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 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 [email protected].