20081028News Release.pdf

I~ P(jblic Utilities,Co, ,miss,ior
Office of the Secrêiåry'"RECEIVED'
INT -G-08-04 iOCT 27 2008
~~erldaho
INTERMOUNTAIN GAS
COMPANY
NEWS RELEASE
NEWS RELEASE
Idaho PU~I;c Utiities Commission
Office of the Secretary
RECEIVED
OCT 272008
Boise, Idao
Contact: Brent Wilde
Director- Marketing &
Industrial Services
[phone]October 27, 2008
Today, Intermountain Gas Company ("Intermountain") filed for a decrease to its annual Purchased Gas Cost
Adjustment ("PGA") 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
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 drilling rigs searching for new supplies, improved
technology in drilling 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 of the 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
bill 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 stabilize the potential impact that cold weather will 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 bill, 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 bill, 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 million (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 Utilities Commission and the Company.