20161004press release.pdf

Case No. INT-G-16-03, Order No. 33604
Contact: Gene Fadness [phone] or 890-2712
www.puc.idaho.gov

Hefty natural gas supply results in lower rates

BOISE (Oct. 4, 2016) – Gas rates for the 335,000 southern Idaho customers of Intermountain
Gas Company decreased an average 7.1 percent on Oct. 1 following regulators’ approval of the
company’s annual Purchased Gas Cost Adjustment (PGA).

Every Oct. 1, the variable portion of Intermountain Gas rates is adjusted upward or downward
by the Idaho Public Utilities Commission to reflect changes in the company’s costs to buy
natural gas from its suppliers and also changes in transportation, storage and other variable
costs.
Significant supplies of North American shale gas and substantial gas storage balances were the
major factors contributing to lower gas supply costs for the company. In an effort to further
stabilize prices, the company entered into various fixed-price agreements to lock in the price of
its underground storage and other winter gas supply.
As a result, residential customers who use natural gas for both space and water heating will see
a reduction of about $3.48 per month, while residential customers who use natural gas just for
space heating will receive about a $2.03 monthly reduction. For commercial customers, the
decrease is about $14.23 monthly.
Intermountain’s weighted average cost of gas, or WACOG, is reduced from 32.8 cents per
therm to 29.7 cents. The WACOG represents just under half of a residential customer’s overall
rate.
The other half of customer rates are primarily fixed costs. While the PGA addresses just variable
costs, fixed costs are addressed in base rate cases. Intermountain Gas currently has an
application before the commission to increase its base rates by an average 4 percent. (Case No.
INT-G-16-02). That case will likely be decided by next March. It is the first Intermountain Gas
base rate case since 1985.
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