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HomeMy WebLinkAbout20111222Application.pdfEXECUTIVE OFFICES INTERMOUNTAIN GAS COMPANY R,l:i::EI 555 SOUTH COLE ROAD · P.O. BOX 7608. BOISE, IDAHO 83707. (208) 377-6000. FAX: 377-607.01 i DEC 22 AM II: 11 December 21,2011 Ms. Jean Jewell Commission Secretary Idaho Public Utilities Commission 472 W. Washington St. P.O. Box 83720 Boise, 10 83720-0074 RE: Case No. INT-G-11-03 Dear Ms. Jewell: Attached for consideration by this Commission are the original and seven (7) copies of Intermountain Gas Company's Application for Authority to Decrease Its Prices on February 1, 2012. If you have any questions regarding the attached, please contact me at (208) 377-6105. o a is Vice President & Chief Accounting Offcer SWM/mt Enclosures cc: K. F. Morehouse T.M. Clark D.L. Haider o j.....-'"_~ ',: r nr \ _." '; ?.. 1.11. IiI ¡ . I INTERMOUNTAIN GAS COMP1\¥. CASE NO. INT-G-11-03 APPLICATION AN EXHIBITS In the Matter of the Application of INTERMOUNTAIN GAS COMPANY for Authority to Decrease Its Prices on February 1, 2012 (February 1, 2012 Purchased Gas Cost Adjustment Filng) Stephen R. Thomas, ISB 2326 MOFFA IT THOMAS BARRTT ROCK & FIELDS, CHTD. 101 S. Capitol Boulevard, Suite 1000 Boise, Idaho 83702 Telephone: (208) 345-2000 Attorneys for Intermounta Gas Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION In the Matter of the Application of INTERMOUNTAI GAS COMPANY for Authority to Decrease Its Prices Case No. INT -G-II-03 APPLICATION Intermountai Gas Company ("Intermounta" or "Company"), a subsidiar of MDU Resources Group, Inc. with general offces located at 555 South Cole Road, Boise, Idaho, hereby requests authority, pursuat to Idaho Code Sections 61-307 and 61-622, to place into effect Febru 1,2012 new rate schedules which will decrease its revenues for the Februar 1,2012 to September 30, 2012 period by $6.0 millon, pursuant to the Rules of Procedure of the Idaho Public Utilties Commission ("Commission"). Because ths proposed decrease relates to changes in Intermounta's gas purchase costs, as described more fuly in ths Application, Intermounta's earngs will not be decreased as a result of the proposed decrease in prices and revenues. Intermountan's curent rate schedules showing proposed changes are attched hereto as Exhbit No. 1 and are incorporated herein by reference. Intermountan's proposed rate schedules are attched hereto as Exhbit NO.2 and are incorporated herein by reference. Communcations in reference to ths Application should be addressed to: Scott Madison Vice President & Chief Accounting Offcer Intermountain Gas Company Post Office Box 7608 Boise, ID 83707 and Stephen R. Thomas, ISB 2326 MOFFATT THOMAS BARRTT ROCK & FIELDS, CHTD. 101 S. Capitol Boulevard, Suite 1000 Boise, Idaho 83702 In support of ths Application, Intermountain does allege and state as follows: APPLICATION - 2 I. Intermounta is a gas utility, subject to the jursdiction of the Idaho Public Utilities Commission, engaged in the sale of and distrbution of natual gas withn 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. Intermounta provides natual gas servce to the following Idaho communties and counties and adjoinng areas: Ada County - Boise, Eagle, Garden City, Kuna, Meridian, and Sta; Bannock County - Chubbuck, Inkom, Lava Hot Springs, McCammon, and Pocatello; Bear Lake County - Georgetown, and Montpelier; Bingham County - Aberdeen, Basalt, Blackfoot, Firth, Fort Hall, Morelandlverside, and Shelley; Blaine County - Bellevue, Hailey, Ketchum, and Sun Valley; Bonnevile 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 Ferr, Hammett, and Mountain Home; Fremont County - Parker, and St. Anthony; Gem County - Emmett; Gooding County - Gooding, and Wendell; Jefferson County - Lewisvile, 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, and Homedale; Payett County - Fruitland, New Plymouth, and Payette; Power County - American Falls; Twin Falls County - Buhl, Filer, Hansen, Kimberly, Murtugh, and Twin Falls; Washington County - Weiser. Intermountan's properties in these locations consist of transmission pipelines, a liquefied natual gas storage facility, distribution mains, services, meters and reguators, and general plant and equipment. II. Intermountai seeks with ths Application to pass though to each of its saes customer classes a decrease in gas commodity costs resulting from a decrease in Intermounta's Weighted Average Cost of Gas, or "WACOG". Ths change would result in an overall price decrease to Intermounta's RS-l, RS-2, GS-l, LV-I, IS-R and IS-C customers. APPLICATION - 3 The price change is applicable to servce rendered under the aforementioned rate schedules subject to Intermountan's Purchased Gas Cost Adjustment ("PGA"), initially approved by this Commission in Order No. 26109, Case No. INT-G-95-1, and additionally approved though subsequent proceedings. Exhbit No.3 sumarzes the change in Intermountan's WACOG. Exhbit No.3 is attched hereto and incorporated herein by reference. III. The curent prices of Intermountai are those approved by this Commssion in Order No. 32372, Case No. INT-G-II-Ol. IV. The WACOG reflected in Intermountan's proposed prices is $0.41812 per therm as shown on Exhbit No.3, Line 3, CoL. (b). Ths compares to $0.45342 per therm curently included in the Company's taffs. Natual gas pnces across the region have continued a steady downward trend since Intermounta filed INT -G-I1-0 1 in August 2011. Several fudamenta factors have contrbuted to ths decline. These factors include 1) the continued prolific availabilty of shale gas production across the United States, 2) storage balances that are at or near record high levels, 3) the lack of any material hurcane activity that would tyically reduce natual gas deliverability, and 4) a mild witer that has thus far dampened natual gas demand across the Pacific Nortwest. Additionally, the in-service of the Ruby pipeline which delivers Rocky Mountain natual gas supplies to the Californa border has displaced traditional natual gas supplies from Alberta. The result has been a fuer softenig of natual gas prices at the AECO hub in Alberta which makes up a signficant porton of the Company's gas supply portfolio. Intermountain's prudent gas purchasing strategies have allowed it to tae ful advantage of these market changes. V. Intermountai has allocated the proposed price changes to each of its applicable customer classes based upon Intermountan's PGA provision. X. Exhbit NO.4 is an analysis of the overall price changes by class of customer. Exhbit NO.4 is atthed hereto and incorporated herein by reference. APPLICATION - 4 XIII. The proposed overall price changes herein requested among the classes of service of Intermounta reflect a just, fair, and equitable pass-though of changes in gas related costs to Intermountain's customers. xiv. Ths Application is filed pursuat to the applicable statutes and the Rules and Reguations of the Commssion. This Application has been brought to the attention of Intermountan's customers though a Customer Notice and by a Press Release sent to daily and weekly newspapers, and major radio and television stations in Intermountan's service area. The Press Release and Customer Notice are attached hereto and incorporated herein by reference. Copies of ths Application, its Exhbits, and Workpapers have been provided to those pares regularly intervening in Intermountai's rate proceedings. XV. Intermountain requests tht ths mattr be handled under modified procedure pursuat to Rules 201-204 of the Commission's Rules of Procedure. Intermountan stads ready for immediate consideration of ths matter. APPLICATION - 5 WHEREFORE, Intermounta respectfuly petitions the Idaho Public Utilities Commission as follows: a. That the proposed rate schedules herewith submittd as Exhbit NO.2 be approved without suspension and made effective as of Febru 1, 2012 in the maner shown on Exhbit NO.2. b. That ths Application be heard and acted upon without hearing under modified procedure, and c. For such other relief as ths Commssion may determine proper herein. DATED at Boise, Idao, ths 22nd day of December, 2011. By Scott M iso Vice President & Chief Accounting Officer By StephenR Attorney r TROCK&GAS COMPANY . APPLICATION - 6 CERTIFICATE OF MALING I HEREBY CERTIFY that on this 220d day of December, 2011, I served a copy of the foregoing Case No. INT -G-II-03 upon: Paula Pyron Nortwest Industral Gas Users 4113 Wolf Berr Cour Lake Oswego, OR 97035-1827 Chad Stokes Cable Huston et al. 1001 SW Fifth Avenue, Suite 2000 Portland, Oregon 97204-1136 R. Scott Pasley J. R. Simplot Company PO Box 27 Boise, il 83707 Steven Gray J. R. Simplot Company PO Box 27 Boise, ID 83707 Conley E. Ward, Jr. Givens, Puley, Webb & Huntley 277 N. 6th St., Suite 200 PO Box 2720 Boise, ID 83701 by depositing tre copies thereof in the United States Mail, postage prepaid, in envelopes addressed to said persons at the above addresses. ott adison Vice President & Chief Accounting APPLICATION - 7 EXHIBIT NO.1 CASE NO. INT-G-11-03 INTERMOUNTAIN GAS COMPANY CURNT TARFFS Showing Proposed Price Changes (8 pages) Exhibit NO.1 Case No. INT-11-03 Intermountain Gas Company Page 1 of 8 COMPARSON OF PROPOSED FEBRUARY 1,2012 PRICES TO OCTOBER 1, 2011 PRICES October 1, 2011 Proposed Line Prices per Proposed February 1, No.Rate Class INT-G-11-Øl Adjustment 2012 Prices (a)(b)(c)(d) 1 RS-l 2 April- November $0.89601 $(0.03530)$0.86071 3 December - March 0.78345 (0.03530)0.74815 4 RS-2 5 April - November 0.76139 (0.03530)0.72609 6 Decembe - March 0.72776 (0.03530)0.69246 7 GS-I 8 April - November 9 Block 1 0.77747 (0.03530)0.74217 10 Block 2 0.75574 (0.03530)0.72044 11 Block 3 0.73472 (0.03530)0.69942 12 December - March 13 Block 1 0.72662 (0.03530)0.69132 14 Block 2 0.70542 (0.03530)0.67012 15 Block 3 0.68496 (0.03530)0.64966 16 CNOFuel 0.68496 (0.03530)0.64966 17 LV-l 18 Block 1 0.54117 (0.03530)0.50587 19 Block 2 0.50268 (0.03530)0.46738 20 Block 3 0.41986 (0.03530)0.38456 21 IS-R (I) 22 April - November 0.72776 (0.03530)0.69246 23 December - March 0.72776 (0.03530)0.69246 24 IS-C (2) 25 April - November 26 Block 1 0.72662 (0.03530)0.69132 27 Block 2 0.70542 (0.03530)0.67012 28 Block 3 0.68496 (0.03530)0.64966 29 December - March 30 Block 1 0.72662 (0.03530)0.69132 31 Block 2 0.70542 (0.03530)0.67012 32 Block 3 0.68496 (0.03530)0.64966 (I) The IS-R price is based on the RS-2 December - March price and receives the same POA adjustments. (2) The IS-C price is based on the OS-1 December - March price and receives the same POA adjustments. . -. :.' -~-~ Exhibit No. 1 Case No. INT-G-11-03 Intermountain Gas Company Page 2 of8 I.P.U.C. Gas Tariff Second Revised Volume No. 1 (Supersedes Firs Revised Volume No.1) Fort.. Revised Fourth Sheet No. 01 (Page 1 of 1) NameofUtlllty Intermountain Gas Company IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective Sept. 38, 2811 Oct. 1, 2011 Pei e.N. 32372 Jean D. Jewell Secretary Rate Schedule RS-1 RESIDENTIAL SERVICE AVAILAIUTY: Available to individually metered consumers not otherwise specifcally provided for, using natural gas for residentIal purposes. RATE: Monthly minimum charge is the customer charge. For biling periods ending April through November Customer Charge ~ $2.50 per bil Commodity Charge - $a.9681 perthenn* $0.86071 For billng penods ending December through March Customer Charge - $6.50 per bil Commodit Charge - $8.78345 per thenn* $0.74815 *Includes: Temporary purchased gas cost adjustment of $(0.07748) Weighte average cost of gas of $0.45342 $0.41812 PURCHASED GAS COST ADJUSTMENT: This tanff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased Gas Cost Adjusbent Provision. SERVICE CONDITONS: All natural gas servIce hereunder is subject to the General Service Provisions of the Company's Tañf, of which this rate schedule is a part. Issued by Intermountain Gas Company By: Scott Madison Title: Vice President & Chief Accounting Offcer Effecive: Ot*eeer 1,2911 February 1,2012 Exhibit No. 1 Case No. INT-G-11-03 Intermountain Gas Company Page 30f8. ..........- .. I.P.U.C. Gas Tariff Second Revised Volume No. 1 (Supersedes First Revised Volume No.1) Fort.r Revised Fourth Sheet No. 02 (Page 1 of 1) Name of Utilty Intermountain Gas Company IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective Se~l. ae, 2911 Oct. 1, 2911 Pei e.N. 32372 Jean D. Jewell Secretaiy Rate Schedule RS.2 MULTIPLE USE RESIDENTIAL SERVICE AVAILAILITY: 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 billng periods ending April through November Customer Charge. $2.50 per bil Commodity Charge. $0.16139 per ther* $0.72609 For billng periods ending December through March Customer Charge. $6.50 per bil Commodity Charge. $9.72176 per therm* $0.69246 *Includes: Temporaiy purchased gas cos adjustment of $(0.06720) Weighted average cost of gas of $9.45342 $0.41812 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 Genera.1 Service Provisions of the Company's Tarif, of which this rate schedule is a part Issued by; Intermountain Gas Company By: Scott Madison Title: Vice President & Chief Accounting Offcer Effective: Oeteber 1,2811 February 1,2012 Exhibit No. 1 Case No. INT-G-11-03 Intermountain Gas Company Page4of8 I.P.U.C. Gas Tariff Second Revised Volume No. 1 (Supersedes First Revised Volume No.1)Fort-F Revised Sixth Sheet No. 03 (Page 1 of 2) Name of Utility Intermountain Gas Company IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective Sept. 30. 2011 Oel.1,2911 Per e.N. 32372 Jean D. Jewell Secretary Rate Schedule GS-1 GENERAL SERVICE AVAILABILITY: Available to indivdually metered customers whose requirements for natural gas do not exceed 2,000 thenns per day, at any point on Company's distribution system. Requirements in excess of 2,000 thenns 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 billng periods ending April through November Customer Charge - $2.00 per bil Commodity Charge - First 200 thenns per bil (t $9.'r7~ $0.74217 Nex 1,800 thenns per bil (t $9.16514*$0.72044 Over 2,000 thenns per bil (t $9.734'2* $0.69942 For bilIng periods endIng December through March Customer Charge - $9.50 per bil Commodit Charge - First 200 thenns per bil (t $9.72662* $0.69132 Next 1,800 thenns per bil (t $9.7654* $0.67012 Over 2,000 thenns per bil (t $9.68496* $0.64966 *Includes: Temporary purchased gas cost adjustment of $(0.07988) Weighted average cost of gas of $9.45 $0.41812 Issued by: Intennountain Gas Company By: Scott Madison Title: VIce President & Chief Accunting Offcer Effective: Oetel3er 1, 2811 February 1, 2012 .~~ ~-' . -.'.._'~'. Exhibit No. 1 Case NO.INT-G-11-03 Intermountain Gas Company Page 5 of8 I.P.U.C. Gas Tariff Second Revised Volume No. 1 (Supersedes First Revised Volume No.1) Fort-- Revised Sixth Sheet No. 03 (Page 2 of 2) NameofUtilty Intermountain Gas Company IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective Sel3l 39, 2911 Oet. 1, 2911 Pei e.N. 525'12 Jean D. Jewell Secretary Rate Schedule GS-1 GENERAL SERVICE (Continued) For separately metere deliveries of gas utilized solely as Compresed Natural Gas Fuel in vehicular internal combustion engines. Customer Charge - $9.50 per bil Commodity Charge - $9.6846 per therm* $0.64966 *Includes: Temporary purchased gas cost adjustent of $(0.07988) Weighted average cost of gas of $9.4534 $0.41812 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 exiing the GS-1 service, all gas and trnsporttion 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 wil have refnded to them, upon exiting the GS-1 service, any excess gas commodit or transporttIon payments made by the customer during the time they were a GS-1 customer. 2. All natural gas service hereunder is subject to the General Service Provisions of the Company's Tari, of which this rate schedule is a part. Issued by: Intermountain Gas Company By: Scott Madison Title: Vice President & Chief Accounting Offcer Effecive: Oeleef 1, 2911 Februarv 1, 2012 Exhibit No. 1 Case No. INT-G-11-Q3 Intermountain Gas Company Page 6 of-B... ..... I.P.U.C. Gas Tanff Second Revised Volume No. 1 (Superses First Revised Volume No.1) Fift-"i Revised Fourth Sheet No. 04 (Page 1 of 2) Name ofUtfilv Intermountain Gas Company IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective Sept a9, 2944 Oet. 1, 2911 Pei e.N. 32372 Jean D. Jewell Secretary Rate Schedule LV-1 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 schedule LV-1 or any new customer whose usage does not exceed 500,000 therms annually, upon execution of a one-year minimum writtn service contract for firm sales servIce In exces of 200,000 therms per year. MONTHLY RATE: Commodit Charge: First 250,000 therms per bil ~ $9.54117* $0.50587 Next 500,000 therms per bil ~ $9.59268* $0.46738 Amount Over 750,000 therms per bil ~ $8.41986 $0.38456 The above price include weIghted average cost of gas of $8.452 $0.41812 * Includes temporary purchas gas cost adjustent of $(0.0492) ** Includes temporary purchased gas cos adjustent of $(0.04017) PURCHASED GAS COST ADJUSTMENT: This tarif is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased Gas Cost Adjustment Provision. SERVICE CONDITONS: 1. All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, ~fwhlch this Rate Schedule is a part 2. Any LV-1 customer who exits the LV-1 service at any time (including, but not limite to, the expiration of the contrct term) wil pay to Intermountain Gas Company, upon exiting the LV-1 service, all gas and/or interstate trnsportation related cost to serve the customer during the LV.1 contract period not bome by the customer during the LV-1 contrct perIod. Any LV-1 customer wil have refunded to them, upon exiting the LV-1 service, any excess gas and/or interstate transporttion relate 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 exceeed the 200,000 therm threhold, but the customer during the current contrct period used less than the contract minImum of 200,000 thenns, an additional amount shall be biled. The additional amount shall be calculated by billing the deficit usage below 200,000 thenn at the LV-1 Block 1 rate adjusted for the removal of variable gas costs. The customer's future eligibilty for the LV-1 Rate Schedule wil be renegotiated with the Company. Issue by: Intermountain Gas Company By: Scott Madison Title: Vice President & Chief Accunting Offcer Effective: Oetober 1, 2911 February 1, 2012 Exhibit NO.1 Case No. INT-G-11-03 Intermountain Gas Company .... Page 7 cf8. .. . I.P.U.C. Gas Tariff 5e Revised Third Sheet No. 16 (Page 1 of 2) IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective Sept. 30. 2011 Oct. 1, 2911 Pei a.N. 32372 Jean D. Jewell Secretary Name ofUtlUty Intermountain Gas Company Rate Schedule IS-R RESIDENTIAL INTERRUPTIBLE SNOWMELT SERVICE APPLICABILITY: Applicable to any new residential or Customer using natural gas to melt snow and/or ice on sidewalks, driveways or any other similar appurtenance. Any and all such applications meeting the above criteria wil be subject to service under Rate Schedule IS-R and wil be seprately and individually metered. All service hereunder is interruptible at the sole discretion of the Company. FACILITY REIMBURSEMENT CHARGE: All new interrptible Snowmelt service customers are required to pay for the cost of the Snowmelt meter set and other related facilty and equipment cos, prior to the Installation of the meter set Any request to alter the physical loction of the meter set and relate facilties frm Company's inital design may be grante provided, however, the Company can reasonably accommodate said relocation and Customer agre to pay all related cost. RATE: Monthly minimum charge is the Customer Charge. For biling periods ending April through November Customer Charge - $2.50 per bil Commodit Charge - $9.1i16 per therm" $0.69246 For biling periods ending December through March Customer Charge - $6.50 per bil Commodity Charge - $9.1i6 per therm" $0.69246 "Includes: Temporary purchased gas co adjustment of $(0.06720) Weighted average cost of gas of $9.45342 $0.41812 PURCHASED GAS COST ADUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchasd Gas Cost Adjustent Provision. SERVICE CONDITIONS: 1. All natural gas service hereunder is subject to the General Service Provisions of the Company's Tarif, of which this Rate Schedule is a part. Issued by: Intermountain Gas Company By: Scott Madison Tle: Vice President & Chief Accounting Officer Effective: Oetber 1, 2011 February 1, 2012 Exhibit NO.1 Case No. INT-G-11-03 Intermountain Gas Company PaQ~ .s of. 8_ ....... Name of Utilit Sheet No. 17 (Paae 1 of 2) IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective Se~l: a9, 2011 Oct. 1, 2911 Per e.N. 32372 Jean D. Jewell Secretary I.P.U.C. Gas TariffoS Revied Third Intermountain Gas Company Rate Schedule IS-C SMALL COMMERICAL INTERRUPTIBLE SNOWMELT SERVICE APPLICABILITY: Applicable to any new Customer otherwise eligible to receive gas service under Rate Schedule GS-1 and using natural gas to melt snow and/or ice on sidewalks, driveways or any other similar appurtenances. Any and all such applications meeting the above cnteria wil be subjec to service under Rate Schedule IS-C and wil be separately and individually metered. All servIce hereunder is Interrptible at the sole discretion of the Company. FACILITY REIMBURSEMENT CHARGE: All new interrptible Snowmelt service customers are required to pay for the cost of the Snowmelt meter set and other related facility and equipment costs, prior to the installation of the meter set. Any reques to alter the physical location of the meter set and related facilties from Company's initial design may be granted provided, however, the Company can reasonably accommodate said relocation and Customer agre to pay all related costs. RATE: Monthly minimum charge Is the Custmer Charge. For biling periods endIng April through November Customer Charge - $2.00 per bil Commodity Charge - Firs 200 thenns per bil ~ $6.72862' $0.69132 Next 1,800 thenns per bil ~ $8.7854* $0.67012 Over 2,000 thenns per bil ~ $9.68496* $0.64966 For biling periods ending December through March Customer Charge - $9.50 per bil Commodity Charge - First 200 thenns per bil ~ $8.72662* $0.69132 Next 1,800 thenns per bil ~ $6.7654* $0.67012 Over 2,000 therm per bil ~ $8.6646* $0.64966 'Includes: Temporary purchased gas cost adjustment of $(0.07988) WeIghted average cost of gas of $6.4554 $0.41812 PURCHASED GAS COST ADJUSTMENT: This tariff Is subjec to an adjusent for cost of purchased gas as provided for In the Company's Purchased Gas Cost Adjustent Provision. . Issued by: Intermountain Gas Company By: Scott Madison Title: Vice President & Chief Accunting Officr Effecive: OcLobel 1, 2811 Februa 1,2012 EXHIBIT NO.2 CASE NO. INT-G-11-03 INTERMOUNTAIN GAS COMPANY PROPOSED TARFFS (7 pages) Exhibit NO.2 Case No. INT-G-11-03 Intermountain Gas Company Page 1 of? I.P.U.C. Gas Tari Second Revised Volume No. 1 (Supersedes First Revised Volume No.1)Fort-Fourt Revised Sheet No. 01 (Page 1 of 1)Name 'G C of Utility Intermountam as ompany Rate Schedule RS-1 RESIDENTIAL SERVICE AVAILABILITY: Available to individually metered consumers not otherwise specifically provided for, using natural gas for residential purposes. 'Ií, RATE: Monthly minImum charge is the custmer charge. For biling periods ending April through November Customer Charge - $2.50 per bill Commodity Charge - $0.86071 per therm* For biling periods ending December through March Customer Charge - $6.50 per bil Commodit Charge - $0.74815 per therm* *Includes: Temporary purchased gas cost adjusbent of $(0.07748) Weighte average cost of gas of $0.41812 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: Scott Madison Title: Vice President & Chief Accounting Offcer Effective: February 1, 2012 Exhibit NO.2 Case No. INT-G-11-03 Interm0L!ntain Gas Company Page 2 of7 I.P.U.C. Gas Tariff Second Revised Volume NO.1 (Supersedes First Revised Volume No.1)Fort-Fourt Revised Sheet No. 02 (Page 1 of 1) Name of Utility Intermountain Gas Company Rate Schedule RS-2 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 billng periods ending April through November Customer Charge. $2.50 per bill Commodity Charge. $0.72609 per therm* For bilIng periods ending December through March Customer Charge. $6.50 per bil Commodity Charge. $0.69246 per thenn* *Includes: Temporaiy purchased gas cost adjustment of $(0.06720) Weighted average cost of gas of $OA1812 PURCHASED GAS COST ADJUSTMENT: This tari 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: Scott Madison Title: Vice President & Chief Accounting Offcer Effective: February 1, 2012 Exhibit NO.2 Case NO.INT-G-11-03 Intermountain Gas Company Page 3 of7 I.P.U.C. Gas Tarif Second Revised Volume No. 1 (Supersedes First Revised Volume No.1)Fort-Sixth Revised Sheet No. 03 (Page 1 of 2)Name G CofUlilily Intermountain as ompany Rate Schedule GS-1 GENERAL SERVICE AVAILABILITY: Available to Indivdually metered customers whose requIrements for natural gas do not exceed 2,000 therms per day, at any point on Company's distribution system. Requirements in excess of 2,000 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 billng periods ending April through November Customer Charge - $2.00 per bil Commodity Charge - First 200 thenns per bil ~ $0.74217* Next 1,800 thenns per bil ~ $0.72044* Over 2,000 thenns per bil ~ $0.69942* For biling periods ending December through March Customer Charge. $9.50 per bil Commodity Charge. First 200 therms per bil ~ $0.69132* Next 1,800 therm per bil ~ $0.67012* Over 2,000 therms per bil ~ $0.6466* *Includes: Temporary purchased gas cos adjustent of $(0.07988) Weighted average cost of gas of $0.41812 Issued by: Intermountain Gas Company By: Scott Madison TItle: Vice President & Chief Accounting Offcer Effective: February 1, 2012 Exhibit NO.2 Case No. INT-G-11-03 Intermountain Gas Company Page 4 of? I.P.U.C. Gas Tari Second Revised Volume No. 1 (Supersedes First Revised Volume No.1)Fort-Sixth Revised Sheet No. 03 (Page 2 of 2)~~ . G Cof Utilty Intermountain as ompany Rate Schedule GS-1 GENERAL SERVICE (Continued) For separately metered deliveries of gas utilzed solely as Compressed Natural Gas Fuel in vehicular internal combustion engines. Customer Charge - $9.50 per bil Commodit Charge - $0.64966 per thenn* *Includes: Temporary purchased gas cost adjustent of $(0.07988) Weighted average cost of gas of $0.41812 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cot 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 wil pay to Intermountain Gas Company, upon exiting the G5-1 servIce, all gas and transporttion related costs incurrd 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 exces gas commodity or transportation payments made by the customer during the time they were a GS-1 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 CompanyBy: Scott Madison Title: Vice President & Chief Accounting Offcer Effective: February 1, 2012 :r Exhibit No.2 Case No. INT-G-11-03 Intermountain Gas Company Page 5 of? . I.P.U.C. Gas Tanf Secnd Revised Volume No. 1 (Supersedes First Revised Volume No.1) Fift-Fourt Revised Sheet No. 04 (Page 1 of 2)Name CofUtiitv Intermountain Gas ompany Rate Schedule LV-1 LARGE VOLUME FIRM SALES SERVICE AVAILABILIT: Available at any mutually agreeable delivery point on the Company's distribution system to any existing customer receiving service under the Company's rate schedule LV.1 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 bil ~ $0.50587* Next 500,000 therms per bil ~ $0.4738* Amount Over 750,000 therms per bil (l $0.38456** The above prices include weighted average cost of gas of $0.41812 * Includes temporary purchased gas cos adjustment of $(0.04992) ** Includes temporary purchased gas cost adjustment of $(0.04017) 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. All natural gas service hereunder is subject to the General Service Provisions of the Company's Tari, 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 transporttion 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 wil have refunded to them, upon exiting the LV-1 service, any excess gas and/or interstate transporttion 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 biled. The additional amount shall be calculated by biling the deficit usage below 200,000 therms at the LV-1 Block 1 rate adjusted for the removal of variable gas costs. The customer's fuure eligibilty for the LV-1 Rate Schedule wil be renegotiated with the Company. Issued by: Intermountain Gas Company By: Scott Madison Title: Vice President & Chief Acunting Offcer Effecive: February 1, 2012 Exhibit NO.2 Case No. INT-G-11-03 Intermountain Gas Company Page 6Qf7 . I.P.U.C. Gas TariffThird Revised Sheet No. 16 (Paae 1 of2) Name of Utility Intermountain Gas Company Rate Schedule IS-R RESIDENTIAL INTERRUPTIBLE SNOWMELT SERVICE APPLICABILIT: Applicable to any new residential or Customer using natural gas to melt snow and/or ice on sidewalks, driveways or any other similar appurtenance. Any and all such applicatIons meeting the above criteria wil be subject to service under Rate Schedule IS-R and wil be separately and individually metered. All service hereunder is interrptible at the sole discretion of tlle Company. FACILITY REIMBURSEMENT CHARGE: All new interrptIble Snowmelt service customers are required to pay for the cost of the Snowmelt meter set and other related facilit and equipment costs, prior to the installation of the meter set Any request to alter the physIcal location of the meter set and related facilties from Company's initial design may be granted provided, however, the Company can reasonably accommodate said relocation and Customer agre to pay all related costs. RATE: Monthly minimum charge is the Customer Charge. For billng periods ending April through November Customer Charge - $2.50 per bil Commodit Charge - $0.69246 per therm* For billng periods ending December through March Customer Charge - $6.50 per bil Commodity Charge - $0.6924 per therm* *Includes: Temporary purchased gas cost adjustment of $(0.06720) Weighted average cost of gas of $0.41812 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. 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: Scott Madison Title: Vice President & Chief Accounting Offcer Effecive: February 1,2012 Exhibit NO.2 Case No. INT-G-11-03 Intermountain Gas Company Page 7 of7 I.P.U.C. Gas Tariff Third Revised Sheet No. 17 (Paiie 1 of 2) Name of Utiit Intermountain Gas Company Rate Schedule IS-C SMALL COMMERICAL INTERRUPTIBLE SNOWMELT SERVICE APPLICABILITY: Applicable to any new Customer otherwse eligible to receive gas service under Rate Schedule G5-1 and using natural gas to melt snow and/or ice on sidewalks, driveways or any other similar appurtenances. Any and all such applications meeting the above criteria wil be subject to service under Rate Schedule IS-C and wil be separately and individually metered. All service hereunder is interrptible at the sole discretion of the Company. FACILIT REIMBURSEMENT CHARGE: All new Interruptible Snowmelt service customers are requIred to pay for the cost of the Snowmelt meter set and other related facilit and equipment costs, prior to the Installation of the meter set. Any request to alter the physical location of the meter set and related facilities from Company's inital design may be granted provided, however, the Company can reasonably accommodate said relocation and Customer agrees to pay all related cos. RATE: Monthly minimum charge is the Custmer Charge. For billng periods ending April through November Customer Charge - $2.00 per bil Commodity Charge - First 200 therms per bil ~ $0.69132* Next 1,800 therms per bil ~ $0.67012* Over 2,000 therms per bil ~ $0.64966* For bilIng perIods ending December through March Customer Charge - $9.50 per bil Commodity Charge - First 200 therms per bil ~ $0.69132* Next 1,800 therms per bil ~ $0.67012* Over 2,000 therm per bil ~ $0.64966* *Includes: Temporary purchased gas cot adjustent of $(0.07988) Weighted average cost of gas of $OA1812 PURCHASED GAS COST ADJUSTMENT: This tariff is subjec to an adjustment for cost of purchased gas as provided for In the Company's Purchased Gas Cost Adjustment Provision. . Issue by: Intermountain Gas Company By: Scott Madison TIlle: Vice President & Chief Accounting Offcer Effective: February 1, 2012 EXHmIT NO. 3-4 CASE NO. INT-G-11-03 INTERMOUNTAIN GAS COMPANY (2 pages) Exhibit NO.3 Case No. INT-G-11-03 Intermountain Gas Company Page 1 of 1 INTERMOUNTAIN GAS COMPANY Proposed Gas Cost Change Line No.Description (a) Amount (b) 1 Weighted Average Cost of Gas (WACOG) 2 INT -G-11-01 WACOG $0.45342 3 Proposed INT-G-11-03 WACOG 0.41812 4 Proposed Per Therm Change $(0.03530) 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 F e b r u a r y t h r o u g h S e p t e m b e r 2 0 1 2 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 F e b r u a r y t h r o u g h S e p t e m b e r 2 0 1 0 Av e r a g e P r i c e s E f f c t i v e Pr o p o s e d pe r C a s e N o . l N T . G . 1 1 . 0 1 Ad j u s t m e n t s E f f e c t i v e Pr o p o s e d A v e r a g e P r i c e s Co m m i s s i o n O r d e r N o . 3 2 3 7 2 2/ 1 / 2 0 1 2 Ef f e c t i v e 2 / 1 1 2 0 1 2 Un e An n u a l Pe r c e n t No . De s c r i p t i o n Th e r m s / C D V o l s . Re v e n u e Sf T h e r m Re v e n u e Sf T h e r m Re v e n u e Sf T h e r m Ch a n g e (a ) (b ) (c ) (d ) (e ) (f ) (g ) (h ) (i ) Ga s Sa l e s : 2 RS - 1 R e s i d e n t i a l 16 , 5 2 7 , 3 9 3 $ 14 , 8 7 2 , 6 7 0 $ 0. 8 9 9 8 8 $ (5 8 3 , 4 1 7 ) $ (0 . 0 3 5 3 0 ) $ 14 , 2 8 9 , 2 5 3 $ 0. 8 6 4 5 8 -3 . 9 2 % 3 RS - 2 R e s i d e n t i a l 93 , 9 5 0 , 9 1 5 74 , 6 6 8 , 2 9 0. 7 9 4 7 6 (3 , 3 1 6 , 4 6 7 ) (0 . 0 3 5 3 0 ) 71 , 3 5 1 , 9 6 2 0. 7 5 9 4 6 -4 . 4 4 % 4 GS - 1 G e n e r a l S e r v i c e 56 , 7 0 5 , 0 2 9 41 , 8 9 2 , 5 4 1 0. 7 3 8 7 8 (2 , 0 0 1 , 6 8 8 ) (0 . 0 3 5 3 0 ) 39 , 8 9 0 , 8 5 3 0. 7 0 3 4 8 -4 . 7 8 % 5 LV - 1 L a r g e V o l u m e 1 , 7 1 6 . 3 1 5 92 8 . 5 0 9 0. 5 4 0 9 9 (6 0 . 5 8 6 ) (0 . 0 3 5 3 0 ) 86 7 . 9 2 3 0. 5 0 5 6 9 -6 . 5 3 % 6 To t a l G a s S a l e s 16 8 , 8 9 9 , 6 5 2 $ 13 2 , 3 6 2 , 1 4 9 $ 0. 7 8 3 6 7 $ (5 , 9 6 2 , 1 5 8 ) $ (0 . 0 3 5 3 0 ) $ 12 6 , 3 9 9 , 9 9 1 $ 0. 7 4 8 3 7 -4 . 5 0 % "" 3 ' ( ) m ~ã ) l l Š - (D " ' ( D e ' .. ~ z ; : o c : 0 Z - : : . 0 .. í i z ' ~ ~ ~ II .! C/ .. () I o 0 3 ú ) "0II::-. NEWS RELEASE and CUSTOMER NOTICE CASE NO. INT -G-11-03 INERMOUNTAI GAS COMPAN ~ À INTERMOUNTAIN ~, GAS COMPANY A Subsidiary of MDU Resources Group, Inc. 555 S. Cole Rd. Boise, ID 83709 (208) 377-6000 Intermountain Gas files request to lower natural gas rates BOISE, IDAHO - December 22, 2011 - Intermountan Gas Company (Intermountain) filed a request today with the Idaho Public Utilities Commission to lower natural gas rates for customers. Intermountain is filing an interim purchased gas adjustment (PGA) because the price of natual gas continues to decrease. Intermountain is requesting that rates be reduced by an average of 4.5 percent. Based on average weather and usage, residential customers using natural gas for space and water heating wil save an average of $2.24 or 4.4 percent per month. Commercial customers, on average, would see a savings of$10.99 or 4.8 percent per month. If approved, the rate reduction will tae effect on Februar 1,2012. "We are pleased to make this filing in light of the extremely favorable natural gas pricing environment. If approved, this marks the fifth consecutive price reduction for our customers over the last four years," said Fran Morehouse, Executive Vice President and General Manager for Intermountain. "Natural gas not only continues to have superior reliabilty, availabilty and environmental attributes, but also enjoys significant competitive pricing advantages versus competing fuels and energy sources." Even at these favorable price levels, Intermountain continues to urge all its customers to use energy wisely. Conservation tips and information on governent payment energy assistance are provided though bil inserts and on the company's website (ww.intgas.com). The website also outlines a number of programs to help customers level out their energy bils over the year, as well as tips to help them minimize the potential impact that cold weather may have on their energy consumption. The PGA request is subject to public review and approval by the Idaho Public Utilities Commission. A copy of the application is available at the Commission offces and on both the Commission's and Intermountain's websites. Intermountain Gas Company is a natural gas distribution company serving approximately 312,000 residential, commercial and industrial customers in 74 communities in southern Idaho. Intermountain is a subsidiary of MDU Resources Group, Inc., a multidimensional natural resources enterprise traded on the New York Stock Exchange as "MDU " For more iriormation about MDU Resources, visit the company's website at www.mdu.com. For more information about Intermountain, visit www.intgas.com. ************ Media Contact: Mark Hanson at (701) 530-1093 or mark.hansonCßmduresources.com ~Â INTERMOUNTAlN°O f' GAS COMPANYA SudÎ1ry of MOO RBrc Grop, in.Customer Notice Intermountain Gas Company files to Decrease Prices On December 22, 2011 - Intermountain Gas Company (Intermountain) filed a request today with the Idaho Public Utilities Commission to lower natural gas rates for customers. Intermountain is filing an interim purchased gas adjustment (PGA) because the price of natural gas continues to decrease. Intermountain is requesting that rates be reduced by an average of 4.5 percent. Based on average weather and usage, residential customers using natural gas for space and water heating wil save an average of $2.24 or 4.4 percent per month, while residential customers using natural gas for space heating only will see an average decrease of $1.57 or 3.9 percent. Commercial customers, on average, would see a savings of $10.99 or 4.8 percent per month. If approved, the rate reduction wil take effect on February 1, 2012. "We are pleased to make this filing in light of the extremely favorable natural gas pricing environment. If approved, this marks the fifth consecutive price reduction for our customers over the last four years," said Frank Morehouse, Executive Vice President and General Manager for Intermountain. "Natural gas not only continues to have superior reliability, availability and environmental attributes, but also enjoys significant competitive pricing advantages versus competing fuels and energy sources." Even at these favorable price levels, Intermountain continues to urge all its customers to use energy wisely. Conservation tips and information on government payment energy assistance are provided through bill inserts and on the company's website (ww.intgas.com). The website also outlines a number of programs to help customers level out their energy bils over the year, as well as tips to help them minimize the potential impact that cold weather may have on their energy consumption. The PGA request is subject to public review and approval by the Idaho Public Utilties Commission. A copy of the application is available at the Commission offces and on both the Commission's and Intermountain's websites. Intermountain Gas Company is a natural gas distribution company serving approximately 312,000 residential, commercial and industrial customers in 74 communities in southern Idaho. Intermountain is a subsidiary of MOU Resources Group, Inc., a multidimensional natural resources enterprise traded on the New York Stock Exchange as "MOU." For more information about MOU Resources, visit the company's website at ww.mdu.com. For more information about Intermountain, visit ww.intgas.com.