HomeMy WebLinkAbout20160817Customer Notice.pdf~
A INTERMOUNTAIN®
{1GAS COMPANY
A Subsidill!Y of MOU Rescurces Grouo. lflc.
555 S. Cole Rd.
Boise, ID 83709
(208) 377-6000
lntermountain Gas Company files for an overall decrease to its prices
BOISE, IDAHO -August 12, 2016-lntennountain Gas Company made two filings with the Idaho Public
Utilities Commission that, if approved, will affect the rate customers pay for natural gas. The company filed its
annual Purchase Gas Adjustment (PGA) and an additional application requesting an increase to its general base
rates. If both applications are approved, the net effect to its customers is an overall average decrease of3.05
percent or $7 million less annually as compared to the company's current rates.
"lntennountain Gas prides itself on keeping expenses low and finding the best options possible in acquiring
natural gas to ensure our customers have safe and reliable service at the lowest price possible," said Scott
Madison, executive vice president of Intennountain Gas. "We are happy to provide a significant discount in our
natural gas prices as outlined in our PGA . We also believe our general rate request is reasonable in order to
continue to provide a safe and reliable distribution system for our growing customer base. We have been able to
hold our underlying rates stable for more than 30 years but our investment in and replacement of infrastructure,
combined with costs associated with mandated federal regulations, is driving the need for our requested general
rate increase."
The PGA request is an overall decrease in prices of 7.11 percent or $17.2 million in annual revenues. The
primary reason for the proposed decrease is a decline in the price of natural gas that Jntennountain purchases for
its customers. The cost of natural gas makes up the largest segment ofa customer's bill and is a straight pass
through cost to customers. Intermountain Gas does not make a return on the cost of gas.
If the PGA is approved residential customers using natural gas for space heating and water heating will save an
average of$3.48 or 7.55 percent per month, while customers using natural gas only for space heating will see an
average decrease of $2.31 or 6.5 percent per month, based on average weather and usage. Commercial
customers, on average, would see a decrease of $14.23 per month or 7.34 percent.
lntermountain 's request for a general rate increase is seeking$ 10.2 million annually over current rates, or 4.06
percent. This is the first general rate case filing by Intennountain Gas since 1985. Over the past 31 years,
lntermountain has worked diligently to keep customers' rates at the lowest levels in the region while continuing
to provide quality service.
If approved, customers using natural gas for space and water heating will experience an average increase of
$2.31 per month, or 4.93 percent; customers using natural gas for space heating only will realize an increase of
$1.16 per month, or 3.26 percent. Commercial customers, on average, would see an increase of $12.16 per
month or 6.29 percent.
"Since the acquisition by MDU Resources Group, Intennountain has found synergistic savings in a number of
areas," said Nicole Kivisto, president and CEO of lntermountain Gas, as well as its three sister utility
companies, all of which are under the MDU Resources Group umbrella. "We have found savings in joint senior
management, a combined customer service center located in Meridian, as well as joint billing and payment
processing, also located in Idaho.
"Even with these savings, however, lntermountain 's customer growth and related expenses over the last 31
years necessitates the requested general rate increase."
If both of the company's applications are approved, residential customers using natural gas for space heating
and water heating will save an average of$ l.17 or 2.62 percent per month, while customers using natural gas
only for space heating will save an average of$ l .15 or 3.24 percent per month, based on average weather and
usage. Commercial customers, on average, would see a decrease of$2.07 per month or 1.05 percent.
lntermountain continues to urge all its customers to use energy wisely. As part of the general rate case
application, the company is proposing to implement several "Demand Side Management" (DSM) programs to
better enable its customers to conserve energy. Conservation tips and information on 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 customers' level out their energy bills over the year, and
stabilize the potential impact that cold weather will have during periods of higher natural gas usage.
A Purchased Gas Cost Adjustment application is filed each year to reflect the gas costs lntermountain incurs on
behalf of its customers in its sales prices. A general rate change application is filed as needed to recover changes
in the cost of delivering natural gas to the customer's home or business. Both requests are subject to public
review and approval by the Idaho Public Utilities Commission. A copy of the applications are available for
review at the commission, the company's website at www.intgas.com as well as the commission's homepage at
wwv,.puc.idaho.gov. Customers may also subscribe to the commission's RSS feed to receive periodic updates
via email.
lntermountain Gas Company is a natural gas distribution company serving approximately 339,000 residential,
commercial and industrial customers in 75 communities in southern Idaho. lntermountain is a subsidiary of
MDU Resources Group, Inc., a diversified 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 aboul lntermountain, visit WH'W. i11tgas. com
***********
Media Contact: Cheryl lmlach at (208) 377-6179
Customer Notice
lntermountain Gas Company files for an overall decrease to its prices
On August 12, 2016, -lntermountain Gas Company made two filings with the Idaho Public Utilities Commission
that, if approved, will affect the rate customers pay for natural gas. The company filed its annual Purchase Gas
Adjustment (PGA) and an additional application requesting an increase to its general base rates. If both
applications are approved, the net effect to its customers is an overall average decrease of 3.05 percent or $7
million less annually as compared to the company's current rates.
"lntermountain Gas prides itself on keeping expenses low and finding the best options possible in acquiring
natural gas to ensure our customers have safe and reliable service at the lowest price possible," said Scott
Madison, executive vice president of lntermountain Gas. "We are happy to provide a significant discount in our
natural gas prices as outlined in our PGA. We also believe our general rate request is reasonable in order to
continue to provide a safe and reliable distribution system for our growing customer base. We have been able to
hold our underlying rates stable for more than 30 years but our investment in and replacement of infrastructure,
combined with costs associated with mandated federal regulations, is driving the need for our requested general
rate increase."
The PGA request is an overall decrease in prices of 7.11 percent or $17.2 million in annual revenues. The primary
reason for the proposed decrease is a decline in the price of natural gas that lntermountain purchases for its
customers. The cost of natural gas makes up the largest segment of a customer's bill and is a straight pass
through cost to customers. lntermountain Gas does not make a return on the cost of gas.
If the PGA is approved residential customers using natural gas for space heating and water heating will save an
average of $3.48 or 7.55 percent per month, while customers using natural gas only for space heating will see an
average decrease of $2.31 or 6.5 percent per month, based on average weather and usage. Commercial
customers, on average, would see a decrease of $14.23 per month or 7.34 percent.
lntermountain's request for a general rate increase is seeking $10.2 million annually over current rates, or 4.06
percent. This is the first general rate case filing by lntermountain Gas since 1985. Over the past 31 years,
lntermountain has worked diligently to keep customers' rates at the lowest levels in the region while continuing to
provide quality service.
If approved, customers using natural gas for space and water heating will experience an average increase of
$2.31 per month, or 4.93 percent; customers using natural gas for space heating only will realize an increase of
$1 .16 per month, or 3.26 percent. Commercial customers, on average, would see an increase of $12.16 per
month or 6.29 percent.
"Since the acquisition by MDU Resources Group, lntermountain has found synergistic savings in a number of
areas," said Nicole Kivisto, president and CEO of lntermountain Gas, as well as its three sister utility companies,
all of which are under the MDU Resources Group umbrella. "We have found savings in joint senior management,
a combined customer service center located in Meridian, as well as joint billing and payment processing, also
located in Idaho.
"Even with these savings, however, lntermountain's customer growth and related expenses over the last 31 years
necessitates the requested general rate increase."
If both of the company's applications are approved, residential customers using natural gas for space heating and
water heating will save an average of $1.17 or 2.62 percent per month, while customers using natural gas only for
space heating will save an average of $1 .15 or 3.24 percent per month, based on average weather and usage.
Commercial customers, on average, would see a decrease of $2.07 per month or 1.05 percent.
lntermountain continues to urge all its customers to use energy wisely. As part of the general rate case
application, the company is proposing to implement several "Demand Side Management" (DSM) programs to
better enable its customers to conserve energy. Conservation tips and information on 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 customers' level out their energy bills over the year, and
stabilize the potential impact that cold weather will have during periods of higher natural gas usage.
A Purchased Gas Cost Adjustment application is filed each year to reflect the gas costs lntermountain incurs on
behalf of its customers in its sales prices. A general rate change application is filed as needed to recover changes
in the cost of delivering natural gas to the customer's home or business. Both requests are subject to public
review and approval by the Idaho Public Utilities Commission. A copy of the applications are available for review
at the commission, the company's website at www.intqas.com as well as the commission's homepage at
www.ouc.idaho.gov . Customers may also subscribe to the commission's RSS feed to receive periodic updates
via email.