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Home My WebLink About20051215Letter dated 12-15-05.pdfIDAHO PUBLIC UTiliTIES com mission Dirk Kempthome, Govemor O. Box 83720, Boise, Idaho 83720-0074 Paul Kjellander, President Marsha H. Smith, Commissioner Dennis S. Hansen, Commissioner December 15 2005 Scott Madison , Controller, and CAD Intermountain Gas Company 555 South Cole Road PO Box 7608 Boise, ill 83707 Dear Mr. Madison: Intermountain Gas Company and the IPUC Staff met to discuss the impact of temporary tax timing differences associated with purchased gas costs. Taxes associated with the Purchased Gas Adjustment (pGA) accounts should be deferred to better match the recovery of these costs. As a result, Intennountain Gas Company will continue to flow-though state deferred taxes on all temporary tax timing differences, except those items related to PGA accounts beginning with the Company s 2006 fiscal year. In addition to better matching, the above tax treatment will provide a more normalized effective tax rate and in turn will result in a more nonnalized book income and debt to equity ratio when evalu~ting debt covenant requirements. If you have any questions, please do not hesitate to contact me at 334-0356. Sincerely, j ~L LOflocJe Terri Carlock Audit Section Supervisor tcarlock/tax timing differences 122005 Located at 472 West Washington Street , Boise, Idaho 83702 Telephone: (208) 334-0300 Facsimile: (208) 334-3762