20100624final_order_no_32013.pdf

Office of the Secretary
Service Date
June 24, 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF INTERMOUNTAIN GAS COMPANY
FOR AUTHORITY TO ISSUE AND SELL~CURITIES. CASE NO. INT-IO-
ORDER NO. 32013
On May 28 , 2010, Intermountain Gas Company (Intermountain), a subsidiary of
MDU Resources Group, Inc., filed an Application requesting authorization for a revolving credit
line agreement, not to exceed $80 000 000, for a period of three (3) years, replacing
Intermountain s current $70 000 000 revolving line of credit. Intermountain intends to continue
to use this line of credit in the traditional manner, i., principally to finance construction needs
gas costs and other working capital requirements.
Having fully considered the Application and exhibits, the Commission enters this
Order approving Intermountain Gas Company s Application.
THE APPLICATION
Intermountain seeks the Commission s authorization to enter into a revolving line of
credit agreement not to exceed $80 000 000 at anyone time outstanding for a period of three (3)
years from the execution and delivery of the credit agreement. The revolving line of credit
agreement will be administered through Bank of America, N.The proceeds from the
borrowing in this issuance will be used principally to finance construction, gas costs and other
working capital requirements of Intermountain. The new credit issuance is intended to replace
Intermountain s current revolving line of credit of $70 000 000 which expires at the end of
August 2010.
FINDINGS OF FACT AND
CONCLUSIONS OF LAW
Intermountain Gas Company is an Idaho corporation with its office and principal
place of business in Boise, Idaho. Intermountain is a natural gas public utility, owning and
operating pipelines, a liquefied natural gas storage facility, distribution mains, services, meters
and regulators, and general plant and equipment. Intermountain is a gas corporation and public
utility within the definitions of Idaho Code ~~ 61-117 and 61-129. The Commission has
jurisdiction over this Application pursuant to the provisions of Idaho Code ~~ 61-901 et seq.
ORDER NO. 32013
The Commission further finds that the Application reasonably conforms to Rules 141 through
150 of the Commission s Rules of Procedure, IDAP A 31.01.01.141-150.
Intermountain has paid all lawful fees as provided by Idaho Code ~ 61-905.
The Commission further finds that the proposed transaction is in the public interest
and a formal hearing on this matter is not required.
The Commission finds that the proposed issuance is for a lawful purpose and is
within Intermountain s corporate powers. The Commission s approval of the issuance is not a
finding of fact or a conclusion of law that the particular use to which these funds are to be put is
approved by this Order. The issuance of an Order authorizing the proposed issuance 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 in this case
and, therefore, does not determine the effect of issuance on rates to be charged by Intermountain
for natural gas service to consumers in the State of Idaho.
ORDER
IT IS HEREBY ORDERED that Intermountain Gas Company s Application for
authority to execute a revolving line of credit agreement not to exceed $80 000 000 is granted for a
period of three (3) years from the execution and delivery of the credit agreement.
IT IS FURTHER ORDERED that Intermountain continue to file quarterly reports
with the Commission setting forth the date of issuance, principal amount, interest rate, date of
maturity and identity of payee for all promissory notes issued during the quarter. Intermountain
will also continue to file its capitalization ratios with the quarterly reports.
IT IS FURTHER ORDERED that the foregoing authorization is without prejudice to
the regulatory authority of the Commission with respect to rates, utility capital structure, service
accounts, valuation, estimates for determination of cost or any other matter which 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 provisions of Chapter 9
Title 61 , Idaho Code, or any act or deed done or performed in connection therewith shall be
construed to obligate the State of Idaho to payor guarantee in any manner whatsoever any security
authorized, issued, assumed or guaranteed under the provisions of Chapter 9, Title 61 , Idaho Code.
ORDER NO. 32013
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 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 ~ 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this .::2 if j4I
day of June 2010.
~~~
. KEM TON, RESIDENT
MARSHA H. SMITH, COMMISSIONER
MACK A. REDFORD, COMMISSIONER
ATTEST:
~c ~.n J1
D. Jewel
Commission Secretary
O:INT-IO-O2 ks
ORDER NO. 32013