Why natural gas?

According to the U.S. Census Bureau, here are just a few of the reasons home buyers prefer homes heated with natural gas:

  • Natural gas is more economical.
    Gas can significantly cut your energy bills, depending on where you live and your energy usage.
  • Natural gas is efficient.
    Using gas directly for space heat, water heating, cooking, and drying decreases our region's demand for electricity.
  • Natural gas is reliable and convenient.
    Gas is delivered directly to your home through underground piping and will not leave you stranded in inclement weather as electricity can. Using natural gas means no storage tanks, no running out, and no waiting for delivery as with oil and propane.
  • Natural gas is environmentally friendly.
    Clean-burning natural gas is the most efficient fossil fuel available and the least taxing on the environment.
How are natural-gas rates determined?

Residential and commercial rates charged by Intermountain Gas Company (IGC) for the gas delivered to the customer include the following components:

Commodity Charge – The Commodity Charge is the actual cost of the natural gas purchased from suppliers plus the cost of transporting that gas through various pipelines in Intermountain’s system then delivering the gas to customers. The gas cost portion of the Commodity Charge is trued-up in an annual Purchased Gas Adjustment (PGA) mechanism.

Although Intermountain’s overall rates have fluctuated over the years as a result of the PGA, the basic service rates have not changed since 1985.

Customer Charge – The Customer Charge helps to partially recover the costs of delivering natural gas to the customer’s home or business on Intermountain’s local distribution system. 

What is included in the cost of gas?

Intermountain purchases natural gas through an unregulated wholesale-commodity market, using a mix of long-term and short-term contracts with independent suppliers. The price customers pay for natural gas reflects what Intermountain actually pays for the fuel.  Commission rule does not entitle the utility to make a profit on the gas-supply portion of the bill.

A PGA is a method of reconciling or “truing-up” the prices Intermountain pays for purchasing and transporting natural gas to customers with the rates that are charged for the gas that is delivered. The first part of this process involves looking ahead and establishing the best projected price of natural gas in the upcoming year.  The second part looks back and calculates the difference between the previous projected price and the actual price. Sometimes that difference is positive and the customer receives a credit.  If the difference is negative, a surcharge is applied to the bill.

The price Intermountain pays for natural gas fluctuates daily, yet the rates charged to the customer are normally adjusted only once each year through the PGA mechanism.  Intermountain’s earnings do not change as a result of a proposed rate change reflected in a PGA. 
What is included in the cost of delivery?

The cost of transportation, storage and distribution of natural gas includes the maintenance of pipelines, meters and other equipment.  It also encompasses the cost of billing customers and allows for a moderate level of profit for Intermountain’s investment in the local distribution system.  Any request for higher rates is reviewed by the Idaho Public Utilities Commission.

What should your rate classification be?

RS-1 (Residential): The customer will be billed under the RS-1 tariff if they do not have both natural gas heat and a natural gas water heater, regardless of the number of natural gas appliances in the home.

RS-2 (Residential): The customer will be billed under the lower RS-2 tariff if they have natural gas heat and a natural gas water heater.

GS-1 (General Service): Small commercial or light industrial business will be billed for natural gas service under the GS-1 tariff.



Intermountain Gas Company
RS-1 Residential Cost Comparison
Space Heat Only

The following cost comparisons for Natural Gas space heating vs. electric are based on 523 therms per year consumed by the average Intermountain Gas Company residential customer using natural gas for space heating.

All Prices Approved 10/01/2013 
Energy Source Efficiency Annual
Energy Cost
Monthly
Energy Cost
Savings
With Gas
IGC Natural Gas Space Heat 82% $456.12 $38.01  
Idaho Power Space Heat 100% $1,263.11 $105.26 64%
City of Idaho Falls Space Heat 100% $786.20 $65.52 42%
Rocky Mountain Power Space Heat 100% $1,539.31 $128.28 70%
Oil Space Heat @ $3.73/Gal 80% $1,429.32 $119.11 68%
Propane Space Heat @ $2.99/Gal 82% $,1708.45 $142.37 73%

 

Intermountain Gas Company
RS-2 Residential Cost Comparison
Space Heat and Water Heat

The following cost comparisons for Natural Gas space heating vs. electric are based on 769 therms per year consumed by the average Intermountain Gas Company residential customer using natural gas for both space and water heating.

Energy Source Efficiency Annual
Energy Cost
Monthly
Energy Cost
Savings
With Gas
IGC Natural Gas Space Heat 82%      
IGC Natural Gas Water Heat 62%      
    $592.79 $49.40  
Idaho Power Space Heat 100%      
Idaho Power Water Heat 90%      
    $1,714.63 $142.89 65%
City of Idaho Falls Space Heat 100%      
City of Idaho Falls Water Heat 90%      
    $1,098.10 $91.51 46%
Rocky Mountain Power Space Heat 100%      
Rocky Mountain Power Water Heat 90%      
    $2,220.99 $185.08 73%
Oil Space Heat @ $3.73/Gal 80%      
Oil Space Water @ $3.73/Gal 59%      
    $2,117.68 $176.47 72%
Propane Space Heat @ $2.99/Gal 82%      
Propane Water Heat @ $2.99/Gal 82%      
    $2,511.47 $209.29 76%

 

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Commercial or Industrial Business Usage

Interested in natural gas information for commercial and large commercial business usage? Use the links below to determine which information best suits your gas needs.

Are you:

A commercial business using less than 2,000 therms a day and less than 200,000 therms annually click here.

OR

Are you:

An industrial and large commercial business using 200,000 therms or more annually click here.