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HomeMy WebLinkAbout20220531Application.pdfMay 31, 2022 Ms. Jan Noriyuki Commission Secretary Idaho Public Utilities Commission P.O. Box 83720 Boise, ID 83720-0074 RE: Case No. INT-G-22-02 Dear Ms. Noriyuki: Attached for consideration by this Commission is an electronic submission of Intermountain Gas Company’s Interim Purchased Gas Cost Adjustment Filing with prices proposed to be effective on August 1, 2022. If you should have any questions regarding the attached, please don’t hesitate to contact me at (208) 377-6015. Sincerely, Lori A. Blattner Director, Regulatory Affairs Intermountain Gas Company Enclosure cc: Mark Chiles Preston Carter RECEIVED 2022 MAY 31 PM 2:52 IDAHO PUBLIC UTILITIES COMMISSION INTERMOUNTAIN GAS COMPANY CASE NO. INT-G-22-02 APPLICATION AND EXHIBITS In the Matter of the Application of INTERMOUNTAIN GAS COMPANY For Authority to Change its Prices on August 1, 2022 (Interim August 1, 2022 Purchased Gas Cost Adjustment Filing) INTERMOUNTAIN GAS COMPANY’S APPLICATION - 2 Preston N. Carter, ISB No. 8462 Givens Pursley LLP 601 W. Bannock St. Boise, Idaho 83702 Telephone: (208) 388-1200 Attorneys for Intermountain Gas Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION In the Matter of the Application of INTERMOUNTAIN GAS COMPANY for Authority to Change its Prices Case No. INT-G-22-02 APPLICATION Intermountain Gas Company (“Intermountain” or “Company”), a subsidiary of MDU Resources Group, Inc. with general offices located at 555 South Cole Road, Boise, Idaho, pursuant to the Rules of Procedure of the Idaho Public Utilities Commission (“Commission”), hereby requests authority, pursuant to Idaho Code Sections 61-307 and 61-622, to place into effect August 1, 2022 new rate schedules which will increase rates for its RS, GS-1, IS-R, IS-C, and LV-1 customer classes. The proposed changes will increase the Company’s annualized revenues by approximately $67 million, however, Intermountain’s earnings will not be increased as a result of the proposed changes in prices and revenues. Exhibit No. 1 is a summary of the overall price changes by class of customer and is attached and incorporated by reference. Intermountain’s current rate schedules showing proposed changes are attached as Exhibit No. 2 and incorporated by reference. The resulting proposed rate schedules are attached as Exhibit No. 3 and incorporated by reference. Please address communications regarding this Application to: Lori A. Blattner Director – Regulatory Affairs Intermountain Gas Company Post Office Box 7608 Boise, Idaho 83707 INTERMOUNTAIN GAS COMPANY’S APPLICATION - 3 Lori.Blattner@intgas.com and Preston N. Carter Givens Pursley LLP 601 W. Bannock St. Boise, Idaho 83702 prestoncarter@givenspursley.com stephaniew@givenspursley.com In support of this Application, Intermountain alleges and states as follows: I. Intermountain is a gas utility, subject to the jurisdiction of the Commission, engaged in the sale of and distribution of natural gas within 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. Intermountain provides natural gas service to the following Idaho communities and counties and adjoining areas: Ada County - Boise, Eagle, Garden City, Kuna, Meridian, and Star; Bannock County - Arimo, Chubbuck, Inkom, Lava Hot Springs, McCammon, and Pocatello; Bear Lake County - Georgetown, and Montpelier; Bingham County - Aberdeen, Basalt, Blackfoot, Firth, Fort Hall, Moreland/Riverside, and Shelley; Blaine County - Bellevue, Hailey, Ketchum, and Sun Valley; Bonneville County - Ammon, Idaho Falls, Iona, and Ucon; Canyon County - Caldwell, Greenleaf, Middleton, Nampa, Parma, and Wilder; Caribou County - Bancroft, Grace, and Soda Springs; Cassia County - Burley, Declo, Malta, and Raft River; Elmore County - Glenns Ferry, Hammett, and Mountain Home; Fremont County - Parker, and St. Anthony; Gem County - Emmett; Gooding County - Bliss, Gooding, and Wendell; Jefferson County - Lewisville, 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, Marsing, and Homedale; Payette County - Fruitland, New Plymouth, and Payette; Power County - American Falls; Twin Falls County - Buhl, Filer, Hansen, Kimberly, Murtaugh, and Twin Falls; INTERMOUNTAIN GAS COMPANY’S APPLICATION - 4 Washington County - Weiser. Intermountain's properties in these locations consist of transmission pipelines, liquefied natural gas storage facilities, compressor stations, distribution mains, services, meters and regulators, and general plant and equipment. II. With this Application, Intermountain seeks to pass through to each of its customer classes changes in gas related costs resulting from an increase in the Company’s Weighted Average Cost of Gas (“WACOG”). If approved, these changes would result in a price increase to Intermountain’s RS, GS-1, IS-R, IS-C, and LV-1 customer classes, which are affected by and subject to Intermountain’s Rate Schedule PGA, initially approved by this Commission in Order No. 26109, Case No. INT-G-95-1, and additionally approved through subsequent proceedings. III. The Commission approved the current prices related to the cost of gas in Order No. 35182, Case No. INT-G-21-04. IV. Over the last several months, natural gas prices have climbed across the United States including in the three supply basins that affect the Company’s weighted average cost of gas. Several factors contribute to this increase. First, as the country has slowly come out of the main COVID-19 pandemic—or, at least, as restrictions related to COVID-19 have eased—the demand for natural gas has exceeded supply. This stems, at least in part, from the fact that many producers have used revenue from increased gas prices to pay down debt rather than invest in additional drilling activity. Additionally, the United States continues to export large amounts of LNG to other countries, which has further diminished supply. Second, there is a concern that INTERMOUNTAIN GAS COMPANY’S APPLICATION - 5 national storage gas levels will not be at ideal levels by November 1, 2022. Total storage on November 1 is estimated to be approximately 3.4 TCF versus a preferred level of 3.9 TCF. The expectation of tighter natural gas supplies this fall is putting upward pressure on forward prices. Third, power generation using natural-gas powered resources has proven to be very resilient in the face of higher gas prices, due in part to increasingly lower coal stockpiles. Finally, global events, such as the war in Ukraine and the recent lockdowns in China, have further exacerbated supply- chain issues around the country, which also contributes to the emotion in the market that is further contributing to the rise in gas prices. V. Commission Order No. 35182 directed the Company to “notify the Commission promptly if an interim filing is needed.” The Company respectfully submits that an interim filing is needed at this time to update the Company’s currently approved WACOG rate to better reflect current natural gas cost levels and reduce the amount of deferred gas costs that will need to be included in the Company’s regular Purchased Gas Cost Adjustment (“PGA”) filing. VI. The proposed WACOG rate reflected in Intermountain’s proposed prices is $0.42405 per therm. This compares to $0.26000 per therm currently included in the Company’s tariffs. The resulting increase can be seen on Exhibit No. 1, Page 1, Column (f). Line Break Pricing has been updated to reflect the proposed changes as shown on Exhibit No. 2, page 2, Line 19. VII. Intermountain believes that the WACOG rate proposed in this Application, subject to the effect of actual supply and demand and based on current market conditions, provides today’s most reasonable forecast of gas costs for the June 2022 – September 2022 period, and reflects a just, fair, INTERMOUNTAIN GAS COMPANY’S APPLICATION - 6 and equitable change in gas costs to Intermountain’s RS, GS-1, IS-R, IS-C, and LV-1 customers. Although the proposed WACOG reflects a significant price increase for all customers, the Company is hopeful that this interim filing will mitigate the build-up of deferrals as well as provide a price signal that will allow customers extra time to budget for the increased costs before the winter heating season arrives. VIII. The Company does not propose to change its gas transportation cost or temporary purchased gas cost adjustment rates at this time. These rates, along with an updated estimate of the WACOG rate, will be adjusted as part of the Company’s regular PGA filing. IX. This Application has been brought to the attention of Intermountain’s customers through a Customer Notice and by a Press Release sent to daily and weekly newspapers, and major radio and television stations in Intermountain’s service area. The Press Release and Customer Notice are attached and incorporated by reference. X. Intermountain requests that this matter be handled under modified procedure pursuant to Rules 201-204 of the Commission’s Rules of Procedure. Intermountain stands ready for immediate consideration of this matter. INTERMOUNTAIN GAS COMPANY’S APPLICATION - 7 XI. Intermountain respectfully petitions the Idaho Public Utilities Commission as follows: a. That the proposed rate schedules submitted as Exhibit No. 3 be approved without suspension and made effective as of August 1, 2022 in the manner shown on Exhibit No. 3, b. That this Application be heard and acted upon without hearing under modified procedure, and c. For such other relief as this Commission may determine proper. DATED: May 31, 2022. INTERMOUNTAIN GAS COMPANY GIVENS PURSLEY LLP B B Lori A. Blattne Preston N. Carte Director – Regulatory Affairs Attorney for Intermountain Gas Company EXHIBIT NO. 1 CASE NO. INT-G-22-02 INTERMOUNTAIN GAS COMPANY SUMMARY OF PRICE CHANGES (1 page) IN T E R M O U N T A I N G A S C O M P A N An a l y s i s o f A n n u a l i z e d 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 T w e l v e M o n t h s E n d e d D e c e m b e r 3 1 , 2 0 2 0 Av e r a g e P r i c e s E f f e c t i v e P r o p o s e d pe r C a s e N o . I N T - G - 2 1 - 0 4 A d j u s t m e n t s E f f e c t i v e P r 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 5 1 8 2 8 / 1 / 2 0 2 2 E f f e c t i v e 8 / 1 / 2 0 2 2 Li n e A n n u a l Pe r c e n t No . D e s c r i p t i o n T h e r m s / C o n t r a c t D e m a n d R e v e n u e $ / T h e r m R e v e n u e $ / T h e r m R e v e n u e $ / T h e r m C h a n g e (a ) ( b ) ( c ) ( d ) ( e ) ( f ) ( g ) ( h ) ( i ) 1 Ga s S a l e s : 2 R S R e s i d e n t i a l 26 8 , 0 0 3 , 8 8 5 1 8 2 , 8 2 9 , 5 7 0 $ 0 . 6 8 2 1 9 $ 4 3 , 9 6 6 , 0 3 7 $ 0 . 1 6 4 0 5 $ 2 2 6 , 7 9 5 , 6 0 7 $ 0 . 8 4 6 2 4 $ 2 4 . 0 5 % 3 G S - 1 G e n e r a l S e r v i c e 12 9 , 3 5 8 , 6 7 3 7 8 , 7 2 1 , 2 2 0 0 . 6 0 8 5 5 2 1 , 2 2 1 , 2 9 0 0 . 1 6 4 0 5 9 9 , 9 4 2 , 5 1 0 0 . 7 7 2 6 0 2 6 . 9 6 % 4 L V - 1 L a r g e V o l u m e 11 , 2 4 7 , 5 9 3 4, 5 0 3 , 6 4 9 0. 4 0 0 4 1 1 , 8 4 5 , 1 6 8 0.1 6 4 0 5 6 , 3 4 8 , 8 1 7 0.5 6 4 4 6 4 0 . 9 7 % 5 To t a l G a s S a l e s 40 8 , 6 1 0 , 1 5 1 26 6 , 0 5 4 , 4 3 9 $ 0. 6 5 1 1 2 $ 67 , 0 3 2 , 4 9 5 $ 0.1 6 4 0 5 $ 33 3 , 0 8 6 , 9 3 4 $ 0.8 1 5 1 7 $ 25 . 2 0 % Exhibit No. 1 Case No. INT-G-22-02 Intermountain Gas Company Page 1 of 1 EXHIBIT NO. 2 CASE NO. INT-G-22-02 INTERMOUNTAIN GAS COMPANY CURRENT TARIFFS Showing Proposed Price Changes (8 pages) INTERMOUNTAIN GAS COMPANY Comparison of Proposed August 1, 2022 Prices To Currently Approved Prices Line No.Rate Class Currently Approved Prices Proposed Adjustment Proposed August 1, 2022 Prices (a)(b)(c)(d) 1 RS 0.59668$ 0.16405$ 0.76073$ 2 GS-1 3 Block 1 0.60394 0.16405 0.76799 4 Block 2 0.58046 0.16405 0.74451 5 Block 3 0.55779 0.16405 0.72184 6 Block 4 0.48923 0.16405 0.65328 7 CNG Fuel 8 Block 1 0.55459 0.16405 0.71864 9 Block 2 0.48603 0.16405 0.65008 10 IS-R (1)0.57575 0.16405 0.73980 11 IS-C (2) 12 Block 1 0.60074 0.16405 0.76479 13 Block 2 0.57726 0.16405 0.74131 14 Block 3 0.55459 0.16405 0.71864 15 Block 4 0.48603 0.16405 0.65008 16 LV-1 17 Demand Charge 0.30000 - 0.30000 18 Block 1 0.37956 0.16405 0.54361 19 Block 2 0.36167 0.16405 0.52572 20 Block 3 0.28472 0.16405 0.44877 21 T-3 22 Block 1 0.03816 - 0.03816 23 Block 2 0.01532 - 0.01532 24 Block 3 0.00541 - 0.00541 25 T-4 26 Demand Charge 0.28189 - 0.28189 27 Block 1 0.02395 - 0.02395 28 Block 2 0.00847 - 0.00847 29 Block 3 0.00260 - 0.00260 (1)The IS-R price is based on the RS price and receives the same PGA adjustments (2)The IS-C price is based on the GS-1 price and receives the same PGA adjustments Exhibit No. 2 Case No. INT-G-22-02 Intermountain Gas Company Page 1 of 8 INTERMOUNTAIN GAS COMPAN Summary of Proposed Tariff Components and Line Break Pricin Line No.Description RS GS-1 LV-1 (a)(b)(c)(d) 1 Cost of Gas: 2 Temporary Purchased Gas Cost Adjustment(1)(0.01173)$ (0.00560)$ (0.00198)$ 3 Weighted Average Cost of Gas 0.42405 0.42405 0.42405 4 Gas Transportation Cost (1)0.16443 0.16169 0.09154 5 Total Proposed Cost of Gas 0.57675$ 0.58014$ 0.51361$ 6 Distribution Cost: (2) 7 Block 1 0.16305$ 0.18465$ 0.03000$ 8 Block 2 0.16117 0.01211 9 Block 3 0.13850 0.00307 10 Block 4 0.06994 11 Demand Charge 0.30000 12 Energy Efficiency Charge 0.02093 (3)0.00320 (4) 13 Proposed Prices: 14 Block 1 0.76073$ 0.76799$ 0.54361$ 15 Block 2 0.74451 0.52572 16 Block 3 0.72184 0.44877 17 Block 4 0.65328 18 Demand Charge 0.30000 19 Line Break Pricing (5)0.58848$ (1)See Case No. INT-G-21-04 (2)See Case No. GNR-U-18-01 (3)See Case No. INT-G-19-05 (4)See Case No. INT-G-20-04 (5)Sum of Lines 3 and 4, Column (b) Exhibit No. 2 Case No. INT-G-22-02 Intermountain Gas Company Page 2 of 8 I.P.U.C. Gas Tariff Rate Schedules Eighth Revised Sheet No. 1 (Page 1 of 1) Name of Utility Intermountain Gas Company Issued by: Intermountain Gas Company By: Lori A. Blattner Title: Director – Regulatory Affairs Effective: October 1, 2021 Rate Schedule RS RESIDENTIAL SERVICE APPLICABILITY: Applicable to any customer using natural gas for residential purposes. RATE: Monthly minimum charge is the Customer Charge. Customer Charge: $5.50 per bill Per Therm Charge: $0.59668* *Includes the following: Cost of Gas: 1) Temporary purchased gas cost adjustment ($0.01173) 2) Weighted average cost of gas $0.26000 3) Gas transportation cost $0.16443 Distribution Cost: $0.16305 EE Charge: $0.02093 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. ENERGY EFFICIENCY CHARGE ADJUSTMENT: This tariff is subject to an adjustment for costs related to the Company’s Energy Efficiency program as provided for in Rate Schedule EEC-RS. The Energy Efficiency Charge is separately stated on customer bills. 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. IDAHO PUBLIC UTILITIES COMMISSION Approved Effective Oct. 6, 2021 Oct. 1, 2021 Per O.N. 35182 Jan Noriyuki Secretary 1LQWK $XJXVW   Exhibit No. 2 Case No. INT-G-22-02 Intermountain Gas Company Page 3 of 8 I.P.U.C. Gas Tariff Rate Schedules Sixty-Third Revised Sheet No. 3 (Page 1 of 2) Name of Utility Intermountain Gas Company Issued by: Intermountain Gas Company By: Lori A. Blattner Title: Director – Regulatory Affairs Effective: December 1, 2021 Rate Schedule GS-1 GENERAL SERVICE APPLICABILITY: Applicable to customers whose requirements for natural gas do not exceed 2,000 therms per day, at any point on the Company's distribution system. Requirements in excess of 2,000 therms per day may be allowed at the Company’s discretion. RATE: Monthly minimum charge is the Customer Charge. Customer Charge: $9.50 per bill Per Therm Charge: Block One: First 200 therms per bill @ $0.60394* Block Two: Next 1,800 therms per bill @ $0.58046* Block Three: Next 8,000 therms per bill @ $0.55779* Block Four: Over 10,000 therms per bill @ $0.48923* *Includes the following: Cost of Gas: 1) Temporary purchased gas cost adjustment ($0.00560) 2) Weighted average cost of gas $0.26000 3) Gas transportation cost $0.16169 Distribution Cost: Block One: First 200 therms per bill @ $0.18465 Block Two: Next 1,800 therms per bill @ $0.16117 Block Three: Next 8,000 therms per bill @ $0.13850 Block Four: Over 10,000 therms per bill @ $0.06994 EE Charge: $0.00320 IDAHO PUBLIC UTILITIES COMMISSION Approved Effective Nov. 16, 2021 Dec. 1, 2021 Jan Noriyuki Secretary 6L[W\)RXUWK      $XJXVW Exhibit No. 2 Case No. INT-G-22-02 Intermountain Gas Company Page 4 of 8 I.P.U.C. Gas Tariff Rate Schedules Sixty-Third Revised Sheet No. 3 (Page 2 of 2) Name of Utility Intermountain Gas Company Issued by: Intermountain Gas Company By: Lori A. Blattner Title: Director – Regulatory Affairs Effective: December 1, 2021 Rate Schedule GS-1 GENERAL SERVICE (Continued) For separately metered deliveries of gas utilized solely as Compressed Natural Gas Fuel in vehicular internal combustion engines. Customer Charge: $9.50 per bill Per Therm Charge: Block One: First 10,000 therms per bill @ $0.55459* Block Two: Over 10,000 therms per bill @ $0.48603* *Includes the following: Cost of Gas: 1) Temporary purchased gas cost adjustment ($0.00560) 2) Weighted average cost of gas $0.26000 3) Gas transportation cost $0.16169 Distribution Cost: Block One: First 10,000 therms per bill @ $0.13850 Block Two: Over 10,000 therms per bill @ $0.06994 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. ENERGY EFFICIENCY CHARGE ADJUSTMENT: This tariff is subject to an adjustment for costs related to the Company’s Energy Efficiency program as provided for in Rate Schedule EEC-GS. The Energy Efficiency Charge is not applicable to gas utilized solely as Compressed Natural Gas Fuel in vehicular internal combustion engines. The Energy Efficiency Charge is separately stated on customer bills. 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. IDAHO PUBLIC UTILITIES COMMISSION Approved Effective Nov. 16, 2021 Dec. 1, 2021 Jan Noriyuki Secretary $XJXVW 6L[W\)RXUWK    Exhibit No. 2 Case No. INT-G-22-02 Intermountain Gas Company Page 5 of 8 I.P.U.C. Gas Tariff Rate SchedulesNineteenth Revised Sheet No. 4 (Page 1 of 2) Name of Utility Intermountain Gas Company Issued by: Intermountain Gas Company By: Lori A. Blattner Title: Director – Regulatory Affairs Effective: December 1, 2021 Rate Schedule IS-R RESIDENTIAL INTERRUPTIBLE SNOWMELT SERVICE APPLICABILITY: Applicable to any residential customer otherwise eligible to receive service under Rate Schedule RS who has added natural gas snowmelt equipment after 6/1/2010. The intended use of the snowmelt equipment is to melt snow and/or ice on sidewalks, driveways or any other similar appurtenances. Any and all such applications meeting the above criteria will be subject to service under Rate Schedule IS-R and will be separately and individually metered. All service hereunder is interruptible at the sole discretion of the Company. FACILITY REIMBURSEMENT CHARGE: All new interruptible 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 request to alter the physical location of the meter set and related facilities from Company’s initial design may be granted provided, however, the Company can reasonably accommodate said relocation and Customer agrees to pay all related costs. RATE: Monthly minimum charge is the Customer Charge. Customer Charge: $5.50 per bill Per Therm Charge: $0.57575* *Includes the following: Cost of Gas: 1) Temporary purchased gas cost adjustment ($0.01173) 2) Weighted average cost of gas $0.26000 3) Gas transportation cost $0.16443 Distribution Cost: $0.16305 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. IDAHO PUBLIC UTILITIES COMMISSION Approved Effective Nov. 16, 2021 Dec. 1, 2021 Jan Noriyuki Secretary 7ZHQWLHWK   $XJXVW Exhibit No. 2 Case No. INT-G-22-02 Intermountain Gas Company Page 6 of 8 I.P.U.C. Gas Tariff Rate SchedulesEighteenth Revised Sheet No. 5 (Page 1 of 2) Name of Utility Intermountain Gas Company Issued by: Intermountain Gas Company By: Lori A. Blattner Title: Director – Regulatory Affairs Effective: October 1, 2021 Rate Schedule IS-C SMALL COMMERICAL INTERRUPTIBLE SNOWMELT SERVICE APPLICABILITY: Applicable to any customer otherwise eligible to receive gas service under Rate Schedule GS-1 who has added natural gas snowmelt equipment after 6/1/2010. The intended use of the snowmelt equipment is to melt snow and/or ice on sidewalks, driveways or any other similar appurtenances. Any and all such applications meeting the above criteria will be subject to service under Rate Schedule IS-C and will be separately and individually metered. All service hereunder is interruptible at the sole discretion of the Company. FACILITY REIMBURSEMENT CHARGE: All new interruptible 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 request to alter the physical location of the meter set and related facilities from Company’s initial design may be granted provided, however, the Company can reasonably accommodate said relocation and Customer agrees to pay all related costs. RATE: Monthly minimum charge is the Customer Charge. Customer Charge: $9.50 per bill Per Therm Charge: Block One: First 200 therms per bill @ $0.60074* Block Two: Next 1,800 therms per bill @ $0.57726* Block Three: Next 8,000 therms per bill @ $0.55459* Block Four: Over 10,000 therms per bill @ $0.48603* *Includes the following: Cost of Gas: 1) Temporary purchased gas cost adjustment ($0.00560) 2) Weighted average cost of gas $0.26000 3) Gas transportation cost $0.16169 Distribution Charge: Block One: First 200 therms per bill @ $0.18465 Block Two: Next 1,800 therms per bill @ $0.16117 Block Three: Next 8,000 therms per bill @ $0.13850 Block Four: Over 10,000 therms per bill @ $0.06994 IDAHO PUBLIC UTILITIES COMMISSION Approved Effective Oct. 6, 2021 Oct. 1, 2021 Per O.N. 35182 Jan Noriyuki Secretary 1LQHWHHQWK      $XJXVW Exhibit No. 2 Case No. INT-G-22-02 Intermountain Gas Company Page 7 of 8 I.P.U.C. Gas Tariff Rate SchedulesSeventieth Revised Sheet No. 7 (Page 1 of 2) Name of Utility Intermountain Gas Company Issued by: Intermountain Gas Company By: Lori A. Blattner Title: Director – Regulatory Affairs Effective: December 1, 2021 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 customer not previously served under this schedule 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: Demand Charge: $0.30000 per MDFQ therm Per Therm Charge: Block One: First 250,000 therms per bill @ $0.37956* Block Two: Next 500,000 therms per bill @ $0.36167* Block Three: Over 750,000 therms per bill @ $0.28472* *Includes the following: Cost of Gas: 1) Temporary purchased gas cost adjustment Block One and Two ($0.00198) Block Three $0.02165 2) Weighted average cost of gas $0.26000 3) Gas transportation cost (Block One and Two only) $0.09154 Distribution Cost: Block One: First 250,000 therms per bill @ $0.03000 Block Two: Next 500,000 therms per bill @ $0.01211 Block Three: Over 750,000 therms per bill @ $0.00307 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. 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. 2.The customer shall negotiate with the Company, a mutually agreeable Maximum Daily Firm Quantity (MDFQ), which will be stated in and in effect throughout the term of the service contract. 3. The monthly Demand Charge will be equal to the MDFQ times the Demand Charge rate. Demand Charge relief will be afforded to those LV-1 customers when circumstances impacted by force majeure events prevent the Company from delivering natural gas to the customer’s meter. IDAHO PUBLIC UTILITIES COMMISSION Approved Effective Nov. 16, 2021 Dec. 1, 2021 Jan Noriyuki Secretary 6HYHQW\)LUVW    $XJXVW Exhibit No. 2 Case No. INT-G-22-02 Intermountain Gas Company Page 8 of 8 EXHIBIT NO. 3 CASE NO. INT-G-22-02 INTERMOUNTAIN GAS COMPANY PROPOSED TARIFFS (6 pages) I.P.U.C. Gas Tariff Rate Schedules Ninth Revised Sheet No. 1 (Page 1 of 1) Name of Utility Intermountain Gas Company Issued by: Intermountain Gas Company By: Lori A. Blattner Title: Director – Regulatory Affairs Effective: August 1, 2022 Rate Schedule RS RESIDENTIAL SERVICE APPLICABILITY: Applicable to any customer using natural gas for residential purposes. RATE: Monthly minimum charge is the Customer Charge. Customer Charge: $5.50 per bill Per Therm Charge: $0.76073* *Includes the following: Cost of Gas: 1) Temporary purchased gas cost adjustment ($0.01173) 2) Weighted average cost of gas $0.42405 3) Gas transportation cost $0.16443 Distribution Cost: $0.16305 EE Charge: $0.02093 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. ENERGY EFFICIENCY CHARGE ADJUSTMENT: This tariff is subject to an adjustment for costs related to the Company’s Energy Efficiency program as provided for in Rate Schedule EEC-RS. The Energy Efficiency Charge is separately stated on customer bills. 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. Exhibit No. 3 Case No. INT-G-22-02 Intermountain Gas Company Page 1 of 6 I.P.U.C. Gas Tariff Rate Schedules Sixty-Fourth Revised Sheet No. 3 (Page 1 of 2) Name of Utility Intermountain Gas Company Issued by: Intermountain Gas Company By: Lori A. Blattner Title: Director – Regulatory Affairs Effective: August 1, 2022 Rate Schedule GS-1 GENERAL SERVICE APPLICABILITY: Applicable to customers whose requirements for natural gas do not exceed 2,000 therms per day, at any point on the Company's distribution system. Requirements in excess of 2,000 therms per day may be allowed at the Company’s discretion. RATE: Monthly minimum charge is the Customer Charge. Customer Charge: $9.50 per bill Per Therm Charge: Block One: First 200 therms per bill @ $0.76799* Block Two: Next 1,800 therms per bill @ $0.74451* Block Three: Next 8,000 therms per bill @ $0.72184* Block Four: Over 10,000 therms per bill @ $0.65328* *Includes the following: Cost of Gas: 1) Temporary purchased gas cost adjustment ($0.00560) 2) Weighted average cost of gas $0.42405 3) Gas transportation cost $0.16169 Distribution Cost: Block One: First 200 therms per bill @ $0.18465 Block Two: Next 1,800 therms per bill @ $0.16117 Block Three: Next 8,000 therms per bill @ $0.13850 Block Four: Over 10,000 therms per bill @ $0.06994 EE Charge: $0.00320 Exhibit No. 3 Case No. INT-G-22-02 Intermountain Gas Company Page 2 of 6 I.P.U.C. Gas Tariff Rate Schedules Sixty-Fourth Revised Sheet No. 3 (Page 2 of 2) Name of Utility Intermountain Gas Company Issued by: Intermountain Gas Company By: Lori A. Blattner Title: Director – Regulatory Affairs Effective: August 1, 2022 Rate Schedule GS-1 GENERAL SERVICE (Continued) For separately metered deliveries of gas utilized solely as Compressed Natural Gas Fuel in vehicular internal combustion engines. Customer Charge: $9.50 per bill Per Therm Charge: Block One: First 10,000 therms per bill @ $0.71864* Block Two: Over 10,000 therms per bill @ $0.65008* *Includes the following: Cost of Gas: 1) Temporary purchased gas cost adjustment ($0.00560) 2) Weighted average cost of gas $0.42405 3) Gas transportation cost $0.16169 Distribution Cost: Block One: First 10,000 therms per bill @ $0.13850 Block Two: Over 10,000 therms per bill @ $0.06994 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. ENERGY EFFICIENCY CHARGE ADJUSTMENT: This tariff is subject to an adjustment for costs related to the Company’s Energy Efficiency program as provided for in Rate Schedule EEC-GS. The Energy Efficiency Charge is not applicable to gas utilized solely as Compressed Natural Gas Fuel in vehicular internal combustion engines. The Energy Efficiency Charge is separately stated on customer bills. 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. Exhibit No. 3 Case No. INT-G-22-02 Intermountain Gas Company Page 3 of 6 I.P.U.C. Gas Tariff Rate Schedules Twentieth Revised Sheet No. 4 (Page 1 of 2) Name of Utility Intermountain Gas Company Issued by: Intermountain Gas Company By: Lori A. Blattner Title: Director – Regulatory Affairs Effective: August 1, 2022 Rate Schedule IS-R RESIDENTIAL INTERRUPTIBLE SNOWMELT SERVICE APPLICABILITY: Applicable to any residential customer otherwise eligible to receive service under Rate Schedule RS who has added natural gas snowmelt equipment after 6/1/2010. The intended use of the snowmelt equipment is to melt snow and/or ice on sidewalks, driveways or any other similar appurtenances. Any and all such applications meeting the above criteria will be subject to service under Rate Schedule IS-R and will be separately and individually metered. All service hereunder is interruptible at the sole discretion of the Company. FACILITY REIMBURSEMENT CHARGE: All new interruptible 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 request to alter the physical location of the meter set and related facilities from Company’s initial design may be granted provided, however, the Company can reasonably accommodate said relocation and Customer agrees to pay all related costs. RATE: Monthly minimum charge is the Customer Charge. Customer Charge: $5.50 per bill Per Therm Charge: $0.73980* *Includes the following: Cost of Gas: 1) Temporary purchased gas cost adjustment ($0.01173) 2) Weighted average cost of gas $0.42405 3) Gas transportation cost $0.16443 Distribution Cost: $0.16305 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. Exhibit No. 3 Case No. INT-G-22-02 Intermountain Gas Company Page 4 of 6 I.P.U.C. Gas Tariff Rate Schedules Nineteenth Revised Sheet No. 5 (Page 1 of 2) Name of Utility Intermountain Gas Company Issued by: Intermountain Gas Company By: Lori A. Blattner Title: Director – Regulatory Affairs Effective: August 1, 2022 Rate Schedule IS-C SMALL COMMERICAL INTERRUPTIBLE SNOWMELT SERVICE APPLICABILITY: Applicable to any customer otherwise eligible to receive gas service under Rate Schedule GS-1 who has added natural gas snowmelt equipment after 6/1/2010. The intended use of the snowmelt equipment is to melt snow and/or ice on sidewalks, driveways or any other similar appurtenances. Any and all such applications meeting the above criteria will be subject to service under Rate Schedule IS-C and will be separately and individually metered. All service hereunder is interruptible at the sole discretion of the Company. FACILITY REIMBURSEMENT CHARGE: All new interruptible 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 request to alter the physical location of the meter set and related facilities from Company’s initial design may be granted provided, however, the Company can reasonably accommodate said relocation and Customer agrees to pay all related costs. RATE: Monthly minimum charge is the Customer Charge. Customer Charge: $9.50 per bill Per Therm Charge: Block One: First 200 therms per bill @ $0.76479* Block Two: Next 1,800 therms per bill @ $0.74131* Block Three: Next 8,000 therms per bill @ $0.71864* Block Four: Over 10,000 therms per bill @ $0.65008* *Includes the following: Cost of Gas: 1) Temporary purchased gas cost adjustment ($0.00560) 2) Weighted average cost of gas $0.42405 3) Gas transportation cost $0.16169 Distribution Charge: Block One: First 200 therms per bill @ $0.18465 Block Two: Next 1,800 therms per bill @ $0.16117 Block Three: Next 8,000 therms per bill @ $0.13850 Block Four: Over 10,000 therms per bill @ $0.06994 Exhibit No. 3 Case No. INT-G-22-02 Intermountain Gas Company Page 5 of 6 I.P.U.C. Gas Tariff Rate Schedules Seventy-First Revised Sheet No. 7 (Page 1 of 2) Name of Utility Intermountain Gas Company Issued by: Intermountain Gas Company By: Lori A. Blattner Title: Director – Regulatory Affairs Effective: August 1, 2022 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 customer not previously served under this schedule 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: Demand Charge: $0.30000 per MDFQ therm Per Therm Charge: Block One: First 250,000 therms per bill @ $0.54361* Block Two: Next 500,000 therms per bill @ $0.52572* Block Three: Over 750,000 therms per bill @ $0.44877* *Includes the following: Cost of Gas: 1) Temporary purchased gas cost adjustment Block One and Two ($0.00198) Block Three $0.02165 2) Weighted average cost of gas $0.42405 3) Gas transportation cost (Block One and Two only) $0.09154 Distribution Cost: Block One: First 250,000 therms per bill @ $0.03000 Block Two: Next 500,000 therms per bill @ $0.01211 Block Three: Over 750,000 therms per bill @ $0.00307 PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for the cost of purchased gas as provided for in Rate Schedule PGA. This adjustment is incorporated into the calculation of the Cost of Gas stated on customer bills. 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. 2. The customer shall negotiate with the Company, a mutually agreeable Maximum Daily Firm Quantity (MDFQ), which will be stated in and in effect throughout the term of the service contract. 3. The monthly Demand Charge will be equal to the MDFQ times the Demand Charge rate. Demand Charge relief will be afforded to those LV-1 customers when circumstances impacted by force majeure events prevent the Company from delivering natural gas to the customer’s meter. Exhibit No. 3 Case No. INT-G-22-02 Intermountain Gas Company Page 6 of 6 NEWS RELEASE and CUSTOMER NOTICE CASE NO. INT-G-22-02 INTERMOUNTAIN GAS COMPANY (4 pages) Intermountain Gas Company files price increase request as part of interim PGA BOISE, ID – May 31, 2022 – Intermountain Gas Company today filed an interim purchased gas cost adjustment (PGA) application with the Idaho Public Utilities Commission to increase its prices by approximately 25.2% or $67 million. If approved, the increase would be effective Aug. 1, 2022. The primary reason for the filing is a significant increase in the commodity price for natural gas. Over the last several months, natural gas prices have climbed not only across the country, but also across the globe. A rebound in demand, lower than average storage levels, high levels of liquified natural gas exports and other global events have combined to create strong upward pressure on prices. Intermountain typically files PGAs on an annual basis to balance out an over collection or under collection of natural gas costs. Because commodity prices have increased so dramatically, the company filed an interim increase to mitigate the under collection balance. If left unchanged until later in the year, the monthly increase for customers would be greater because of the under collection balance. Intermountain’s earnings will not increase as a result of this filing. Because the price Intermountain pays for natural gas is passed through directly to customers, there is no financial benefit to the company from this proposed price increase. If approved, a typical residential customer would see an increase of $10.55, or 24.1%, per month based on average weather and usage. Commercial customers, on average, would see an increase of $51.87, or 27%, per month. As a way to help customers better budget their energy costs, Intermountain offers a Level Pay program that helps even out monthly payments. Customers struggling to pay their bills may also qualify for federal or state energy assistance and should contact Intermountain to find out more or arrange a payment plan to help manage any past due balance on their account. “The economic rebound, coupled with a slow ramp up of drilling activity, also is playing a role in increased commodity prices,” said Scott Madison, executive vice president of business development and gas supply for Intermountain Intermountain urges all customers to use energy wisely. For more information about the company’s energy efficiency program and available rebates for installing high efficiency equipment, visit www.intgas.com/saveenergy. Conservation tips, information on government payment energy assistance and programs to help consumers level out their energy bills over the year can be found on the company’s website www.intgas.com. The request is a proposal and is subject to public review and approval by the PUC. A copy of the application is available for review at the commission, its homepage www.puc.idaho.gov, as well as the company’s website www.intgas.com. Written comments regarding the application may be filed with the commission. Customers may also subscribe to the commission’s RSS feed to review periodic updates via email. NEWS RELEASE Intermountain Gas Company is a natural gas distribution company serving approximately 402,300 residential, commercial and industrial customers in 74 communities in southern Idaho. Intermountain is a subsidiary of MDU Resources Group, Inc., a Fortune 500 company and a member of the S&P MidCap 400 and the S&P High-Yield Dividend Aristocrats indices, and is Building a Strong America® by providing essential products and services through its regulated energy delivery and construction materials and services businesses. For more information about MDU Resources, see 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.hanson@mduresources.com. Customer Notice Intermountain Gas Company files price increase request as part of interim PGA BOISE, ID | May 31, 2022 - Intermountain Gas Company today filed an interim purchased gas cost adjustment (PGA) application with the Idaho Public Utilities Commission to increase its prices by approximately 25.2% or $67 million. If approved, the increase would be effective Aug. 1, 2022. The primary reason for the filing is a significant increase in the commodity price for natural gas. Over the last several months, natural gas prices have climbed not only across the country, but also across the globe. A rebound in demand, lower than average storage levels, high levels of liquified natural gas exports and other global events have combined to create strong upward pressure on prices. Intermountain typically files PGAs on an annual basis to balance out an over collection or under collection of natural gas costs. Because commodity prices have increased so dramatically, the company filed an interim increase to mitigate the under collection balance. If left unchanged until later in the year, the monthly increase for customers would be greater because of the under collection balance. Intermountain’s earnings will not increase as a result of this filing. Because the price Intermountain pays for natural gas is passed through directly to customers, there is no financial benefit to the company from this proposed price increase. If approved, a typical residential customer would see an increase of $10.55, or 24.1%, per month based on average weather and usage. Commercial customers, on average, would see an increase of $51.87, or 27%, per month. As a way to help customers better budget their energy costs, Intermountain offers a Level Pay program that helps even out monthly payments. Customers struggling to pay their bills may also qualify for federal or state energy assistance and should contact Intermountain to find out more or arrange a payment plan to help manage any past due balance on their account. “The economic rebound, coupled with a slow ramp up of drilling activity, also is playing a role in increased commodity prices,” said Scott Madison, executive vice president of business development and gas supply for Intermountain Intermountain urges all customers to use energy wisely. For more information about the company’s energy efficiency program and available rebates for installing high efficiency equipment, visit www.intgas.com/saveenergy. Conservation tips, information on government payment energy assistance and programs to help consumers level out their energy bills over the year can be found on the company’s website www.intgas.com. The request is a proposal and is subject to public review and approval by the PUC. A copy of the application is available for review at the commission, its homepage www.puc.idaho.gov, as well as the company’s website www.intgas.com. Written comments regarding the application may be filed with the commission. Customers may also subscribe to the commission’s RSS feed to review periodic updates via email. Intermountain Gas Company | Customer Service: 800-548-3679 | M-F, 7:30am - 6:30pm | www.intgas.com