Loading...
HomeMy WebLinkAbout20260908APPLICATION.pdf LVE-G-26-02 RECEIVED September 08, 2026 INT-G-26-07 IDAHO PUBLIC UTILITIES COMMISSION BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE NOTICE OF SERVICE TERRITORY AGREEMENT BETWEEN LOWER VALLEY ENERGY AND INTERMOUNTAIN GAS COMPANY FOR NATURAL GAS SERVICE TO CERTAIN CUSTOMERS LOCATED ALONG THE CROW CREEK PIPELINE IN CARIBOU COUNTY CASE NO. NOTICE OF SERVICE TERRITORY AGREEMENT BETWEEN LOWER VALLEY ENERGYAND INTERMOUNTAIN GAS COMPANY Lower Valley Energy("LVE" or"Company"), a Wyoming cooperative corporation authorized to conduct business in Idaho, respectfully submits this Notice of Service Territory Agreement("Notice")for the Commission's acknowledgment. LVE and Intermountain Gas Company("Intermountain") have agreed to a service territory arrangement, described below, under which LVE will provide natural gas service to certain customers located along LVE's Crow Creek Pipeline in Caribou County, Idaho, within an area presently certificated to Intermountain. 1. BACKGROUND LVE provides electric and natural gas utility service in Wyoming and currently owns and operates natural gas transmission facilities that extend into Idaho, including the Crow Creek Pipeline. LVE recently completed construction of the Crow Creek Pipeline, and property owners located adjacent to the pipeline have requested natural gas service from LVE (approximately six residential customers). The affected properties are located within an area presently certificated to Intermountain under Commission Certificate No. 219, issued December 2, 1955, as amended and supplemented by Order No. 6564, dated October 3, 1962. Intermountain does not have existing distribution facilities capable of serving these customers without substantial new infrastructure investment, while the customers are immediately adjacent to LVE's existing pipeline facilities and can be served safely and economically through short service line extensions. As a Wyoming cooperative corporation, LVE falls outside the definition of"corporation" under Idaho Code § 61-104, which expressly excludes cooperatives, and is accordingly not a"gas corporation" under Idaho Code § 61-117 or a"public utility"subject to general Commission rate and service regulation under Title 61, Idaho Code. LVE therefore brings this service territory arrangement to the Commission by Notice, consistent with the approach the Commission has applied to service territory agreements between regulated and non-regulated entities under the model of the Electric Stabilization Act, Idaho Code § 61-332, rather than by application for a Certificate of Public Convenience and Necessity. 2. PURPOSE OF FILING AND ABILITY TO SERVE The purpose of this Notice is to memorialize the parties' Service Territory Agreement ("Agreement") regarding the territory within which LVE will provide natural gas service, and to request that the Commission acknowledge that Agreement.This filing does not seek, and should not be construed as seeking, any change to Intermountain's certificated service territory under Certificate No. 219; it instead memorializes Intermountain's consent to LVE providing service within the territory described below and in the Agreement, which is attached as Exhibit A and incorporated herein by reference. The Crow Creek Pipeline is an existing, operational natural gas facility owned and maintained by LVE with sufficient capacity to serve the customers described in this Notice and reasonably anticipated future loads along the pipeline corridor. LVE possesses sufficient contracted natural gas supplies, transportation capacity, and financial resources to serve these customers without adversely affecting service to LVE's existing customers, and does not require external financingto complete the limited service connections and metering facilities involved. LVE anticipates beginning construction of the remaining service connections upon the Commission's acknowledgment of this Notice and expects to have the affected customers connected and receiving service within thirty(30) days thereafter. 3. DESCRIPTION OF THE SERVICE TERRITORY AGREEMENT Intermountain has agreed to LVE providing natural gas service within the specific geographic boundaries shown on the Service Area Map attached as Exhibit B, reflecting a one-mile buffer on either side of the Crow Creek Pipeline located in Caribou County, Idaho (the"Territory"). Intermountain has reserved the exclusive right to provide service to Simplot's mining operations within Intermountain's certificated service territory, and LVE agrees to that reservation; nothing in this Notice seeks to modify service to Simplot's mining operations. This reservation does not apply to the Simplot Ranch property located adjacent to the Crow Creek Pipeline, which may be served by LVE within the Territory. No existing Intermountain facilities will be displaced, duplicated, or abandoned as a result of the Agreement. In the Agreement, the parties acknowledge that it is consistent with the public interest, avoids unnecessary duplication of utility facilities, promotes public safety, and ensures efficient, reliable natural gas distribution to customers within Caribou County. 4. REQUESTED ACTION LVE respectfully requests that the Commission acknowledge this Notice of Service Territory Agreement and the Territory described herein and in Exhibit A, consistent with the Commission's treatment of comparable service territory agreements. The parties request that this matter be processed on the same basis as other such acknowledgment filings, without a hearing. Exhibits Exhibit A—Service Territory Agreement between Lower Valley Energy and Intermountain Gas Company Exhibit B—Service Area Map PRAYER FOR RELIEF WHEREFORE, Lower Valley Energy respectfully requests that the Idaho Public Utilities Commission acknowledge the Agreement described in this Notice, including the Territory described in Exhibit A, and grant such other and further relief as may be just and proper. DATED this 00 day of September 2026. LOWER VALLEY ENERGY By: Bear Prairie President&Chief Executive Officer Lower Valley Energy 236 N Washington St P.O. Box 188 Afton,Wyoming 83110 (307) 885-3175 bprairie @Lvener_Tcom EXHIBIT A BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE NOTICE OF SERVICE TERRITORY AGREEMENT CASE NO. BETWEEN LOWER VALLEY ENERGY, INC. AND INTERMOUNTAIN GAS COMPANY FOR NATURAL GAS SERVICE IN CARIBOU SERVICE TERRITORY AGREEMENT COUNTY, IDAHO Lower Valley Energy, Inc. ("LVE"), a Wyoming cooperative corporation authorized to conduct business in Idaho, and Intermountain Gas Company("Intermountain"), a regulated public utility corporation operating under the laws of the State of Idaho and subject to the jurisdiction of the Idaho Public Utilities Commission ("Commission"), hereby agree to the service territory terms and conditions described below: 1. Purpose Intermountain is a gas utility engaged in the sale and distribution of natural gas within the State of Idaho under authority of Commission Certificate No. 219, issued December 2, 1955, as amended and supplemented by Order No. 6564, dated October 3, 1962. Intermountain's service territory in Certificate No. 219 encompasses certain geographic areas within Caribou County, Idaho. LVE provides electric and natural gas utility service in Wyoming and currently owns and operates natural gas transmission facilities that extend into Idaho, includingthe Crow Creek Pipeline. LVE recently completed construction of the Crow Creek Pipeline, and property owners located adjacent to the pipeline have requested natural gas service from LVE (approximately six residential customers). Intermountain does not have existing distribution facilities capable of serving these customers without substantial new infrastructure investment, while the customers are immediately adjacent to LVE's existing pipeline facilities and can be served through short service line extensions. To provide economical service to customers near LVE's existing pipeline facilities, LVE and Intermountain have entered into this Service Territory Agreement("Agreement"). 2. Consent to LVE's Service Subject to the Commission's acknowledgment of this Agreement, Intermountain agrees that LVE may provide natural gas service within the specific geographic boundaries as shown on the Exhibit B map, attached hereto and incorporated by reference, which reflects a 1-mile area on either side of the Crow Creek Pipeline located in Caribou County, Idaho (the "Territory"). Intermountain consents to LVE constructing, operating, and maintaining natural gas utility distribution facilities and provide natural gas service within the Territory. LVE will be responsible for serving all new customers in the Territory. To the extent that Intermountain is currently providing service to customers within the Territory, Intermountain shall continue to serve said customers. Intermountain reserves the exclusive right to provide service to Simplot's mining operations within Intermountain's certificated service territory, and LVE agrees to that reservation.This reservation does not apply to the Simplot Ranch property located adjacent to the Crow Creek Pipeline within the Territory, which may be served by LVE. 3.Waiver of Process Intermountain acknowledges that under Idaho Public Utilities Law (Idaho Code Title 61) and the IPUC Rules of Procedure, it possesses the right to formal notice, intervention, and the opportunity to protest any modification to adjacent utility boundaries. Intermountain hereby represents that it has no objection to LVE's proposed Notice of Service Territory Agreement filing, and consents to the Commission's acknowledgment of this Agreement without a formal hearing. Intermountain reserves the right to object and request a hearing in the event the Territory is modified in anyway. 4. Public Interest and Avoidance of Duplication Intermountain and LVE acknowledge that this Agreement is consistent with the public interest.The Agreement allows LVE to deploy infrastructure in a manner that avoids the unnecessary duplication of utility facilities, promotes public safety, and ensures efficient, reliable natural gas distribution to customers within Caribou County. 5. Corporate Binding and Authority This instrument is executed by corporate officers or authorized representatives of Intermountain and LVE, respectively; is binding upon Intermountain and LVE and their corporate successors; and is delivered with the express intent that LVE file this document as an exhibit in support of this Notice. 6. Entire Agreement This Agreement constitutes the entire understanding of LVE and Intermountain and all prior negotiations are deemed merged herein. This Agreement supersedes and replaces the Notice of Consent executed by Intermountain and LVE on July 29, 2026. This Agreement and the Territory described herein may only be modified in writing executed by the duly authorized representatives of LVE and Intermountain. Until any modification is executed, this Agreement shall remain in full force and effect. IN WITNESS WHEREOF, Intermountain and LVE have executed this document on the dates set forth below. IN 4UNTGAS COMPANY By- Name:Trabson Title: Vice President Regulatory Affairs Date: 7-R-7-0 (a LOWER VALLEY ENERGY, INC. By: Name: Bear Prairie Title: President&Chief Executive Officer Date: c/- c-u - Z G A u . 1 * t a iaq ! . i► s ` a it . yr, � '- fir. ��•• ,�� `� w 11 -0. : • 7 R, � •• �,,-" • - L:A,rL�.�.u.�:'lc.'�U,:�t•,�1:-.�:�!ue;,.^.�rJL^:�i:t.�.;,._(�:J ti°�+.`'tk`.'x' E aanvu!�a@^;�;r,�r;,�, ,;:tw1c[�,.rsr�rcxa:�.1r'�•�1•.�j ai'uw:uLt,�r