20250530APPLICATION.pdf

RECEIVED
May 30, 2025
Preston N. Carter, ISB No. 8462 IDAHO PUBLIC
Megann E. Meier, ISB No. 11948 UTILITIES COMMISSION
GIVENS PURSLEY LLP
601 West Bannock Street
P.O. Box 2720
Boise, Idaho 83701-2720
Office: [phone]
Fax: [phone]
[e-mail]
[e-mail]
18947387.4[14168.361
Attorneys for Intermountain Gas Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION Case No. INT-G-25-02
OF INTERMOUNTAIN GAS COMPANY
FOR THE AUTHORITY TO INCREASE APPLICATION
ITS RATES AND CHARGES FOR GAS
SERVICE IN THE STATE OF IDAHO
Intermountain Gas Company, ("Intermountain," "Applicant," or"Company") hereby
moves the Idaho Public Utilities Commission("Commission") for an Order approving revisions
to Applicant's schedules of rates and charges for natural gas service in the State of Idaho to
become effective on or after June 30, 2025.
Please address communications regarding this Application to:
Preston N. Carter
Megann E. Meier
Givens Pursley LLP
601 W. Bannock St.
Boise, Idaho 83702
[e-mail]
[e-mail]
[e-mail]
and
APPLICATION PAGE I OF 7

Lori A. Blattner
Director—Regulatory Affairs
Intermountain Gas Company
Post Office Box 7608
Boise, ID 83707
[e-mail]
[e-mail]
In support of this Application, Intermountain alleges and states as follows.
I.
Intermountain is a gas utility, subject to the jurisdiction of the Commission, engaged in the
sale of and distribution of natural gas within 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.
Intermountain provides natural gas service to the following Idaho communities and counties
and adjoining areas:
Ada County-Boise, Eagle, Garden City,Kuna, Meridian, and Star•,
Bannock County-Arimo, Chubbuck,Inkom,Lava Hot Springs,McCammon, and Pocatello;
Bear Lake County-Georgetown and Montpelier;
Bingham County-Aberdeen, Basalt,Blackfoot,Firth,Fort Hall,Moreland/Riverside, and Shelley;
Blaine County-Bellevue,Hailey,Ketchum, and Sun Valley;
Bonneville County-Ammon, Idaho Falls, Iona, and Ucon;
Canyon County-Caldwell, Greenleaf,Middleton,Nampa,Parma, and Wilder;
Caribou County-Bancroft, Grace, and Soda Springs;
Cassia County-Burley,Declo, Malta, and Raft River;
Elmore County-Glenns Ferry, Hammett, and Mountain Home;
Fremont County-Parker and St. Anthony;
Gem County-Emmett;
Gooding County- Gooding and Wendell;
Jefferson County-Lewisville,Menan,Rigby, and Ririe;
Jerome County-Jerome;
Lincoln County- Shoshone;
Madison County-Rexburg and Sugar City;
Minidoka County-Heyburn,Paul, and Rupert;
Owyhee County-Bruneau and Homedale;
Payette County-Fruitland,New Plymouth, and Payette;
Power County-American Falls;
Twin Falls County-Buhl,Filer, Hansen, Kimberly,Murtaugh, and Twin Falls;
Washington County-Weiser.
APPLICATION PAGE 2 OF 7

Intermountain's properties in these locations consist of transmission pipelines, liquefied
natural gas storage facilities, compressor stations, distribution mains, services,meters and regulators,
and general plant and equipment. Intermountain is an indirect wholly owned subsidiary of MDU
Resources Group,Inc. ("MDU Resources").
II.
Intermountain's existing base rates and charges for natural gas service were approved by the
Commission in 2023 in Case No. INT-G-22-07.
III.
A copy of the Company's tariffs showing the changes proposed in this Application are
attached as Exhibit No. 39 and the resulting clean tariffs as Exhibit No. 40,to Mr. Harris's testimony.
Intermountain proposes to increase the revenue collected through rates by approximately
$26.5 million. This request represents a margin revenue increase of 22.2 percent, or an overall
revenue increase of 8.6 percent. The changes in rates and charges proposed in this Application are
just and reasonable. If the changes are approved as proposed,the expected rate of return to the
Company will be approximately 7.86 percent,which is a fair rate of return on the Company's
investment in property used and useful in rendering gas utility services.
IV.
Under its presently authorized rates,the Company is earning a rate of return of
approximately 4.45 percent based on a test year ending December 31,2024. The Company seeks
additional revenues to recover increased operating expenses and costs associated with plant
additions, as well as revenues necessary to produce a fair rate of return to enable continued safe and
reliable service. If the requested rate increases are not approved, Intermountain's rates will not be
fair,just and reasonable and Intermountain will not have an opportunity to realize a fair rate of return
on its investments in the State of Idaho.
APPLICATION PAGE 3 OF 7

V.
Included within the changes proposed in this Application are i) certain textual and formatting
changes to Intermountain's tariffs to more clearly identify the total per-therm charge for each rate
schedule and ii)addition of a property-tax charge to each customer class to reflect recent legislative
changes. These changes are discussed in the testimony of Mr. Harris,Ms. Blattner, and Mr.
Darrington.
Allocation of the proposed revenue increase, and associated changes to rate design, are
discussed in Mr. Amen's testimony.
VI.
To support this Application, Intermountain is concurrently filing the Direct Testimony of
Nicole Kivisto, Tammy Nygard,Ann Bulkley,Niki Ogami,Lori Blattner,Patrick Darras,Eric
Martuscelli,Roxanne Roerick,Min Park, Jacob Darrington,Ronald Amen and Zachary Harris. A
brief overview of the subject-matter of each witnesses's testimony is provided in the testimony of
Ms. Kivisto.
VII.
This testimony and the accompanying exhibits include information regarding the Company's
finances,revenue analysis, analysis of cost of service, and supporting work papers that justify and
support the changes proposed in this Application. The native files for exhibits created in Microsoft
Excel will be provided with or shortly after this Application is filed.
The testimony, information, and evidence in support of the proposed changes are based on a
12-month test year ending December 31, 2024 with pro forma adjustments for the 2025 calendar
year for items that will be known and measurable when rates are anticipated to go into effect on
January 1,2026. Intermountain proposes end-of-period treatment for the test year rate base through
December 31, 2024, as well as end-of-period treatment for the pro forma adjustments through year-
APPLICATION PAGE 4 OF 7

end 2025 to address regulatory lag. A complete justification of the changes proposed in this
Application is provided in the testimony and exhibits.
VIII.
Notice to Intermountain's customers is being accomplished by news media releases
concurrent with this Application and by an individual notice delivered to each customer. Copies of
the press release and customer notice are attached to this Application as Attachments 1 and 2. In
addition, a copy of the Application and relevant rate schedules are available on the Company's
website at www.intgas.com, and this Application and supporting materials are available for public
review on the Commission's website at www.puc.idaho.gov.
IX.
Intermountain stands ready for an immediate hearing on this Application and requests that a
hearing be held as soon as possible.
X.
For the reasons set forth above and in the accompanying testimony and exhibits,
Intermountain respectfully requests:
1. That this Application be heard and acted upon at the earliest possible date;
2. That the Commission find that the Applicant's existing rates are unjust,unreasonable
and insufficient to provide the Company with a fair rate of return, and that the changes proposed in
this Application are just and reasonable;
3. That the Commission approve the changes proposed in this Application, effective
June 30, 2025, and
4. That the Commission grant such other relief as the Commission may determine
proper under the circumstances.
APPLICATION PAGE 5 OF 7

Dated: May 30, 2025.
GIVENS PURSLEY LLP
By Is/Preston N. Carter
Preston N. Carter
Givens Pursley LLP
Attorneys for Intermountain Gas Company
APPLICATION PAGE 6 OF 7

CERTIFICATE OF SERVICE
I hereby certify that on May 30, 2025, I caused to be served a true and correct copy of the
foregoing document to the person(s) listed below by the method indicated:
Commission Staff Via Electronic Mail
Monica Barrios-Sanchez, Commission Secretary [e-mail]
Idaho Public Utilities Commission [e-mail]
11331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise, ID 83714
Chris Burdin [e-mail]
Deputy Attorney General
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise, ID 83714
/s/Preston N. Carter
Preston N. Carter
APPLICATION PAGE 7 OF 7

INTERMOUNTAIN GAS COMPANY
CASE No. INT-25-02
ATTACHMENT 1
PRESS RELEASE

NEWS RELEASE
INTERMOUNTAIN
GAS COMPANY
A Subsidiary of MOU Resources Group,Inc.
Intermountain Gas Files General Rate Case with Idaho Regulators
BOISE, ID—May 30, 2025—Intermountain Gas Company filed a request with the Idaho Public
Utilities Commission (Case No. INT G-25-02), seeking a rate increase to serve its natural gas
customers. If approved, the monthly bills for an average residential customer would increase by
about$4.69, or 11.46%. Commercial customers bills would increase $9.26 monthly, or 5.16%.
The proposed increase is for approximately $26.5 million, or an 8.6% overall increase. This base
price change is not impacted by changes in the cost of natural gas.
"The main drivers of this rate request are unprecedented growth in our service area and the rising
cost of doing business," said Nicole Kivisto, President and CEO of Intermountain Gas. "The rate
increase requested in this filing is necessary to continue supporting Idaho's economic
development through investments in the infrastructure required to safely and reliably meet
growth in customer demand, as well as addressing inflationary pressures."
Operating and Maintenance costs have increased an average of 5.3% since the company's last
rate case. This increase is mainly due to higher labor and benefit costs. Other factors contributing
to the requested increase include investments in the backbone infrastructure necessary to support
gas delivery to a growing population and the resulting increase in depreciation expense.
"The rapid growth and system upgrades necessary for safety and reliability necessitate
substantial capital investments. These investments are fundamental to enhancing Intermountain's
capacity to offer safe and reliable service to both existing customers and those seeking natural
gas services,"Kivisto added.
The Idaho PUC has up to seven months to issue a decision on this request. If approved, new
rates would go into effect on January 1, 2026. The request does not include the cost of natural
gas, which is currently about 65% of a customer's monthly bill.
Intermountain Gas encourages customers to use energy wisely. For more information about
the company's energy efficiency program and available rebates for installing high efficiency
equipment, visit www.intgas.com/saveengM. Conservation tips, information on energy
assistance and information on the company's level pay program can also be found on the
company's website: www.int_ag s.com.

This request is a proposal and is subject to review and approval by the PUC. A copy of the
application is available for review at the commission, its homepage www.puc.idaho.g_ov, as
well as the company's website www.int ag s.com. Written comments regarding the application
may be filed with the commission by going to www.puc.idaho.gov/Form/CaseComment or
mailing to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
Customers may also subscribe to the commission's RSS feed to receive periodic updates via
email.
Intermountain Gas Company is a natural gas distribution company serving approximately
429,255 residential, commercial and industrial customers in 74 communities in southern Idaho.
Intermountain is a subsidiary ofMD U Resources Group, Inc., a member of the S&P SmallCap
600 index that provides essential products and services through its regulated electric and natural
gas distribution and pipeline segments. For more information about MDU Resources,
visit www mdu.com. For more information about Intermountain, visit www.inLy-as.com.
Media Contact: Mark Snider at 208-377-6006 or mark.snider(kmduresources.com

INTERMOUNTAIN GAS COMPANY
CASE No. INT-25-02
ATTACHMENT 2
CUSTOMER NOTICE

INTERMOUNTAINc CUSTOMER NOTICE
GAS COMPANY Intermountain Gas Company files a General Rate Case
BOISE,ID-May 30,2025-Intermountain Gas Company filed a request with the Idaho Public Utilities Commission (Case No. INT-G-25-02)to
increase its price to serve its natural gas customers.If approved,it would increase the monthly bill for an average residential customer by
about$4.69,or 11.46%,and for the average commercial customer by about$9.26,or 5.16%.
The proposed increase is for$26.5 million annually over current prices,or an 8.6%overall increase.This base price change is not impacted by
changes in the cost of natural gas,which is currently about 65%of a customer's bill.
The primary reason for the request is due to the infrastructure investments made by the company since the last regulatory proceeding that was
filed in 2022 and the resulting increase in depreciation expense,as well as higher labor and benefits costs.
"The main drivers of this rate request are unprecedented growth in our service area and the rising cost of doing business,"said Nicole Kivisto,
President and CEO of Intermountain Gas."The rate increase requested in this filing is necessary to continue supporting Idaho's economic
development through investments in the infrastructure required to safely and reliably meet growth in customer demand,as well as addressing
inflationary pressures."
(continued on reverse side)
The Idaho PUC has up to seven months to issue a decision on this request.If approved, new rates will go into effect on January 1,2026.
Intermountain's filing is a proposal and is subject to public review and approval by the PUC.A copy of the application is available for review at
the commission, its homepage www.puc.idaho.gov,as well as the company's website,www.intgas.com.Written comments regarding the
applications may be filed with the commission by going to puc.idaho.gov/Form/CaseComment or mailing to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise,ID 83720-0074
Customers may also subscribe to the commission's RSS feed to review periodic updates via email.
Intermountain Gas Company is a natural gas distribution company serving approximately 429,255 residential, commercial and industrial customers in 74
communities in southern Idaho. Intermountain is a subsidiary of MDU Resources Group,Inc.,a member of the S&P SmallCap 600 index that provides essential
products and services through its regulated electric and natural gas distribution and pipeline segments. For more information about MDU Resources, visit
www.mdu.com.
Intermountain Gas urges all customers to use energy wisely. For more information
about the company's energy efficiency program,visit www.intgas.com/saveenergy.
Conservation tips, information on government payment energy assistance and programs to help INTERMOUNTAIN
consumers level out their energy bills over the year can be found on the company's website
00©®❑
If I GAS COMPANY
CUSTOMER SERVICE:800-548-3679 a www.intgas.com asp,ns;t,;a,YmMnuReso,rcesr„Otl,,,,,71;.
MON-FRI 7:30 a.m.-6:30 p.m. In the Community to Serve