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HomeMy WebLinkAbout20040506Application.pdfRECEIVEIl FILED lon4HAY PH3:St. INTERMOUNTAIN, G COM"P.Ik\tN"M ' ' OTIlmE:S"tOMHISSION CASE NO. INT-(;.;.O4~ 0)..., APPLICATION, , EXHIBITS, AND WORKPAPERS I ' In tbel\1atter oftbe ApplicationofINTERMOUNTA:iNGASCOMPANY , ', ' forAutbority to Increase Its Prices oriJuly 1~2004 . (July 1 2004'PurcbasedGas CostAdju,stmentFiling) Morgan W. Richards, Jr. MOFFATT, THOMAS , BARRETT, ROCK & FIELDS, CHARTERED PO Box 829, Boise, Idaho 83701 Telephone (208) 345-2000 MTBR&F 11-500.324 Attorneys for illtermountain Gas Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ill the Matter of the Application of INTERMOUNTAIN GAS COMPANY for Authority to illcrease Its Prices Case No. INT -04- () APPLICATION illtermountain Gas Company ("illtermountain ), an Idaho corporation with general offices located at 555 South Cole Road, Boise, Idaho, hereby requests authority, pursuant to Idaho Code Sections 61-307 and 61-622, to place in effect July 1 , 2004 new rate schedules which will increase its annualized revenues by $22.1 million, pursuant to the Rules of Procedure of the Idaho Public Utilities Commission ("Commission ). Because of changes in illtermountain s gas related costs, as described more fully in this Application, illtermountain s earnings will not be increased as a result of the proposed changes in prices and revenues. illtermountain s current rate schedules showing proposed changes are attached hereto as Exhibit No.1 and are incorporated herein by reference. illtermountain s proposed rate schedules are attached hereto as Exhibit No.2 and are incorporated herein by reference. Communications in reference to this Application should be addressed to: Michael E. Huntington Vice President - Marketing & External Affairs illtermountain Gas Company, Post Office Box 7608, Boise, ID 83707 and Morgan W. Richards, Jr. Moffatt, Thomas, Barrett, Rock & Fields, Chartered Post Office Box 829, Boise, ID 83701 ill support of this Application, illtermountain does allege and state as follows: APPLICATION - 2 mtermountain is a gas utility, subject to the jurisdiction of the Idaho Public Utilities Commission, engaged in the sale of and distribution of natural gas within the State of Idaho under authority of Commission Certificate No. 219 issued December 2, 1955, as amended and supplemented by Order No. 6564, dated October 3 , 1962. mtermountain provides natural gas service to the following Idaho communities and counties and adjoining areas: Ada County - Boise, Eagle, Garden City, Kuna, Meridian, and Star; Bannock County - Chubbuck, fukom, Lava Hot Springs, McCammon, and Pocatello; Bear Lake County - Georgetown, and Montpelier; Bingham County - Aberdeen, Basalt, Blackfoot, Firth, Fort Hall, Moreland/Riverside, and Shelly; Blaine County - Bellevue, Hailey, Ketchum, and Sun Valley; Bonneville County - Ammon, Idaho Falls, Iona, and Ucon; Canyon County - Caldwell, Greenleaf, Middleton, Nampa, Parma, and Wilder; Caribou County - Bancroft, Conda, Grace, and Soda Springs; Cassia County - Burley, Declo, Malta, and Raft River; Elmore County - Glenns Ferry, Hammett, and Mountain Home; Fremont County - Parker, and St. Anthony; Gem County - Emmett; Gooding County - Gooding, and Wendell; Jefferson County - Lewisville, Menan, Rigby, and Ririe; Jerome County - Jerome; Lincoln County - Shoshone; Madison County - Rexburg, and Sugar City; Minidoka County - Heyburn, Paul, and Rupert; Owyhee County - Bruneau, Homedale; Payette County - Fruitland, New Plymouth, and Payette; Power County - American Falls; Twin Falls County - Buhl, Filer, Hansen, Kimberly, Murtaugh, and Twin Falls; Washington County - Weiser. mtermountain s properties in these locations consist of transmission pipelines, a compressor station, a liquefied natural gas storage facility, distribution mains, services, meters and regulators and general plant and equipment. II. mtermountain seeks with this Application to pass through to each of its customer classes a change in gas related costs resulting from: 1) changes in mtermountain s firm transportation and storage costs resulting from Intermountain s management of its storage and firm capacity rights on pipeline systems including the Williams Northwest Pipeline ("Williams" or "Northwest"), 2) an APPLICATION - 3 increase in mtermountain s Weighted Average Cost of Gas ("W ACOG"), 3) an updated customer allocation of gas related costs pursuant to the Company s Purchased Gas Cost Adjustment provision, and 4) the inclusion of temporary surcharges and credits for one year relating to gas and interstate transportation costs from mtermountain s deferred gas cost account. Exhibit No. contains pertinent excerpts from pipeline and related facilities tariffs. mtermountain also seeks with this Application to eliminate the temporary surcharges and credits included in its current prices during the past 12 months, pursuant to Case No. INT-03-Ol. The aforementioned changes would result in an overall price increase to Intermountain s RS-, RS-, GS-, LV-, T-1 and T- customers. These price changes are applicable to service rendered under rate schedules affected by and subject to mtermountain s Purchased Gas Cost Adjustment ("PGA"), initially approved by this Commission in Order No. 26109, Case No. INT-95-, and additionally approved through subsequent proceedings. Exhibit No.4 summarizes the price changes in: 1) mtermountain s base rate gas costs and its rate class allocation, and 2) adjusting temporary surcharges or credits flowing through to mtermountain s direct sales and transportation customers. Exhibit No.'s 3 and 4 are attached hereto and incorporated herein by reference. III. The current prices of mtermountain are those approved by this Commission in Order No. 29277, Case No. INT-03-01. IV. Intermountain s proposed prices incorporate all price changes impacting Intermountain mterstate Capacity including, but not limited to, prices charged by Northwest which have transpired since Intermountain s last PGA filing in Case No. INT-03-01. Exhibit No., Lines through 19 details the proposed changes in Intermountain prices resulting from Intermountain s natural gas interstate and upstream transportation and storage costs. Intermountain s review of the adequacy of its interstate transportation and storage services is performed on an annual basis under design weather and certain load growth assumptions. A summary of the methodology incorporated within this annual review was included in the Company s Integrated Resource Plan, which is currently on file with this APPLICATION - 4 Commission. Intermountain s interstate pipeline capacity was forecast to be in a deficit position thereby jeopardizing the Company s ability to deliver an uninterrupted supply of natural gas to its firm sales customers during the coming winter heating seasons. mtermountain continues to take the necessary steps to manage its interstate and upstream pipeline capacity and storage in order to insure an uninterrupted flow of natural gas to its firm sales customers and has procured an incremental amount of economically priced interstate and upstream transportation to ensure such. Exhibit No.Rows 3-, include the costs for this incremental interstate and upstream transportation. The W ACOG reflected in mtermountain s proposed prices is $0.55492 per therm, as shown on Exhibit No., Lines 25 through 28, Column (f). This compares to $0.47500 per therm currently included in the Company s tariffs. Natural gas is a commodity traded in the open market and, as with all other commodities, is subject to the same laws of supply and demand. The supply of natural gas seeks equilibrium with demand without ever actually achieving it. Natural gas prices become volatile, within a range of volatility, as available supplies seek symmetry with demand or visa versa. As was again played out in the marketplace over the last several months, high natural gas prices indicative of weakening supplies have spurred on additional exploration and production and, as natural gas supplies become more plentiful, market prices should decline. Exhibit No. demonstrates the relationship between natural gas prices and drilling activity in North America. Exhibit No.5 is attached hereto and incorporated herein by reference. mtermountain believes that current futures prices, subject to the laws of supply and demand are poised for further softening. However, liquidity in the market is sustained by contrary opinions and natural gas prices could indeed realize the levels included in this Application, which are the forward prices currently available through the use of financial derivatives as of April 30, 2004. Although current commodity futures prices dictate the use of this $0.55492 per therm W ACOG mtermountain continues to remain vigilant in monitoring natural gas prices and is committed to come before this Commission prior to this winters heating season with an Application to further amend these proposed prices, should these forward prices materially deviate from the $0.55492 per thermo Timely natural gas price signals and the accounting for any cost differences brought about by these volatile markets, facilitated through the use of the PGA mechanism, enhances our customers APPLICATION - 5 ability to make timely and informed energy use decisions and ensures they only pay the actual cost of such supplies. It is important to continue to alert our customers in a timely manner to these impending increases before their higher natural gas usage is before them. VI. Pursuant to Case No. INT-03-, mtermountain has included temporary surcharges and credits in its July 1 , 2003 prices for the principal reason of collecting or passing back to its customers deferred gas cost charges and benefits, as outlined in Case No. INT-03-01. Line 33 of Exhibit No.4 reflects the elimination of these temporary surcharges and credits. VII. mtermountain s PGA tariff includes provisions whereby Intermountain s proposed prices will be adjusted for updated customer class sales volumes and purchased gas cost allocations pursuant to the Company s approved cost of service methodology. mtermountain s proposed prices include a fixed cost collection adjustment pursuant to these PGA provisions, as outlined on Exhibit No., Line 24. The price impact of this adjustment is included on Exhibit No., Line No. 34. Exhibit No.6 is attached hereto and incorporated herein by reference. VIII. mtermountain is party to certain agreements whereby mtermountain has released segmented portions of its firm capacity rights when not needed to meet its customer needs. mtermountain proposes to pass back to its customers the benefits generated from the capacity release agreements totaling $2.4 million. Exhibit No., Line 1 , reflects the inclusion of the $2.4 million credit. mtermountain proposes to pass back this amount via the per therm credit as detailed on Exhibit No.8. Exhibit No.'s 7 and 8 are attached hereto and incorporated herein by reference. IX. mtermountain proposes to allocate deferred gas costs from its Account No. 186 balance to its customers through temporary price adjustments to be effective during the 12-month period ending June 30, 2005 , as follows: 1) mtermountain has been deferring in its Account No. 186 fixed gas costs. The debit amount shown on Exhibit No., Line 9, Co!. (b) of$2.7 million is predominantly attributable to the collection of interstate pipeline capacity costs and the true-up of expense issues previously ruled on by this Commission. mtermountain proposes to collect or pass back these balances via the APPLICATION - 6 per therm surcharges and credits, as detailed on Exhibit No.9 and included on Exhibit No., Line 2. Exhibit No.9 is attached hereto and incorporated herein by reference. 2) mtermountain has been deferring in its Account No. 186 deferred gas cost credits of $1.1 million, as shown on Exhibit No. 10, Line 2, Co!. (b), attributable to mtermountain management of variable gas costs since July 1 , 2003. mtermountain proposes to pass back this credit balance via a per therm credit, as shown on Exhibit No.1 0, Line 4, Co!. (b) and included on Exhibit No., Line 3. Exhibit No. 10 is attached hereto and incorporated herein by reference. mtermountain has allocated the proposed price changes to each of its customer classes based upon mtermountain s PGA provision. A straight cents per therm price decrease was not utilized for the T -1 tariff. No fixed costs are currently recovered in the tail block of mtermountain I tariff. Absent Williams' firm transportation TF-1 Commodity Charge, the proposed decrease in the T -1 tariff is fixed cost related, and therefore, a cents per therm decrease was made only to the first two blocks of the tariff for these fixed costs. XI. The proposed decrease in the T-2 tariffis fixed cost related, and therefore, a cents per therm decrease was made only to the T-2 demand charge for these fixed costs. XII. Exhibit No. 11 is an analysis of the overall price changes by class of customer. Exhibit No. 11 is attached hereto and incorporated herein by reference. XIII. The proposed overall price change herein requested among the classes of service of mtermountain will not affect mtermountain s earnings, and is just, fair, and equitable. XIV. This Application is filed pursuant to the applicable statutes and the Rules and Regulations of the Commission.This Application has been brought to the attention of mtermountain customers through a Customer Notice and by a Press Release sent to daily and weekly newspapers and major radio and television stations in mtermountain s service area. The Press Release and Customer Notice are attached hereto and incorporated herein by reference. Copies of this Application, its Exhibits, and Workpapers have been provided to those parties regularly intervening APPLICATION - 7 in mtermountain s rate proceedings. xv. mtermountain requests that this matter be handled under modified procedure pursuant to Rules 201-204 of the Commission s Rules of Procedure. mtermountain stands ready for immediate consideration of this matter. APPLICATION - 8 WHEREFORE, futermountain respectfully petitions the Idaho Public Utilities Commission as follows: a. That the proposed rate schedules herewith submitted as Exhibit No.2 be approved without suspension and made effective as of July 1 , 2004 in the manner shown on Exhibit No. That this Application be heard and acted upon without hearing under modified procedure, and c. For such other relief as this Commission may determine proper herein. DATED at Boise, Idaho, this 5th day of May, 2004. INTERMOUNTAIN GAS COMPANY MOFFATT, THOMAS, BARRETT, ROCK & FIELDS, CHARTERED )' Michael E. Huntington Vice President Marketing & External Affairs By ~-- l)'Mor~hards, Jr. Of the Firm Attorneys for Intermountain Gas Company APPLICATION - 9 CERTIFICATE OF MAILING I HEREBY CERTIFY that on this 5th day of May, 2004, I served a copy of the foregoing Case No. INT-04- upon: Lisa Nordstrom Deputy Attorney General Idaho Public Utilities Commission 472 W. Washington St., PO Box 83720 Boise, ID 83720-0074 Edward A. Finklea Paula E. Pyron Energy Advocates LLP 526 NW 18th Avenue Portland, OR 97209 R. Scott Pasley 1. R. Simplot Company PO Box 27 Boise, ID 83707 David Hawk J. R. Simplot Company PO Box 27 Boise, ID 83707 Conley E. Ward, Jr. Givens, Pursley, Webb & Huntley 277 N. 6th St., Suite 200 PO Box 2720 Boise, ID 83701 Paula Pyron Northwest fudustrial Gas Users 4113 Wolf Berry Court Lake Oswego, OR 97035 Wendell M. Phillips 615 South Phillippi Street Boise, ID 83705 by depositing true copies thereof in the United States Mail, postage prepaid, in envelopes addressed to said persons at the above addresses. ;;;f.:f7 DIrector Market Services and Regulatory Affairs APPLICATION - 10 EXHIBIT NO. CASE NO. INT-O4- INTERMOUNTAIN GAS COMPANY CURRENT TARIFFS Showing Proposed Price Changes (8 pages) Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 1 of 8 COMPARISON OF PROPOSED JULY 1 2004 PRICES TO JULY 1, 2003 PRICES July 1,2003 Proposed Line Prices per Proposed July 1, 2004 No.Rate Class INT-03-Adjustment Prices (a)(b)(c)(d) RS- April - November 91883 08046 99929 December - March 80627 08046 88673 RS- April - November 78022 08083 86105 December - March 74659 08083 82742 GS- April - November Block 1 81164 08128 89292 Block 2 78991 08128 87119 Block 3 76889 08128 85017 December - March Block 1 76079 08128 84207 Block 2 73959 08128 82087 Block 3 71913 08128 80041 CNG Fuel 71913 08128 80041 LV-l (1) Block 1 60189 07422 (2)67611 Block 2 56340 07422 (3)63762 Block 3 0.49862 05882 (4)0.55744 Block 1 11398 01540 (2)12938 Block 2 07549 01540 (3)09089 Block 3 01071 00000 (4)01071 Demand Block 1 1.53018 16628 69646 Demand Block 2 72860 16628 89488 Commodity Charge 00656 00000 00656 Over-Run Service 04915 00000 04915 (I) The LV -1 Adjustment is calculated by taking Line 22 - 24, Col ( c), plus the change in the W ACOG, plus removal of the temporary variable surcharge from INT -03- of $0.01701 , plus the temporary variable debit on Exhibit 10, Line 4, Col (b) (2) See Workpaper No., Line 13, Col (e) (3) See Workpaper No., Line 20, Col (e) (4) See Workpaper No., Line 21, Col (e) I.P.C. Gas Tariff Second Revised Volume No. (Supersedes First Revised Volume No.Thirty- FoortR Fifth Revised Sheet No. 01 (Page 1 of 1) Name of Utility Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 2 of 8 Intermountain Gas Company leN Ie PI:IBll9 ~ILFI"IES OOMMISSI9- Al'PR9'ItB ErrEs:R'1E ..'U113G'83 cM..'93-e 7l:n='l ' Rate Schedule RS- RESIDENTIAL SERVICE AVAILABILITY: , Available to individually metered consumers not otherwise specifically provided for, usingnatural gas for residential purposes. RATE: Monthly minimum charge is the customer charge. For billinq periods endinq April throuqh November Customer Charge - $2.50 per bill $0.99929 Commodity Charge - $91883 per therm For billinq periods endinq December throuqh March Customer Charge - $6.50 per bill $0.88673 Commodity Charge - $80627 per therm Includes: Temporary purchased gas cost adjustment of $01590 $(0.00099) Weighted average cost of gas of $0.47500 $0.55492 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in theCompanys Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of theCompanys Tariff, of which this rate schedule is a part. Issued by: Intermountain Gas Company By: Michael E. Huntington Title: Effective: July 1 , 2OOJ 2004 Vice President - Marketing and External Affairs I.P.C. Gas Tariff Second Revised Volume No. (Supersedes First Revised Volume No.Thirty-FooftR Fifth Revised Sheet No. 02 Name of Utility Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 3 of 8 (Page 1 of 1) Intermountain Gas Company IElAI16P\;1BLICUfllffIEseOMMI3SIONAPPRO"E!) EFfEeTt'I'L J8N3G'63 ..'11.1 '93' o.:.tI. B'\:I.,i Rate Schedule RS- MULTIPLE USE RESIDENTIAL SERVICE AVAILABILITY: Available to individually metered consumers using gas for several residential purposes including both water heating and space heating. RATE: Monthly minimum charge is the customer charge. For billina periods endina April throuah November Customer Charge - $2.50 per bill $0.86105 Commodity Charge - $78022 per therm For billina periods endina December throuah March Customer Charge - $6.50 per bill $0.82742 Commodity Charge $74659 per therm Includes: Temporary purchased gas cost adjustment of $01217 $(0.00417) Weighted average cost of gas of $0.47500 $0.55492 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company s Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of the Company s Tariff, of which this rate schedule is a part. Issued by: Intermountain Gas Company By: Michael E. Huntington Title: Vice President - Marketing and External Affairs Effective: July 1 2004 I.P.C. Gas Tariff Second Revised Volume No. (Supersedes First Revised Volume No. Thirty-SOOA Seventh Revised Sheet No. 03 (Page 1 of 2) Name of Utility Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 4 of 8 Intermountain Gas Company . 11:1."19 PI:IBLIe UflLR"lt:3 ceMMISSIOH APPRO"ED 'E:rff:cnve JJN30'93 'R 1 '8J o. 1:'- .::;1'1;0- Rate Schedule GS- GENERAL SERVICE AVAILABILITY: Available to individually metered customers whose requirements for natural gas do not exceed000 therms per day, at any point on Company s distribution system. Requirements in excess of000 therms per day may be served under this rate schedule upon execution of a one-year writtenservice contract. RATE: Monthly minimum charge is the customer charge. For billina periods endina April throuah November Customer Charge - $2.00 per bill Commodity Charge - First 200 therms per bill $0.81164*$0.89292* Next 1,800 therms per bill $0.78991*$0.87119* Over 2 000 therms per bill $0.76889*$0.85017* For billina periods endina December throuah March Customer Charge - $9.50 per bill Commodity Charge - First 200 therms per bill $Q.76079*$0.84207* Next 1,800 therms per bill $0.73959*$0.82087* Over 2,000 therms per bill $0.71913*$0.80041* Includes: Temporary purchased gas cost adjustment of $0.01700 $(0.00179) Weighted average cost of gas of $0.47500 $0.55492 Issued by: Intermountain Gas Company By: Michael E. Huntington Title: Effective: July 1 2004 Vice President - Marketing and External Affairs I.P.C. Gas Tariff Second Revised Volume No. (Supersedes First Revised Volume No. Thirty-SOOA Seventh Revised Sheet No. 03 (Page 2 of 2) Name of Utility Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 5 of 8 Intermountain Gas Company 19.'\119 P\;IBLIO IffILR'II:S CO MMlsSlOK-'AI'PRO\;'ED 'm:SiIVt JJN30't1S ,.JIll 'Q;3 R-. eo~' ;.q?/I ~, 6S3fG\ft\" Rate Schedule GS- GENERAL SERVICE (Continued) For separately metered deliveries of gas utilized solely as Compressed Natural Gas Fuel invehicular internal combustion engines. Customer Charge - $9.50 per bill $0.80041 Commodity Charge - $0.71913 per therm Includes: Temporary purchased gas cost adjustment of $0.01700 $(0.00179) Weighted average cost of gas of $0.47500 $0.55492 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in theCompanys Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: 1. Any GS-1 customer who leaves the GS-1 service will pay to Intermountain Gas Company, upon exiting the GS-1 service, all gas and transportation related costs incurred to serve the customer during the GS-1 service period not borne by the customer during the time the customer was using GS-1 service. Any GS-1 customer who leaves the GS-1 service willhave refunded to them, upon exiting the GS-1 service, any excess gas commodity ortransportation payments made by the customer during the time they were a GS- customer. 2. All natural gas service hereunder is subject to the General Service Provisions of the Company s Tariff, of which this rate schedule is a part. Issued by: Intermountain Gas Company By: Michael E. Huntington Title: Effective: July 1 , 2OOd 2004 Vice President - Marketing and External Affairs I.P.C. Gas Tariff Second Revised Volume No. (Supersedes First Revised Volume No.Fort -FooftR Fifth Revised Sheet No. 04 (Page 1 of Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 6 of 8 Name of Utili Intermountain Gas Com pan 15AH6 pl:!BLle l:1fILfTICS OOMMIG619t1APPROVCS CrFt:~ .M( 3 9 '03 J..'q '01- \!e.'-.llI, .7190-,-; . ' SEe!1EWf( Rate Schedule LV- LARGE VOLUME FIRM SALES SERVICE AVAILABILITY: Available at any mutually agreeable delivery point on the Company s distribution system to any existing customer receiving service under the Company s rate schedules LV-1, T-1, or T-2, or any new customer whose usage does not exceed 500 000 therms annually, upon execution of a one-year minimum written service contract for firm sales service in excess of 200,000 therms per year. MONTHLY RATE: Commodity Charge: First 250,000 therms per bill $0.60189*$0.67611*Next 500,000 therms per bill $0.56340*$0.63762* Amount Over 750,000 therms per bill $0.49862**$0.55744** The above prices include weighted average cost of gas of $0.47500 $0.55492 Includes temporary purchased gas cost adjustment of $0.01475 $(0.00372) ** Includes temporary purchased gas cost adjustment of $0.01701 $(0.00409) PURCHASED GAS COST ADJUSTMENT (PGA): This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: 1. All natural gas service hereunder is subject to the General Service Provisions of the Company s Tariff, of which this Rate Schedule is a part.2. Any LV-1 customer who exits the LV-1 service at any time (including, but not limited to, the expiration of the contract term) will pay to Intermountain Gas Company, upon exiting the LV-1 service, all gas and/or interstate transportation related costs to serve the customer during the LV-1 contractperiod not borne by the customer during the LV-1 contract period. Any LV-1 customer will have refunded to them, upon exiting the LV-1 service, any excess gas and/or interstate transportation related payments made by the customer during the LV-1 contract period.3. In the event that total deliveries to any customer within the last three contract periods met or exceeded the 200,000 therm threshold, but the customer during the current contract period used less than the contract minimum of 200,000 therms, an additional amount shall be billed. The additional amount shall be calculated by billing the deficit usage below 200,000 therms at the T -1 Block 1 rate. Thecustomers future eligibility for the LV-1 Rate Schedule will be renegotiated with the Company. Issued by: Intermountain Gas Company By: Michael E. Huntington Title: Vice President - Marketing and External AffairsEffective: July 1, 2OOd 2004 I.P.C. Gas Tariff Second Revised Volume No. (Supersedes First Revised Volume No. Thirtieth Thirty-First Revised Sheet No. 05 Name of Utility (Page 1 of Intermountain Gas Company Exhibit No. Case No. INT-04- Intermountain Gas Company Page 7 of 8 IDId 16 F'l;IBLIC lfI'lLITICS COMMISSIO APPRG'..ED crrccmt: JtJN:;O '03 .JJL 1 'BJ Ro.,.o" .?'1;;'/, ~~ ealfIE'IMV Rate Schedule T- FIRM TRANSPORTATION SERVICE AVAilABILITY: Available at any mutually agreeable delivery point on the Company s distribution system to any existing customer receiving service under the Company s rate schedules lV-, T-, or T-, upon execution of a one year minimum written service contract for firm transportation service in excess of 200,000 therms per year. MONTHLY RATE: Commodity Charge: Block One: Block Two: Block Three: First 250 000 therms transported $0.11398*$0.12938* Next 500 000 therms transported $0.07549*$0.09089* Amount over 750 000 therms transported ~ $0.01071 Includes temporary purchased gas cost adjustment of $(0.00226)$0.00037 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: 1. All natural gas service hereunder is subject to the General Service Provisions of the Company s Tariff, of which this Rate Schedule is a part. 2. The customer shall negotiate a Maximum Daily Firm Quantity (MDFQ) amount, which will be stated in and will be in effect throughout the term of the service contract. The MDFQ shall not exceed the customer historical maximum daily usage, as agreed to by the Company. In the event the Customer requires daily usage in excess of the MDFQ, and subject to the availability of firm interstate transportation to service Intermountain s system, all such usage may be transported and billed under either secondary rate schedule T-3 or T -4. The secondary rate schedule to be used shall be predetermined by negotiation between the Customer and Company, and shall be included in the service contract. All volumes transported under the secondary rate schedule are subject to the provisions of the applicable rate schedule T -3 or T -4. Issued by: Intermountain Gas Company By: Michael E. Huntington Title: Vice President - Marketing and External Affairs Effective: July 1 2004 I.P.C. Gas Tariff Second Revised Volume No. (Supersedes First Revised Volume No. Eleventh Twelfth Revised Sheet No. Exhibit No. Case No. INT-04- Intermountain Gas Company Page 8 of 8 10 (Page 1 of 2) Name of Utility Intermountain Gas Company 19.110 rustlS bJ:rllR'IE& OOMMISSIONAl'PRaVtB Emc:R'JE Jllln e '63 JIlL 1 '83 . ~.- ~. oa. .Jqa , Rate Schedule T- FIRM TRANSPORTATION SERVICE WITH MAXIMUM DAILY DEMANDS AVAilABILITY: Available at any mutually agreeable delivery point on the Company s distribution system to anyexisting T -2 customer whose daily contract demand for nonammonia therms on any given day meets orexceeds a predetermined level agreed to by the customer and the Company upon execution of a one-yearminimum written service contract for firm transportation service in excess of 200 000 therms per year. MONTHLY RATE: Firm Service Demand Charge: Firm Daily Demand - First 15 000 therms Amount over 15,000 therms Commodity Charge: For Firm Therms Transported Over-Run Service Rate Per Therm $1.53018*$1.69646* $0.72860*$0.89488* $0.00656 Commodity Charge: For Therms Transported In Excess Of MDFQ:$0.04915 Includes temporary purchased gas cost adjustment of $(0.09117)$(0.04162) PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the CompanyPurchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of the Company Tariff, of which this Rate Schedule is a part. The customer shall nominate a Maximum Daily Firm Quantity (MDFQ), which will be stated in and willbe in effect throughout the term of the service contract. The monthly Demand Charge will be equal to the MDFQ times the Firm Daily Demand rate. Firmdemand relief will be afforded to those T -2 customers paying both demand and commodity chargesfor gas when , in the Company s judgment, such relief is warranted. The actual therm usage for the month or the MDFQ times the number of days in the billing month,whichever is less, will be billed at the applicable commodity charge for firm the~ms. Issued by: Intermountain Gas Company By: Michael E. Huntington Effective: July 1 2004 Title: Vice President - Marketing and External Affairs EXHIBIT NO. CASE NO. INT-O4- INTERMOUNT AIN GAS COMPANY PROPOSED TARIFFS (7 pages) I.P.C. Gas Tariff Second Revised Volume No. (Supersedes First Revised Volume No. Thirty-Fifth Revised Sheet No. 01 (Page 1 of 1) Name of Utility Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 1 of 7 Intermountain Gas Company Rate Schedule RS- RESIDENTIAL SERVICE AVAilABILITY: Available to individually metered consumers not otherwise specifically provided for, using natural gas for residential purposes. RATE: Monthly minimum charge is the customer charge. For billinQ periods endinQ April throuQh November Customer Charge - $2.50 per bill Commodity Charge - $0.99929 per therm For billinQ periods endinQ December throuQh March Customer Charge - $6.50 per bill Commodity Charge - $0.88673 per therm Includes: Temporary purchased gas cost adjustment of $(0.00099) Weighted average cost of gas of $0.55492 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company s Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of the Company s Tariff, of which this rate schedule is a part. Issued by: Intermountain Gas Company By: Michael E. Huntington Title: Effective: July 1 , 2004 Vice President - Marketing and External Affairs I.P.C. Gas Tariff Second Revised Volume No. (Supersedes First Revised Volume No. Thirty-Fifth Revised Sheet No. 02 Name of Utility Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 2 of 7 (Page 1 of 1) Intermountain Gas Company Rate Schedule RS- MULTIPLE USE RESIDENTIAL SERVICE AVAilABILITY: Available to individually metered consumers using gas for several residential purposes including both water heating and space heating. RATE: Monthly minimum charge is the customer charge. For billinQ periods endinQ April throuQh November Customer Charge - $2.50 per bill Commodity Charge - $0.86105 per therm For billinQ periods endinQ December throuQh March Customer Charge - $6.50 per bill Commodity Charge $0.82742 per therm Includes: Temporary purchased gas cost adjustment of $(0.00417) Weighted average cost of gas of $0.55492 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company s Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of the Company s Tariff, of which this rate schedule is a part. Issued by: Intermountain Gas Company By: Michael E. Huntington Title: Effective: July 1 , 2004 Vice President - Marketing and External Affairs I.P.C. Gas Tariff Second Revised Volume No. (Supersedes First Revised Volume No.Thirty- Seventh Revised Sheet No. 03 Name of Utility (Page 1 of 2) Intermountain Gas Company Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 3 of 7 Rate Schedule GS- GENERAL SERVICE AVAilABILITY: Available to individually metered customers whose requirements for natural gas do not exceed 000 therms per day, at any point on Company s distribution system. Requirements in excess of 000 therms per day may be served under this rate schedule upon execution of a one-year written service contract. RATE: Monthly minimum charge is the customer charge. For billina periods endina April throuah November Customer Charge - $2.00 per bill Commodity Charge - First 200 therms per bill em $0.89292* Next 1 800 therms per bill em $0.87119* Over 2 000 therms per bill em $0.85017* For billina periods endina December throuah March Customer Charge - $9.50 per bill Commodity Charge - First 200 therms per bill em $0.84207* Next 1,800 therms per bill em $0.82087* Over 2 000 therms per bill em $0.80041* Includes: Temporary purchased gas cost adjustment of $(0.00179) Weighted average cost of gas of $0.55492 Issued by: Intermountain Gas Company By: Michael E. Huntington Title: Effective: July 1 , 2004 Vice President - Marketing and External Affairs I.P.C. Gas Tariff Second Revised Volume No. (Supersedes First Revised Volume No.Thirty- Seventh Revised Sheet No. 03 (Page 2 of 2) Name of Utility Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 4 of 7 Intermountain Gas Company Rate Schedule GS- GENERAL SERVICE (Continued) For separately metered deliveries of gas utilized solely as Compressed Natural Gas Fuel in vehicular internal combustion engines. Customer Charge - $9.50 per bill Commodity Charge - $0.80041 per therm Includes: Temporary purchased gas cost adjustment of $(0.00179) Weighted average cost of gas of $0.55492 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company s Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: 1. Any GS-1 customer who leaves the GS-1 service will pay to Intermountain Gas Company, upon exiting the GS-1 service, all gas and transportation related costs incurred to serve the customer during the GS-1 service period not borne by the customer during the time the customer was using GS-1 service. Any GS-1 customer who leaves the GS-1 service will have refunded to them, upon exiting the GS-1 service, any excess gas commodity or transportation payments made by the customer during the time they were a GS- customer. 2. All natural gas service hereunder is subject to the General Service Provisions of the Company s Tariff, of which this rate schedule is a part. Issued by: Intermountain Gas Company By: Michael E. Huntington Title: Effective: July 1 , 2004 Vice President - Marketing and External Affairs I.P.C. Gas Tariff Second Revised Volume No. (Supersedes First Revised Volume No. Forty-Fifth Revised Sheet No. 04 (Page 1 of 2) Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 5 of 7 Name of Utility Intermountain Gas Company Rate Schedule LV- LARGE VOLUME FIRM SALES SERVICE AVAILABILITY: Available at any mutually agreeable delivery point on the Company s distribution system to any existing customer receiving service under the Company s rate schedules LV-, T-1, or T-2, or any new customer whose usage does not exceed 500,000 therms annually, upon execution of a one-year minimum written service contract for firm sales service in excess of 200,000 therms per year. MONTHLY RATE: Commodity Charge: First 250,000 therms per bill ~ $0.67611* Next 500 000 therms per bill ~ $0.63762* Amount Over 750 000 therms per bill ~ $0.55744** The above prices include weighted average cost of gas of $0.55492 Includes temporary purchased gas cost adjustment of $(0.00372) ** Includes temporary purchased gas cost adjustment of $(0.00409) PURCHASED GAS COST ADJUSTMENT (PGA): This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: 1. All natural gas service hereunder is subject to the General Service Provisions of the Company s Tariff, of which this Rate Schedule is a part.2. Any LV-1 customer who exits the LV-1 service at any time (including, but not limited to, the expiration of the contract term) will pay to Intermountain Gas Company, upon exiting the LV-1 service all gas and/or interstate transportation related costs to serve the customer during the LV-1 contract period not borne by the customer during the LV-1 contract period. Any LV-1 customer will have refunded to them, upon exiting the LV-1 service, any excess gas and/or interstate transportation related payments made by the customer during the LV-1 contract period.3. In the event that total deliveries to any customer within the last three contract periods met or exceeded the 200,000 therm threshold, but the customer during the current contract period used less than the contract minimum of 200 000 therms, an additional amount shall be billed. The additional amount shall be calculated by billing the deficit usage below 200 000 therms at the T -1 Block 1 rate. The customer s future eligibility for the LV-1 Rate Schedule will be renegotiated with the Company. Issued by: Intermountain Gas Company By: Michael E. Huntington Title: Effective: July 1 , 2004 Vice President - Marketing and External Affairs I.P.C. Gas Tariff Second Revised Volume No. (Supersedes First Revised Volume No. Thirty-First Revised Sheet No. 05 (Page 1 of 2) Name of Utili Exhibit No. Case No. INT-04- Intermountain Gas Company Page 6 of Intermountain Gas Com pan Rate Schedule T- FIRM TRANSPORTATION SERVICE AVAilABILITY: Available at any mutually agreeable delivery point on the Company s distribution system to any existing customer receiving service under the Company s rate schedules lV-, T-, or T-2, upon execution of a one year minimum written service contract for firm transportation service in excess of 200,000 therms per year. MONTHLY RATE: Commodity Charge: Block One: Block Two: Block Three: First 250,000 therms transported CID $0.12938* Next 500 000 therms transported CID $0.09089* Amount over 750 000 therms transported CID $0.01071 Includes temporary purchased gas cost adjustment of $0.00037 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: 1. All natural gas service hereunder is subject to the General Service Provisions of the Company s Tariff which this Rate Schedule is a part. 2. The customer shall negotiate a Maximum Daily Firm Quantity (MDFQ) amount, which will be stated in and will be in effect throughout the term of the service contract. The MDFQ shall not exceed the customer historical maximum daily usage, as agreed to by the Company. In the event the Customer requires daily usage in excess of the MDFQ, and subject to the availability firm interstate transportation to service Intermountain s system, all such usage may be transported and billed under either secondary rate schedule T -3 or T -4. The secondary rate schedule to be used shall be predetermined by negotiation between the Customer and Company, and shall be included in the service contract. All volumes transported under the secondary rate schedule are subject to the provisions of the applicable rate schedule T -3 or T -4. Issued by: Intermountain Gas Company By: Michael E. Huntington Title: Vice President - Marketing and External Affairs Effective: July 1 , 2004 I.P.C. Gas Tariff Second Revised Volume No. (Supersedes First Revised Volume No.Twelfth Revised Sheet No. Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 7 of 7 10 (Page 1 of 2) Name of Utility Intermountain Gas Company Rate Schedule T- FIRM TRANSPORTATION SERVICE WITH MAXIMUM DAILY DEMANDS AVAilABILITY: Available at any mutually agreeable delivery point on the Company s distribution system to any existing T -2 customer whose daily contract demand for nonammonia therms on any given day meets or exceeds a predetermined level agreed to by the customer and the Company upon execution of a one-year minimum written service contract for firm transportation service in excess of 200 000 therms per year. MONTHLY RATE: Firm Service Demand Charge: Firm Daily Demand - First 15,000 therms Amount over 15 000 therms Commodity Charge: For Firm Therms Transported Over-Run Service Rate Per Therm $1.69646* $0.89488* $0.00656 Commodity Charge: For Therms Transported In Excess Of MDFQ:$0.04915 Includes temporary purchased gas cost adjustment of $(0.04162) PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company . Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of the Company Tariff, of which this Rate Schedule is a part. The customershall nominate a Maximum Daily Firm Quantity (MDFQ), which will be stated in and will be in effect throughout the term of the service contract. The monthly Demand Charge will be equal to the MDFQ times the Firm Daily Demand rate. Firm demand relief will be afforded to those T -2 customers paying both demand and commodity charges for gas when , in the Company s judgment, such relief is warranted. The actual therm usage for the month or the MDFQ times the number of days in the billing month whichever is less, will be billed at the applicable commodity charge for firm therms. Issued by: Intermountain Gas Company I By: Michael E. Huntington Effective: July 1 , 2004 Title: Vice President - Marketing and External Affairs EXHIBIT NO. CASE NO. INT-O4- INTERMOUNTAIN GAS COMPANY PERTINENT EXCERPTS FROM INTERSTATE PIPELINES AND RELATED FACILITIES (26 pages) ,u --..n___ .._.. Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 1 of 26 IIII,'III I M",,1. IiamS NORTNWEST PIPELINE O. So" 58900 Salt ~ke aty, UT 84158-0900 pnone: (801) 584-7117FAX: (801) 584-7764 December 18 2003 TO: All HOLDERS OF NORTHWEST PIPELINE CORPORATION' FERC GAS TARIFF, THIRD REVISED VOLUME NO. , Please insert the enclosed tariff sheets listed below into your copy of Northwesfs FERC Gas Tariff.1 Also, enclosed is a list of Northwest's currently effective tariff sheets as of January 1 , 2004. Docket No. RP02-116-O01 On January 23, 2002, Northwest filed the following tariff sheets to address the issues raised by the Commission in its order dated January 2, 2002 pertaining to Northwesfs Rate Schedule DEX-1. On November 18, 2003, the Commission issued an order accepting the tariff sheets, subject to conditions, effective January 1 , 2002. Substitute Eighth Revised Sheet No. Substitute Fifteenth Revised Sheet No. 14" Substitute Second Revised Sheet No. 115"'- Substitute Second Revised Sheet No. 116** Substitute Third Revised Sheet No. 11 Substitute Second Revised Sheet No. 118"'- Substitute Eighth Revised Sheet No. 231~ Seventh Revised Sheet No. 231- Third Revised Sheet No. 231- Substitute Original Sheet No. 359- Substitute Third Revised Sheet No. 360- - Indicates tariff sheet was distributed in the All-Holders letter dated January 23, 2002 with "Pending Commission Acceptance" on the bottom of the sheet. These sheets can now be replaced with the enclosed sheets which remove the "Pending Commission Acceptance" notation. Docket No. CP02-004 On June 27, 2003, Northwest filed the following tariff sheets containing a provision to make a one time, pro rata credit to each evergreen Expansion Project shipper for all base tariff reservation charge revenues received by Northwest for marketing the expanded compression-only capacity in the Sumas-Chehalis corridor during July through September 2003. On September 3, 2003, the Commission issued an order accepting the tariff sheets, effective July 1 , 2003. Original Sheet No. 26 Sheet Nos. 27 through 29 1 An asterisk (~) following the tariff sheet indicates the tariff sheet has been superseded and is not included with the enclosed tariff sheets.2 As explained below, proposed Substitute Twenty-First Revised Sheet No. 14 is included in this list Exhibit No. Case No. INT -O4- Intermountain Gas Company Page 2 of 26 All-Holders December 18, 2003 Page 2 of 4 Docket No. AP03-506-00B On August 1, 2003 in compliance with an order issued July 29, 2003, Northwest filed the following tariff sheets to remove previously proposed restrictions on reductions of maximum daily quantities and maximum daily delivery obligations at individual receipt and delivery points in the event of a partial capacity tumback. On September 3, 2003, the Commission issued an order accepting the tariff sheets, effective as indicated. Effective February 25, 2001 Third Substitute Eighth Revised Sheet No. 24 Third Substitute Fifth Revised Sheet No. 259 Third Substitute First Aevised Sheet No. 278- Effective October 26. 2001 FIrst Revised Sheet No. 278- Docket No. RP03-577-000 On August 26, 2003, Northwest filed the following tariff sheet to decrease from 2.11 % to 1.58% the fuel reimbursement factor applicable to Northwesfs transportation service rate schedules. On September 23, 2003, the Commission issued an order accepting this tariff sheet, effective October 1 , 2003. Twentieth Revised Sheet No. 14~ Dj)cket No. RP03-597 -000 On August 28, 2003, Northwest filed the fallowing tariff sheets to reflect incremental transportation rates, incremental fuel rate provisions and an initial incremental fuel surcharge in conjunction with the completion of the Evergreen Expansion Project. On September 30, 2003, the Commission issued an order accepting the tariff sheets subject to conditions, effective as indicated. Effective October 1. 2003 Twenty-Fourth Revised Sheet No. Second Revised Sheet No. 5- Original Sheet No. 5- Twenty-First Revised Sheet No. 14'" Sixth Revised Sheet No. 231- Original Sheet No. 231-C Effective November 1 . 2003 Twenty-Fifth Revised Sheet No. 5* Third Revised Sheet No. Exhibit No" 3 Case No. INT-O4- Intermountain Gas Company ge 3 of 26 All-Holders , December 18, 2003 Page 3 of 4 On October 3, 2003, Northwest filed the following tariff sheets to correct typographical errors including the fuel reimbursement factor for Rate Schedules LS-1, LS-2F and LS- 21. These tariff sheets are currently pending acceptanc~ but Substitute Twenty-FIrst Revised Sheet No. 14 is included with the enclosed tariff sheets since it correctly states the fuel reimbursement factor for Rate Schedules LS-1, LS-2F and LS-21. Effective October 1. 2003 Substitute Second Revised Sheet No. 5- Substitute Twenty-Arst Revised Sheet No. 14 Effective November 1. 2003 Substitute Third Revised Sheet No. 5- Docket No. RP03-60o-000 On September 8, 2003, Northwest filed the following tariff sheets to provide additional nomination flexibility after the intraday 2 nomination cycle for certain services. October 2, 2003, the Commission issued an order accepting the tariff sheets, effective October 9, 2003. Third Revised Sheet No. 53 Fifth Revised Sheet No. 54 Afth Revised Sheet No. 55 Arst Revised Sheet No. 56 Fourth Revised Sheet No.1 09 Third Revised Sheet No. 110 First Revised Sheet No. 129 Seventh Revised Sheet No. 228 Docket No. RP04-85-DOO On November 26, 2003, Northwest filed the following tariff sheets to change its daily reservation and demand rates to reflect 2004 leap year rates computed on the basis of 366 days. On December 11 , 2003, the Commission issued an order accepting the tariff sheets, effective January 1 , 2004. Twenty-Sixth Revised Sheet No.FIfteenth Revised Sheet No. Fourth Revised Sheet No. 5-C Thirteenth Revised Sheet No. 8. Thirteenth Revised Sheet No. Docket No. RPO4-86-D00 On November 26 , 2003, Northwest filed two Rate Schedule TF-1 non--conforming service agreements containing contract-specific operational flow order provisions, and the following tariff sheet to add these agreements to the list of non-conforming service agreements in Northwest's tariff. On December 12, 2003, the Commission issued an order accepting Exhibit No. Case No. (NT -O4- Intermountain Gas Company Page 4 of 26 All-Holders December 18, 2003 Page 4 of 4 these two non-conforming service agreements. Concurrently, the Commission accepted the filed tariff sheet, effective December 27,2003. Rrst Revised Sheet No. 372 Other Information If you have questions concerning Northwesfs regulatory issues, please call me or any of the other individuals listed below: John Woolf Gary Kotter Jan Caldwell Barbara Odland Sr. Regulatory Analyst Manager, Certificates and Tariffs Manager, Cost of Service and Rate Design Office Administrator (801) 584-6873 (801) 584-7117 (801) 584-7155 (801) 584-6781 Northwest publishes FERCWatch to provide customers with information on Northwest's current and pending filings. It may be viewed on Northwesfs Intemet web site at www.1Iine.williams.comlwebbVebblindex.jsp. You may also view Northwesfs tariff on its Internet web site. To view FERCWatch, place your mouse on "Customer Info" at the top of the main portal page and click on FERCWatch. To view the tariff, place your mouse on lnformational Postings" on the left side of the main portal page and dick on Northwest. Sincerely, cr:~OOf Enclosures Exhibit No. Case No.INT-O4- Intermountain Gas CompanyPage 5 of 26 Northwest ripeline Corporation FERC Gas Tariff Tbird Revised Volume No.. 1. Twenty-S1dh Revised Sheet No. 5 Supededjng Twenty-F'd'tb. Revised Sheet No. STATEMENT OF RATES Effective Rates Applicable to Rate Schedules TF-1, TF-2 and T!-! (Dollars per Dth) Currently Base Effective Rate Schedule and Tariff Rate Tariff Rate(3) Type of Rate Minimum Maximum GRI (1)ACA(2)Min :i1num Maximun1 Rate Schedule TF-l (4) (5) Reservation (Large Customer) System-Wide High Load Factor 00000 27685 00164 00000 27849 Low Load Fac1:or 00000 27685 00102 00000 27787 15 Year Evergreen Exp. High Load Factor . 00000 39439 00164 00000 39603 Low Load Factor 00000 39439 00102 00000 39541 25 Year Evergreen Exp. High Load Factor 00000 37790 00164,00000 37954 Low Load Factor 00000 37790 00102 00000 37892 Volumetric (Large CU5tOIller). 01225 03000 00400 00210 01435 - 03610 (Small Customer)(6)01225 58521 00600 00210 01435 59331 Scheduled OVerrun 01225 30760 00400 00210 01435 31370 Rate Schedule TF-(4) (5) Reservation 00000 27685 ... 00000 27685 Volumetric 01225 03000 01225 . 03000 Scheduled Daily Overrun 01225 30760 01225 30760 Annual Overrun 01225 30760 01225 30760 Rate Schedule '1'I-1 Volumetric (7)01225 30760 00400 00210 01435 31370 Scheduled OVerrun - 01225 30760 00400 00210 01435 31370 by: Lam1 M..Gertsch. Diredor Issued on: NoveD1ber 26. 2003 EffectM: Jaal1afY ~ 2004 Northwest Pipeline Corporatioa FERC Gas Tariff Tbird Revised VobnDe No. 1 Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 6 of 26 Fourth Revised Sheet No. Sapenediag Sub Third Revised Sheet No. S-C STATEMENT OF AATES (Continued) Effective Rates Applicable to Rate Sche~ules TF-, TF-2 and TI-l (Continued) (Dollars per Dth) ~ootnotes (Continue~) (4)All reservation ra~es are daily rates cOltlputed on the basis of 365 days per year. except that such ra~es for leap years are computed on the basis of 366 days. For Rate Schedule TP-the lS-Year and 25-Year Evergreen Expansion reservation rates apply to Shippers receiving service under Rate Schedule TF-! Evergreen Expansion service agreements. orhe System-Wide reservation rates apply ~o Shippers receiv~g service under all other Rate Schedule TF-l service agreements. The Rate Schedule TF-l (Large Customer) volumetric rateS apply to all Rate Schedule TF-1 service agreements, including ~he Evergreen Expansion service agreements. For Rate Schedule TF-l, the 15-Year and 25-Year Evergreen Expansion maximum base tariff reservation rates are comprised of $0.38933 and$0.37284 for transmission costs and $0.00506 and $0.00506 for storage costs, respectively. The System-Wide maximum base tariff reservation rates for Rate Schedule TF-l and the maximum base tariff reservation rates for Rate Schedule 1'F-2 are comprised of $0.21120 for traJ:1smission costs and $0 - 00565 for storage costs- For Rate Schedule TF-I (Large CUStomer). the maximum base tariffvolumetric rates awlicable to Shippers receiving service under Rate Schedule TF-l EVergreen Expansion service agreements are comprised of $0.02969 for transmission costs and $0.00031 for storage costs. The maximum base tariff volumetric rates for all other services under Rate Schedule TF-l (Large CUstomer) and for services under Rate Schedule TF~2 are comprised of $0.02966 for transmission costs and $0.00034 forstorage costs. (5 J Rates for Rate Schedules TF-l and TF-2 are also applicable to capacityrelease service- (Section 22 of the General Terms and Condit~ons describes how bids for capacity release will be evaluated.) The reservation rate is the comparable volumetric bid reservation charge applicable to Replacement Shippers bidding for capacity released on a - one-part volumetric bid basis. Issued by: I..an:n M.Ger1sch, Director hsued on: November 26. 2003 Effective: January 1. 2004 Northwest PIpeline Corporation FERC Gas Tariff Third Revised Vo1nme No. Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 7 of 26 Original Sheet No. S-D STATEMENT OF RATES (Continued) Effec~ive Rates ~pplicable to Rate Schedules TF-l, TF-2 and TI-l (Continued) (Dollars per Dth) ~ootnotes (Continued) (6)Rate Schedule TF-l (Small Customer) one-part volumetric rate is based upon a 50ft load factor, and the ma.ximum base tariff rate is comprised of$0.57353 for transmission costs and $0.01168 for storage costs- Transporter will not transport gas for delive%y for Small Customers subject to this Rate Schedule TF-l under any interruptible Service Agreement or under any capacity release Service Agreement unless such Small Cust:omer has exhausted its daily levels of firm service entitlement for that day. (7)Rate Schedule TI-l maximum base tariff volumetric rate is comprised of $0.30159 for transmission costs and $0.00601 for storage costs. (8)Applicable to Rate Schedules 1'F-l, TF-2 and TI-1 pursuant to Section15.5 of the General Terms and Conditions. Issued by: I.ann M.Gertsch, Director Issued on: August 28., 2003 FDed to CODIpIy with order of the Fedenl Energy ReguhllOry Cnm'1Ji~oo. Doclcet No. CPO2-4-002 . Issued May 7. 2003 Effective-. Octnber 1, 2003 103 FERC '161.149 (2003) Nortbwest Pipeline Corporation FERC Gas Taritf Third Reme.i Volume No. 1 Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 8 of 26 Thirieenth Revised Sheet No. 7' SupersOOiugTwelfth Revised Sheet No. 7 STATEMENT OF RATES (Continued) Effective Rates Applicable to Rate Schedules SGS-2F and SGS- (Dollars per Dth) Rate Schedule and 'type of Rate CUrrently Effective Tariff Rate (1)Minimum Maximum Rate Schedule SGS-2F (2) Demand Charge Capacity Demand Charge 00000 00000 01685 00061 Volumetric Bid Rates Withdrawal Charge Storage Charge 00000 0 - 00000 01685 00061 Rate Schedule SGS-2I Volumetric 00000 00134 Footnotes (1)Shippers receiving service under these rate schedules are required to furnish fuel reimbursement in-kind at the rates specified On Sheet No.14 . (2)Rates are daily rates c~uted On the basis of 365 days per year, except that rates for leap years are computed on the basis of 366 days- Rates are also applicable to capacity release service. (Section 22 ofthe General Terms and Conditions describes how bids for capacity release will. be evaluated.The Withdrawal Charge and Storage Charge are applicable to Replacement Shippers bidding for capacity rele~sed on a one-part volumetric bid basis. Issued by; Laren M.Gertsch, DiRctor Issued 00. Nowmber 26, 2003 Effective: .J8DWUJ' 42004 Northwest Pipeline cOrpo...won FERC Gas Tariff Third Rewised Volome No. Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 9 of 26 Fd'teeuth RevN!d Sheet No. 8 SupenediDg Fourteenth Rmsed Sheet No. 8 STATEMENT OF RATES (Continued) Effective Rates Applicable to Rate Schedule LS- (Dollars per Dth) Type of Rate Currently Effective Tariff Rate (1) Demand Charge ( 2 )Capacity Charge (2)02593 00331 Liquefaction Vaporization 55685 03030 h:-ootnotes (1)Shippers receiving set:Vice under this rate schedule are required to furnish fuel reimbursement in-kind at the rate specified on Sheet No. 14. (2 )Rates are daily rates compuced on the basis of 365 days per year. except that rates for leap years are camputed on the basis of 366 days. Issued by: L3ren M.Gensch, Director Issued OD: NoveJDber 20, 2003 Effective: January 1, 2004 Northwest PipeIiue Corporation FERC Gas Tariff Third Revised Vo1ume No. 1 Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 10 of 26 'l'birteeatb. Revised Sheet No.. 8.1 Supersediug Twelfth ReW;ed Shed: No.. 8.1 STA't'EMENT OF RATES (Continued) Effective ~tes Appl~cable to Rate Schedules LS-2F and LS-2I (Dollars per Dth) Rate Schedule and' Type of Rate CUrrently Effec~i Tar~ff Rate (1)w.nimum Maximum Rate Schedule LS-2F (3) Demand Charge (2) Capacity Demand- Charge (2)00000 a - 02593 00000 0 . 00331 o. 00000 O. 02593 o. 00000 0 . 00331 55685 55685 03030 03030 Volumetric Bid Rates vaporization Demand-Related Charge (2) Storage Capacity Charge (2) Liquefaction Vaporiza tion Rate Schedule LS-2r Volumetric:0 - 00161 00826 lFootnot:es (1)Shippers receiving service under these rate schedules are required to furnish fuel rei1l1bursement in-kind at the rates speeif.ied on Sheet No.l4. (2)Rates are daily rates Computed on the basis of 365 days per year, except tha~ rates for leap years are computed on the basis of 366 days. (3 )Rates are also applicable to capacity release service. (Section 22 ofthe General Terms and Conditions describes how bids for capacity release will be evaluated.The Vaporization Demand-Related Charge and Storage capaci ty Charge are applicable to Replacement Shippers bidding for capaci ty released on a one-part volumetric bid basis. Issued by: Laren M..~ Director~ed on: November 26,. 2003 Effectige.\ January 1. 2004 Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 11 of 26 '1I1.11f11.""I,ilamS GAS PIPEUNE 295 O1lpetr Wj'j (84108) O. Box 58900 Salt Lake Oty, ur 84158..0900 Phone: (801) :;8+7117FAX: (801) 584-7764 February 27, 2004 Ms. Magalie R. Salas, Secretary Federal Energy Regulatory Commission 888 First Street, N. Washington, D.C. 20426 Re:Northwest Pipeline Corporation Docket No. RP04- Dear Ms. Salas: Pursuant to Part 154 of the regulations of the Federal Energy Regulatory Commission (Commission), Northwest Pipeline Corporation (Northwest) tenders for filing and acceptance the following tariff sheets as part of its FERC Gas Tariff (Tariff): Third Revised Volume No. Twenty-Second Revised Sheet No. 14 Original Volume No. Thirty-Seventh Revised Sheet No. 2. Purpose The purpose of this filing is to (1) propose a decrease from 1.58% to 1.34% in the fuel reimbursement factor (Factor) applicable to Northwests transportation service rate schedules 1 (2) to propose a decrease from 0.83% to 0.80% in the Evergreen Expansion incremental surcharge Factor applicable to certain service under Rate Schedule TF-1 for shippers under Evergreen Expansion service agreements, (3) propose an increase from 1.42% to 4.97% in the Factor applicable to Northwest's Plymouth LNG Facility storage - service rate schedules,2 and (4) propose no change in the current 0% Factor applicable to Northwesfs Jackson Prairie storage project service rate schedules.3 The Factors allow Northwest to be reimbursed in-kind for the fuel used during the transmission and storage of gas and for the volumes of gas lost and unaccounted-for (L&U) that occur as a normal part of operating the transmission system. 1 Rate Schedules TF-, TF-, TI-1, DEX-1 and all applicable transportation service rate schedules contained in Original Volume No.2 of Northwesfs Tariff. 2 Rate Schedules LS-1 , LS-2F and LS-21. - --, "'i 3 Rate Schedules SGS-2F and SGS-21. Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 12 of 26 ,.- Ms. Magalie R. Salas February 27, 2004 Page 2 of 5 '---.-/ Statement of Nature, Reasons and Basis for the Filing Northwest is submitting this filing to comply with Section 14.12 of the General Terms and Conditions contained in Northwest's Tariff which requires the Factor for the transportation rate schedules to be determined semi-annually to become effective on April 1 and October1 of each year, and requires the Factor for the storage rate schedules to be determined annually to become effective April 1 of each year. Exhibits A and 8 show the data and formulas used to derive the proposed Factors. Transportation Rate Schedules. Northwest proposes a Factor of 1.34% to be applicableduring the upcoming April through September (Summer) period for transportation service Rate Schedules TF-1, TF-, TI-, DEX-1 and all applicable transportation service rate schedules contained in Original Volume No.2 of Northwest's Tariff. '-..J Northwest's currently effective Factor applicable to transportation service is 1.58%.Northwest's semi-annual fuel filing procedures are designed to more closely match seasonal differences in fuel usage with the responsible shippers. Under such procedures, the October through March (Winter) Factor normally should be expected to be lower than the Summer period Factor. Northwesfs displacement dependent system tends to operate more efficiently when total system market demands are greatest, resulting in lower compressor fuel usage per unit of throughput during the Winter period than during the Summer period. However, the true-up adjustment can have a significant impact on the Factor. The projections used to derive the current 1.58% F=actor included the recovery of a true-up adjustment of 506,770 Dth. The projections used to derive the proposed 1.34% Factorinclude the refund of a true-up adjustment of 953j261 Dth. If these true-up adjustmentswere excluded in the calculation of the Factor, the current Factor of 1.58% would havebeen 1.45% and the proposed Factor of 1.34% would have been 1.62%. This fits the pattern of the Summer Factor being higher than the Winter Factor. The L&U remains a relatively small component of the Factor. Including the true-upadjustments, the L&U component of the 1.34% Factor is 0.10%. Using historical averages, the forecast for L&U is 940 949 Dth before the true-up adjustment. Although Northwest's Tariff does not dictate any specific forecast methodology, Northwest typically bases its projected transportation volumes, fuel usage and L&U on historical averages. Northwest has continued to use that methodology in making the current projections. Evergreen Expansion Incremental Surcharge On August 28. 2003 in Docket No. RP03- 597-000, Northwest filed, among other things, an initial incremental fuel surcharge of 83% in conjunction with the anticipated completion of the Evergreen Expansion project. This surcharge was accepted in a letter order dated September 30, 2003, effective Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 13 of 26 ...-- Ms. Magalie R. Salas February 27, 2004 Page 3 of 5 --- October 1, 2003. The initial incremental fuel surcharge of 0.83% equals the difference between the initial Evergreen shipper incremental fuel rate of 2.04% and the 1.21% fuel usage component of the system-wide Factor for Rate Schedule TF-1 that became effective October 1 , 2003. The derivation of the initial Evergreen Expansion incremental fuel rate of 04% was set forth in Exhibit P of Northwest's January 8 2003 amended Evergreen Expansion certificate application in Docket No. CP02-002. Although the Evergreen Expansion went into effect on October 1 , 2003, Northwest only has two months of accounting data concerning the Evergreen Expansion in 2003 since Northwest books its data on a month lag. The accounting data from November and December 2003 (which is activity that occurred during October and November 2003), is not sufficient experience to justify altering the originally forecasted 2.04% Evergreen Expansion incremental fuel rate. Further, the true-up adjustment for the Ev~rgreen Expansion incremental fuel component, as shown on page 5 of Exhibit B, is only 1 268 Dth for the last two accounting months of the year. '-...-/ Due to the de minimis amount of the true-up adjustment and the lack of sufficient experience to forecast a different Evergreen Expansion incremental fuel rate, Northwest proposes to continue to use the initial projected Evergreen Expansion incremental fuel rate of 2.04% for determining the incremental fuel surcharge applicable to Evergreen shippers. Thus, Northwest proposes to revise the incremental fuel surcharge from 0.83% to 0.80% effective April 1 . 2004. The 0.80% equals the difference between the initial ,Evergreen shipper incremental fuel rate of 2.04% and the 1.24% fuel usage component of the system- wide Factor for Rate Schedule TF-1 that is proposed to become effective April 1 . 2004. Northwest seeks waiver of Section 14.12(h) of the General Terms and Conditions of its Tariff to allow Northwest to defer the recovery of the 1 268 Dth true-up adjustment discussed above until it is reflected in the incremental fuel surcharge that will become effective October 1 , 2004. Plymouth LNG FaciliW StoraQe Service Rate Schedules. Northwest proposes an increase from 1.42% to 4.97% for the Factor applicable to Rate Schedules LS-, LS-2F and LS- which pertain to the Plymouth LNG Facility storage service. This increase is primarily due to a large underrecovery of 37,363 Dth in the proposed true-up adjustment versus a small overrecovery of 2,974 Dth in the true-up adjustment used to calculate the current 1.42% Factor. Fuel usage and injection (liquefaction) volumes at the Plymouth LNG Facility are relatively small so any true-up adjustment can potentially cause a large swing in the Factor. During 2003, fuel usage at the Plymouth LNG Facility was greater than fuel usage during 2002 in part because the Plymouth LNG Facility experienced more liquefaction than the previous year, requiring more fuel gas to heat the gas stream to remove water from the gas prior to liquefaction. Further, 16,495 Dth of volumes used to derime the cold box prior to liquefaction were booked in April 2003 to the Plymouth LNG Facility fuel usage account. Since no derime volumes were booked to the Plymouth LNG Facility fuel usage account in 2002. including these volumes in 2003 has a material impact on the Factor applicable to Plymouth LNG Facility storage service rate schedules. Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 14 of 26 ,.--- Ms. Magalie R. Salas February 27 2004 Page 4 of 5 , "-.-/ Rate Schedules SGS-2F and SGS-21.The traditional methodology for deriving the Factor for Rate Schedules SGS-2F and SGS-21 results in a very small Factor of 0.05%. The projected fuel usage of 40,555 Dth is largely offset by a true-up adjustment of 29,455 Dth resulting in projected net fuel usage of 11 100 Dth. Northwest proposes to continue to keep the Factor for Rate Schedules SGS-2F and SGS-21 at 0% due to the de minimis nature of the calculated Factor. Northwest requests waiver of the procedure set forth Section 14.12 (g) of the General Terms and Conditions of its Tariff to allow the Factor to remain at 0%. Northwest sought similar waivers in the February 29, 2003 and March 1 , 2002 fuel filings that went into effect April 1 , 2003 and April 1, 2002, respectively. Pursuant to an order dated March 28, 2003 in Docket No. RP03-272-0004 and a letter order issued March 29, 2002 in Docket No. RP02-169-000, Northwest was granted its requests for a waiver of its Tariff to allow the Factor to be 0% effective April 1, 2003 and April 1 , 2002, respectively. In an order dated May 23, 2002, the Commission clarified that Northwest must flow through the remaining Jackson Prairie overrecovery in its future annual fuel filiogs.5 This requirement was repeated in the Commission s order dated March 28, 2003. The currently remaining overrecovery of 29,455 Dth is projected to flow through to customers in the Summer period. '---./ Pending Filings On October 3 2003 in Docket No. RP03-597-o01 , Northwest made a compliance Tariff filing including Substitute Twenty-First Revised Sheet No. 14 which was filed to correct a typographical error for the Factor applicable to Rate Schedules LS-, LS-2F and LS-21. Northwest requested an effective date of October 1 , 2003 for this tariff sheet and the filing is currently pending before the Commission. Effective Date and Waiver Request Northwest hereby moves that the proposed tariff sheets be made effective April 1, 2004, or at the end of any suspension period which may be imposed by the Commission. Northwest requests that the Commission grant any waivers it may deem necessary for the acceptance of this filing, including waivers of the procedures set forth in Sections 14.12(g) and 14.12(h) of the General Terms and Conditions of Northwesfs Tariff as discussed above. --./ 4 102 FERC ~ 61,342 (2003)- 5 99 FERC 11 61,218 (2002). Exhibit No. Case No. INT -O4- Intermountain Gas Company Page 15 of 26 ",.--' Ms. Magalie R. Salas February 27, 2004 Page 5 of 5 Procedural Matters Pursuant to the applicable provisions in Section 154 of the Commission s regulationsNorthwest submits the following materials in connection with this filing: . The proposed tariff sheets listed above. . A red lined version of the proposed tariff sheets. . A form of notice suitable for publication in the Federal Register. . A diskette containing the Volume No.1 proposed tariff sheet in electronic form, and a separate diskette containing the form of FederaJ Register notice. Service and Communications An original and five copies of this filing are being provided to the Commission. Copies ofthis filing have been served upon Northwesfs customers and upon interested state regulatory commissions. All communications regarding this filing should be served upon: ,--- Gary K. Kotter Manager, Certificates and T aritts (801) 584-7117 Northwest Pipeline Corporation O. Box 58900 Salt lake City, Utah 84158-0900 Steven W. Snarr General Counsel (801) 584-7094 Northwest Pipeline Corporation O. Box 58900 Salt Lake City, Utah 84158-0900 To the best of my knowledge and belief, the tariff sheets are true and correct and the Volume No.1 tariff sheet contains the same information as the diskette. Respectfully submitted NORTHWEST PIPEUNE CORPORATION 6.,~ Gary K. Kotter Manager, Certificates and Tariffs Enclosures 0404FuelLetter .doc UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION Exhibit No, 3 Case No. INT-O4- Intermountain Gas Company Page 16 of 26 '--'" Northwest Pipeline Corporation Docket No. RP04- NOTICE OF PROPOSED CHANGES IN FERC GAS TARIFF Take notice that on February 27, 2004, Northwest Pipeline Corporation (Northwest) tendered for filing as part of its FERC Gas Tariff the following tariff sheets, to be effective April 1, 2004. Third Revised Volume No. Twenty-Second Revised Sheet No. 14 Original Volume No. Thirty-Seventh Revised Sheet No. 2. Northwest states that the purpose of this filing is to (1) propose a decrease from 1.58% to 1.34% in the fuel reimbursement factor (Factor) applicable to Northwest' transportation service rate schedules, (2) to propose a decrease from 0.83% to 0.80%in the Evergreen Expansion incremental surcharge Factor applicable to certain service under Rate Schedule TF-1 for shippers under Evergreen Expansion service agreements, (3) propose an increase from 1.42% to 4.97% in the Factor applicable toNorthwest's Plymouth LNG Facility storage service rate schedules, and (4) propose nochange in the current 0% Factor applicable to Northwest1s Jackson Prairie storage project service rate schedules. Northwest states that the Factors allow Northwest to be reimbursed in-kind for the fuel used during the transmission and storage of gas and for the volumes of gas lost and unaccounted-for that occur as a normal part of operating the transmission system. Northwest states that a copy of this filing has been served upon Northwest1s customersand interested state regulatory commissions. Any person desiring to be heard or to protest said filing should file a motion to intervene or a protest with the Federal Energy Regulatory Commission I 888 First Street, N.Washington, D.C. 20426, in accordance with Sections 385.214 or 385.211 of theCommissions Rules and Regulations. All such motions or protests must be filed in accordance with Section 154.210 of the Commission s Regulations. Protests will be considered by the Commission in determining the appropriate action to be taken, but will not serve to make protestants parties to the proceedings. Any person wishing to become a party must file a motion to intervene. This filing is available for review at the Commission in the Public Reference Room or may be viewed on the Commission website at httP://www.ferc.aov using the II FERRrS" link. Enter the docket number excluding the last three digits in the docket number field to access the document. ForAssistance, call (202) 502-8222 or for TTY, (202) 208-1659. Comments, protests and interventions may be filed electronically via the Internet in lieu of paper. TheCommission strongly encourages electronic filings. See, 18 CFR 385.2001 (a)(1 )(iii)and the instructions on the Commission s web site under the "Filing- link. ,./ Magalie R. Salas Secretary Northwest Pipe6ne Corporatioo FERC Gas Tariff Third Revised Volume No.1 Exhibit No. Case No. INT-O4- Intermountain- Gas Company Page 17 of 26 Twenty&condRerised Sheet No. 14 SupeBedingSub Twen .First Revised Sheet No. 14 STATEMENT OF Pt1E:L USE IlliQUIR.EMENTS FACTORS FOR REIMBURSEMENT OF FUEL USE Applicable to Transportation Service Rendered Under te Schedules Contained in this Tariff. Third Revised Volume No. The rates set forth on Sheet Nos. 5. 6, 7, 8 and 8.1 are exclusive offuel use requirements. Shipper shall reimburse Transporter in-kind for itsfuel use requirements in accordance with Section 14 of the General Terms andonditions contained herein. The fuel use reimbursement furnished by Shippers shall be as follows for he applicable ~te Schedules included in this Tariff: ~te Schedule TF-l Rate Schedule TF-l - EvergreenIncremental Surcharge (1) Rate Schedule TF-2 Rate Schedule TI- Rate Schedule SGS-2F Rate Schedule SGS- Rate Schedule LS- Rate Schedule LS-2F Rate Schedule LS- Rate Schedule DEX-l 1.34% Expansion 80% 1.34% 1.34% 00% 00% 97% 97% 97% 34% ..J The fuel use factors set forth above shall be calculated and adjusted as lained in Section 14 of the General Terms and Conditions. Fueleimbursement quantities to be supplied by Shippers to Transporter shall beete~ed by applying the factors Set forth above to the quantity of gas ominated for receipt by Transporter from Shipper for transportation. forinjection into storage, or for deferred exchange , as applicable. ootnote (1)In addition to the Rate Schedule TF-l fuel use requirements factor, theEvergreen Expansion Incremental Surcharge will apply to the quantity of gas nominated for receipt at the Sumas, SIPI or Pacific Pool receipt points under Evergreen Expansion service agreem~ts. Issued by: Lareo M.Gertscb. Director Issued on; February 27. 1004 Effective: April 1, 2004 Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 18 of 26 Gas Transmission Northwest Corporation FERC Gas Tariff Third Revised Volume No, i-First Revised Sheet No. Superseding Original Sheet No. STATEMENT OF EFFECTIVE RATES AND CHARGES FOR TRANSPORTATION OF NATURAL GAS Rate Schedules FTS-l and LFS- RESERVATION DELIVERY (c) (Dth-MILE) FUEL (d) (Oth) MILEAGE (a) (Oth/MILE) NON-MILEAGE (b) (Dth) MAXIMUM MINIMUM MAXIMUM MINIMUM MAXIMUM MINIMUM MAXIMUM MINIMUM BASE 011212 000000 884028 000000 000013 000013 0050%0000% MRRS (e) 0.000227 000000 049280 000000 CES 000227 000000 049280 000000 EXTENS ION CHARGES MEDFORD l (f) 0.296969 0,000000 000016 0,000016 2(g) 0.194607 0.000000 (WWP) 000000 0.000000 2(h) 0.090388 0.000000 (Diamond 1) 000000 0.000000 2(h) 0.035477 0,000000 (Diamond 2) 000000 0,000000 COYOTE SPRINGS 3(i) 0.064705 0.00000 000000 o. 000000 OVERRUN CHARGE (j ) SURCHARGES ACA (k) GRI (m) HLF LLF 0, 002100 002100 050000 0, 000000 004000 000000 0 - 031000 000000 004000 000000 Issued by: John A Roscher, Director of Rates & Regulatory Affairs Issued on: November 7 , 2003 Effective on: November 1, 2003 Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 19 of 26 For the period of May 1 , 2004. until further notice, a fuel usage rate of 0028% per Dth/mile will be in effect. Applicable per Dth/mile rates for the most common paths are calculated below. FERC Gas Tariff, First Revised Volume No, 1- Fuel Use Rates (Forward haul Service Only) K\ngs9,,-te:t~: Moyie Springs 22,000616 Bonner s Ferry 27,000757 Schweitzer 55.001554 Sandpoint 59.001659 Athol 84.002374 Rathdrum 97.002734 Spokane 108,003032 Mica 121,003392 Spangle 134.003757 Rosalia 145.004080 St John 158,004449 Palouse 172,004818 Lacrosse 182,005118 Kosmos Farms 271,007606 Stanfield 277.007766 Stanfield City 282.007917 South Hermiston 289.008115 Coyote Springs 304.008519 Boardman 311.008708 Madras 410,011484 Prineville 426,011950 Redmond 438,012272 Bend 454.012726 South Bend 457,012810 Stearns 469,013137 LaPine 483.013549 Gilchrist 500.014027 Chemult 519.44 014544 Diamond Junction 530.014857 Klamath Falls 599.016774 Medford Extension 599.016778 Tuscarora 609.017074 Malin 612.46 017149 SpokanE!to: Palouse 63,001786 Stanfield 169,004734 South Hermiston 181.005083 Coyote Springs 195,005487 Boardman 202,005676 Madras 301.87 008452 Prineville 318,008918 Redmond 330.009240 Bend 346,009694 S. Bend 349,009778 Stearns 360,010105 LaPine 375,010517 Gilchrist 392.010995 Chemult 411.011512 Diamond Junction 422,011825 Klamath Falls 490,013742 Medford Extension 490,013745 Tuscarora 501.014042 Malin 504,014117 St~nfieldto: South Hermiston Coyote Springs Boardman Madras Prineville Redmond Bend South Bend Stearns LaPine Gilchrist Chemult Diamond Junction Klamath Falls Medford Extension Tuscarora Malin 12.46 26. 33. 132. 149.43 160. 177, 180. 191. 206. 223. 242. 253. 321.69 321. 332.43 335. Exhibit No. Case No. INT-04- Intermountain Gas Company Page 20 of 26 000349 000753 000942 003718 004184 004506 004960 005044 005371 005783 006261 006778 007090 009007 009011 009308 009383 (( TransCanada " , In business to cf,filiver TransCanada Home i' BC System Effective Rates and Charges for 2004 Commodity Rates at Effective Heating Value Forecast of 38.00 MJ FS-Firm Service Demand Rate (cents/GJ/Month/Km) FS-1 Firm Service Commodity Rate (cents/GJ/km) IS-Interruptible Service Commodity Rate (cents/GJ/km) * *The IS-1 Interruptible Service Commodity Rate is calculated by taking the FS-1 Firm Service Demand Rate at 90% load factor and adding the FS- Firm Service Commodity Rate. Toll Rate 1.083436382 002072979 041650563 Rates Effective January 1, 2004 Expressed in Canadian Dollars and Cents (MMBtu units expressed in US Dollars) Firm Service (FS-1) MMBtu (Cdn (US cents)cents) 6.43 MMBtu (Cdn (US cents)cents) Demand Rate Commodity Rate Total FS-l Rate (Kingsgate) Interruptible Service (15-1) Interruptible Commodity Rate Total IS-1 Rate (Kingsgate) 1. Tolls are payable in Canadian dollars and GJ units are used for billing puposes. 2. Posted commodity rates are based on Effective Heating Value Forecast or 38.0 GJ/E3 3. Conversion factors $Cdn to $U.S. divide by 1,30 (subject to change) cents/GJ to cents/MMBtu multiply by 1.055056. 4. The 2003 average fuel ratio to Kingsgate is forecast at 0.9%.5. All rates are based on 100% load factor utilization except for interruptible which is at a 90% load factor, 6. All rates do not include a provision for GST. Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 21 of 26 Q:~ ~~~~~~;da TransCanada Home f BC System Current Fuel Rates & Heating Values Fuel Rate Effective May 1 , 2004 Fuel Rate and MJ value on TransCanada s B.C. System for May, 2004 Please be advised that effective May 1 , 2004 at 08:00 the fuel rate on TransCanada s B.C. System will change to 0.8% and the heat content posted at Kingsgate will remain at 37.90 MJ. If you have any questions please contact Lisa Draudson at 403.920.5593 or Gordon Betts at 920-6834. Path Kilometer % Fuel Rate Post Per GJ Alberta/B.C. Interconnect to: Sparwood Sales Tap 04452255 Byron Creek Sales Tap 18.08529584 Fernie Sales Tap 53.2516696 Elko Sales Tap 69.32665495 Galloway Sales Tap 85.3983597 Cranbrook Sales Tap 99.0.46444054 Yahk Sales Tap 156.4 73298184 East Kootenay Exchange 162.4 76110135 Kingsgate Meter Station 170. East Kootenay to: Kingsgate Meter Station 038898 For the period of May 1 , 2004, until further notice, a fuel rate of 0.0046866% per GJ/km will be in effect. Applicable per GJ/km rates for the most common paths are provided above. Exhibit No. Case No. INT-04- Intermountain Gas Company Page 22 of 26 Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 23 of 26 NOVA Gas Transmission Ltd. Page 1 Table of Rates, Tolls and Charges TABLE OF RATES TOLLS AND CHARGES Service Rates, Tolls and Charges Rate Schedule FT-Refer to Attachment "I" for the applicable FT-R Demand Rate per month and Surcharge for each Receipt Point Average Finn Service Receipt Price (AFSRP)$188.41/103 Rate Schedule FT-Refer to Attachment "I" for the applicable FT-RN Demand Rate per month and Surcharge for each Receipt Point Rate Schedule FT -FT-D Demand Rate per month $188.4l!10J Rate Schedule STFT STFT Bid Price Minimum bid of 135% of FT-D Demand Rate Rate Schedule FT-FT-A Commodity Rate $0.57/103 Rate Schedule FT-Refer to Attachment "2" for the applicable FT -P Demand Rate per month. Rate Schedule LRS Contract Tenn Effective LRS Rate ($/1O3 /dav) 5 years 10 years 15 years 20 years Rate Schedule LRS-LRS-2 Rate per month $50 000 Rate Schedule LRS-LRS-3 Demand Rate per month $188.71/1O3 10, Rate Schedule IT-Refer to Attachment" I" for the applicable IT-R Rate and Surcharge for each Receipt Point II. Rate Schedule IT-IT-D Rate $6.81/1O 12, Rate Schedule FCS The FCS Charge is detennined in accordance with Attachment "1" to the applicable Schedule of Service 13, Rate Schedule OS Schedule No,Charge 2003-00452-333./ month 2003-03435-899,/ month 2003-03734- 7 698./ month 2003-058091-568./ month 2003-03624-27./ month 2003-07178-150./ month 2003-07179-391.00 / month 2003-07113-/ month 2003-05812-118./ month 2003-05809-163./ month 2003-03747-707./ month 14, Rate Schedule CO2 Tier Rate $/10 532.41 425, 283, TARIFF Effective Date: January 1 , 2004 as per EUB Decision 2003-105 Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 24 of 26 Summary of 2004 Interim Station Prices: ($f10 fmonth except IT which is $/10 Firm Service Delivery:188.41 Average Receipt Price:188.41 Receipt Price Floor:101. Receipt Price Ceiling:274. Interruptible Delivery: PremiumfDiscount:105%100%95%110%115% I-I-I-I- FT-FT-PRICE PRICE PRICE 1 PRICE greater Year Non- Station to ~3 -to ~5 -than 5 -Renewable IT-Project Number Station Name Year Term Year Term Year Term Firm PRICE Area Al~~Page 1 of 1 Questar Pipeline Company FERC Gas Tariff First Revi~ed Volume No. Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 25 of 26 Sixteenth Revised Sheet No. Superseding Sub. Fifteenth Revised Sheet No. STA'lEKEN7 OF RATES 8.,;;",R.:ItQ Schedule/ af o,;orqc: ("') All.nual~irr (1:11 Cu.rrcnUy Ch:u:9" AcI1u:stment.'2./(e) &ttective Rate (4) 1'QJaJICii ftOP.AGI: Haal:hly Jt".."rv"t~on o."":g9~i- MinilllUib Usage Ch~ge Injection wi th4J:awal 2. a137S O. COOOo 2. 81375/Dth OOOOO/Pth 038'12 038'12 O38121Dth O3812/Dtb c:r.u BUm STOP.AGI: ru... Sbuall'" s~ - I'SS Mgnthly ~e~ervation Charge Do,liv"....,bHity Kaxilmlm MinilllUm Capacity Maximum Minimum. U....g.. o,;;I;cg~ Injel:t.ioD Wi tI1d;cawool Auth....i.,$d Overrun Ch",rge Hax1aUIII. Miniawa h1:azrupUbl. st:_~. - US U3",ge Char\Je Inventory 1/ Maximum "'inim1,\111 hj 8c;t ion W1th~aw~1 85338 00000 2. 85338/Dth OOoOO/Dth 023'19 00000 o. O:23"/Dtb O. OOOOO/Dtb 010 01 '1S1 00210 o. 012S9/Dth OnU/nth 30315 01 '1&1 00210 00210 30S25/Dt.h 01.991/Dth O. OS~Z'1 00000 01049 01781 00210 O. 05927/Dt.h O. OOooo/D'th 0125'/Dth O17SllPth O~OWIL Wr.tllm:n:rc ~J:$!1,/Pe~kia9 Sta;C;;lg8 service - fKS Maximum. Minimum.Fi~ stora\Je Service - FSS lti x iInwD MiniMumst~ v..~ a...q... ~iaab1c Peaking Storage Service - PKS: In;lectioll iiithdra\oJal Clay B",sin Storage Serv~ee - FSS:Injection wi thdraw~l 40890 00000 40090/Dt:h OOOOO/Dt:h S'J068 00000 b v.,l_uic Re~_.6. 1./ 5706B/DtIl OOOOO/Dt.1I 03872 039'12.03B72/t1t:h o. 038'12/Dt.h 01049 01781 O. 00210 O12:i~/Dt:h O1791/Dtb PAlUt MID I.our slUNJ:a: - rAt.! Daily Charge KaxiIDUIII Minimum Delivery Charge 30315 00000 028JO 00210 30315/Dth O. OOOOO/nt:h o. 03 04 0/IJ\:h - 2.0\ (0.2' Ut.ilit:y ;;InQ 1.8\ compressor tuel) lor Rate Schedule PALl Issued by: A. K. Allred, President and CEO Issued on: August 13, 2003 Etfective on: Octobe~ 1, 2003 Exhibit No. Case No. INT-O4- Intermountain Gas Company Page 26 of 26 QueBt~ Pipeline company FERC Gas Tariff Ct. -~... -g",.... ...~ rt !If,., Tenth Revised Sheet No. 6A Superseding !C:!.."'...+ 1If... j:;1l FOOTNOTES .1fShipper my request service in exceu of its ~D end Questar IllaY ~rovide the service if capacity ia aV9Heble. YAppl ied to the average IIIDlIthly uorking gas balence. lIReleased capacity my be sold at B vohlllctric rate. Shippers releesing capacity on a volumetric basis must specify a rate between the maximum and miniMUm volUQatric rete stated on this Statement of ~ates and notify Questa~ of the criteria by which bids era to be evaluated. !/Storage usage dhargos ere applicable to storage services that are released at e volumetric rate and ",it l be billed to the replaCMlent shipper according to i 18.2 of the General Terms and Conditions of Part 1 of this tariff. ~he annual cIIar'!;lt! adjustlllent (AcA) as. spaefffed by tf1e Cannission will be billed accordh1Q to ~S 4(f) and 3(d) of Rate Schedule FSS and IS5. regpectfvety, and i 11 of the Ceoeral Tenns ahd Conditions of ~art 1 of this ~ariff. NOTE; The IIIOntl\ly ratas stated on Questar's Statelllent of RIItes may be converted to a dailyratt! by .ul tiplying the monthly base tariff rate times the number of 8Onths in the rate period and dividing the result by tht! ~r of days in the rate period. The result is r~ to the fOUrthdeci8IBl place. IS5ued B1'= Issued on; K. Allrecl, Executive VP and COO February 19, 2003 Effective; Apri1 " 2003 EXIllBIT NOS. 4- CASE NO. INT-O4- INTERMOUNTAIN GAS COMPANY (11 pages) IN T E R M O U N T A I N G A S C O M P A N Y Su m m a r y o f G a s C o s t C h a n g e s An n u a l T h a n n s / 7/1 / 2 0 0 3 To t a l A n n u a l An n u a l T h e n n s / 7/ 1 / 2 0 0 4 To t a l A n n u a l Co s t o f S e r v i c e A l l o c a t i o n o f G a s C o s t A d j u s t m e n t " ) Un e Bil l i n g D e t e n n l n a n t s Pr i c e s Co s t Bil l i n g D e t e n n i n a n t s Pri c e s Co s t An n u e l No , De s c r i p t i o n IN T , ~3 - IN T , G-0 3 , IN T , G- 0 3 , tN T , G-0 4 - IN T , G-0 4 - IN T , G- O 4 - Di f f e r e n c e RS - RS , GS , De m a n d Co m m o d i t y (a l (b l (c ) (d ) (e ) (ij (g ) (h i (i) fj) (k l (I) (m ) (n ) DE M A N D C H A R G E S : Tr a n s p o r t a t i o n : NW P T f , l D e m a n d 1 ( f u l l R a t e ) ' " 54 6 . 7 3 0 10 0 02 8 6 2 64 7 41 5 59 7 14 0 10 0 02 8 5 4 04 5 36 4 39 7 94 9 18 2 82 2 66 8 . 4 9 6 45 8 , 40 3 35 2 87 6 NW P T f , l D e m a n d 1 ( o ; s c o u n t e d ) 0 1 14 8 40 4 , 40 0 01 8 8 3 79 5 15 2 19 7 20 4 40 0 02 0 6 8 07 8 29 7 28 3 14 5 16 7 80 8 61 3 59 6 42 0 75 8 98 5 20 , 99 8 Up s t r e a m C a p a ~ t y ' " 51 1 36 3 09 0 00 9 7 0 96 1 , 18 1 90 4 44 4 , 20 0 00 9 8 5 91 1 . 1 8 8 95 0 00 7 51 6 , 57 8 88 8 88 2 29 5 25 2 18 4 65 7 63 8 St o r a g e : SG S , De m a n d 30 3 37 0 ( 5 ) oo 1 6 9 18 7 02 3 ( ~ 30 3 37 0 (5 ) 00 1 6 9 18 7 02 3 (') Ca p a c i t y D e m a n d 92 0 99 0 ( 5 ) 00 0 0 6 24 7 14 2 ( ~ 92 0 99 0 (5 ) 00 0 0 6 24 7 14 2 Tf- 2 R e s e r v a t i o n 92 0 99 0 ( 5 ) 02 7 7 6 30 3 16 7 92 0 99 0 (5 ) 02 7 7 6 30 3 16 7 Tf - 2 R e d e l i v e l ' ! Ch a r g e 92 0 99 0 ( 5 ) 00 3 0 0 32 , 7 6 3 92 0 99 0 (5 ) 00 3 0 0 76 3 LS - De m a n d 72 0 00 0 ( 5 ) 00 2 6 0 68 3 , 28 0 ( ~ 72 0 00 0 (5 ) 00 2 6 0 68 3 28 0 Ca p a ~ t y 7,7 0 5 20 0 ( 5 ) 00 0 3 3 92 8 09 1 7, 7 0 5 20 0 , 5 ) 00 0 3 3 92 8 09 1 Liq u e f a c t i o n 70 5 20 0 ( 5 ) 05 5 6 9 42 9 10 3 7, 7 0 5 20 0 ( 5 ) 05 5 6 9 42 9 10 3 Va p o r i z a t i o n 70 5 20 0 ( 5 ) 00 3 0 3 34 7 7,7 0 5 , 20 0 ( 5 ) 00 3 0 3 34 7 Tf- 2 R e s e r v a t i o n 70 5 15 0 ( 5 ) 02 7 7 6 21 3 89 5 70 5 15 D (5 ) 02 7 7 6 21 3 89 5 Tf , 2 R e d e l i v e l ' ! Ch a r g e 70 5 20 0 ( 5 ) 00 3 0 0 23 , 11 6 7. 7 0 5 20 0 (5 ) 00 3 0 0 11 6 Oth e r S t o r a g e f a c i l i t i e s (9 4 4 , 23 6 ) ( 7 ) (1 2 3 , 48 6 ) (4 5 1 53 0 ) (3 0 9 62 6 ) (4 4 , 14 2 ) (1 5 45 2 ) CO M M O D I T Y CH A R G E S : Tr e n s p o r t a t i o n : T , lln d u s t J i a l T r a n s p o r 1 a t i o o 31 2 16 0 00 4 1 0 99 , 68 0 31 2 16 0 00 4 1 0 68 0 2ln d u s t J i a l T r a n s p o r t a t i o o 04 1 72 5 00 4 1 0 27 1 04 1 . 7 2 5 00 4 1 0 27 1 St o r a 9 a : LN G 00 0 00 0 0.4 7 5 0 0 85 0 00 0 00 0 00 0 55 4 9 2 32 9 52 0 47 9 52 0 76 5 24 7 , 94 5 16 6 81 0 7,7 0 5 20 0 0.4 7 5 0 0 65 9 97 0 70 5 20 0 55 4 9 2 27 5 , 77 0 61 5 80 0 17 1 31 8 . 4 1 2 21 4 21 7 SG S 92 0 , 99 0 0.4 7 5 0 0 18 7 . 4 7 0 92 0 99 0 55 4 9 2 06 0 27 6 87 2 80 6 11 7 88 3 45 1 30 2 30 3 62 1 Pr o d u c e r / S u p p l i e r P u r c h a s e s : 24 0 48 1 , 65 4 0.4 7 5 0 0 11 4 , 22 8 78 6 24 0 48 1 65 4 55 4 9 2 13 3 , 44 8 , 07 9 21 9 29 3 59 5 , 7 9 0 93 7 , 73 2 68 5 , 77 1 TO T A L R S , RS , , a n d G S , 1 S A L E S V O L U M E S 26 5 10 7 , 84 4 26 5 10 7 84 4 87 4 28 4 60 5 33 1 67 4 83 5 23 5 20 6 26 5 85 2 06 0 No n n a l i l e d S a l e s / C D V o l s , ( 1 0 / 1 1 0 3 - 9 / 3 0 / 0 3 1 80 5 92 4 13 7 07 9 45 4 92 , 22 2 . 4 6 6 31 2 , 16 0 66 0 , 84 0 04 1 . 7 2 5 Av e r a g e B a s e R a t e C h a n g e 10 0 6 9 09 9 7 6 10 0 1 4 01 0 9 3 14 0 8 2 Oth e r P e n n a n e n ! C h a n g e s P r o p o s e d : Eli m i n a t i o n of T e m p o r a l ' ! Cre d i ~ a n d S u r c h a r g e s f r o m C a . . N o , IN T - G.( ) 3 , (0 , 01 5 9 0 ) (0 , 01 2 1 7 ) (0 , 01 7 0 0 ) 00 2 1 2 09 1 1 7 Ad j u s l m e f 1 l l o f i x e d C o s t Co l l e c t i o n R a l e ( s e e E x h i b i t 6, L i n e 2 4 ) (0 , 00 3 3 4 ) (0 , 00 2 5 9 ) (0 , 00 0 0 7 ) 00 1 9 8 To t a l P e n n a n e n t C h a n g e s P r o p o s e d ( L i n e s 3 3 t h r o u g h 3 4 ) : 08 1 4 5 08 5 D 0 08 3 0 7 01 5 0 3 20 7 9 0 Te m p o r a l ' ! S u r c h a r g e ( C r e d i t ) P r o p o s e d ( E x h i b i t N o , 7 , L i n e 4 , C o l s ( b ) - ( i j ) (0 , 00 0 9 9 ) (0 , 00 4 1 7 ) (0 , 00 1 7 9 ) 00 0 3 7 (0 , 04 1 6 2 ) Pr o p o s e d A v e r a g e P e r T h e n n / C D C h a n g e i n I n t e n n o u n t a i n G a s C o m p a n y T a r i f f 08 0 4 6 08 0 8 3 08 1 2 8 01 5 4 0 16 6 2 8 (') S e e W o r k p a p e r No , 5 , L i n e 1 0 '" S e e W o r k p a p e r N o , 1 '" S e e W o r k p a p e r N o , 2 ") S e e W o r k p a p e r N o , 3 ,5 ) R e p r e s e n ~ N o n - Ad d i t i v e D e m a n d Ch a r g e D e l e n n i n a n ~ (~ P r i c e R e f l e c ~ D a i l y Ch a r g e ; P r i c e ( C o l c& Q t i m e s An n u a l T h e n n s / B i l l i n g De l e r m i n a n ~ ( C o l b & e ) tim e s 3 6 5 e q u a l s a n n u a l c h a r g e to S e e W o r k p a p e r N o , 4 , L i n e 2 9 , C o l u m n (d ) -a s - o m OJ . . . . O J X co C D e n ~ CD " " CD 0 ' .. . . . . g z; : : : ; : 0 C 0 Z -" : J ' 0 .. . . . . f i r z ' S. - - i GJ 6 OJ ' en 0 0 f " -.: : : .a ; . rJ ) . ~ 0 ~ c F= ~ ~ rJ ) . IN T E R M O U N T A I N G A S C O M P A N Y Su m m a r y o f F i x e d G a s C o s t C h a r g e s An n u a l T h e r m s / 7/1 / 2 0 0 3 An n u a l Li n e Bi l l i n g D e t e r m i n a n t s Pr i c e s Co s t No , De s c r i p t i o n IN T . 03 - IN T . 03 . IN T . 03 - (a ) (b ) (c ) (d ) DE M A N D C H A R G E S : Tr a n s p o r t a t i o n : NW P T F - 1 D e m a n d 1 ( F u l l R a t e ) 54 6 , 73 0 , 10 0 02 8 6 2 64 7 , 4 1 5 NW P T F - 1 D e m a n d 1 ( D i s c o u n t e d ) 14 8 , 4 0 4 , 4 0 0 01 8 8 3 2, 7 9 5 15 2 Up s t r e a m C a p a c i t y 51 1 36 3 , 09 0 00 9 7 0 96 1 18 1 St o r a g e : SG S - De m a n d 30 3 37 0 00 1 6 9 18 7 02 3 (2 ) Ca p a c i t y D e m a n d 10 , 92 0 99 0 00 0 0 6 24 7 14 2 (2 ) TF - 2 R e s e r v a t i o n 10 , 92 0 99 0 02 7 7 6 30 3 16 7 TF - 2 R e d e l i v e r y C h a r g e 92 0 , 99 0 00 3 0 0 76 3 LS - De m a n d 72 0 00 0 00 2 6 0 68 3 28 0 (2 ) Ca p a c i t y 70 5 , 20 0 00 0 3 3 92 8 , 09 1 (2 ) Liq u e f a c t i o n 7,7 0 5 , 20 0 05 5 6 9 42 9 10 3 Va p o r i z a t i o n 7,7 0 5 , 20 0 00 3 0 3 34 7 TF - 2 R e s e r v a t i o n 7,7 0 5 15 0 02 7 7 6 21 3 89 5 TF - 2 R e d e l i v e r y C h a r g e 7,7 0 5 20 0 00 3 0 0 11 6 Oth e r S t o r a g e F a c i l i t i e s 05 9 93 2 To t a l F i x e d G a s C o s t C h a r g e s 30 , 53 4 60 7 No r m a l i z e d S a l e s l C D V o l s , ( I N T - 04 - E s t i m a t e d V o l u m e s ) Fix e d C o s t C o l l e c t i o n p e r T h e r m ( R o w 2 0 1 R o w 2 1 ) Cu r r e n t F i x e d C o s t C o l l e c t i o n p e r T h e r m Dif f e r e n c e ( R o w 2 2 - R o w 2 3 ) (1 ) S e e W o r k p a p e r N o , 5 , L i n e 1 0 (2 ) P r i c e R e f l e c t s D a i l y C h a r g e ; P r i c e ( C o I c ) t i m e s A n n u a l T h e r m s ( C o l b ) t i m e s 3 6 5 e q u a l s a n n u a l c h a r g e ( C o l d ) Co s t o f S e r v i c e A l l o c a t i o n o f G a s C o s t A d j u s t m e n t ( 1 ) RS . RS - GS . (e ) (I ) (g ) (h ) (i ) 04 6 35 2 7,4 8 2 54 9 13 0 96 6 73 1 , 4 9 2 25 6 05 6 36 5 54 7 33 6 63 4 91 6 56 2 13 0 , 66 9 45 , 7 4 0 64 8 81 8 37 2 , 4 2 3 62 6 82 8 23 1 92 7 18 5 24 , 4 5 9 89 , 4 3 4 32 7 8, 7 4 3 06 0 32 1 11 8 , 18 3 81 , 04 1 11 , 55 3 04 4 64 8 14 4 97 3 99 , 4 1 2 14 , 17 3 96 1 4, 4 2 5 94 1 39 7 35 9 32 6 , 7 4 3 22 4 , 05 5 31 , 94 2 11 , 18 1 12 1 37 5 44 3 , 81 0 30 4 33 2 43 , 38 7 15 , 18 7 56 , 11 8 20 5 , 19 5 14 0 , 7 0 8 06 0 02 2 05 3 16 5 65 6 09 1 38 2 97 3 10 2 28 4 13 9 99 9 50 0 12 2 95 3 04 1 53 0 95 3 94 1 , 4 4 9 33 1 29 8 18 9 , 79 5 66 , 4 3 7 99 3 , 52 3 60 3 , 7 3 6 01 3 , 76 2 1, 4 2 4 , 83 1 49 8 , 75 5 04 1 , 53 3 15 4 , 60 6 , 67 9 98 , 12 0 50 8 82 9 86 1 66 0 , 84 0 10 7 8 1 09 4 4 6 10 2 0 6 04 9 4 2 75 4 7 3 11 1 1 5 09 7 0 5 10 2 1 3 04 7 4 4 0. 7 7 8 8 2 00 3 3 4 00 2 59 ) 00 0 00 1 9 8 02 4 0 "" 0 S " ( " ) m OJ . . . . . . O J X c. o C D e n : : T CD " " CD 0 ' -- ' " ~ Z ~ oc : O Z ... . . , ~ : . . - ~ -- ' " O J Z :j " - i G) G ) OJ I en 0 (" ) f " ::J -.: : : IN T E R M O U N T A I N G A S C O M P A N Y Su m m a r y o f P r o p o s e d T e m p o r a r y S u r c h a r g e s ( C r e d i t s ) CO S T O F S E R V I C E A L L O C A T I O N O F D E F E R R E D G A S C O S T S Li n e No . De s c r i p t i o n RS - RS - GS - (a ) (b ) (c ) (d ) (e ) (f ) Ma r k e t S e g m e n t a t i o n C r e d i t (1 ) (0 . 00 8 6 1 ) (0 , 00 8 2 3 ) (0 , 00 8 3 9 ) (0 , 00 4 5 4 ) (0 , 05 8 4 0 ) Pr o p o s e d T e m p o r a r y S u r c h a r g e ( C r e d i t ) - Fi x e d D e f e r r a l (2 ) 01 1 7 1 00 8 1 5 01 0 6 9 00 4 9 1 01 6 7 8 Pr o p o s e d T e m p o r a r y S u r c h a r g e ( C r e d i t ) - Va r i a b l e D e f e r r a l (3 ) (0 . 00 4 0 9 ) (0 . 00 4 0 9 ) (0 , 00 4 0 9 ) To t a l P r o p o s e d T e m p o r a r y S u r c h a r g e ( C r e d i t ) (0 , 00 0 9 9 ) (0 , 00 4 1 7 ) (0 . 00 1 7 9 ) 00 0 3 7 (0 , 04 1 6 2 ) (1 ) S e e E x h i b i t N o . , L i n e 3 , C o l s . ( c ) - ( g ) (2 ) S e e E x h i b i t N o , 9 , L i n e 1 1 , C o l . ( c ) - ( g ) (3 ) S e e E x h i b i t N o , 1 0 , L i n e 4 , C o l . ( b ) -u - ;: l . Q ) x co C D e n :: T CD - ' CD 6 ' -' ~ z; : : ; : 0 c 0 Z -- h : : J ' 0 fi ) z ~ . S' - i .. . . . G) 6 Q) I en a 0 f " ::J 0.. . : : : Li n e No . Se g m e n t a t i o n C r e d i t s IN T E R M O U N T A I N G A S C O M P A N Y Al l o c a t i o n o f A n n u a l i z e d S e g m e n t a t i o n C r e d i t s De s c r i p t i o n (a ) CO S T O F S E R V I C E A L L O C A T I O N O F D E F E R R E D G A S C O S T S (1 ) To t a l RS - RS - GS - (b ) (c ) (d ) (e ) (1 ) (g ) 35 8 52 2 ) (3 0 8 , 4 4 5 ) 12 7 83 9 ) (7 7 3 38 6 ) (1 1 0 25 7 ) (3 8 59 5 ) 35 , 80 5 , 92 4 13 7 07 9 , 4 5 4 22 2 , 4 6 6 31 2 , 16 0 66 0 , 84 0 (0 , 00 8 6 1 ) (0 , 00 8 2 3 ) (0 , 00 8 3 9 ) (0 , 00 4 5 4 ) (0 . 05 8 4 0 ) No r m a l i z e d S a l e s / C D V o l s . ( 1 0 / 1 / 0 3 - 9 / 3 0 / 0 3 ) Pr o p o s e d P r i c e A d j u s t m e n t P e r T h e r m / C D (1 ) S e e W o r k p a p e r N o , 5 , L i n e 1 0 "" O s - o m OJ . . . . O J X (0 C D e n :: T CD - ' CD 6 ' ~ z ; : + 0 c 0 Z .. . , : J ' 0 -" a r z 5' - I G) 6 OJ I en ~ 0 ' -.. . : : IN T E R M O U N T A I N GA S C O M P A N Y Pr o p o s e d T e m p o r a r y S u r c h a r g e s ( C r e d i t s ) - F i x e d C o s t s De f e r r e d Ac c o u n t 1 8 6 0 Es t i m a t e d CO S T O F S E R V I C E A L L O C A T I O N O F D E F E R R E D G A S C O S T S (1 ) Li n e Ju n e 3 0 , 2 0 0 4 No . De s c r i p t i o n Ba l a n c e ( 2 ) RS - RS - GS - (a ) (b ) (c ) (d ) (e ) (f ) (g ) Fi x e d C o s t s : Fr o m I N T - 03 - 1 ( A c c t s 1 8 6 0 . 20 5 0 - 2 0 9 0 , 2 5 1 0 , 2 5 7 0 ) 31 0 68 4 (3 0 85 7 ) 55 2 15 , 92 9 Fi x e d C o s t C o l l e c t i o n A d j u s t m e n t ( A c c l . 1 8 6 0 , 22 0 0 ) 21 5 83 0 49 8 , 4 6 4 35 0 20 3 17 7 , 4 9 9 16 8 , 89 7 20 , 7 6 7 St a t o l l R e v e n u e D e f e r r a l ( A c c l . 1 8 6 0 , 22 6 0 ) (5 9 , 4 1 2 ) 77 0 ) (2 8 , 4 1 1 ) (1 9 , 4 8 2 ) (2 , 7 7 7 ) (9 7 2 ) Ca p a c i t y R e l e a s e & P u r c h a s e s ( A c c t 1 8 6 0 . 2 3 2 0 ) (5 3 9 , 19 6 ) (7 0 51 5 ) (2 5 7 84 2 ) (1 7 6 , 80 9 ) (2 5 , 20 7 ) (8 , 82 3 ) In t e r e s t ( A c c t s 1 8 6 0 , 24 2 0 , 2 4 3 0 ) 10 , 79 6 1, 4 1 2 16 2 54 0 50 5 17 7 Ma r k e t S e g m e n t a t i o n ( A c c t 1 8 6 0 , 25 3 0 ) 36 8 60 2 ) (3 1 5 56 9 ) 09 1 60 9 ) (7 7 6 , 4 4 7 ) (1 4 4 98 0 ) (3 9 99 7 ) Am o r t i z a t i o n o f 1 8 6 0 , 25 3 0 ( A c c t 1 8 6 0 . 25 4 0 - 1 8 6 0 . 25 5 0 ) 39 2 89 9 30 5 60 0 17 0 , 7 1 0 76 9 , 7 6 2 10 6 , 89 2 39 , 93 5 To t a l F i x e d C o s t s 26 5 2 6 2 5 41 9 3 0 6 17 3 5 6 98 5 6 1 5 11 9 2 5 9 11 0 8 9 No r m a l i z e d S a l e s / C D V o l s . ( 1 0 / 1 / 0 3 - 9 / 3 0 / 0 3 ) 35 8 0 5 9 2 4 37 0 7 9 4 5 4 92 2 2 2 4 6 6 24 3 1 2 1 6 0 66 0 8 4 0 Pr o p o s e d T e m p o r a r y S u r c h a r g e ( C r e d i t ) - Fi x e d C o s t s 01 1 7 1 00 8 1 5 01 0 6 9 00 4 9 1 01 6 7 8 (1 ) S e e W o r k p a p e r N o , 5 , L i n e 1 0 (2 ) S e e W o r k p a p e r N o , 'l J - ~O J x co C D e n = r CD "'" " I C D 6 ' Z; : : ; : 0 c 0 Z -- n : J -" O J z ; " S' - - i " " ' G) 6 OJ I en a 0 f - -.. : : : Line No. Exhibit No.1 0 Case No. INT-O4- Intermountain Gas Company Page 1 of INTERMOUNTAIN GAS COMPANY Proposed Temporary Surcharges (Credits) . Variable Costs Description (a) Amount (b) Account 1860 Amounts Which Apply to RS., RS-, GS., and L V-1 : Account 1860 Variable Costs (1) Normalized Sales/CD Vols. (10/1/03 - 9/30/03) Proposed Temporary Surcharge(Credit) . Variable Costs $ (1 097,480) 268 262,707 $ (0.00409) (1) See Workpaper No.6, Page 1 Line , Col (D Li n e No . De s c r i ti o n (a ) Ga s S a l e s : RS - 1 R e s i d e n t i a l RS - 2 R e s i d e n t i a l GS - 1 G e n e r a l S e r v i c e LV - 1 L a r g e V o l u m e To t a l G a s S a l e s T - 1 T r a n s p o r t a t i o n 2 T r a n s p o r t a t i o n ( D e m a n d ) 2 T r a n s p o r t a t i o n ( C o m m o d i t y ) To t a l T - (1 ) To t a l (1 ) D e m a n d v o l u m e s r e m o v e d f r o m t h e $ / t h e r m c a l c u l a t i o n s IN T E R M O U N T A I N G A S C O M P A N Y An a l y s i s o f A n n u a l i z e d P r i c e C h a n g e b y C l a s s o f S e r v i c e No r m a l i z e d V o l u m e s f o r T w e l v e M o n t h s E n d e d S e p t e m b e r 3 0 , 2 0 0 3 Av e r a g e P r i c e s E f f e c t i v e pe r C a s e N o , I N T - G- O 3 - Co m m i s s i o n O r d e r N o , 2 9 2 7 7 Pr o p o s e d Ad j u s t m e n t s E f f e c t i v e 7/ 1 / 2 0 0 4 Pr o p o s e d A v e r a g e P r i c e s Ef f e c t i v e 7 / 1 / 2 0 0 4 An n u a l Th e r m s / C D V o l s , (b ) Re v e n u e (c ) $f T h e r m (d ) Re v e n u e (e ) $f T h e r m (f j Re v e n u e (g ) $f T h e r m (h ) 80 5 92 4 $ 03 8 , 12 6 $ 92 2 7 0 88 0 94 5 $ 08 0 4 6 91 9 07 1 $ 00 3 1 6 13 7 07 9 , 4 5 4 11 1 52 6 , 4 7 3 81 3 5 9 08 0 , 13 2 08 0 8 3 12 2 60 6 60 5 89 4 4 2 92 , 22 2 , 4 6 6 28 3 35 5 77 2 9 5 7, 4 9 5 , 84 2 08 1 2 8 77 9 19 7 85 4 2 3 15 4 86 3 89 8 31 3 60 1 7 1 23 4 15 4 07 4 2 2 13 2 67 5 9 3 26 8 26 2 70 7 7. 7 26 7 81 1 6 9 21 69 1 07 3 08 0 8 6 23 9 34 0 89 2 5 5 15 7 29 7 02 1 36 8 09 5 5 4 32 5 , 82 2 01 5 4 0 34 7 19 0 11 0 9 4 66 0 84 0 45 4 , 4 2 7 68 7 6 5 10 9 , 88 4 16 6 2 8 56 4 31 1 85 3 9 3 04 1 , 72 5 13 8 03 4 00 6 5 6 13 8 03 4 00 6 5 6 04 1 72 5 59 2 02 8 1 6 10 9 88 4 00 5 2 2 70 2 34 5 03 3 3 8 31 0 , 4f i 1 l 2 . 9 $ 22 0 3 6 0 0 9 6 $ il l O 9 l 8 22 , 12 6 . : m 00 7 1 2 7 24 2 4 8 6 . 87 5 $ 07 8 1 0 5 Pe r c e n t Ch a n q e (i ) 72 % 93 % 10 . 52 % 12 . 33 % 96 % 16 , 12 % 24 , 18 % 00 % 18 . 54 % 10 . 04 % -o s - o m ro . - + r o X co (1 ) e n : : r (1 ) - . ( 1 ) 5 ' -- " Z; : : ; : a c a Z -- n : J ' a -- " o r z: " " S' - I -- " G) ( ; ) ro I en a f" - '- 0 : : : : rJ ' 1 ': Z rJ ' 1 rJ ' 1 EXECUTIVE OFFICES INTERMOUNTAIN GAS COMPANY 555 SOUTH COLE ROAD. P.O. BOX 7608 . BOISE, IDAHO 83707 . (208) 377-6000 . FAX: 377-6097 NEWS RELEASE Contact: Mike Huntington Vice President Marketing & External Affairs (208) 377-6059May 5, 2004 TODAY, INTERMOUNTAIN GAS COMPANY ("INTERMOUNTAIN ) FILED ITS ANNUAL PURCHASED GAS COST ADJUSTMENT APPLICATION WITH THE IDAHO PUBLIC UTILITIES COMMISSION ("IPUC"). THIS TYPE OF APPLICATION IS FILED EACH YEAR TO ENSURE THAT THE COSTS THAT INTERMOUNTAIN IS INCURRING ON BEHALF OF ITS CUSTOMERS ARE PROPERLY REFLECTED IN ITS SALES PRICE. IN ITS APPLICATION, INTERMOUNTAIN REQUESTS PERMISSION TO ADJUST ITS PRICES TO REFLECT THE HIGHER PRICES THAT INTERMOUNTAIN MUST PAY TO ITS NATURAL GAS SUPPLIERS. WILLIAM C. "BILL" GLYNN, PRESIDENT OF INTERMOUNTAIN GAS COMPANY, SAID , " As OUR CUSTOMERS ALREADY REALIZE CRUDE OIL AND ITS DERIVATIVE GASOLINE, ARE CURRENTLY UNDER SEVERE PRICE PRESSURE. SIMILARLY NATURAL GAS, AS ANOTHER ENERGY COMMODITY, IS NOW EXPERIENCING THOSE SAME PRESSURES BECAUSE IDAHO IS NOT ISOLATED FROM THE PRICE INFLUENCES OF THE NATIONAL MARKET. CONSEQUENTLY, WE ARE FEELING THAT PRICE IMPACT IN OUR ROCKY MOUNTAIN AND CANADIAN SUPPLY BASINS. WHILE CONSERVATION AND WISE ENERGY USE ARE THE BEST SHORT RANGE SOLUTIONS TO THE SUPPLY DEMAND IMBALANCE THAT DRIVES THESE PRICE INCREASES, THE BEST LONG TERM SOLUTION IS ALLOWING THE INDUSTRY TO ACCESS THE ENORMOUS AMOUNTS OF NATURAL GAS THAT ALREADY EXIST ON PUBLIC LANDS. THE INDUSTRY CAN PRUDENTLY DRILL WHERE THE RESOURCES EXIST WITHOUT DAMAGING THESE LANDS, AND I ASK THAT OUR CUSTOMERS BECOME MORE INFORMED ON THIS IMPORTANT PUBLIC POLICY ISSUE. GLYNN SAID , " WHILE THIS APPLICATION REFLECTS THE CURRENT AND MARKET FORECAST OF NATURAL GAS PRICES FOR THE NEXT TWELVE MONTHS, EVEN AT THESE HIGHER PRODUCER PRICES, NATURAL GAS IN SOUTHERN IDAHO WILL STILL BE 25% - 45% LESS THAN ELECTRICITY. THE COMPANY IS NOT REQUESTING ANY CHANGE IN THE PRICE COMPONENT FOR ITS OWN SERVICE, OPERATION, MAINTENANCE, OR CAPITAL COSTS, WHICH HAS REMAINED THE SAME FOR OVER 20 YEARS. THEREFORE THE COMPANY S EARNINGS WILL NOT INCREASE AS A RESULT OF THE PROPOSED PRICE CHANGES. GLYNN WENT ON TO SAY , " INTERMOUNTAIN ENCOURAGES ALL ITS CUSTOMERS TO BE CONSCIOUS OF THEIR ENERGY USAGE. HELPFUL TIPS ON WAYS TO CONSERVE AND USE ENERGY WISELY, AND HOW TO REQUEST ENERGY ASSISTANCE ARE PROVIDED THROUGH BILL INSERTS AND ON THE COMPANY S WEB SITE (www.intqas.com). WE CONTINUE TO WORK WITH THE LOCAL AGENCIES THAT ADMINISTER ENERGY ASSISTANCE FUNDS TO HELP THOSE RESIDENTIAL CUSTOMERS WHOSE INCOMES ARE MOST IMPACTED BY HIGHER ENERGY PRICES. WE ALSO HAVE A NUMBER OF PROGRAMS TO HELP OUR CUSTOMERS LEVEL OUT THEIR ENERGY BILLS OVER THE YEAR AND STABILIZE THE POTENTIAL IMPACT THAT COLD WEATHER WILL HAVE DURING PERIODS OF HIGHER NATURAL GAS COSTS. IF THIS PROPOSED INCREASE IS APPROVED, RESIDENTIAL CUSTOMERS USING NATURAL GAS FOR HEATING AND WATER HEATING COULD EXPERIENCE AN AVERAGE MONTHLY INCREASE OF $6.02 (9.9%). THOSE RESIDENTIAL CUSTOMERS USING NATURAL GAS FOR SPACE HEATING ONLY COULD EXPERIENCE AN AVERAGE MONTHLY INCREASE OF $4.08 (8.7%). COMMERCIAL CUSTOMERS COULD EXPERIENCE AN AVERAGE MONTHLY INCREASE OF $26.19 (10.5%). IF APPROVED AS FILED, THE TOTAL NET REVENUE INCREASE FROM THIS CURRENT REQUEST WILL BE APPROXIMATELY $22. MILLION (10%) AND IS PROPOSED TO BE EFFECTIVE JULY 1, 2004. THIS PROPOSAL IS SUBJECT TO PUBLIC REVIEW AND APPROVAL BY THE IPUC. A COpy OF INTERMOUNTAIN S APPLICATION IS AVAILABLE AT THE OFFICES OF BOTH THE IDAHO PUBLIC UTILITIES COMMISSION AND THE COMPANY. EXECUTIVE OFFICES INTERMOUNTAIN GAS COMPANY 555 SOUTH COLE ROAD. P.O. BOX 7608 . BOISE, IDAHO 83707 . (208) 377-6000 . FAX: 377-6097 CUSTOMER NOTICE Contact: Mike Huntington Vice President Marketing & External Affairs (208) 377-6059 ON MAY 5, 2004, INTERMOUNTAIN GAS COMPANY ("INTERMOUNTAIN ) FILED ITS ANNUAL PURCHASED GAS COST ADJUSTMENT APPLICATION WITH THE IDAHO PUBLIC UTILITIES COMMISSION ("IPUC"). THIS TYPE OF APPLICATION IS FILED EACH YEAR TO ENSURE THAT THE COSTS THAT INTERMOUNTAIN IS INCURRING ON BEHALF OF ITS CUSTOMERS ARE PROPERLY REFLECTED IN ITS SALES PRICE. IN ITS APPLICATION, INTERMOUNTAIN REQUESTS PERMISSION TO ADJUST ITS PRICES TO REFLECT THE HIGHER PRICES THAT INTERMOUNTAIN MUST PAY TO ITS NATURAL GAS SUPPLIERS. WILLIAM C. "BILL" GLYNN, PRESIDENT OF INTERMOUNTAIN GAS COMPANY, SAID , " As OUR CUSTOMERS ALREADY REALIZE CRUDE OIL AND ITS DERIVATIVE GASOLINE, ARE CURRENTLY UNDER SEVERE PRICE PRESSURE. SIMILARLY NATURAL GAS, AS ANOTHER ENERGY COMMODITY, IS NOW EXPERIENCING THOSE SAME PRESSURES BECAUSE IDAHO IS NOT ISOLATED FROM THE PRICE INFLUENCES OF THE NATIONAL MARKET. CONSEQUENTLY, WE ARE FEELING THAT PRICE IMPACT IN OUR ROCKY MOUNTAIN AND CANADIAN SUPPLY BASINS. WHILE CONSERVATION AND WISE ENERGY USE ARE THE BEST SHORT RANGE SOLUTIONS TO THE SUPPLY DEMAND IMBALANCE THAT DRIVES THESE PRICE INCREASES, THE BEST LONG TERM SOLUTION IS ALLOWING THE INDUSTRY TO ACCESS THE ENORMOUS AMOUNTS OF NATURAL GAS THAT ALREADY EXIST ON PUBLIC LANDS. THE INDUSTRY CAN PRUDENTLY DRILL WHERE THE RESOURCES EXIST WITHOUT DAMAGING THESE LANDS, AND I ASK THAT OUR CUSTOMERS BECOME MORE INFORMED ON THIS IMPORTANT PUBLIC POLICY ISSUE. GLYNN SAID , " WHILE THIS APPLICATION REFLECTS THE CURRENT AND MARKET FORECAST OF NATURAL GAS PRICES FOR THE NEXT TWELVE MONTHS, EVEN AT THESE HIGHER PRODUCER PRICES, NATURAL GAS IN SOUTHERN IDAHO WILL STILL BE 25% - 45% LESS THAN ELECTRICITY. THE COMPANY IS NOT REQUESTING ANY CHANGE IN THE PRICE COMPONENT FOR ITS OWN SERVICE, OPERATION, MAINTENANCE, OR CAPITAL COSTS, WHICH HAS REMAINED THE SAME FOR OVER 20 YEARS. THEREFORE THE COMPANY S EARNINGS WILL NOT INCREASE AS A RESULT OF THE PROPOSED PRICE CHANGES. GLYNN WENT ON TO SAY , " INTERMOUNTAIN ENCOURAGES ALL ITS CUSTOMERS TO BE CONSCIOUS OF THEIR ENERGY USAGE. HELPFUL TIPS ON WAYS TO CONSERVE AND USE ENERGY WISELY, AND HOW TO REQUEST ENERGY ASSISTANCE ARE PROVIDED THROUGH BILL INSERTS AND ON THE COMPANY'S WEB SITE (www.intqas.com). WE CONTINUE TO WORK WITH THE LOCAL AGENCIES THAT ADMINISTER ENERGY ASSISTANCE FUNDS TO HELP THOSE RESIDENTIAL CUSTOMERS WHOSE INCOMES ARE MOST IMPACTED BY HIGHER ENERGY PRICES. WE ALSO HAVE A NUMBER OF PROGRAMS TO HELP OUR CUSTOMERS LEVEL OUT THEIR ENERGY BILLS OVER THE YEAR AND STABILIZE THE POTENTIAL IMPACT THAT COLD WEATHER WILL HAVE DURING PERIODS OF HIGHER NATURAL GAS COSTS. IF THIS PROPOSED INCREASE IS APPROVED, RESIDENTIAL CUSTOMERS USING NATURAL GAS FOR HEATING AND WATER HEATING COULD EXPERIENCE AN AVERAGE MONTHLY INCREASE OF $6.02 (9.9%). THOSE RESIDENTIAL CUSTOMERS USING NATURAL GAS FOR SPACE HEATING ONLY COULD EXPERIENCE AN AVERAGE MONTHLY INCREASE OF $4.08 (8.7%). COMMERCIAL CUSTOMERS COULD EXPERIENCE AN AVERAGE MONTHLY INCREASE OF $26.19 (10.5%). IF APPROVED AS FILED, THE TOTAL NET REVENUE INCREASE FROM THIS CURRENT REQUEST WILL BE APPROXIMATELY $22. MILLION (10%) AND IS PROPOSED TO BE EFFECTIVE JULY 1 2004. THIS PROPOSAL IS SUBJECT TO PUBLIC REVIEW AND APPROVAL BY THE IPUC. A COpy OF INTERMOUNTAIN S APPLICATION IS AVAILABLE AT THE OFFICES OF BOTH THE IDAHO PUBLIC UTILITIES COMMISSION AND THE COMPANY. WORKPAPERNOS. CASE NO. INT-G-O4- INTERMOUNTAIN GAS COMPANY (8 pages) Workpaper No. Case No. INT-O4- Intermountain Gas Company Page 1 of Intermountain Gas Company Northwest Pipeline TF-1 Full Rate Demand Workpaper Northwest Pi eline TF.1 Full Rate Demand As Filed In INT.O3. Line INT-03-INT-03-INT-03- No,Trans ortation Annual Therms Prices Annual Cost (a)(b)(c)(d) TF-1 Demand 1 Contract #1 412 537 600 02862 806 826 TF-1 Demand 1 Contract #2 550,000 02862 731 241 TF-1 Demand 1 Contract #3 000,000 02862 089 260 TF-1 Demand 1 Contract #4 23,542 500 02862 673 786 TF-1 Demand 1 Contract #5 100 000 02862 346 302 TF-1 Demand 1 Contract #6 TF-1 Demand 1 Contract #7 Total Annual Cost 546 730 100 02862 647,415 Annualized Northwest Pi eline TF.1 Full Rate Demand From INT.O3- Line INT-04-INT-04-INT-04- No,Trans ortation Annual Therms Prices Annual Cost (a)(b)(c)(d) TF-1 Demand 1 Contract #1 412 537 600 02855 775 886 TF-1 Demand 1 Contract #2 550 000 02855 729 325 TF-1 Demand 1 Contract #3 000,000 02855 083,785 TF-1 Demand 1 Contract #4 542 500 02855 672 021 TF-1 Demand 1 Contract #5 850 000 02855 937 703 TF-1 Demand 1 Contract #6 TF-1 Demand 1 Contract #7 Total Annual Cost 567,480,100 02855 198,719 Annual Cost Difference As Filed VS. Annualized 551 304 Incremental Northwest Pi eline TF.1 Full Rate Demand Line INT-04-INT-04-INT-04- No,Trans ortation Annual Therms Prices Annual Cost (a)(b)(c)(d) TF-1 Demand 1 Contract #1 TF-1 Demand 1 Contract #2 TF-1 Demand 1 Contract #3 TF-1 Demand 1 Contract #4 TF-1 Demand 1 Contract #5 TF-1 Demand 1 Contract #6 200 000 02855 690,789 TF-1 Demand 1 Contract #7 5,460 000 02855 155 856 Total Incremental Cost 29,660 000 02855 846 645 Total Annual Cost Difference 397 949 (1) (1) See Exhibit 4 , Line 3, Column (h) Workpaper No. Case No. INT-O4- Intermountain Gas Company Page 1 of Intermountain Gas Company Northwest Pipeline TF-1 Discounted Demand Workpaper Northwest Pi eline TF.1 Discounted Demand As Filed In INT.O3. Line INT-03-INT-03-INT-03- No.Trans ortation Annual Therms Prices Annual Cost (a)(b)(c)(d) TF-1 Demand 1 Contract#1 680,000 02792 219 546 TF-1 Demand 1 Contract #2 28,470 000 01675 476,873 TF-1 Demand 1 Contract #3 29,404,400 01481 435,4 79 TF-1 Demand 1 Contract #4 650 000 01675 379 388 TF-1 Demand 1 Contract #5 200 000 01173 283 867 TF-1 Demand 1 Contract #6 Total Annual Cost 148,404,400 01883 795 152 Annualized Northwest Pi eline TF.1 Discounted Demand From INT.O3. Line INT-04-INT-04-INT-04- No,Trans ortation Annual Therms Prices Annual Cost (a)(b)(c)(d) TF-1 Demand 1 Contract #1 680 000 02785 216,488 TF-1 Demand 1 Contract #2 28,470 000 01671 475 734 TF-1 Demand 1 Contract #3 29,404,400 01476 434 009 TF-1 Demand 1 Contract #4 650 000 02785 630,803 TF-1 Demand 1 Contract #5 500 000 01671 609 879 TF-1 Demand 1 Contract #6 Total Annual Cost 160,704,400 02095 366,912 Annual Cost Difference As Filed VS. Annualized 571 760 Incremental Northwest Pi eline TF.1 Discounted Demand Line INT-04-INT-04-INT-04- No.Trans ortation Annual Therms Prices Annual Cost (a)(b)(c)(d) TF-1 Demand 1 Contract #1 TF-1 Demand 1 Contract #2 TF-1 Demand 1 Contract #3 TF-1 Demand 1 Contract #4 TF-1 Demand 1 Contract #5 TF-1 Demand 1 Contract #6 500 000 01949 711 385 Total Incremental Cost 500 000 01949 711 385 Total Annual Cost Difference 283 145 (1) (1) See Exhibit 4, Line 4, Column (h) Intermountain Gas Company Upstream Capacity Workpaper Line No, Upstream Capacity As Filed In INT.O3. INT-03-1 INT-03-Transportation Annual Therms Prices (a)(b)(c) Upstream Contract #1 Upstream Contract #2 Upstream Contract #3 Total Annual Cost 200 713 500 155 624 370 155,025 220 511 363 090 01060 00477 01349 00970 Line No. Annualized Upstream Capacity From INT.O3. INT-04- INT-04- Transportation (a) Annual Therms (b) Prices (c) Upstream Contract #1 Upstream Contract #2 Upstream Contract #3 Total Annual Cost 199 687 850 156,446 890 155 025 220 511 159 960 01271 00500 01351 01059 Annual Cost Difference As Filed VS. Annualized Workpaper No. Case No. INT-O4- Intermountain Gas Company Page 1 of INT-03- Annual Cost (d) 127 563 742 328 091 289 961 181 INT-04- Annual Cost (d) 539 031 782 224 094 183 5,415,438 454 257 Incremental Upstream Capacity Line INT-04-INT-04-INT-04- No,Trans ortation Annual Therms Prices Annual Cost (a)(b)(c)(d) 10 Upstream Contract #1 Upstream Contract #2 12 Upstream Contract #3 13 Upstream Contract #4 058 160 01325 206,496 14 Upstream Contract #5 172 258 810 00470 809 276 15 UpstreamContract#6 129 967 270 01139 1,479 978 16 Total Incremental Cost 393 284 240 00889 3,495 750 17 Total Annual Cost Difference 950,007 (1) (1) See Exhibit 4 , Line 5, Column (h) Workpaper No. Case No. INT-O4- Intermountain Gas Company Page 1 of Intermountain Gas Company Other Storage Facilities INT-03- Line Monthly INT-03-INT-03-INT-03- No,Stora e Facilities Billinq Determinant Prices Monthly Cost Annual Cost (a)(b)(c)(d)(d) Demand Costs. Clay Basin I Reservation 266 250 (1)28530 75,961 911 532 Clay Basin II Reservation 221 840 (1)28534 63,300 759,600 Clay Basin I Capacity 950 000 (2)00238 041 912,492 Clay Basin 1\ Capacity 26,625,000 (2)00238 63,368 760,416 AECO I Demand (2)00000 AECO 1\ Demand 064 970 (2)00109 28,411 340,932 Total Demand Costs 639 970 (3)307 081 684 972 Cycling Costs - Clay Basin Cycling Costs 575 000 00076 517 534 204 AECO Cycling Costs 064 970 00074 288 231,456 Total Cycling Costs 639 970 805 765 660 Storage Demand Charge Credit 390,700 Total Costs Including Storage Credit 059 932 INT-04- Monthly INT-04-INT-04-INT-04- Stora e Facilities Billinq Determinant Prices Monthly Cost Annual Cost (a)(b)(c)(d)(d) Demand Costs - Clay Basin I Reservation 266,250 (1)28534 972 911 664 Clay Basin II Reservation 221 840 (1)0.28534 300 759 600 Clay Basin I Capacity 950 000 (2)00238 041 912,492 Clay Basin 1\ Capacity 625 000 (2)00238 63,368 760,416 AECO I Demand AECO 1\ Demand 064 970 (2)00130 822 405 864 Total Demand Costs 639 970 (3)312 503 3,750 036 Cycling Costs. Clay Basin Cycling Costs 58,575 000 00076 517 534 204 AECO Cycling Costs 26,064 970 00074 288 231,456 Total Cycling Costs 639 970 805 765 660 Estimated Storage Demand Charge Credit 1,400 000 Total Costs Including Storage Credit 115,696 Total Annual Cost Difference Including Storage Credit (944 236) (4) (1) Charge Based on Maximum Daily Withdrawal (2) Charge Based on Maximum Contractual Capacity (3) Non Additive Billing Determants; Only Includes Capacity Volumes (4) See Exhibit 4, Line 19, Column (h) Workpaper No. Case No. INT-O4- Intermountain Gas Company Page 1 of INTERMOUNTAIN GAS COMPANY Peak Day Analysis for Demand Allocators in Case No. INT -O4- FIRM Line CORE TOTAL TRANSPORTATION TOTAL FIRM No,RS-RS-GS.CORE TRANSPORTATION DEMAND ALLOCATORS PER CASE NO. INT-O3- Peak Day Therms 434,491 502 979 069,049 006,519 199 616 070 254 686 % olTotal 92,19043%80957% TOTAL PEAK 261 205 .1.QQ.Q.QQQ?!g PROPOSED DEMAND ALLOCATORS PER CASE NO. INT-O4-: Peak Day Therms (Line 2)434,491 502 979 069 049 006 519 Customers Embedded within Line 2 61,024 155,427 937 241 388 Peak Day Usage Per Customer (Line 5 divided by Line 6)42. January 2004 Actual Customers 813 166,419 25,741 253 973 INT-O4- Peak Day Therms (Line 7 mulitplied by Line 8)440 109 609,272 103,517 152 898 157 322 070 % olTotal 93,68875%467484%1 63641% (1) FY04 Contract Therms 212 392 (1)365,290 31125% Detail Detail Amount Sub-Total Total (b)(c)(d)(e)(f) 4,427 981.91 673 733,53) 077 139 01701 868 822, 542 555,66) (114 573.75) 501 351.50 050 970,11) 561 363.75 (988,254,86) 394, (3,045,53) 348, 097 480,09) INTERMOUNTAIN GAS COMPANY Analysis of Account 1860 Surcharges (Credits) Estimated June 30, 2004 LineNo. Description (a) ACCOUNT 1860 VARIABLE AMOUNTS: Net Cumulative Deferred Gas Balance in 1860.2010 as of 7/1/03 Amortization in 1860,2020 as of 3/31/04 Estimated Therm Sales 4/1 through 6/30/04 Amortization Rate Estimated Amortization in 1860.2020 at 6/30/04 Estimated Balance in 1860,2010 at 6/30/04 Deferred Gas Costs From Producers/Suppliers in 1860,2180 at 7/1/03 Deferred Gas Costs From Producers/Suppliers in 1860,2180 through 3/31/04 Estimated Deferred Costs in 1860,2180 from 4/1 through 6/30/04 Estimated Balance in 1860.2180 at 6/30/04 Daily Gas Excess Sales Deferred in 1860,2240 at 3/31/04 Gas Cost Carrying Charge Deferred in 1860,2340 at 3/31/04 Estimated Gas Cost Carrying Charge from 4/1 through 6/30/04 Estimated Balance in 1860,2340 at 6/30/04 ESTIMATED ACCOUNT 1860 VARIABLE BALANCE AT 6/30/04 ACCOUNT 1860 FIXED AMOUNTS: Net Cumulative Deferred Gas Balance in 1860,2050 at 7/1/03 RS-1 Deferred Gas Baiance in 1860,2060 at 7/1/03 Amortization for RS-1 in 1860,2060 at 3/31/04 Estimated RS-1 Therm Saies 4/1 through 6/30/04 RS-1 Amortization Rate Estimated RS-1 Balance in 1860,2060 at 6/30/04 866 315 (0,00786) RS-2 Deferred Gas Balance in 1860,2070 at 7/1/03 Amortization for RS-2 in 1860,2070 at 3/31/04 Estimated RS-2 Therm Sales 4/1 through 6/30/04 RS-2 Amortization Rate Estimated RS-2 Balance in 1860,2070 at 6/30/04 244 130 (0,00358) GS-1 Deferred Gas Baiance in 1860,2080 at 7/1/03 Amortization for GS-1 in 1860,2080 at 3/31/04 Estimated Therm Sales 4/1 through 6/30/04 GS-1 Amortization Rate Estimated GS-1 Balance in 1860,2080 at 6/30/04 104 057 (0,00838) Industrial Deferred Gas Balance in 1860,2090 at 7/1/03 Amortization for T-1 & T-2 in 1860,2090 at 3/31/04 Estimated T-1 Block 1 & 2 Therm Sales 4/1 through 6/30/04 T -1 Amortization Rate 6,436 803 (0,00177) 165 210 03074 Estimated T -2 Contract 4/1 through 6/30/04 2 Amortization Rate Estimated Industrial Balance in 1860,2090 at 6/30/04 078, Estimated Cumulative Balance in 1860,2050 at 6/30/04 Fixed Cost Collection Deferred in 1860.2200 at 7/1/03 Fixed Cost Collection Deferred in 1860,2200 through 3/31/04 Estimated Fixed Cost Collection Deferred from 4/1 through 6/30/04 Estimated Balance in 1860,2200 at 6/30/04 Statoil Revenue Deferred in 1860.2260 at 7/1/03 Statoil Revenue Deferred in 1860,2260 through 3/31/04 Estimated Statoil Revenue Deferred from 4/1 through 6/30/04 Estimated Balance in 1860,2260 at 6/30/04 Capacity Released/Purchased Deferred in 1860.2320 at 3/31/04 223.38 (224 449.45) 109, 670,24) (395 322,11) 534, 251.45 (625 229,33) 143 332, (119,64) ($20948,23) (11 393,14) Workpaper No. Case No. INT-O4- Intermountain Gas Company Page 1 of 2 556 969, (268 335,32) (494 526,35) (767 309,89) (27 382.45) (584,82) (194,428,31) 370 540, 039 718, 215,829, 885.24) (43 360.40) (14 166.47) (59,412,11) (539 195,89) INTERMOUNTAIN GAS COMPANY Analysis of Account 1860 Surcharges (Credits) Estimated June 30, 2004 Line No.Description (a) Gas Cost Carrying Charge Deferred in 1860.2420 at 3/31104 Estimated Gas Cost Carrying Charge from 4/1 through 6/30/04 Estimated Balance in 1860.2420 at 6/30104 Detail (b) Gas Cost Carrying Charge Deferred in 1860.2430 at 3/31/04 Estimated Gas Cost Carrying Charge from 4/1 through 6/30/04 Estimated Balance in 1860,2430 at 6/30/04 NWP RP93.5 Surcharge Amortization Deferred in 1860,2510 at 3/31/04 Market Segmentation Deferred in 1860,2530 at 711103 Market Segmentation Deferred in 1860,2530 through 3/31/04 Estimated Deferral in 1860.2530 from 4/1 through 6/30/04 Estimated Balance in 1860,2530 at 6/30/04 RS-1 Amortization in 1860,2540 at 3/31/04 Estimated RS-1 Thenn Sales from 4/1 through 6/30/04 RS,1 Amortization Rate Estimated RS-1 Amortization in 1860,2540 at 6/30/04 866 315 00897 RS-2 Amortization in 1860,2540 at 3/31/04 Estimated RS-2 Thenn Saies from 4/1 through 6/30/04 RS-2 Amortization Rate Estimated RS-2 Amortization in 1860,2540 at 6/30/04 244 130 00842 GS-1 Amortization in 1860.2540 at 3/31/04 Estimated GS Thenn Sales from 4/1 through 6/30/04 GS-1 Amortization Rate Estimated GS-1 Amortization in 1860,2540 at 6/30/04 104 057 00839 Estimated Core Amortization in 1860,2540 at 6/30/04 1 Amortization in 1860,2550 at 3/31/04 Estimated T-1 Block 1&2 Thenn Saies from 4/1 through 6/30/04 1 Amortization Rate Estimated T-1 Amortization in 1860,2550 at 6/30/04 6,436 803 00404 2 Amortization in 1860,2550 at 3/31/04 Estimated T-2 Contract from 4/1 through 6/30/04 T -2 Amortization Rate Estimated T-2 Amortization in 1860,2550 at 6/30/04 165,210 06043 Estimated Industrial Amortization in 1860,2550 at 6/30/04 Estimated Balance in 1860,2530 at 6/30/04 NWP RP95.409 Refund Amortization Deferred in 1860.2570 at 3131104 ESTIMATED ACCOUNT 1860 FIXED BALANCE AT 6/30/04 TOTAL DEFERRED ACCOUNT 1860 BALANCE Workpaper No. Case No. INT-O4- Intermountain Gas Company Page 2 of 2 Detail Amount Sub.Total Total (c)(d)(e)(f) 111.02 49, 160, 852, 782, 634. (1,626.78) 813.57 780 123,12) 589 292, 368 601,55) 252 979, 620, 305 600.43 941 314, 229,395, 170,709, 626 259, 143 503.04 769 762, 246 072.64 886, 004, 106 891, 951.22 983.64 39,934, 146 826.42 297, 521, 652 625. 555 145. Workpaper No. Case No. INT-04- Intermountain Gas Company Page 1 of INTERMOUNTAIN GAS COMPANY 1 Tariff Block 1 , Block 2, and Block 3 Adjustment Line No.Description (a) Industrial Therm Sales (10/1/03 - 9/30/03) Blocks 1 and 2 Therm Sales Percent Therm Sales between Blocks 1 and 2 Proposed Adjustment to T -1 Tariff (1) Industrial Therm Sales (10/1/03 - 9/30/03) Annualized Adjustment (Line 4 multiplied by Line 5) Annualized Adjustment (Line 4 multiplied by Line 5) Percent Annualized Sales included in Block 1 Adjustment to Block 1 (Line 7 mulitplied by Line 8) Block 1 Therms Price AdjustmentlTherm Block 1 (Line 9 divided by Line 10) Northwest Pipeline TF-1 Commodity Charge Change (2) Total Price AdjustmentlTherm Block 1 Annualized Adjustment (Line 4 multiplied by Line 5) Percent Annualized Sales included in Block 2 Adjustment to Block 2 (Line 14 multiplied by Line 15) Block 2 Therms Price AdjustmentlTherm Block 2 (Line 16 divided by Line 17) Northwest Pipeline TF-1 Commodity Charge Change (2) Total Price AdjustmentlTherm Block 2 Total Price AdjustmentlTherm Block 3 Block 1 Block 2 Block 3 Therm Sales Therm Sales Therm Sales (b)(c)(d) 093 530 218 630 093 530 218 630 94,988%012% (1) See Exhibit No., Line 37, Col. (I) minus the difference of Line 22, Col. (0 minus Line 22, Col. (c) (2) See Exhibit No, 4, Line 22, Col. (0 minus Line 22, Col. (c) Total (e) 312 160 312 160 100,000% 01540 312 160 374,407 374,407 94.988% 355 642 093 530 01540 00000 01540 374,407 012% 765 218 630 01540 00000 01540