20261023Staff Comments.pdf

RECEIVED
October 23, 2026
KELSEA E. ROSS IDAHO PUBLIC
DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83702
[phone]
IDAHO BAR NO. 12050
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF LOWER VALLEY )
ENERGY AND INTERMOUNTAIN GAS ) CASE NOS. LVE-G-26-02
COMPANY'S NOTICE OF SERVICE ) AND INT-G-26-07
TERRITORY AGREEMENT BETWEEN )
LOWER VALLEY ENERGY AND ) COMMENTS OF THE
INTERMOUNTAIN GAS COMPANY FOR ) COMMISSION STAFF
NATURAL GAS SERVICE TO CERTAIN )
CUSTOMERS LOCATED ALONG THE )
CROW CREEK PIPELINE IN CARIBOU )
COUNTY )
COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission
("Commission"), by and through its attorney of record, Kelsea Ross, Deputy Attorney General,
submits the following comments.
BACKGROUND
On September 8, 2026, Intermountain Gas Company("Intermountain") and Lower Valley
Energy ("LVE"), a Wyoming cooperative corporation, authorized to conduct business in Idaho
(together as "the Parties"), applied to the Commission ("Application") requesting
acknowledgment of a Service Territory Agreement ("Agreement"). The Agreement describes a
service territory arrangement which allows LVE to provide natural gas service to certain customers
located along LVE's Crow Creek Pipeline ("Pipeline") in Caribou County, Idaho ("Territory"),
within the Intermountain's certificated service area. Application at 1. The Agreement is attached
to the Application as Exhibit A.
STAFF COMMENTS 1 DUE: OCTOBER 27, 2026

On October 6, 2026, the Commission issued a Notice of Agreement Notice and Notice of
Modified Procedure setting an October 27, 2026, public comment deadline and a Reply deadline
of November 3, 2026. Order No. 37194.
STAFF ANALYSIS
LVE and Intermountain have requested the Commission to acknowledge the Agreement
that memorializes Intermountain's consent for LVE to provide natural gas retail service within
the Territory,which is within specific geographic boundaries located in Caribou County,Idaho, as
illustrated in Attachment A to these comments. Agreement at 2. The Territory lies within
Intermountain's current certificated service area, Certificate of Public Convenience and Necessity
("CPCN") No. 219, as it has been amended and supplemented through Order No. 6564.
Application at 1. The Application makes clear that Intermountain is not seeking to change the
service area under CPCN No. 219 through this Agreement. Id. Staff analyzed the filing and
contract based on whether:
1. acknowledgment of the contract is appropriate;
2. there is a justification for LVE to provide service within the Territory;
3. the contract is clear as to which customers will be served by which party; and
4. the responsibility to provide service from LVE is clearly delegated.
Based on Staff s analysis and conclusions, Staff recommends that the Commission acknowledge
the Agreement.
Similar agreements are filed by electric cooperatives, municipals, and investor-owned
utilities for Commission approval as required by Idaho Code § 61-333 when consumers can
receive service, "which could be economically served by the then existing facilities of any
contracting electric supplier, or by reasonable and economic extensions thereto." Idaho Code §
61-333 is incorporated into Idaho's Electric Supplier Stabilization Act (`ESSA"), Idaho Code §
61-332,which includes purposes of promoting harmony among and between suppliers,prohibiting
"'pirating' of consumers of another electric supplier," discouraging "duplication of electric
facilities," and stabilizing the territories and consumers served with electricity. Although such
agreements between natural gas utilities do not require Commission approval by law, Staff
believes the purposes of the ESSA apply equally to natural gas service in this case and it is
STAFF COMMENTS 2 DUE: OCTOBER 27, 2026

appropriate for the Commission to acknowledge the Agreement to memorialize it, protect the
interests of the Parties, and to ensure that the public interest is served.
Although customers within the Territory fall within Intermountain's certificated service
area,Intermountain does not have existing distribution facilities within the Territory and to provide
service would require it to make "substantial new infrastructure investment[s]." Agreement at 1.
However, LVE already has a Pipeline that is in-service within the Territory that is adjacent to
customers requesting natural gas service. Application at 2. Additionally, the Parties have stated
that LVE has sufficient capacity to provide service to the customers within the Territory. Id. Due
to these facts, Staff believes that the Agreement is aligned with the purposes of the ESSA and is
in the public's interest.
Staff believes that the Agreement provides sufficient clarity as to which utility will serve
which customers within the Territory and that the responsibility to serve them are clearly
delegated. Through the Agreement,Intermountain provides consent for LVE to construct,operate,
and maintain facilities to provide service to all new customers within the Territory and delegates
the responsibility to LVE to serve them. Agreement at 2. In addition,the Parties have agreed that
Intermountain: (1) will continue to serve customers already being served within the Territory, (2)
reserves the right to provide service to Simplot's mining operation within Intermountain's service
area, and(3)has allowed LVE to serve ranch property owned by Simplot that is adjacent to LVE's
Pipeline within the Territory. Id.
STAFF RECOMMENDATION
Staff recommends that the Commission acknowledge the Agreement between the Parties.
Respectfully submitted this 23rd day of October 2026.
Kelsea E. Ross
Deputy Attorney General
Technical Staff: Mike Louis
I:\Utility\UMISC\COMMENTS\LVE-G-26-02 AND INT-G-26-07 Comments.docx
STAFF COMMENTS 3 DUE: OCTOBER 27, 2026

ATTACHMENT A
Case Nos. LUE-G-26-02 AND INT G-26-07
Staff Comments
DUE: October 27, 2026

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. Pu rpose
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 UNT GAS COMPANY
By-
Name:Travis J obson
Title: Vice President Regulatory Affairs
Date: 7-R-20 (a
LOWER VALLEY ENERGY, INC.
By: _
Name: Bear Prairie
Title: President&Chief Executive Officer
Date:

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CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 23rd DAY OF OCTOBER 2026,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF , IN CASE
NOS. LVE-G-26-02 and INT-G-26-07, BY E-MAILING A COPY THEREOF TO THE
FOLLOWING:
LOWER VALLEY ENERGY
Bear Prairie
President & Chief Executive Officer
236 N. Washington Street
P.O. Box 188
Afton, Wyoming 83110
EMAIL: bprairie&lvenerg_y com
PATRICIA JORDAlq, SECRETARY
CERTIFICATE OF SERVICE