20120810News Release and Customer Notice.pdf

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NEWS RELEASE
and
CUSTOMER NOTICE
CASE NO. I4T-G-12-01
INTERMOUNTAIN GAS COMPANY
555 S. Cole Rd.
Boise, ID 83709
[phone]
Intermountain Gas Company files to Decrease Prices
BOISE, IDAHO —August 10, 2012 - Intermountain Gas Company filed its annual Purchased Gas Cost
Adjustment (PGA) application with the Idaho Public Utilities Commission to decrease prices by 2.4%. The
request is for a decrease of approximately $6.0 million and, if approved, would be effective October 1, 2012.
The primary reason for the requested decrease is a continued decline in the commodity price of natural gas that
Intermountain purchases on behalf of its customers.
Residential customers using gas for space and water heating will save an average 3.1% or $1.51 per month,
while customers using natural gas only for space heating will see an average decrease of $0.17 per month or
0.4%, based on average weather and usage. Commercial customers, on average, would see a savings of $6.46
per month or 3.1%.
In addition to the price reduction, the company is also proposing to pass back to its sales customers credits that
have accrued as a result of falling gas prices subsequent to the February 2012 price decrease. If approved as
filed, those credits will be directly refunded to Intermountain's residential, commercial and LV-1 customers
through a one-time bill credit in December 2012. Each sales customer's refund will equal $.03877 per therm
times the customer's billed usage from July 1, 2011 through June 30, 2012. The one-time credit combined with
the proposed PGA price change described above equals an overall price decrease of 7.1%.
Frank Morehouse, Executive Vice President and General Manager of Intermountain said, "With the continued
development of shale gas production in North America, natural gas reserves are more significant than originally
anticipated and supply growth is outpacing any demand increase foreseen in the near future. This supply
strength is reflected in these lower prices."
Intermountain continues to urge all its customers to use energy wisely. Conservation tips, information on
government payment energy assistance, and programs to help customers level out their energy bills over the
year can be found on the company's website, www.intgas.com .
A Purchased Gas Cost Adjustment application is filed each year to ensure the costs Intermountain incurs on
behalf of its customers are reflected in its sales prices. The request is subject to public review and approval by
the Idaho Public Utilities Commission. A copy of the application is available at the Commission offices and on
both the Commission's and Intermountain's websites.
Intermountain Gas Company is a natural gas distribution company serving approximately 315,000 residential,
commercial and industrial customers in 74 communities in southern Idaho. Intermountain is a subsidiary of MD U
Resources Group, Inc., a multidimensional natural resources enterprise traded on the New York Stock Exchange as
"MDU "For more information about MD Resources, visit the company's website at www.indu.com . For more
information about Intermountain, visit www. intZas. corn.
Media Contact: Lance Elroy or Byron Defenbach at [phone]
6 INTERMOUNTAIN®
GAS COMPANY
A&ibsldWy of MDII Resources Group b,c.
In the Community to Serve
Customer Notice
Intermountain Gas Company files to Decrease Prices
On August 10, 2012 - Intermountain Gas Company filed its annual Purchased Gas Cost
Adjustment (PGA) application with the Idaho Public Utilities Commission to decrease prices by
2.4%. The request is for a decrease of approximately $6.0 million and, if approved, would be
effective October 1, 2012. The primary reason for the requested decrease is a continued decline
in the commodity price of natural gas that Intermountain purchases on behalf of its customers.
Residential customers using gas for space and water heating will save an average 3.1% or
$1.51 per month, while customers using natural gas only for space heating will see an average
decrease of $0.17 per month or 0.4%, based on average weather and usage. Commercial
customers, on average, would see a savings of $6.46 per month or 3.1%.
In addition to the price reduction, the company is also proposing to pass back to its sales
customers credits that have accrued as a result of falling gas prices subsequent to the February
2012 price decrease. If approved as filed, those credits will be directly refunded to
Intermountain's residential, commercial and LV-1 customers through a one-time bill credit in
December 2012. Each sales customer's refund will equal $.03877 per therm times the
customer's billed usage from July 1, 2011 through June 30, 2012. The one-time credit
combined with the proposed PGA price change described above equals an overall price
decrease of 7.1%.
Frank Morehouse, Executive Vice President and General Manager of Intermountain said, "With
the continued development of shale gas production in North America, natural gas reserves are
more significant than originally anticipated and supply growth is outpacing any demand increase
foreseen in the near future. This supply strength is reflected in these lower prices."
Intermountain continues to urge all its customers to use energy wisely. Conservation tips,
information on government payment energy assistance, and programs to help customers level
out their energy bills over the year can be found on the company's website, www.intgas.com .
A Purchased Gas Cost Adjustment application is filed each year to ensure the costs
Intermountain incurs on behalf of its customers are reflected in its sales prices. The request is
subject to public review and approval by the Idaho Public Utilities Commission. A copy of the
application is available at the Commission offices and on both the Commission's and
Intermountain's websites.
Intermountain Gas Company is a natural gas distribution company serving approximately
315,000 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 information
about MDU Resources, visit the company's website at www.mdu.com . For more information
about Intermountain, visit www.intgas.com .