20220803News Release.pdf

Case No. INT-G-22-02
Order No. 35479
Contact: Adam Rush
Office: [phone]
E-mail : adam.rush@puc. idaho.gov
NEWS RELEASE: Commission approves Intermountain Gas application to increase rates
for residential and commercial customers
BOISE (Aug. 3,2022) - On July 29,2022, the Idaho Public Utilities Commission approved new
lntermountain Gas Company rate schedules through an interim Purchased Gas Cost Adjustment (PGA)
that increases rates for natural gas service for residential customers by approximately 24.1
percent and rates for commercial customers by approximately 27 percent.
The rate increases started on Aug. 1,2022. Residential customers' monthly bills will increase by
an average of $10.55 and commercial customers' bills will increase by an average of $51.87,
depending on the amount of natural gas they use. In total, annualized reve,nues for the Company
will increase by $67 million. The customer rate increases will not increase the Company's
earnings.
The PGA is a Commission-approved mechanism that adjusts rates up or down to reflect changes
in the costs for the Company to buy natural gas from suppliers - including changes in
transportation, storage and other costs. Intermountain Gas defers those costs into its purchased gas
cost adjustment account, then passes the costs on to customers through a rate increase or decrease.
Intermountain Gas asked for permission to pass through to each of its customer classes changes in
gas-related costs resulting from an increase in its weighted average cost of gas, and received
approval to increase the cost from $0.26000 per therm to $0.42405 per therm. Intermountain Gas
said the primary drivers of the proposed increase include macroeconomic forces and geopolitical
events that are increasing the price of wholesale natural gas.
lntermountain Gas also asked for permission to increase its line break rate increase from $0.42443
per therm to $0.58848 per therm for parties responsible for damage that causes a gas
leak.
Staffwith the ldaho Public Utilities Commission reviewed the application and recommended that
the Commission approve it.
Although the Commission approved Intermountain Gas's requested PGA rate increases, it
encouraged the Company to explore all options to reduce future increases.
For additional information on the application, please visit
httos ://ouc. idaho. sov/case/Detail s/6863.