20080909Press Release.pdf

Idaho Public Utilties Commission
September 9, 200S
Case No. INT -G-OS-o3
Contact: Gene Fadness (20S) 334-0339, S90-2712
UPDATED: Comments due on Sept. 25 for Intermountain Gas PGA request
The Idaho Public Utilties Commission wil tae comments through Sept. 25 on an
application by Intermountain Gas Company to increase its one-year gas cost surcharge in
order to adjust rates to reflect the cost of natual gas supplies it expects to incur over the
next year. None of the money collected from the surcharge can go to increase company
profits, but must go directly to meet gas supply expenses.
Every year on Oct. 1, gas rates are adjusted either downward or upward though the
anual Purchased Gas Cost Adjustment (PGA) to account for the always fluctuating
wholesale prices for natual gas and related transporttion and storage costs. When
wholesale gas prices are lower than anticipated, customers get a credit. When they are
higher, customers get a surcharge. In 2007, Intermountain Gas customers got an 8 percent
PGA decrease. In 2006, customers got a 4 percent decrease. However, durng the last
year wholesale gas market prices have soared to levels not seen since Huricanes Rita and
Katrina in 2005. Although natual gas prices have decreased in recent weeks, prices
remain above levels at this time a year ago.
For an average Intermountain Gas customer who uses natural gas for space heating only,
the proposed one-year increase is about $7.90 per month, or about 15 percent. For
customers who use natural gas for space and water heating, the increase is about $12.30
per month or about 18 percent. The actul proposed increase would var depending on
customer use. The company is asking that the surcharge become effective Oct. 1.
Commission staff wil review Intermountain's purchasing policies to ensure that it found
the most reasonably priced gas it could and that it also used other tools such as hedging
and storage to protect customers as much as possible from market volatilty.
Intermountain says it buys natural gas durng the sumer season for use durng the
winter months when prices would otherwse be higher. Additionally, the company says it
has entered into varous hedging agreements to lock-in the price for significant portions
of its underground storage.
The PGA does not affect permanent base rates, but is a one-year surcharge that will
expire next fall. Intermountain Gas has not had a general rate case since 1985. Gas rates
are increasing nationwide due to the increase in wholesale gas prices. A vista Gas, which
operates in nortern Idaho, also has an application before the commission for a similarly-
sized increase. In the face of ever-increasing expenses from all utilties, the commission
continues to encourage customers to participate in energy efficiency programs available
through community action agencies and the utilties. Customers can also tae advantage
oflevel-pay plans and programs that can assist customers on low- and fixed-incomes.
Customers can read details about those plans by clicking on "Consumer Information," on
the top left-hand corner of the PUC Website at www.puc.idaho.gov. Those without
Internet access can contact the commission at 1-800-432-0369 to request consumer
assistance information.
The commission intends to proceed under a modified procedure that allows this case to
be handled through wrtten public comments rather than by public hearng. However,
comments may request a public hearing.
Comments are accepted through Sept. 25 via e-mail by accessing the commission's
homepage at ww.puc.idaho.gov and clicking on "Comments & Questions." Fil in the
case number (INT-G-08-03) and enter your comments. Comments can also be mailed to
P.O. Box 83720, Boise, ID 83720-0074 or faxed to [phone].
A full text of the commission's order, along with other documents related to this case, is
available on the commission's Web site. Click on "File Room" and then on "Gas Cases"
and scroll down to the above case number.