20040107Final Order No 29413.pdf

Office of the Secretary
Service Date
January 7 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
INTERMOUNTAIN GAS COMPANY FOR AN
ORDER AUTHORIZING THE ISSUANCE ANDSALE OF SECURITIES
CASE NO. INT-O3-
ORDER NO. 29413
On December 15 2003, Intermountain Gas Company (lGC) filed an Application for an
Order authorizing the issuance and sale of securities in Case No. INT -03-2. The Application
requests Commission authority to enter into a renegotiated senior revolving line of credit agreement
with Wells Fargo, N., not to exceed $35 000 000, for a period of three years. The proceeds will
continue to be used to refinance existing indebtedness, provide for working capital, deferred gas
costs and general corporate purposes including interim construction financing and medium term
needs prior to the issuance oflong-term debt. This dollar amount is an increase of$1 0 000 000 from
the $25 000 000 currently authorized by Order No. 28672 through December 15 2005. The term of
the new agreement is three years from the date the agreement is executed. IGC will continue to
make quarterly reports to the Commission showing balances outstanding and the interest rate.
The interest rate will be based on London Interbank Offered Rates (LIB OR) or a Base
Rate defined as the higher of Wells Fargo Bank's Prime Rate or the Federal Funds Rate plus 0.
depending on the capitalization ratio oflGC at that time. There also continues to be an unused fee to
help IGC minimize the total cost of the credit line. IGC's common equity ratio as of September 30
2003 is 49.6%.
The Commission, having fully considered the Application, attached exhibits, its files and
records relating to this Application and the applicable laws and rules, grants the Company s request.
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.
IGC requests Commission authority to enter into a renegotiated senior revolving line of
credit agreement with Wells Fargo, N., notto exceed $35 000 000, for a period of three years from
ORDER NO. 29413
the date the agreement is executed. This dollar amount is an increase of $10 000 000 from the
$25 000 000 currently authorized by Order No. 28672 and would extend the authority beyond
December 15, 2005. Id. The Company shall continue to use the proceeds to refinance existing
indebtedness, provide for working capital, deferred gas costs and general corporate purposes
including interim construction financing and medium term needs prior to the issuance oflong-term
debt. The term of the new agreement is three years from the date the agreement is executed. IGC
will continue to make quarterly reports to the Commission showing balances outstanding and the
interest rate.
CONCLUSIONS OF LAW
Intermountain Gas Company is a gas corporation within the definition of Idaho Code
61-117 and is a public utility within the definition of Idaho Code 9 61-129.
The Idaho Public Utilities Commission has jurisdiction over this matter pursuant to the
provisions of Idaho Code 9 61-901 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 ofthe general purposes to which the proceeds will be put is neither a finding of fact nor
conclusion of law that any particular construction program of IGC which may be benefited by the
approval ofthis 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 ofldaho.
All lawful fees have been paid by Intermountain Gas as provided by Idaho Code 9 61-
905.
ORDER
IT IS THEREFORE ORDERED that Intermountain Gas Company s request for
Commission authority to enter into a renegotiated senior revolving line of credit agreement with
ORDER NO. 29413
Wells Fargo, N., not to exceed $35 000 000 is granted for a period ofthree years from the date the
agreement is executed. This dollar amount is an increase of $10 000 000 from the $25 000 000
currently authorized by Order No. 28672 and would extend the authority beyond December 15 2005.
Id. The Company shall continue to use the proceeds to refinance existing indebtedness, provide for
working capital, deferred gas costs and general corporate purposes including interim construction
financing and medium term needs prior to the issuance of long-term debt.
IT IS FURTHER ORDERED that the authority granted will be from the date of this Order
and will expire on the maturity date of this newly authorized line of credit, but in no case shall this
authority extend later than January 20, 2007.
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 the foregoing authorization is without prejudice to the
regulatory authority ofthis 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 ofldaho to payor 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 ofthis 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 ofthe service date ofthis Order. Within seven (7) days
after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
ORDER NO. 29413
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this '1-fA..
day of January 2004.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~J9
D. Jewell
Commission Secretary
O:INTG0302jh
ORDER NO. 29413