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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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August 8, 2005 |
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 IS PAYING FOR THESE NATURAL
GAS SUPPLIES.
WILLIAM C. “BILL” GLYNN, PRESIDENT OF INTERMOUNTAIN GAS
COMPANY, SAID, “NATURAL GAS PRICES ARE INFLUENCED BY A
NUMBER OF FACTORS INCLUDING COSTS OF OTHER ENERGY
SOURCES, INCREASED DEMAND FOR NATURAL GAS INCLUDING THAT
USED FOR ELECTRIC POWER GENERATION, PRODUCERS ABILITY TO
DRILL FOR ADDITIONAL SUPPLIES OF NATURAL GAS AND THEIR
ABILITY TO SELL NATURAL GAS TO OTHER NORTH AMERICAN
MARKETS, AS WELL AS SPECULATION IN COMMODITY MARKETS.
OVER THE PAST YEAR NATURAL GAS HAS MORE CLOSELY FOLLOWED
THE PRICE OF CRUDE OIL AND BOTH ARE NOW AT HISTORIC
HIGHS.” COMMENTING FURTHER GLYNN SAID, “WE ARE PLEASED
THAT WASHINGTON HAS PASSED AN ENERGY BILL THAT WILL HELP
DIVERSIFY THE NATION’S ENERGY BASE BEYOND ITS DEPENDENCY
ON NATURAL GAS FOR POWER GENERATION. BUT WE’RE ALSO
DISAPPOINTED THAT MORE WASN’T DONE, INCLUDING PROVIDING
PRODUCERS ACCESS TO PUBLIC LANDS AND COASTAL WATERS
WHERE KNOWN QUANTITIES OF LARGE SUPPLIES OF NATURAL GAS
AND OIL EXIST AND CAN BE RECOVERED IN AN ENVIRONMENTALLY
SENSITIVE WAY.”
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 COMPANY’S EARNINGS WILL NOT
INCREASE AS A RESULT OF THE PROPOSED PRICE CHANGES. BY
REGULATION, THE COMPANY CAN NOT “MARK-UP” WHAT IT PAYS
THE PRODUCERS FOR THE GAS IT BUYS ON BEHALF OF ITS
CUSTOMERS . 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 LESS THAN ELECTRICITY.”
GLYNN WENT ON TO SAY, “INTERMOUNTAIN CONTINUES TO URGE
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 COMPANY’S WEBSITE (www.intgas.com).
WE APPLAUD THE ENERGY BILL PROVISION THAT INCREASES THE
LOW INCOME HOME ENERGY ASSISTANCE PROGRAM, AND 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
$17.26 (27.4%). THOSE RESIDENTIAL CUSTOMERS USING
NATURAL GAS FOR SPACE HEATING ONLY COULD EXPERIENCE AN
AVERAGE MONTHLY INCREASE OF $12.17 (25.5%). COMMERCIAL
CUSTOMERS COULD EXPERIENCE AN AVERAGE MONTHLY INCREASE
OF $77.76 (28.4%).
IF APPROVED AS FILED, THE TOTAL NET REVENUE INCREASE
FROM THIS CURRENT REQUEST WILL BE APPROXIMATELY $67.6
MILLION (27.2%) AND IS PROPOSED TO BE EFFECTIVE OCTOBER
1, 2005. THIS PROPOSAL IS SUBJECT TO PUBLIC REVIEW AND
APPROVAL BY THE IPUC. A COPY OF INTERMOUNTAIN’S
APPLICATION IS AVAILABLE AT THE OFFICES OF BOTH THE
IDAHO PUBLIC UTILITIES COMMISSION AND THE COMPANY. |
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