On October 27, 2000, Intermountain Gas Company filed an interim natural gas purchase cost review application with the Idaho Public Utilities Commission. The application is necessary to reflect the continued increase in the prices paid to the natural gas producers by Intermountain on behalf of its customers in Southern Idaho. The company is once again not requesting any increase in the price component for its own service, operation, maintenance, or capital costs, which has remained the same for over 15 years. The Company's earnings will therefore not increase as a result of the proposed price changes.

William C. Glynn, President of Intermountain Gas Company, said, "Intermountain and its customers have enjoyed a long history of significant price stability. However, like other commodities, energy prices are also subject to the laws of supply and demand. The decrease in drilling activity, when oil prices dropped to historic levels nearly two years ago has negatively effected consumer heating oil, gasoline and now natural gas prices. Prices paid by Intermountain for the purchase of natural gas have increased dramatically during the past twelve months and, for this winter, are expected to be double that paid last year. The good news is that with these increases in prices paid to energy producers, a significant increase in drilling activity has now begun. Therefore, we expect that prices will begin declining by next year's heating season."

Mr. Glynn further added, "With these new higher producer prices, we continue to encourage all of our customers to be conscious of their energy usage. Insure that your equipment is maintained, filters are cleaned or replaced, and that leaks around windows and doors are sealed with weather stripping or caulking. We are also very concerned that those customers who are unable to pay these prices know that funds, including federal funds, are available to help those in need through their local community low-income energy assistance agencies. An insert in the November Intermountain Gas Company bill will provide additional information on these energy assistance programs."

If this proposed increase is approved by the Idaho Public Utilities Commission, residential customers using natural gas for heating and water heating will experience an increase of 26.9% per therm. Those residential customers using natural gas for space heating only will experience an increase of 22.6% per therm. Commercial customers will experience an increase of 28.6% per therm.

If approved as filed, the total revenue increase from this current request will be approximately $36 million (27%) and will be effective December 1, 2000. A copy of Intermountain's application is available for public review at the offices of both the Idaho Public Utilities Commission and the Company.