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For more information on any of the
Intermountain Gas Press Releases contact: Mike
Huntington (208) 377-6059 |
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News Release |
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May 5, 2004 |
Contact:
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Mike Huntington
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Vice President
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Marketing & External Affairs
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(208) 377-6059
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INTERMOUNTAIN GAS COMPANY FILES NATURAL GAS PURCHASE
COST REVIEW APPLICATION WITH THE IPUC
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TODAY, INTERMOUNTAIN GAS COMPANY (INTERMOUNTAIN) FILED
ITS ANNUAL PURCHASED GAS COST ADJUSTMENT APPLICATION
WITH THE IDAHO PUBLIC UTILITIES COMMISSION (IPUC).
THIS TYPE OF APPLICATION IS FILED EACH YEAR TO ENSURE
THAT THE COSTS THAT INTERMOUNTAIN IS INCURRING ON BEHALF
OF ITS CUSTOMERS ARE PROPERLY REFLECTED IN ITS SALES
PRICE.
IN ITS APPLICATION, INTERMOUNTAIN REQUESTS
PERMISSION TO ADJUST ITS PRICES TO REFLECT THE HIGHER
PRICES THAT INTERMOUNTAIN MUST PAY TO ITS NATURAL GAS
SUPPLIERS.
WILLIAM C. BILL GLYNN, PRESIDENT OF
INTERMOUNTAIN GAS COMPANY, SAID, AS OUR CUSTOMERS
ALREADY REALIZE, CRUDE OIL AND ITS DERIVATIVE GASOLINE,
ARE CURRENTLY UNDER SEVERE PRICE PRESSURE. SIMILARLY
NATURAL GAS, AS ANOTHER ENERGY COMMODITY, IS NOW
EXPERIENCING THOSE SAME PRESSURES BECAUSE IDAHO IS NOT
ISOLATED FROM THE PRICE INFLUENCES OF THE NATIONAL
MARKET. CONSEQUENTLY, WE ARE FEELING THAT PRICE IMPACT
IN OUR ROCKY MOUNTAIN AND CANADIAN SUPPLY BASINS. WHILE
CONSERVATION AND WISE ENERGY USE ARE THE BEST SHORT
RANGE SOLUTIONS TO THE SUPPLY DEMAND IMBALANCE THAT
DRIVES THESE PRICE INCREASES, THE BEST LONG TERM
SOLUTION IS ALLOWING THE INDUSTRY TO ACCESS THE ENORMOUS
AMOUNTS OF NATURAL GAS THAT ALREADY EXIST ON PUBLIC
LANDS. THE INDUSTRY CAN PRUDENTLY DRILL WHERE THE
RESOURCES EXIST WITHOUT DAMAGING THESE LANDS, AND I ASK
THAT OUR CUSTOMERS BECOME MORE INFORMED ON THIS
IMPORTANT PUBLIC POLICY ISSUE.
GLYNN SAID, WHILE THIS APPLICATION REFLECTS THE
CURRENT AND MARKET FORECAST OF NATURAL GAS PRICES FOR
THE NEXT TWELVE MONTHS, EVEN AT THESE HIGHER PRODUCER
PRICES, NATURAL GAS IN SOUTHERN IDAHO WILL STILL BE 25%
- 45% LESS THAN ELECTRICITY.
THE COMPANY IS NOT REQUESTING ANY CHANGE IN THE PRICE
COMPONENT FOR ITS OWN SERVICE, OPERATION, MAINTENANCE,
OR CAPITAL COSTS, WHICH HAS REMAINED THE SAME FOR OVER
20 YEARS. THEREFORE THE COMPANYS EARNINGS WILL NOT
INCREASE AS A RESULT OF THE PROPOSED PRICE CHANGES.GLYNN
WENT ON TO SAY, INTERMOUNTAIN ENCOURAGES ALL ITS
CUSTOMERS TO BE CONSCIOUS OF THEIR ENERGY USAGE. HELPFUL
TIPS ON WAYS TO CONSERVE AND USE ENERGY WISELY AND HOW
TO REQUEST ENERGY ASSISTANCE ARE PROVIDED THROUGH BILL
INSERTS AND ON THE COMPANYS WEB SITE (WWW.INTGAS.COM).
WE CONTINUE TO WORK WITH THE LOCAL AGENCIES THAT
ADMINISTER ENERGY ASSISTANCE FUNDS TO HELP THOSE
RESIDENTIAL CUSTOMERS WHOSE INCOMES ARE MOST IMPACTED BY
HIGHER ENERGY PRICES. WE ALSO HAVE A NUMBER OF PROGRAMS
TO HELP OUR CUSTOMERS LEVEL OUT THEIR ENERGY BILLS OVER
THE YEAR, AND STABILIZE THE POTENTIAL IMPACT THAT COLD
WEATHER WILL HAVE DURING PERIODS OF HIGHER NATURAL GAS
COSTS.
IF THIS PROPOSED INCREASE IS APPROVED, RESIDENTIAL
CUSTOMERS USING NATURAL GAS FOR HEATING AND WATER
HEATING COULD EXPERIENCE AN AVERAGE MONTHLY INCREASE OF
$6.02 (9.9%). THOSE RESIDENTIAL CUSTOMERS USING NATURAL
GAS FOR SPACE HEATING ONLY COULD EXPERIENCE AN AVERAGE
MONTHLY INCREASE OF $4.08 (8.7%). COMMERCIAL CUSTOMERS
COULD EXPERIENCE AN AVERAGE MONTHLY INCREASE OF $26.19
(10.5%).
IF APPROVED AS FILED, THE TOTAL NET REVENUE INCREASE
FROM THIS CURRENT REQUEST WILL BE APPROXIMATELY $22.1
MILLION (10%) AND IS PROPOSED TO BE EFFECTIVE JULY 1,
2004. THIS PROPOSAL IS SUBJECT TO PUBLIC REVIEW AND
APPROVAL BY THE IPUC. A COPY OF INTERMOUNTAINS
APPLICATION IS AVAILABLE AT THE OFFICES OF BOTH THE
IDAHO PUBLIC UTILITIES COMMISSION AND THE COMPANY.
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