062413_INTIRP.pdf

Idaho Public Utilities Commission
Case No. INT-G-13-03, Order No. 32801
June 24, 2013
Contact: Gene Fadness [phone], 890-2712
Website: www.puc.idaho.gov

Intermountain Gas plan outlines customer needs over next 5 years

The Idaho Public Utilities Commission is taking comments through July 8 on Intermountain Gas
Company’s plan to meet its customers’ natural gas needs over the next five years.

A reduced rate of growth due to the economic downturn means the company will be able to
meet its peak-day loads over the next five years without significant capital additions.

Intermountain Gas serves about 285,000 residential and commercial customers and 30,400
commercial customers in its southern Idaho territory. It is required to file a plan every two
years, called an Integrated Resource Plan (IRP), with the commission outlining how the
company will meet customer demand and from which sources it will acquire its natural gas
supply.

Two years ago, the company’s IRP showed capacity deficits on its Idaho Falls and Sun Valley
laterals. Since then, Intermountain Gas has taken steps to address those deficits resulting in no
projected capacity deficits in its territory even though it anticipates annual load growth of
about 1 percent.

To meet projected deficits along the Idaho Falls lateral, which serves cities from Pocatello to St.
Anthony, the company completed a 16-inch pipeline loop around the city of Idaho Falls. That
project, completed last winter, increased the distribution capacity from 810,000 therms to
990,000 therms. Seventeen percent of the company’s customers are served by the approximate
104-mile Idaho Falls Lateral.

The 2010 plan also showed projected deficits on the 70-mile Sun Valley Lateral. In response, the
company installed a compressor station to boost pressure. The compressor increased the
lateral’s capacity from 175,000 therms to 204,000 therms. The Sun Valley Lateral serves 4
percent of Intermountain Gas’ customers.

The two other major laterals that extend from the main Williams Northwest pipeline that
follows the Snake River throughout southern Idaho, are the Canyon County and State Street
Laterals. The 16-mile State Street lateral serves customers from Caldwell along State Street into
northern Boise. Intermountain reports that demand on the State Street lateral is increasing and
will need monitoring but is not expected to meet capacity in the next five years. Fourteen
percent of Intermountain Gas customers are served by the State Street Lateral.

Due to the decline in natural gas prices, some of the company’s demand reduction measures
mentioned in the 2010 IRP were no longer cost-effective and, consequently, not implemented.
The company’s core customers have seen a 40 percent price reduction since 2008. However,
Intermountain Gas continues to offer a $200 rebate to customers who install a 90 percent or
greater efficiency natural gas furnace when converting to natural gas. It also continues to
promote higher-efficiency homes and ENERGY STAR© programs for the new construction
market.

Comments are accepted via e-mail by accessing the commission’s homepage at
www.puc.idaho.gov and clicking on "Case Comment or Question Form,” under the
“Consumers” heading. Fill in the case number (INT-G-13-03) and enter your comments.
Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to (208) 334-
3762.

A copy of Intermountain Gas’ Integrated Resource Plan and other documents related to this
case are available on the commission’s Web site. Click on “Open Cases” under the “Natural
Gas” heading and scroll down to the above case number.

###