HomeMy WebLinkAbout042213_INTLNGsales.pdfIdaho Public Utilities Commission
Case No. INT-G-13-02, Order No. 32793
April 22, 2013
Contact: Gene Fadness (208) 334-0339, 890-2712
Intermountain Gas customers to benefit from surplus LNG sales
Intermountain Gas Company’s liquefied natural gas facility has more than enough LNG
to meet the needs of its customers so state regulators have approved a plan submitted
by Intermountain to allow it to sell the surplus to non-utility customers and share the
proceeds with customers.
In its application to the Idaho Public Utilities Commission, Intermountain Gas said it
would share half the revenue it earns with customers, applying it against the annual
Purchased Gas Cost Adjustment (PGA). The commission modified that request to allow a
50-50 share for sales up to $1.5 million per year but a 70 percent customer share of
revenues for sales beyond that amount.
Intermountain Gas, a natural gas distribution company serving about 315,000 southern
Idaho customers, expects to have excess capacity at its Nampa LNG facility for the next
few years. It proposes to sell that excess until system growth requires it to use all its
LNG to meet peak-day needs for its customers.
Intermountain will use all stored LNG to first satisfy utility customer demand. It will
assess non-utility customers 2.5 cents for each gallon sold to meet any operations and
maintenance costs resulting from non-utility sales. The company’s original application
provided for that 2.5-cent charge going to the company, but the commission order
directs that amount to be directed to Intermountain Gas customers instead. Non-utility
customers will also pay another 2.5 cents per gallon to meet any capital expenditures or
increased maintenance costs to the Nampa plant.
Non-utility customers will be required to sign a contract protecting utility customers
from financial risk as well as risks to the company after the LNG is transferred to a non-
utility customer. Intermountain Gas will accept all financial risk and will insulate utility
customers from any costs associated with non-utility sales by separately accounting for
and tracking all related costs independent of utility costs. Those results will be filed
quarterly at the commission.
A full text of the commission’s order, the company’s application and other documents
related to this case, is available on the commission’s Web site at www.puc.idaho.gov
Click on “File Room” and then on “Open Gas Cases” and scroll down to Case Number
INT-G-13-02.