20150611press release.pdf

Case No. INT-G-15-01, Order No. 33314
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

PUC accepts Intermountain Gas long-range plan

BOISE (June 11, 2015) – The Idaho Public Utilities Commission is accepting Intermountain Gas’
five-year plan to meet customer demand.

The commission’s acceptance of the Integrated Resource Plan (IRP), filed every two years, does
not mean the commission endorses all the resource acquisitions planned or the company’s
preferences for future gas supply. Those issues are determined in separate cases or rate cases
that address each matter separately. Rather, acceptance of the IRP means Intermountain Gas
has met its obligation to conduct an ongoing public planning process and report that process to
the commission.

Intermountain Gas delivers natural gas to 290,500 residential customers and 31,000
commercial customers across southern Idaho. It does not anticipate any peak-day delivery
deficits in the regions it serves over the next five years. Some customers, like those in the
Rexburg area, may require use of a portable liquefied natural gas facility to meet customer
demand on peak-use days. A number of industrial customers are able to use other non-
traditional sources on peak days, such as diesel/fuel oil, coal, wood chips and propane.

More than 149 miles of distribution and service lines were added during 2013 to accommodate
new customer additions and maintain service.

The IRP forecasts a 2.32% rate of growth each year for the next five years in its total residential,
commercial and industrial peak-day loads. In 2013, the company experienced a 1.8% growth
rate in the number of residential and commercial customers from 2008.

In its review of the plan, the commission encouraged the company to include the costs of
natural gas storage and distribution enhancements in its calculations to determine whether
efficiency programs would be more cost-effective. The commission also directed the company
to summarize the scope, duration and cost of Intermountain’s research and development
projects in its future IRPs. The commission further directed the company to provide more
information on the level of participation in public meetings regarding the IRP.

The Idaho Conservation League also filed comments in the case, stating the company under
estimates future gas demand, does not indicate whether the company plans to augment its gas
efficiency programs and does not state how the company advocates for building and appliance
standards to increase efficiency.

Intermountain states that its forecast is sound and, if not, the company updates its forecast at
least biennially. Gas efficiency programs have been temporarily suspended by both Avista Gas
in northern Idaho and Intermountain Gas, with commission concurrence, because they are not
cost-effective with the current low prices for natural gas. Regarding efficiency programs for
buildings, the company stated that it regularly interacts with the state Division of Building
Safety and is open to participation in the Idaho Building Code Collaborative to the extent that
such participation is relevant to Intermountain’s business and services.

Intermountain Gas is served by the Williams Northwest Pipeline that enters southeast Idaho
from Wyoming. From that pipeline, Intermountain has built several laterals, the major ones
being the Idaho Falls Lateral from Pocatello to St. Anthony, the Sun Valley lateral from
Shoshone to Sun Valley, the Canyon County Lateral, the State Street Lateral in northwest Boise
and the Central Ada Area Lateral.

The agricultural economy and the price of alternative fuels strongly influence industrial demand
for natural gas. In 2013, industrial sales and transportation customers accounted for 44% of the
throughput on Intermountain’s system. Transportation customers are large industrial
customers that use Intermountain Gas’s distribution system to buy gas from Intermountain or
other suppliers.

Copies of the commission’s order, Intermountain Gas’s IRP and exhibits, and comments from
commission staff, Intermountain Gas and the Idaho Conservation League are available on the
commission’s Website at www.puc.idaho.gov. Click on “Open Cases,” under the “Natural Gas”
heading and scroll down to Case No. INT-G-15-01.

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