180830 Intermountain PGA.pdf

Case No. INT-G-18-02
Contact: Matt Evans
Office: [phone]
Cell: [phone]
www.puc.idaho.gov

Intermountain Gas proposal would decrease
rates

BOISE (Aug. 30, 2018) – Rates for customers of Intermountain Gas Company would decrease by an
average of 10.2 percent if state
regulators adopt the company’s annual Purchased Gas Cost Adjustment (PGA) proposal.

The PGA is the variable component of natural gas rates that can be adjusted every Oct. 1 to account for
expenses that fluctuate from
year to year.

The company’s proposal calls for passing through to customers approximately $24.5 million.

If approved by the Idaho Public Utilities Commission, the change would decrease residential rates by
10.0 percent, or $4.12 per
month based on average consumption and weather.

Commercial customers would see a reduction of 11.9 percent, or $21.89 per month, the company said.

A number of factors contributed to the proposed reduction, including:

- A decrease in transportation costs billed to Intermountain by its firm transportation providers.
- A decrease in the Weighted Average Cost of Gas due to higher production in shale gas wells,
leading supply to outpace demand.
- Benefits resulting from Intermountain’s management of storage and firm capacity rights on
various pipeline systems.
- Customer benefits related to changes in corporate income tax laws at the federal and state
levels.
A year ago, the change to the PGA led to a refund of $19.25 million to customers, resulting in a rate
decrease of 8.1 percent for residential customers
and 9.2 percent for commercial customers.

Intermountain Gas serves approximately 350,000 customers across southern Idaho.

The Commission is accepting comments on the proposal through Sept. 18.

Comments can be submitted online here. Or go to the Commission’s website, www.puc.idaho.gov, click
on the “Case Comment Form” under
the “Consumers” header.

Comments can also be mailed to PO Box 83720, Boise, ID 83729-0074, or faxed to [phone].
Please include the case number, INT-G-18-02, with comment.

All documents related to this case, including Intermountain Gas’ application, can be reviewed here. Or
go to the Commission’s website, www.puc.idaho.gov,
click on “Open Cases” under the “Natural Gas” header and scroll down to Case No. INT-G-18-02.

Matt Evans
Public Information Officer
Idaho Public Utilities Commission
[e-mail]
[phone]
[phone]