20130104Application.pdf

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EXECUTIVE OFFICES RE C E IV E 2
INTERMOUNTAIN GAS COMPANY
555 SOUTH COLE ROAD • P.O. BOX 7608 • BOISE, IDAHO 83707 • [phone] • FAX: 377 JAN -t PH 1:139
IDAG r'tJjjc
January 4, 2013 UTILITiES COMMIgSiO
Commissioner Paul Kjellander
Commissioner Mack A. Redford
Commissioner Marsha H. Smith
Idaho Public Utilities Commission
472 W Washington
Boise, Idaho 83702
Dear Commissioner,
IWY- & -/3 -0/
Intermountain Gas Company (Intermountain) has received an emergency
request from Energy West of West Yellowstone, Montana to provide assistance to their
remote distribution facility. Energy West operates the natural gas distribution system for
the community of West Yellowstone and utilizes Liquefied Natural Gas (LNG) for its
natural gas supply.
A recent power outage in south-western Wyoming has shut down the LNG plant
that Energy West has been purchasing its supply of LNG. The outage coupled with the
current cold snap leaves Energy West with difficulty finding alternate LNG supply
sources. Consequently Energy West has requested help from Intermountain (see
attached letter from Energy West).
Intermountain currently has an adequate amount of LNG stored within its Nampa
facility with which it could provide the amount of LNG needed by Energy West.
Intermountain also has the capability to load LNG from the Nampa facility into trucks
utilized by Energy West. Energy West has indicated that it would send an LNG trailer to
lntermountain's facility just as soon as this Commission might grant the emergency
authority requested.
Intermountain contemplates requesting general authority from this Commission
at a future date to sell LNG from its Nampa facility and that filing would fully delineate
the details under which Intermountain would request to operate such a service.
Notwithstanding any future request by Intermountain for authority to sell LNG, the
company views Energy West's appeal as simply an opportunity , to provide short-term
assistance to a fellow, regional distribution company and its customers.
Intermountain hereby requests emergency authority to sell up to 100,000 gallons
(or approximately 10 truck loads) of LNG to Energy West as soon as possible. Since
this Commission will not have the details pertaining Intermountain's proposed
accounting of any future LNG service, Intermountain proposes to defer all revenue and
costs related to any sale of LNG to Energy West under this emergency authority until
such time as Intermountain can file for authority to sell LNG. Intermountain agrees that
the accounting for all revenues and costs associated with the emergency service
contemplated hereunder shall be treated in the same manner as in any future LNG
service filing or in the company's next PGA. Intermountain also agrees that any
subsequent or additional requests for like emergency service prior to any Order granting
general authority shall be brought before this Commission on a case-by-case basis.
Intermountain respectfully requests that this emergency authority be granted as soon as
possible and stands ready to provide any other information that this Commission may
require.
Intermountain gasCompany
By
Scott Mison
Executive Vice President and General Manager
1.IIENERGY
IMEST
P.O. Box 582 145 N. Geyser West Yellowstone, MT 59758 406-6464437
To: David Swenson Date: 1-3-13
Intermountain Gas Co.
Dear David,
Due to an unexpected shut down of Merit Energy's , Painter Creek
LNG facility and cold weather creating a very tight LNG market, we are in
dire need of an emergency supply of LNG to help us through the next 4 to 6
weeks. Depending on how quickly Merit can rectify there problems this
could require anything from 20,000 gallons to possibly 100,000 gallons.
This supply is for the town of West Yellowstone Montana. We are a very
remote community and LNG is the only source of natural gas that we have.
Please advise if you could help us out or if you need more information.
Sincerely
Evan Mathews
District Manager
Energy West - West Yellowstone
406-646-4437
[e-mail]
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