2000121128594.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF INTERMOUNTAIN GAS COMPANY FOR AN ORDER AUTHORIZING THE ISSUANCE AND SALE SECURITIES
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CASE NO. INT-G-00-3

ORDER NO. 28594

On November 13, 2000, Intermountain Gas Company (hereinafter “IGC”) filed an Application pursuant to Chapter 9 of Title 61, Idaho Code and Rules 141 through 150 of the Commission’s Rules of Procedure. IDAPA 31.01.01.141-150. Through this Application IGC requests reauthorization of its existing revolving note, not to exceed $15,000,000, for a period of five years. IGC contends that this note will continue to be used in the traditional manner, which is to finance its construction needs. IGC also requests reauthorization of its seasonal expansion line of credit, not to exceed $10,000,000, from September 1 to April 1 of each year through maturity. This request increases the previous seasonal line of credit by $5,000,000. This previous line credit expires on January 31, 2001. IGC contends that the seasonal line of credit will provide necessary financing flexibility for seasonal working capital needs during the fall and winter months.
The interest rate for these items will be based on London Interbank Offered Rates (LIBOR) or First Security Bank’s (FSB) Prime Rate depending on the common equity ratio of Intermountain Gas Company at that time. There is also an unused fee to help IGC minimize the cost. IGC’s common equity ratio as of September 30, 2000 is 49.4% so the rates would be LIBOR plus 65.0 basis points or FSB Prime rate minus 50.5 basis points.
FINDINGS OF FACT
IGC is an Idaho corporation with its office and principal place of business in Boise, Idaho. The Company is a natural gas public utility, owning and operating transmission pipelines, a compressor station, a liquefied natural gas storage facility, distribution mains, services, meters and regulators, and general plant and equipment.

IGC seeks the Commission’s reauthorization and permission to continue issuing a revolving line of credit not to exceed $15,000,000 at any one time outstanding for a period of five years. Additionally, the Company seeks the Commission’s reauthorization and permission to continue issuing a seasonal note not to exceed $10,000,000 at any one time outstanding, from September 1 to April 1 of each year through maturity. These items will be issued to First Security Bank of Idaho, N.A. The proceeds from the borrowing of this issuance will be used to finance construction and other working capital requirements of IGC.
CONCLUSIONS OF LAW
IGC is a gas corporation within the definition of Idaho Code § 61117 and is a public utility within the definition of Idaho Code § 61129.
The Idaho Public Utilities Commission has jurisdiction over this matter pursuant to the provisions of Idaho Code § 61901 et seq., and the Application reasonably conforms to Rules 141-150 of the Commission's Rules of Procedure (IDAPA 31.01.01-141-150).
The method of issuance is proper.
The general purposes to which the proceeds will be put are lawful under the Public Utility Law of the state of Idaho and are compatible with the public interest. However, this general approval of the general purposes to which the proceeds will be put is neither a finding of fact nor a conclusion of law that any particular construction program of IGC which may be benefited by the approval of this Application has been considered or approved by this Order, and this Order shall not be construed to that effect.
The issuance of an Order authorizing the proposed financing does not constitute agency determination/approval of the type of financing or the related costs for ratemaking purposes. The Idaho Public Utilities Commission does not have before it for determination, and therefore does not determine, any effect of the proposed transactions on rates to be charged by IGC for natural gas to consumers in the state of Idaho.
All lawful fees have been paid by Intermountain as provided by Idaho Code § 61-905.
The Application should be approved.
O R D E R
IT IS THEREFORE ORDERED that the Application of Intermountain Gas Company for authority to continue issuing a revolving note not to exceed $15,000,000 at any one time outstanding and additional authority to continue issuing a seasonal expansion note not to exceed $10,000,000 as described in its Application should be, and the same hereby is, GRANTED.
IT IS FURTHER ORDERED that Intermountain Gas Company shall make quarterly reports to this Commission setting forth the date of issuance, principal amount, interest rate, date of maturity and identity of payee for any revolving note issued such quarter.
IT IS FURTHER ORDERED that this authority will be from the date of this Order and expire on December 15, 2005.

IT IS FURTHER ORDERED that the foregoing authorization is without prejudice to the regulatory authority of this Commission with respect to rates, service, accounts, valuation, estimates, or determination of cost or any other matter that may come before this Commission pursuant to this jurisdiction and authority as provided by law.
IT IS FURTHER ORDERED that nothing in this Order and no provision of Chapter 9, Title 61, Idaho Code, or Commission Rules 141-150, or any act or deed done or performed in connection with this Order shall be construed to obligate the state of Idaho to pay or guarantee in any manner whatsoever any security authorized, issued, assumed, or guaranteed under the provisions of Chapter 9, Title 61, Idaho Code and Commission Rules 141-150.
IT IS FURTHER ORDERED that issuance of this Order does not constitute acceptance of Intermountain Gas Company’s exhibits or other material accompanying this Application for any other purpose other than the issuance of this Order.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61626.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of December 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

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Office of the Secretary
Service Date
December 11, 2000