150828_INTPGA.pdf

Case No. INT-G-15-02, Order No. 33364
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

Intermountain Gas seeks 5.7% reduction to annual PGA

BOISE (August 28, 2015) – The rates for customers of Intermountain Gas Company would
decrease by an average 5.7% if the Idaho Public Utilities Commission adopts the company’s
annual Purchased Gas Cost Adjustment (PGA) application.

The PGA is the variable component of natural gas rates adjusted every Oct. 1 to account for
Intermountain Gas expenses that change from year to year.

If the application were approved, $15.3 million would be passed on to customers, about a 6.1%
decrease to customers who use natural gas for space and water heating, a 3.56% decrease to
those who use natural gas for space heating only and a 5.6% reduction for commercial
customers.

A number of factors contribute to the proposed reduction in rates including a decrease in
transportation costs billed to Intermountain by its supplier, Northwest Pipeline GP; lower
wholesale natural gas prices due to a warmer winter and increased production; and, finally,
Intermountain Gas’ management of its storage and firm capacity rights on its various pipeline
systems.

Under Intermountain Gas’ application, the PGA portion of customer rates would be reduced
from the current 39.5 cents per therm to 32.8 cents per therm. If approved, Intermountain’s
combined residential and commercial rates would be 35% lower than in 2005.

The commission is accepting written comments on Intermountain’s application through Sept.
16. Comments are accepted by accessing the commission’s website at www.puc.idaho.gov and
clicking on “Case Comment Form” under the “Consumers” heading. Fill in the case number
(INT-G-15-02) and enter your comments. Comments can also be mailed to P.O. Box 83720,
Boise, ID, 83720 or faxed to 208-334-3762.

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