20220909Final_Order_No_35527.pdf

ORDER NO. 35527 1
Office of the Secretary
Service Date
September 9, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF INTERMOUNTAIN
GAS COMPANY’S APPLICATION FOR
AUTHORITY TO RENEW AND
INCREASE A REVOLVING CREDIT
AGREEMENT
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CASE NO. INT-G-22-06

ORDER NO. 35527

On August 25, 2022, Intermountain Gas Company (“Company”), a subsidiary of MDU
Resources Group, Inc. (“MDU”), applied under Idaho Code §§ 61-901, et seq. for authority to
renew and increase a Revolving Credit Agreement (“Agreement”). The Company represents that
the additional credit will be used for capital expenditures, deferred gas costs, and general corporate
purpose needs, consistent with the public interest and necessary, appropriate, and in line with its
performance as a public utility.
At the Commission’s September 6, 2022, Decision Meeting, Staff recommended that
the Commission approve the requested authority to renew and increase the Company’s credit
Agreement. Based on our review of the record, we issue this Order approving the Application as
noted below.
THE APPLICATION
The Company is an Idaho corporation and natural gas utility with its office and
principal place of business in Boise, Idaho. With its Application, the Company seeks authority to
renew and increase its Agreement to $100 million, not to exceed a five-year period, with the option
to borrow an additional $25 million (“Line of Credit”). For the Line of Credit, the Company has
the option to select between predetermined interest rate methods—the Secured Overnight
Financing Rate (“SOFR”) plus an applicable margin from the SOFR Advanced column, or the
Base Rate, which is the higher of: (a) the U.S. Bank prime rate, (b) the federal funds rate plus
.50%, or (c) a daily rate equal to the one-month SOFR plus 1.00%. The Line of Credit includes
additional charges, including an annual $15,000 administrative fee and commitment fees based on
a performance grid. Application at 4. The Company notes that the borrowing costs increase as the
debt incurred increases.
STAFF REVIEW AND RECOMMENDATION
Staff recommended the Commission approve the Company’s request for authority to
enter into a new credit Agreement. Staff proposed the Commission order the Company to continue
ORDER NO. 35527 2
filing quarterly reports identifying the date of issuance, principal amount, interest rate, date of
maturity, and identity of payee for all promissory notes issued in that quarter, and the capitalization
ratios with the quarterly report.
FINDINGS AND DISCUSSION
The Company is an Idaho corporation with its office and principal place of business in
Boise, Idaho. It is a natural gas public utility that owns and operates pipelines, a liquefied natural
gas storage facility, distribution mains, services, meters, and regulators, and general plant and
equipment. It is a gas corporation and public utility as defined in Idaho Code §§ 61-117 and 61-
129.
The Commission has jurisdiction over the Application under Idaho Code §§ 61-901,
et seq. We find that the proposed transaction is in the public interest and a formal hearing on this
matter is not required. We further find that the proposed issuance is for a lawful purpose and is
within the Company’s corporate powers, that the Application reasonably conforms to Rules 141
through 150 of the Commission’s Rules of Procedure, IDAPA 31.01.01.141-150, and that the
Company has paid all fees due under Idaho Code § 61-905. Accordingly, we find that the
Application should be approved and the proposed financing should be allowed.
The Commission’s Order approving the proposed financing and the general purposes
to which the proceeds may be put is not a determination that the Commission approves of the
particular use to which these funds will be put. The Order also is not a Commission determination
or approval of the type of financing or the related costs for ratemaking purposes. The Commission
does not have before it for determination, and so does not determine, the effect of the proposed
transaction on rates the Company will charge for natural gas service.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application to renew its credit
Agreement to $100 million, not to exceed a five-year period, with the option to borrow an
additional $25 million, for a total requested line of credit authority of $125 million, is granted.
IT IS FURTHER ORDERED that the Company must 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. The Company
must continue to file its capitalization ratios with the quarterly reports.
ORDER NO. 35527 3
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 pay or guarantee in any manner whatsoever any security authorized,
issued, assumed or guaranteed under the provisions of Chapter 9, Title 61, Idaho Code.
IT IS FURTHER ORDERED that issuance of this Order does not constitute acceptance
of the Company’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 9th day
of September 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND, JR., COMMISSIONER
ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\GAS\INT-G-22-06 RCA\orders\INTG2206_ order_cs.docx