1 6,290,942 0.0 0 0.00000

47 Block 2 8,284,738 0.0 0 0.00000

48 Block 3 4,323,780 0.0 0 0.00000

49 Block 4 5,677,051 0.0 0 0.00000

50 Block 5 188,317 0.0 0 0.00000

51 Block 6 0 0.0 0 0.00000

52 32I Interr Sales Block 1 7,497,760 0.0 0 0.00000

53 Block 2 9,553,188 0.0 0 0.00000

54 Block 3 5,054,254 0.0 0 0.00000

55 Block 4 11,103,963 0.0 0 0.00000

56 Block 5 4,064,661 0.0 0 0.00000

57 Block 6 0 0.0 0 0.00000

58 32 Interr Trans Block 1 9,349,524 0.0 0 0.00000

59 Block 2 16,390,454 0.0 0 0.00000

60 Block 3 11,821,897 0.0 0 0.00000

61 Block 4 30,348,048 0.0 0 0.00000

62 Block 5 61,577,844 0.0 0 0.00000

63 Block 6 88,123,517 0.0 0 0.00000


65 33 0 0.0 0 0.00000

66

67 TOTALS 954,638,253 571,181,694 0.00190

6869 Sources for line 2 above:

70 Inputs page Line 33

7172 Tariff Schedules

73 Rate Adjustment Schedule Sched 177 A

OPUC Advice 13-17 Exhibit A Supporting Materials.xlsx 8/29/2013 4:04 PMP3 Equal ¢ per therm


Page 3 of 8

NW Natural

System Integrity Program Cost Tracking

Cost of Service Summary - PGA 2013-14

in Thousands of Dollars

Tracker Year

Cost of Service1 Bare Steel Program2

3 Activity Ended October 31, 2013 $1,5514

5 Activity Ended October 31, 2014 06

7 Total Bare Steel Program $1,551

8

9

10 Transmission Integrity Management Program ("TIMP")11

12 Activity Ended October 31, 2013 $50313


16 Total Transmission Integrity Management Program $503

17

18

19 Distribution Integrity Management Program ("DIMP")20

21 Activity Ended October 31, 2013 $18222


25 Total Distribution Integrity Management Program $182

26

27

28 GRAND TOTAL ALL PROGRAMS $2,236

29

30

31 Reflects Actuals through June 30, 2013

OPUC Advice 13-17 Exhibit A Supporting Materials.xlsx 8/29/2013 4:04 PM


Page 4 of 8

NW Natural


Determination of Cost of Service ($000)

Bare Steel 2012-13 Tracking

Input Capital Costs and Rates from UG 221

Cost of Capital Weighted

% of Capital Cost Cost

Debt 50.00% 6.056% 3.028%

Preferred Equity 0.00% 0.000% 0.000%

Common Equity 50.00% 9.500% 4.750%

100.00% 7.778%

State Tax Rate 7.60%

Federal Tax Rate 35.00%

Revenue Sensitive Rate 2.916%

Depreciation Rate 2.855%

Property Tax Rate 1.661%

combined tax rate 39.94%

combined after tax rate 60.06%

After tax cost of capital 6.57%

Bonus Tax Depreciation (1 = No, 2 = yes 50%, 3 = yes 100%) 2

Investment $10,493

Year 1

Depreciation 300

Property Taxes 189

Taxes on Equity Return

State 56

Federal 238

Total Taxes 294

Return on Rate Base

Debt 282

Preferred Equity 0

Common Equity 443

Total Return 725

Subtotal Cost of Service 1,507

Revenue Sensitive Items 44

Total Cost of Service $1,551


Page 5 of 8

NW Natural


Determination of Cost of Service ($000)

TIMP 2012-13 Tracking




Debt 50.00% 6.056% 3.028%


Common Equity 50.00% 9.500% 4.750%

100.00% 7.778%










Investment $3,401

Year 1

Depreciation 97

Property Taxes 61


State 18

Federal 77

Total Taxes 95

Return on Rate Base

Debt 91

Preferred Equity 0

Common Equity 143

Total Return 235

Subtotal Cost of Service 489


Total Cost of Service $503


Page 6 of 8

NW Natural Period Ending

Rates & Regulatory Affairs Month day, year

Determination of Cost of Service ($000) Reflecting final UG 221 results

DIMP 2012-13 Tracking




Debt 50.00% 6.056% 3.028%


Common Equity 50.00% 9.500% 4.750%

100.00% 7.778%










Investment $1,232

Year 1

Depreciation 35

Property Taxes 22


State 7

Federal 28

Total Taxes 35

Return on Rate Base

Debt 33

Preferred Equity 0

Common Equity 52

Total Return 85

Subtotal Cost of Service 177


Total Cost of Service $182


Page 7 of 8

NW Natural


2013-2014 PGA Filing - Oregon: August Filing

PGA Effects on Revenue

Tariff Advice 13-17: SIP

Including

Revenue Sensitve

1 Amount

2

3 Permanent Rate Adjustments

4

5 SIP Program Costs

6 Addition of Proposed Bare Steel Program Costs 1,551,321

7

8 Removal of Current Bare Steel Program Costs 0

9

10 Addition of Proposed Integrity Management Program Costs 502,755

11

12 Removal of Current Integrity Management Program Costs 0

13

14 Addition of Proposed Distribution Integrity Program Costs 182,126

15

16 Removal of Current Distribution Integrity Program Costs 0

17

18

19 TOTAL OF ALL COMPONENTS OF ALL RATE CHANGES $2,236,202

20

21

22 2012 Oregon Earnings Test Normalized Total Revenues $664,723,000

23

24 Effect of this filing, as a percentage change (line 19 ÷ line 22) 0.34%


Page 8 of 8

Documents

edocs.puc.state.or.usAugust 30, 2013 NWN OPUC Advice No. 13-17 /UG ________ (UM 1406) VIA ELECTRONIC FILING Public Utility Commission of Oregon 3930 Fairview Industrial Park Drive