Glossary of Industrial Services Terms:

BTU – British thermal unit; is a standard unit of energy that is used in the United States and sometimes in the U.K. It represents the amount of thermal energy necessary to raise the temperature of one pound of pure liquid water by one degree Fahrenheit at the temperature at which water has its greatest density (39 degrees Fahrenheit). The Btu is often used as a quantitative specification for the energy-producing or energy-transferring capability of heating and cooling systems such as furnaces, ovens, refrigerators, and air conditioners. The heat output of computer equipment is often specified so that it can be considered when planning the size of climate control systems in buildings.

Bundled Sales – service where all components necessary to deliver gas supply to a customer’s facility are provided under one service, tariff, rate or price.

DOT (U.S. Department of Transportation) – the federal agency with jurisdiction over the safety of natural gas pipelines. The DOT requires compliance with standard regulations that help to ensure the safe transportation of natural gas.

Firm – service offered with no anticipation of interruption or curtailment up to the daily firm amount.

Large Volume/Industrial Customer – a customer consuming a least 200,000 therms in a 12-month period and who has signed a minimum one year written service contract.

Interstate Pipeline – An entity that transports the natural gas commodity from producing regions to customers (e.g. distribution companies) where the gas is ultimately consumed. Northwest Pipeline is the only interstate pipeline that directly delivers natural gas to Intermountain Gas Company.

IPUC (Idaho Public Utilities Commission) – the regulatory agency that has jurisdiction over the tariffs, prices and services offered by Intermountain.

Interruptible – service that may be curtailed or interrupted (normally due to interstate or distribution system constraints or emergencies) at Intermountain’s sole discretion in order to ensure natural gas delivery to firm customers or to ensure the operational integrity of the distribution system.

Marketer – an entity engaged in aggregating gas supply and/or markets; also arranges and manages gas supply, transportation, nomination, contracts and daily operations for customers.

Maximum Daily Firm Quantity (MDFQ) – also referred to as Contract Demand; the amount stated in the LV-1 and T-4 contracts that reflects the maximum daily amount (Peak Day) of service Intermountain agrees to provide, and customer is authorized to use, on a given gas day. All daily usage above the MDFQ is on an as-available basis.

Northwest Pipeline LLC (or Northwest Pipeline) – an interstate natural gas pipeline headquartered in Salt Lake City, Utah serving the interstate transportation needs of Intermountain by transporting natural gas from supply basins located in western Canada and the Rockies to Intermountain Gas Company’s Local Distribution System.

Tariff – a schedule filed by a utility or pipeline for approval by a regulatory agency describing transactions, services and prices between the utility or pipeline and its customers.

Therm – a thermal heating value equal to 100,000 Btu’s or approximately 100 cubic feet of natural gas. 10 therms equal 1MMBtu or 1 Dekatherm and is approximately equal to 100 cubic feet.

Transportation Service – the act of one entity (e.g. the utility) receiving, moving, and delivering natural gas through its own facilities on behalf a second entity (e.g. an industrial customer).