Idaho Public Utilities Commission

Case No. INT-G-11-03, Order No. 32450

February 2, 2012

Contact: Gene Fadness (208) 334-0339, 890-2712


Rates decline again for Intermountain Gas customers


The Idaho Public Utilities Commission has approved an Intermountain Gas Company application to decrease the variable portion of it rates by an average 4.5 percent effective Feb. 1. 


Natural gas prices continue to decline for various reasons, the commission said.  “Supply is abundant due to new drilling technologies and pipeline infrastructure.  Record quantities of stored gas also exist, and there has been no material hurricane activity that might otherwise interfere with delivery.”  The commission said it appreciates the company’s prompt application to decrease its rates in the face of falling natural gas prices. 


At least once each year, Idaho’s electric and gas utilities submit a cost adjustment that tracks the costs of power and gas supply that vary from year to year.  While base rates represent primarily fixed costs of providing natural gas or electricity, the annual Purchased Gas Cost Adjustment (PGA) for gas companies and Power Cost Adjustment (PCA) for electric companies result in typically one-year surcharges or credits that reflect variable costs.  Increases or decreases in the PGA or PCA do not impact company earnings positively or negatively.  Both gas and electric utilities are expected to file for more than annual adjustments if variable costs of supply electricity or gas change dramatically. 


Effective Feb. 1, the portion of rates that covers natural gas supply and transportation would decline from 45.35 cents per therm to 41.8 cents.  That represents about half the total summer residential rate of 86 cents per therm and winter residential rate of 75 cents.  This is Intermountain Gas Company’s fifth consecutive request for a reduction in natural gas rates. 


The company serves about 312,000 customers in 74 communities across southern Idaho.