gas.pdf

Idaho Natural Gas Utilities

The Idaho Public Utilities Commission regulates two natural gas utilities – Intermountain Gas Company
and Avista Utilities. Questar Gas, based in Salt Lake City, provides service to a small number of
customers in southeast Idaho, but since its Idaho service area is very small, Idaho has elected to allow the
Utah Public Service Commission to regulate that utility’s activities in Idaho.

Intermountain Gas supplies natural gas to southern Idaho, serving approximately 265,000 customers.
Avista Utilities, which also serves parts of Washington and Oregon, serves northern Idaho and has about
65,000 customers in Idaho.

When natural gas reached Idaho communities in the 1950s, Idaho local distribution companies received
natural gas from the Northwest Pipeline Company of Salt Lake City. The pipeline serves much of the
Pacific Northwest, connecting the San Juan Basin and other Southwest natural gas sources with the
Northwest and Canada. Today the pipeline also transports Canadian natural gas from Alberta and British
Columbia to U.S. customers in the Pacific Northwest and California.

The natural gas markets have, in 2004 and 2005, been very volatile. Some volatility is due to outside
influences (weather, for example) and some is due to the effects of speculation in the marketplace.
However, the primary driver of high prices is that demand has increased faster than supply in recent years.

Natural gas prices in Idaho have traditionally been lower than those in most of the U.S. due to the lack of
sufficient transportation for Rocky Mountain and Canadian supplies, which serve Idaho, to major
markets. In the past decade, completion of major pipelines connecting Idaho’s natural gas sources to
those major markets has reduced this price advantage and subjected Idaho customers to the same gas price
increases and volatility as felt in the rest of North America.

Another factor affecting natural gas prices is the increase of summer “off season” demand which is
primarily due to significant increases in natural gas fueled electric generation. The resulting increase in
summer prices has reduced, but not eliminated, the value of putting inexpensive summer supply into
storage for winter use.

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Idaho Statewide Natural Gas Statistics by Utility

Intermountain Avista Questar Total
No. of Customers,
% of total
264,850
79.88
64,955
19.59
1,748
0.53
331,553
100.00
Therms Sold
% of total
481.25
79.87
119.36
19.80
1.96
0.33
602.57
100.00
Annual Revenue (millions),
% of Total Revenue
253.14

78.77
66.67

20.75
1.57

0.48
321.38

100.00

Individual Utility Statistics

Intermountain Gas Company
Residential Commercial Industrial Transportation Total
Customers 238,991 25,747 11 102 264,850
% of Total 90.24 9.72 0.00 0.04 100.00

Therms (millions) 177.68 91.09 3.06 209.42 481.25
% of Total 36.92 18.92 0.63 43.51 100.00

Revenue (millions) $163.09 $78.22 $2.07 $9.76 $253.14
% of Total 64.42 30.90 0.82 3.86 100.00

Avista Utilities
Residential Commercial Industrial Transportation Total
Customers 57,482 7,358 105 10 64,955
% of Total 88.50 11.33 0.16 0.02 100.00%

Therms (millions) 40.88 23.62 2.35 52.51 119.36
% of Total 36.92 18.92 0.64 43.52 100.00

Revenue (millions) $41.92 $21.85 $1.95 $0.95 $66.67
% of Total 62.88 32.77 2.92 1.43 100.00

Questar Gas
Residential Commercial Industrial Transportation Total
Customers 1,537 210 1 0 1,748
% of Total 87.93 12.02 0.057 0.00 100.00

Therms (millions) 1.20 0.76 0.00 0.00 1.96
% of Total 61.22 38.78 0.00 0.00 100.00

Revenue (millions) $0.99 $0.58 $0.00 $0.00 $1.57
% of Total 63.06 36.94 0.00 0.00 100.00