28729.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 OF SECURITIES
)
)
)
)
)
)
CASE NO. INT-G-01-2

ORDER NO. 28729

On November 13, 2000, Intermountain Gas Company filed an Application for an Order Authorizing the Issuance and Sale of Securities in Case No. INT-G-00-3. The Application, which requested a revolving note up to $15,000,000 and a short-term seasonal line of credit up to $10,000,000, was subsequently approved by Commission Order No. 28594. On March 2, 2001, the Company requested authority to extend the time frame for the seasonal line of credit from the authorized September 1 to April 1 period to become year-round. The Commission approved this amendment in Order No. 28672.
In its April 18, 2001 filing, Intermountain Gas requested an additional amendment to the Loan Agreement that adds $30,000,000 to the Company’s present debt authority. This additional $30,000,000 would be in the form of 364-day notes from Wells Fargo Bank, N.A., f/k/a First Security Bank of Idaho, N.A., and bring the Company’s total commitment under the Loan Agreement to $55,000,000. The final maturity for all debt commitments will be December 13, 2005.
The interest rate matrix for the additional $30,000,000 has been changed to reflect the Company’s increased borrowing authority. The rate will be based on London Interbank Offered Rates (LIBOR) or Wells Fargo Bank’s Prime Rate depending on the common equity ratio of Intermountain Gas at that time. There is also an unused fee to help Intermountain Gas minimize the cost. The Tier 1 interest rate will be LIBOR plus 125.0 basis points or prime rate minus 50.0 basis points. All other terms and conditions of Order Nos. 28594 and 28672 will remain unchanged.
The Commission, having fully considered the original and supplemental Applications, attached exhibits, its files and records relating to this Application and the applicable laws and rules, grants the proposed amendment to Order Nos. 28594 and 28672.
FINDINGS OF FACT
Intermountain Gas Company 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.

Intermountain Gas requests that Order Nos. 28594 and 28672 be amended to add $30,000,000 to the Company’s present debt authority, bringing the Company’s total commitments under the Loan Agreement to $55,000,000. This additional $30,000,000 commitment will be in the form of 364-day notes and will allow the Company to continue funding Purchased Gas Account (PGA) deferrals. Other than the interest rate matrix on the $30,000,000 discussed above, all other terms and conditions of Order No. 28594 will remain unchanged.
CONCLUSIONS OF LAW
Intermountain Gas Company 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 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 Intermountain Gas Company 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 Intermountain Gas 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.
O R D E R
IT IS THEREFORE ORDERED that Intermountain Gas Company’s request to amend Order Nos. 28594 and 28672 to add $30,000,000 to the Company’s present debt is hereby granted. With this approval, the Company’s debt authority under the Loan Agreement shall total $55,000,000. The Tier 1 interest rate will be LIBOR plus 125.0 basis points or prime rate minus 50.0 basis points. Other than the interest rate matrix for the additional $30,000,000, all other terms and conditions of Order Nos. 28594 and 28672 shall remain in effect.
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 each quarter.
IT IS FURTHER ORDERED that this authority will expire on December 13, 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 May 2001.

_________________________________________
PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

_________________________________________
DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

O:INTG012_ln

ORDER NO. 28729 -1-

ORDER NO. 28594 4

Office of the Secretary
Service Date
May 9, 2001