20260826Notice_of_Application_Order_No_37146.pdf

Office of the Secretary
Service Date
August 26,2026
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF INTERMOUNTAIN ) CASE NO. INT-G-26-04
GAS COMPANY'S APPLICATION TO )
CHANGE ITS PRICES ) NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 37146
On August 7,2026,Intermountain Gas Company("Company")applied to the Idaho Public
Utilities Commission ("Commission") requesting authority to implement the proposed rate
schedules, effective October 1,2026,which will decrease its annualized revenues by$11,055,662,
due to changes in the Company's gas related costs ("Application").
With this Order we issue notice of the Company's Application and set public comment and
Company reply deadlines.
BACKGROUND
The Company's rates include two components: a base-rate component and a gas-related
cost component, referred to as the Purchased Gas Cost Adjustment ("PGA"). The base-rate
component is intended to recover the Company's fixed costs of serving customers and generally
remains unchanged. The PGA is a Commission-approved mechanism that adjusts rates upward or
downward to reflect changes in the Company's costs of purchasing natural gas from suppliers,
including changes in transportation, storage, and other related costs. The Company defers these
costs to its PGA account and subsequently passes them through to customers through
corresponding increases or decreases in rates.
In Order No. 26109, the Commission approved the Company's use of temporary pricing
for certain rate schedules to be determined by a PGA based on gas-related costs. The Company's
current temporary prices related to the cost of gas were approved in Order No. 36771 and are
effective from October 1, 2025, through September 30, 2026.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company proposes adjustments to its gas-related
costs that would be passed through to its various customer classes. Application at 4. These
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 37146 1

adjustments reflect changes in firm transportation costs, a lower Weighted Average Cost of Gas
("WACOG"), updated allocation of purchased gas costs pursuant to the Company's PGA,
temporary surcharges and credits associated with deferred gas costs,benefits from the Company's
management of storage and firm transportation capacity, and benefits from the sale of liquified
natural gas.Id.
YOU ARE FURTHER NOTIFIED that the Company also proposes removing the
temporary surcharges and credits included in customer rates over the past year under Case No.
INT-G-25-04. Id. If approved, the changes would lower prices for the RS, GS-1, IS-R, IS-C, and
LV-1 customer classes while increasing prices for the T-3 and T-4 classes.Id.
YOU ARE FURTHER NOTIFIED that the Company states that transportation costs on the
NOVA Gas Transmission Ltd. ("NOVA"), Foothills Pipe Lines Ltd. ("Foothills"), and Gas
Transmission Northwest LLC ("GTN")pipeline systems have decreased overall,primarily due to
lower NOVA and GTN rates and the expiration of three contracts, partially offset by higher
Foothills rates. Id. at 5. These changes reduce firm transportation costs by approximately
$733,142. Id. Northwest Pipeline costs have also declined slightly due to expired contracts,
although some contracts moved to full-rate pricing for the full year. Id. Overall, these changes
result in a transportation cost reduction of approximately $757,025.Id.
YOU ARE FURTHER NOTIFIED that the Company states that the transportation savings
are partially offset by higher costs associated with its storage assets,primarily due to an increased
Northwest Pipeline delivery rate and higher transportation costs to the Rexburg LNG facility. Id.
at 6. These changes result in an overall cost increase of approximately $38,085.Id.
YOU ARE FURTHER NOTIFIED that the Company proposes a WACOG rate of
$0.24034 per therm, compared with the current $0.28734 per therm, representing a decrease of
approximately $21.6 million. Id. The Company states that the lower gas cost is largely due to
unusually warm weather across Southern Idaho and the West during the November 2025 through
March 2026 winter season. Id. Warmer conditions reduced natural gas prices and demand, while
increased production allowed producers and marketers to put more gas into storage, contributing
to the lower costs reflected in the proposed rates.Id. at 6-7.
YOU ARE FURTHER NOTIFIED that the Company states that it notified its customers
of the changes proposed in the Application through a Customer Notice and a Press Release that
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ORDER NO. 37146 2

was sent to daily and weekly newspapers and major television and radio stations within the
Company's service area.Id. at 10.
YOU ARE FURTHER NOTIFIED that the Application and supporting documents are
available for public inspection during regular business hours at the Commission's office. The
Application and supporting documents are also available on the Commission's website at
www.puc.idaho.gov. Click on the"NATURAL GAS"icon, select"Open Cases," and click on the
case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant
to the Commission's jurisdiction under Title 61 of the Idaho Code, and that all proceedings in this
matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000
et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and that it will proceed under Modified
Procedure pursuant to the Commission's Rules of Procedure 201-204, IDAPA 31.01.01.201-.204.
The Commission notes that Modified Procedure and written comments have proven to be an
effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this
Application may file a written comment explaining why the person supports or opposes the
Application. Persons who would like a hearing must specifically request a hearing in their written
comments and explain why written comments alone are insufficient. Persons interested in filing
written comments, must do so by September 15, 2026. Comments must be filed through the
Commission's website or by e-mail unless computer access is unavailable. To comment
electronically, please access the Commission's website at www.puc.idaho.gov. Click the "Case
Comment Form" and complete the form using the case number as it appears on the front of this
document.
To file by e-mail, persons must e-mail the comments to the Commission Secretary and all
parties at the e-mail addresses listed below. Persons submitting a comment by e-mail must provide
their name, address, and the Case Number under which they are commenting. Persons submitting
a comment by e-mail also acknowledge that submitting a comment in an open case constitutes a
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 37146 3

public record under Idaho Code § 74-101(13), and all information provided by such person is
available for public and media inspection.
If computer access is unavailable, then comments may be mailed to the Commission and
the Parties at the addresses below.Persons submitting a comment by mail must provide their name,
address, and the Case Number under which they are commenting. Persons submitting a comment
by mail also acknowledge that submitting a comment in an open case constitutes a public record
under Idaho Code§ 74-101(13),and all information provided by such person is available for public
and media inspection.
For the Idaho Public Utilities For the Company:
Commission:
Commission Secretary Michael Parvinen
Idaho Public Utilities Commission Director—Regulatory Affairs
P.O. Box 83720 Post Office Box 7608
Boise, ID 83702-0074 Boise, Idaho 83707
secretgU&puc.idaho.gov Michael.Parvinen&cn cg com
IGCRe ug latory(kint a
Preston N. Carter
Megann E. Meier
Givens Pursley LLP
601 W. Bannock St.
Boise, Idaho 83702
prestoncarter(&, ivenspursley.com
mem(akgivenspursle.
stephaniew(&, i�g venspursley.com
YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
September 22, 2026.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set, the Commission will consider this matter on its merits and enter its final
order without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
ORDER
IT IS HEREBY ORDERED that this Application be processed under Modified Procedure.
Persons interested in submitting written comments must do so by September 15, 2026. The
Company must file any reply comments by September 22, 2026.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 37146 4

IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 26th day of
August 2026.
G
EDWARD LODGE, PR IDENT
Jr-��-
J R. HAMMOND JR., COMMISSIONER
1
DAYN HA IE, COMMISSIONER
ATTEST:
149.
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anchez
Commission Secretary
IALegal\GAS\INTG2604_PGA\orders\INTG2604_ntc_app_mod_em.docx
NOTICE OF APPLICATION
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ORDER NO. 37146 5