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Home My WebLink About20100304Application.pdfMofftt Thomas MOFFATT THOMA BARTT ROCK & FIELDS, CHID. Boise Idaho Falls Pocatello Twin Falls Eugene C. Thomas John W. Barren Richard C. Fields John S. Simko John C. Ward D. James Manning David B. Lincoln Gary T. Dance Larry C. Hunrer Randall A. Peterman Mark S. Prusynski Stephen R. Thomas Glenna M. Christensen Gerald T. Husch Scott L. Campbell Robert B. Burns Michael E. Thomas Patricia M. Olsson Christine E. Nicholas Bradley J Williams Lee Radford Michael O. Roe Nancy J. Garrett David S. Jensen James L. MartinC. Clayton Gill Michael W. McGreaham David P. Gardner Julian E. Gabiola Tara Martens Kimberly D. Evans Ross Mark C. Peterson US Bank Plaza Building 1 01 S Capitol Blvd 10th FI PO Box 829 Boise Idaho 83701 0829 Tyler J. Anderson Jon A. Stenquisr Jason G. MurrayRebecca A. Rainey Paul D. McFarlane Tyler J. Henderson C. Edward Cather III Andrew J. WaIdera Dylan B. Lawrence Benjamin C. Ritchie Matthew J. McGee David J. Dance Robert E. Bakes, of counsel March 4, 2010 via Hand Delivery 2083452000 8004222889 208 385 5384 Fax ww.moffatt.com ~~-c::.:::: Iç' -0:: r5 ,-':J Willis C. Moflu, 1907-1980 Kirk R. Helvie, 1956-2003 Idaho Public Utilities Commission 472 W. Washington Boise, Idaho 83702 :tAii-b -(C)-of .."...~..- ron Re: Intermountain Gas Company - Petition for Declaratory Judgment MTBR&F File No. 11500.0340 Dear Clerk: -. Enclosed for filing in the above-referenced matter is the original and seven (7) copies of Intermountain Gas Company's Petition for Declaratory Judgment and an extra copy Petition to conform and retur to our office. Please fie stamp the enclosed Petition and retur it to our Moffatt Thomas messenger. Than you for your assistance. 8e:~ ~LSara E. Chadek Administrative Assistant sec(£moffatt.com ¡sec Client:1552539.1 "4 -". INTERMOUNTAIN GAS COMPANY CASE NO. INT-G-IO-OI PETITION r: 1 2010 lîAR -4 PH 12: 17 In the Matter of the Petition of INTERMOUNTAIN GAS COMPAN for a Declaratory Ruling Stephen R. Thomas, ISB 2326 MOFFATT THOMAS BARRTT ROCK & FIELDS, CHTD. 101 S. Capitol Boulevard, Suite 1000 Boise, Idaho 83702 Telephone: (208) 345 2000 Attorney for Intermountan Gas Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION In the Matter of the Petition of INTERMOUNTAI GAS COMPANY for Declarato Order Case No. INT-G-1O-0j PETITION Intermounta Gas Company ("Intermountan" or "Company"), a subsidiar of MDU Resources Group, Inc. with general offces located at 555 South Cole Road, Boise, Idao, hereby respectfully petitions the Idaho Public Utilties Commssion ("Commssion") pursuat to Idao Code Section 61-307 and IDAPA Rule of Procedure 31.01.01.101 for a Declaratory Order stating that the Commission lacks economic jursdiction over the resale of natual gas by thrd par non- utilties for use in motor vehicles. Communcations in reference to ths Application should be addressed to: Eldon Book, Executive Vice-President and Chief Operating Officer Intermountain Gas Company Post Offce Box 7608 Boise, ID 83707 and Katherine Barard, Manager - Gas Supply and Regulatory Affairs Intermountain Gas Company 222 Fairview Avenue North Seattle, WA (98109-5312) . and Stephen R. Thomas, ISB 2326 MOFFATT THOMAS BARTT ROCK & FIELDS, CHTD. 101 S. Capitol Boulevard, Suite 1000 Boise, Idaho 83702 In support of this Application, Intermountan does allege and state as follows: I. Intermountain is a gas utilty, subject to the jursdiction of the Idaho Public Utilties Commission, engaged in the sale of and distrbution of natual gas withn the State of Idaho under authority of Commission Certificate No. 219 issued December 2, 1955, as amended and supplemented by Order No. 6564, dated October 3, 1962. Intermountan provides natul gas service to the following Idaho communties and counties and adjoinig areas: Ada County - Boise, Eagle, Garden City, Kuna, Meridian, and Star; Bannock County - Chubbuck, Inkom, Lava Hot Springs, McCammon, and Pocatello; Bear Lake County - Georgetown, and Montpelier; Bingham County - Aberdeen, Basalt, Blackfoot, Firth, Fort Hall, Morelandlverside, and Shelley; Blaine County - Bellevue, Hailey, Ketchum, and Sun Valley; Bonnevile County - Ammon, Idaho Falls, Iona, and Ucon; Canyon County - Caldwell, Greenleaf, Middleton, Nampa, Parma, and Wilder; Caribou County - Bancroft, Conda, Grace, and Soda Springs; Cassia County - Burley, Declo, Malta, and Raft River; Elmore County - Glenns Ferr, Hammett, and Mountain Home; Fremont County - Parker, and St. Anthony; Gem County - Emmett; Gooding County - Gooding, and Wendell; Jefferson County - Lewisvile, Menan, Rigby, and Ririe; Jerome County - Jerome; Lincoln County - Shoshone; Madison County - Rexburg, and Sugar City; Minidoka County - Heyburn, Paul, and Rupert; Owyhee County - Brueau, Homedale; Payette County - Fruitland, New Plymouth, and Payette; Power County - American Falls; Twin Falls County - Buhl, Filer, Hansen, Kimberly, Murugh, and Twin Falls; Washington County - Weiser. Intermountan's properties in these locations consist of transmission pipelines, a liquefied natual gas storage facilty, distrbution mains, services, meters and regulators, and general plant and equipment. II. Intermountan seeks with this Petition a declaration from the Commssion that it has no economic jursdiction over the resale of natual gas which Intermountan sells to thrd par non- utilties who in tu intend to resell the natual gas for motor vehicle transporttion puroses. Intermountain is filing ths Petition so that all interested paries will better understad what is permtted under Idao law. Equally importt, Intermountain believes that there are economic and .. environmenta benefits for its customers and the state of Idao if the Commission issues the requested declaratory ruling, thereby faciltating and encouraging the contemplated use of natual gas as a transportation fueL. III. Intermountain has been approached by third par non-utilty organzations requesting Intermountain to sell natual gas to them for their resale for use in motor vehicles for transporttion puroses. One example would be fueling stations in Idaho where a non-utilty thrd par would resell natual gas to other persons for use in motor vehicles. Curently, there is some limited production of compressed natual gas ("CNG") vehicles within the United States and there are a number of firms performng vehicle conversions to CNG. Heavy duty vehicle fleets appear to be the largest growt segment in the CNG market. Curently, there are a number of western states that permit public CNG fueling stations including, but not limited to, Californa, Washington, Uta and Wyoming. Whle this is one example, Intermountain anticipates other potential resale transactions may be proposed in the futue by other entities in Idao due to pnce, availabilty and environmental benefits of using natual gas as a transporttion fueL. IV. Idaho statutory law does not specifically address resale of natual gas; however, Idaho Code Sections 61-116, 61-117 and 61-129 may bear indirectly on ths issue. Intermountan is not aware of any cour decisions in ths state which have addressed ths issue; however, in a case addressing the Commission's jursdiction over public utilty services, the Commssion in Re Idaho Power Company, Case No. IPC-E-96-9 (1996) held that the leasing of "dark" optical fibers was not the providing of a public utilty service as defined by Idao Code, Title 62, Chapter 6. In a case from Californa, the Californa Public Utilties Commission, when interpreting statutory provisions similar to Idaho's, ruled that persons operating service stations for the resale of compressed natual gas for vehicle use, other than those who are public utilties by reason of operations other than operating a fueling station, are not subject to rate regulation by the Commission. See Re Pacific Gas and Electrc Company, 124 PUR 4th 107 at pp. 125, 126 (1991). The federal Energy Policy Act of 1992 appears to address a par of ths issue and, with regard to CNG, preempt Idaho statutes that might otherwse affect the Commission's economic jurisdiction. Section 404 of the Energy Policy Act of 1992 provides: The transporttion or sale of natual gas by any person who is not otherwse a. public utilty, within the meanng of state law, ... .to any person for use by such person as a fuel in a self-propelled vehicle, shall not be considered to be transporttion or sale of natual gas withn the meaning of any State law, reguation or order in effect before Januar 1, 1989. See 15 U.S.C. Section 717 and Section 404 (b) of Pub. L. 102-486. Idaho Code Sections 61-116, 61-117 and 61-129 were all enacted before Janua 1, 1989. The Energy Policy Act, however, does not appear to have intended to affect natual gas safety rules and reguations. Intermountain believes and asks for a declaration as par of the Commssion's declaratory ruling in this case that the Commission would continue to regulate the safety of natual gas facilties operated by Intermountan, but only to the point where Intermountain's facilty or pipeline connects to the customer's metering device. V. If permitted by the Commission, Intermountain proposes to sell natual gas to resellers utilzing Intermountan's existing rate taffs. There would be no change in the prices charged by Intermountan Gas Company if ths request for Declaratory Ruling is approved by the Commssion. VI. Ths Application is fied pursuat to the applicable statutes and the Rules and Regulations of the Commssion. Ths Application has been brought to the attention of all afected utilities, to persons who have expressed an interest in resellng natual gas and to those paries regularly intervening in Intermountain's proceedings. VII. Intermountain requests that ths matter be handled under modified procedure pursuat to Rules 201-204 of the Commission's Rules of Procedure. Intermountan stads ready for immediate consideration of ths matter. , . WHEREFORE, Intermountan respectfully petitions the Idaho Public Utilties Commssion as follows: a. That the Commission issue its order declarg that it has no economic jursdiction over the proposed resale by third par non-utilties of natual gas purchased from Intermountan; b. That ths Petition be considered and acted upon without hearng under modified procedure, and c. For such other relief as ths Commission may determine proper relative to ths Petition. DATED at Boise, Idaho, this tfay of March, 2010. INTERMOUNTAIN GAS COMPANY MOFFATT THOMAS BARRTT ROCK & FIELDS, CHTD. By ~L~J~ Katherine Barard Manager - Gas Supply and Reguatory Affairs By -I Step en . Thomas. Atto ey¡ for Intermountain Gas Company , .~ \- CERTIFICATE OF MAING I HEREBY CERTIFY that on thsY~y of March, 2010, I served a copy of the foregoing Case No. INT -G-l O-OL upon: Paula Pyron Nortwest Industral Gas Users 4113 Wolf Berr Cour Lake Oswego, OR 97035-1827 Chad Stokes Cable Huston et al. 1001 SW Fift Avenue, Suite 2000 Portland, Oregon 97204-1136 R. Scott Pasley J. R. Simplot Company PO Box 27 Boise, ID 83707 Steven Gray J. R. Simplot Company PO Box 27 Boise, ID 83707 Conley E. Ward, Jr. Givens, Pursley, Webb & Huntley 277 N. 6th St., Suite 200 PO Box 2720 Boise, ID 83701 Alled Waste Dave Fisher (dfisher~awin.com) 11101 W Executive Dr. Boise, ID 83713 (208)345-1265 The Spriler Shop Dacx Dufn 375 West 100 South Paul, ID 83347 208-438-5204 Vector Management LLC. Winston Inouye (winouyelimt.org) 2313 Conant Dr. Burley, ID 83318 Treasure Valley Clean Cities Coalition Beth Baird City of Boise Public Works 150 N Capita Blvd Boise,ID 83702 208-384-3984 by depositing tre copies thereof in the United States Mail, postage prepaid, in envelopes addressed to said persons at the above addresses.~~J~ Katherine Barard Manager - Gas Supply and Regulatory Affairs