William C. "Bill" Glynn, President of Intermountain Gas Company, said, "Since filing that application in May, we have seen a considerable softening in the wholesale price of natural gas due largely to increased natural gas drilling. We are entering into some fixed price supply agreements to take advantage of these low producer prices and are therefore amending our request in order to pass these lower prices on to our customers as quickly as possible. A portion of the filing, however, still reflects the recovery of that portion of higher prices paid to the producers last winter that were not reflected in prices then charged our customers. The company is not requesting any increase in the price component for its own service, operation, maintenance, or captial costs, which has remained the same for 15 years. Therefore the company's earnings will not change as a result of the proposed changes".

Glynn added, "The highest level of natural gas drilling in 15 years and conservation efforts motivated by current market prices have contributed to increased supplies and lower demand thereby helping to influence the downward prices. Even with this good news, we are still encouraging congress to insure that adequate energy assistance funds be available to those residential customers whose incomes are most impacted by high energy prices. Last winter more than 7600 of our customers received about $1.3 million in additional help through local agencies administering energy assistance funds." Intermountain continues to encourage all its customers to be conscious of their energy usage and the wise use of energy as well. Through its bill inserts and on its website (www.intgas.com) The Company will continue to provide to all customers helpful ways to conserve and use energy wisely and to its low income customers how to apply for energy assistance.

If this amended increase is approved, residential customers using natural gas for heating and water heating could experience an average monthly increase of $3.30 (5.23%). Those residential customers using natural gas for space heating only could experience an average monthly increase of $. 83 (1.68%). Commercial customers could experience an average monthly increase of $10.57 (4.18%).

If approved as amended, the total net revenue increase from this current request will be approximately $9.5 million (4.52%) and is proposed to be effective July 1, 2001. A copy of Intermountain's amended application is available for public review at the offices of both the Idaho Public Utilities Commission and the Company.