20030515Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
Case No. INT -Order No. 29242
(Jl3--/
For Immediate Release / May 14 2003
Contact: Gene Fadness [phone]
Workshops, hearings set in Intermountain Gas case
BOISE - Staff from the Idaho Public Utilities Commission will be conducting workshops and hearings in southern
Idaho regarding Intermountain Gas' request to raise rates for its 200 000 southern Idaho customers an average of 37.7 percent.
The commission has also established a written comment deadline of June 13.
Workshops and hearings will be held at the following locations. Informal workshops begin and 6 p., followed by the
formal hearings at 7 p.
Boise. Wednesday, May 28, at the Idaho Public Utilities Commission hearing room at 472 W. Washington
St. in Boise.
Idaho Falls. Wednesday, June 4, at the Idaho Falls City Council chambers at 140 Capital.
Twin Falls. Thursday, June 5, at the Twin Falls City Council chambers at 305 Third Avenue East.
The purchased gas cost adjustment (PGA) comprises about half the rate paid by Intermountain Gas customers. It is
adjusted upward or downward, usually on a yearly basis, depending largely on the market price of wholesale gas.
If granted, Intermountain Gas' proposed PGA would raise an additional $61 million in revenue , all of which must go
toward recovering expenses related to purchasing gas for its Idaho customers. Because all of the revenue goes toward purchased
gas expenses, the company s earnings would not be enhanced as a result of the proposed increase.
Last year, Intermountain Gas customers received a 28 percent decrease, based on a weighted average cost of wholesale
gas that was at about $3.20 per million BTUs (32 cents a therm). Since then, wholesale prices have increased to at or above $5
at the Canadian and Rocky Mountain hubs from which the company buys gas. The company projects prices will stay at or
above that level through the winter heating season. Until a rate change is approved, Intermountain Gas customers continue to
pay the $3.20 per million BTUs rate.
The company has indicated that if prices do not stay at the $5 level, it will come to the Commission for a downward
adjustment before the winter heating season.
If Intermountain Gas' request is approved , the average residential bill for a customer using natural gas for heating and
water heating (at about 76 therms a month) would see a monthly increase of about $18, or 38 percent. A residential customer
using natural gas for space heating only (at about 50 therms a month) would experience an average monthly increase of
$12, or 33 percent. Commercial customers, using about 325 therms a month, would see a monthly increase of $78, or 43
percent.
The workshops to be held before the formal hearings start will allow customers to ask questions of commission staff.
The public hearing to follow will be conducted before a hearing examiner, who will take sworn testimony from anyone wishing
to testify.
The commission is also accepting written comments. Comments can be sent via e-mail by accessing the commission
Website at www.puc.state.id.and clicking on "Comments & Questions." Fill in the case number (INT-03-1) and enter your
comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to [phone]. Comments
will be accepted through June 13.
A copy of the company s application is also available on the Commission Web site. Click on "File Room " and then on
Gas Cases," and scroll down to the appropriate case number.
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