010412_INTsaleofLNG.pdf

Idaho Public Utilities Commission
Case No. INT-G-13-01, Order No. 32709
January 4, 2013
Contact: Gene Fadness [phone], 890-2712
Website: www.puc.idaho.gov

PUC approves Intermountain Gas request to sell LNG from Nampa facility
Power outage threatens natural gas supply in West Yellowstone, MT

The Idaho Public Utilities Commission today granted Intermountain Gas Company emergency
authority to sell up to 100,000 gallons of liquefied natural gas from its Nampa LNG facility to aid
residents of West Yellowstone, Montana, where anticipated shortages of LNG due to a power
outage could leave residents without heating fuel.

Energy West, the natural gas distributor for West Yellowstone, notified Intermountain Gas on
Thursday that its chief supplier has been shut down as the result of a power outage in
southwestern Wyoming. “The outage, coupled with the current cold snap, leaves Energy West
with difficulty finding alternate LNG sources,” Intermountain Gas said in a letter to the Idaho
commission. Energy West said its needs emergency supply to help it through the next four to
six weeks.

Intermountain told the commission it has an adequate supply of LNG stored at its Nampa
facility. Energy West has an LNG truck-trailer it can send to Nampa as soon as Intermountain
Gas is granted commission authority to sell the gas.

Intermountain Gas does not have a rate schedule that allows it to sell LNG. But the company
states it has been anticipating seeking such authority.

“Given the representations contained in the letters of Intermountain Gas and Energy West, we
find that there is an emergency that necessitates the sale of LNG by Intermountain without a
tariff,” the commission said. “Although we recognize that Energy West does not serve Idaho
customers, the commission does have the authority to declare an emergency if it finds there is
an insufficient supply of energy that threatens the health, safety and welfare of citizens,” the
commission said.

The commission directed Intermountain to defer all related revenues and costs until
Intermountain Gas files its tariff schedule.

Intermountain Gas customers will not bear any expenses related to the sale. In other gas supply
contracts where there is an established tariff, customers share in the revenue the company
receives from sale of surplus natural gas supply.

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