20050824final order no 29855.pdf

Office of the Secretary
Service Date
August 24, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN GAS COMPANY
FOR AUTHORIZATION TO ISSUE AND
SELL SECURITIES ORDER NO. 29855
CASE NO. INT-O5-
On July 25, 2005 Intermountain Gas Company (Intermountain or IOC) filed an
Application pursuant to Title 61 , Idaho Code, Chapter 9 requesting authorization of a revolving
line of credit of $45 000 000 with the option to borrow an additional $25 000 000, not to exceed
a total of $70 000 000, for a period of five years. This revolving line of credit would replace
IOC's current line of credit of $35 000 000. IOC contends that this line of credit will continue to
be used in the traditional manner which is principally to finance construction needs, gas
purchases, and other working capital requirements. After reviewing the Application and Staff s
recommendation, the Commission in this Order approves the Company s Application as more
fully discussed below.
FINDINGS OF FACT
IOC is an Idaho corporation with its office and principal place of business in Boise
Idaho. IOC 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 regulator, and general plant and equipment.
The Company seeks the Commission s authorization and permission to issue a
revolving line of credit of $45 000 000 with the option to borrow an additional $25 000 000, not
to exceed $70 000 000 at anyone time outstanding for a period of five years from the execution
and delivery of the credit agreement. The revolving line of credit will be administered through
Bank of America, N .A. The proceeds from the borrowing of this issuance will be used
principally to finance construction and other working capital requirements of IOC.
CONCLUSIONS OF LAW
Intermountain is a gas corporation within the definition of Idaho Code ~ 61-117 and
is a public utility within the definition of Idaho Code ~ 61-129. The Idaho Public Utilities
Commission has jurisdiction over this matter pursuant to the provisions of Idaho Code ~ ~ 61-901
et seq.
ORDER NO. 29855
The Commission finds that general purposes to which the funds will be utilized are
lawful purposes under the public utilities law and are compatible with the public interest.
However, this approval of the general purposes to which the funds will be put to use is neither a
finding of fact nor a conclusion of law that any particular project, program, or future cost
recovery is authorized. Approval in this Order shall not be construed to approve any particular
use of the funds, which Intermountain may be benefited by the approval in this Order.
The issuance of this Order authorizing the proposed financing does not constitute
agency determination/approval of the type of financing or the related costs for ratemaking
purposes. The 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 I GC for natural gas
to consumers in the State of Idaho. The Commission expressly reserves the ratemaking
implication from these loans until an appropriate future proceeding.
The method of issuance is proper. The Company has paid the fee required by Idaho
Code ~ 61-905. The Application should be approved.
ORDER
IT IS HEREBY ORDERED that the Application of Intermountain Gas Company for
authority to issue a revolving line of credit of $45 000 000, with the option to borrow an
additional $25 000 000, not to exceed a total of $70 000 000 at anyone time outstanding for a
period of five years as described in its Application is approved.
IT IS FURTHER ORDERED that this authority will be from the date of this Order
and expire on August 31 , 2010.
IT IS FURTHER ORDERED that Intermountain will continue to make quarterly
reports to this Commission setting forth the date of issuance, principal amount, interest rate, date
of maturity, and identity of payee for all promissory notes issued during such quarter. The
Company s capitalization ratios will also be filed with quarterly reports.
IT IS FURTHER ORDERED that the Company file a letter with the Commission if a
60% debt ratio has been exceeded. The Company will also meet with Staff to discuss the reasons
the capitalization ratio exceeds 60% and evaluate if actions are required to reduce the debt level.
IT IS FURTHER ORDERED that this authorization is without prejudice to the
regulatory authority of this Commission with respect to rates, services, accounts, valuations
ORDER NO. 29855
estimates, or determination of costs, or any other matter that may come before this Commission
pursuant to its jurisdiction and authority as provided by law.
IT IS FURTHER ORDERED that nothing in this Order and no provision of Title 61
Idaho Code, Chapter 9, or any act or deed done or performed in connection with this Order shall
be construed to obligate the State of Idaho to payor guarantee in any manner whatsoever any
funds authorized by the Commission.
IT IS FURTHER ORDERED that issuance of this Order does not constitute
acceptance of Intermountain s exhibits or other material accompanying the Application for any
purpose other than 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 with regard to any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code ~ 61-
626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this if
day of August 2005.
(idlkli-~~a(
PAUL KJELLANDER, PRESIDENT
fLtU~NV ~Jv
MARSHA H. SMITH, COMMISSIONER
IS S. HANSEN, COMMISSIONER
ATTEST:
~l).Je D. JewellCo ission Secretary
O:INT-05-01 dw
ORDER NO. 29855