20081028Customer Notice.pdf

idaho Public Utílties Commission
Office of the SecretaryRECËIVED
INT -G-08-04
OCT 27 2008
Bold
INTERMOUNTAIN GAS
COMPANY
CUSTOMER NOTICE
Idaho Public Utilties Commission
Office of the SecretaryRECEIVED
OCT 272008
Boise, Idao
Customer Notice
On October 27,2008, Intermountain Gas Company ("Intermountain") filed for a decrease to its annual
Purchased Gas Cost Adjustment ("PGA") Application with the Idaho Public Utilties Commission ("I PUC"). 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 prices. In its Application, Intermountain requests permission to
lower its prices to reflect the prices of natural gas supplies that it expects to incur.
Frank Morehouse, Executive Vice President and General Manager of Intermountain Gas Company, said, "The
short-term natural gas supply picture is strong and much of the nation's natural gas held in storage for this
coming winter is above normaL. Production, much of which is from public lands, is up and these increasing
supplies are helping to push the prices down. This can be attributed to the increased number of driling rigs
searching for new supplies, improved technology in driling techniques and the softening of consumer demand
for natural gas." Commenting further Morehouse said, "The goal of Intermountain's management team is to
manage our gas supplies in order to provide market responsive supplies to our customers prior to the coming
heating season. Intermountain continues to support the efforts of domestic exploration and production."
In light ofthe economic challenges nationwide, Morehouse went on to say, "We are pleased to be able to share
some good news and pass this saving on to our residential and commercial customers. Intermountain
continues, however, to urge all its customers to be conscious of their energy usage and use it wisely."
Helpful tips on ways to do that and how to request government payment energy assistance are provided
through bil inserts and on the Company's website (www.intgas.com). The website also outlines a number of
programs and tips to help our customer's level out their energy bils over the year, and stabilze the potential
impact that cold weather wil have during periods of higher natural gas usage.
If this proposed adjustment is approved, residential customers using natural gas for heating and water heating
could experience a $7.41 savings on an average monthly bil, a price decrease of 9.22% per thermo Those
residential customers using natural gas for space heating only could experience $5.18 decrease on their
monthly bil, a price decrease of 8.49%per thermo Commercial business customers would receive a 9.73%
decrease per therm, realizing an average monthly bil savings of $34.63.
If approved as filed, the Company's total net revenue wil decrease by approximately $28.7 millon (9.31 %). The
proposed effective date is December 1, 2008. 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 Utilties
Commission and the Company.